Board Tuesday 10 February 2015 at 5.00pm Meeting to be held at YHN House, Benton Park Road, Newcastle upon Tyne. Contact: Jill Davison (telephone: 0191 278 8624 email: jill.davison@yhn.org.uk)
AGENDA Introduction items
Timing
1
Reminder to switch off mobile phones
5.00
2
Apologies for absence
3
Declarations of Interest
4
Chairs Items
Page No.
Items for Decision Governance 5
Commercial Committee Annual report. Ammar Mirza, Committee Chair
5.10
1
5.20
5
Financial 6
Universal Credit
Strategic 7
Corporate Procurement Strategy
5.35
16
8
Strengthening tenant engagement
5.50
36
6.05
41
Items for approval 9
Minutes of the 16 December 2014
10
Any Other Business
Items for Information 11i
Chief Executive Report
49
11ii
Blakelaw 165 estate remodelling
54
11iii
Social Value Commitment NCC consultation response
61
11iv
Delegated Decisions
65
11v
Board Forward Plan 24 March
67
11vi
Board and committee dates 2015
68
11vii Committee Minutes – non-confidential - Finance & Resources Committee 24 July 2014
70
- Customer & Service Delivery Committee 15 September 2014 76 - Finance & Resources Committee 16 October 2014
81
To exclude the press and public during discussion of agenda item 11 because of the likely disclosure of confidential information. The definitions of what is considered confidential are contained within Section 16 of the Company’s Standing Orders. Protect not for publication Items for approval 12
Confidential Minutes 16 December 2014
6.05
84
13
Advice and Support and Young Peoples Service – Service Reviews
6.10
85
14
YHN Budget and disaggregation 2015-16
6.30
102
15
Churchwalk Shopping Centre
6.50
110
16
Health and Safety
6.55
Paper to be tabled
Items for information 17
Committee Minutes - confidential - Finance & Resources Committee 16 October 2014 - Commercial Committee 18 November 2014
115 116
5 Board 10 February 2015 Commercial Committee Annual report Report by Chair of Commercial Committee
For Information 1.
Background information
1.1 This report provides a summary of the work of Commercial Committee from November 2013 to November 2014 1.2 The purpose of the Committee is to offer advice and guidance and to provide both strategic and tactical oversight of new and existing investment and business opportunities. The Committee also advises on effective contract management, seeks out innovative and collaborative arrangements to secure value for money, and ensures that business change continues to support our mission and strategic objectives. 1.3 Within the scheme of delegations, the Committee is responsible for the following: Reviewing and reporting to Board on investment and business development strategies; Examining tactical plans developed to achieve investment and business development as set out in our YHN Business Strategy; Reviewing, monitoring and reporting to Board on investment and business development opportunities; Reviewing the economic evaluation of potential investments and business development opportunities; Reviewing and recommending for Board approval the appropriate operating and governance structure for potential investments and business developments; Assessing and monitoring management reports regarding proper due diligence of any investment or business developments to be undertaken; Recommending to Board for approval the business development aspects of our YHN Business Strategy; Monitoring and oversight of our existing business interests (i.e. Palatine, NFS etc.); Monitoring and oversight of our existing contractual relationships (i.e. Byker Community Trust and Leazes Homes); and Ensuring that risk based assessments and procurement practices are robust and represent value for money. Page 1 of 83
1.4 The Chair of the Committee is Ammar Mirza, and the vice-chair for the period covered was Judith Common. The Assistant Chief Executive and Director of Corporate Services is the lead officer. The Committee meets on a quarterly basis, and this report covers the five meetings held between November 2013 and November 2014. 1.5 Members of the Committee take an active part in meetings, providing supportive challenge to the officers that attend. The level of member attendance at the committee during the period was very good, although one independent member experienced problems due to work commitments, and was only able to attend three out of five meetings, having now unfortunately had to stand down. The Council nominated new members to the committee has improved attendance further.
2.1 Work plan summary During the course of the period Commercial Committee has received a wide variety of reports for decision or for information. These have included detailed information about commercial activity and business opportunities. A summary of work covered is as follows:
Byker Community Trust (BCT) Management Agreement. In November 2013 the committee considered a report which summarised the management agreement between YHN and the BCT, and received a presentation from representatives of the Trust. The report gave an overview of governance and operational arrangements, and an update on our performance against key BCT key performance indicators. Members of the committee considered issues around performance and arrangements for renewal of the current contract in 2016, and received assurances in relation to a number of issues raised.
Business Opportunities. During the course of the period covered, the committee considered a range of opportunities for new services, and also received updates on opportunities that had been discussed previously. Examples of opportunities discussed include: o Garden care expansion o Older persons’ flexible service menu o Staff vehicle hire o LMS (Landscape Management Service) acquisition o NFS second hand furniture sales o Goods to Go
Decisions as to whether to proceed with these were based on a set of criteria previously agreed by Committee.
Own Your Own. During the year, the committee received information about the development of the Own Your Own scheme. Members were very positive about the development of the scheme and contributed to discussions around operational arrangements and safeguards. Page 2 of 83
3.
Palatine beds retail proposal. In November 2013, a paper was considered which asked members to approve further investigations into different delivery models for the 1907 retail product. Committee approved the drawing up of project and business plans.
Service Level Agreements (SLAs). In February 2014 committee received a report about SLAs that we have with NCC. Members raised a number of issues in relation to some of the SLAs, and it was agreed that quarterly SLA update reports would be considered at future meetings.
NFS Expansion plans/NFS and Palatine sales and marketing review. Members received presentations at two meetings covering NFS expansion and Palatine operations. The presentations covered NFS turnover, workforce scheduling, Work Choice, potential expansion through Palatine’s successful Northern Housing Consortium tender, and issues such as the replacement of the Palatine roof.
Care Services Business Plan. In June 2014 the committee received a presentation about the Care Services Business Plan, and this was followed by approval in principle of the final draft at the meeting in October, subject to amendment to reflect comments made by the committee. Members contributed to discussions about potential extra care schemes.
Central Walker financial appraisal. The committee considered a unique project around delivering accommodation and services for older people. Members were asked to note progress on the project, and agree a preferred delivery option for the commercial element of phase one.
Tendering and commercial activity reports. Quarterly reports on tendering were presented to each meeting of the committee. These covered a summary of tender activity during the quarter, including information about successful and unsuccessful tenders, and about tenders which were considered but not progressed. Reports also contained information about income from external contracts during the period.
Conclusion and recommendations
3.1 Commercial Committee has a broad remit around overseeing investment and business opportunities and reviewing commercial activity, on behalf of YHN Board. This annual report for the period from November 2013 to November 2014 illustrates the wide scope of issues covered during the period. All members of the Committee have contributed positively in discussing agenda items. 3.2 After the HRA and YHN budgets are disaggregated in April 2015 there may be a need to consider an enhanced role for Board with regard to commercial activity, since this will have a significant impact on YHN’s finances.
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3.3 Board is recommended to: 
Note the work of Commercial Committee over the period November 2013 to November 2014.
Background Papers Commercial Committee minutes November 2013 to November 2014 Commercial Committee terms of reference Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, please contact Louise Horsefield by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk
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Board 10 February 2015
6
Universal Credit Report by Director of Tenancy Services For Discussion 1.
Background
1.1
From January 2012 to March 2014 Board received several reports detailing the content and impact of the Welfare Reform Act 2012. One of the most significant elements of the legislation is Universal Credit (UC). In March 2014 we already knew from pilot schemes that there would be huge challenges to tenants and housing organisations as UC was rolled out nationally. However at that time there were still several unknown factors relating to the implementation. Over the last year more people have started to claim UC and at the end of 2014 Newcastle City Council was advised by the Department for Work and Pensions (DWP) that UC would begin to be implemented in the city from 27 April 2015. This report provides information to Board on what UC is; some detail on the initial implementation, issues for tenants and YHN and how we propose to work with partners, in particular the council and the DWP to implement UC as effectively as possible.
1.2
What is Universal Credit Universal Credit (UC) is a means tested benefit for those on low income. It is for people of working age, paid to people who are working, seeking to work or those who are unable to work. UC is replacing six means tested benefits, they are
Income related employment support allowance Income related job seekers allowance Income Support Child tax credit Housing benefit Working tax credit
UC will be a managed monthly payment paid in arrears (not four weekly) and claimants not already in full time work will be expected to look for this as a condition of claiming UC. Unlike housing benefit claimants will get their Page 5 of 83
housing costs in the UC and need to pay their rent to their landlord themselves. If claimants accrue arrears of more than two months’ rent there is provision for the housing cost element of UC to be paid direct to the landlord plus an amount to reduce the arrears. Claimants will be expected to make and manage their claim on line. Support will be available for the most vulnerable claimants and in some cases where claimants are particularly vulnerable the housing element of UC will be paid directly to the landlord from the commencement of the claim. Requests for direct payment to the landlord can also be made at any point during the UC claim, as long as it can be demonstrated that the person is vulnerable and that they need this help (e.g. domestic violence situations). 1.3
Implementation to date UC has been beset by delays and the roll out has been much slower than first stated by the government. It was originally intended that it would be fully implemented nationally by the end of 2017. However by the end of 2014 UC was only available for some claimants in job centres in the North West and in Hammersmith, Bath, Rugby, Harrogate, Inverness and Shotton local authority areas. The National Audit Office confirmed in November 2014 that 17,850 claimants were on Universal Credit by October 2014. The DWP are hoping a further 500,000 claimants are in receipt of UC by April 2016 and seven million by December 2019.
1.4
Future Implementation In October 2014, the DWP announced the expansion of Universal Credit and that it will be rolled out to all job centres and local authorities across the country from February 2015 to March 2016. The roll out will be for single claimants only eligible for Jobseekers Allowance (JSA) including those who are liable to pay rent and those who are not. The roll out will be in four tranches and Newcastle is in the first tranche. It is worth noting that some claimants living in the east of the city are registered with a North Tyneside Job Centre and UC will not be implemented there at the same time as in Newcastle. Tranche 1 (Feb – Apr 2015) 150 jobcentres Tranche 2 (May – Jul 2015) 160 jobcentres Tranche 3 (Sept – Nov 2015) 180 jobcentres Tranche 4 (Dec 2015 – Mar 2016) 110 jobcentres It has been further announced that between May 2016 and December 2017 there will be national roll out to all new claims and claimants with change of circumstances and from January 2018 to Dec 2019 there will be a managed transfer of legacy benefit claims including housing benefit, JSA and income support.
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2.
Introduction of Universal Credit in Newcastle In December 2014 there were 2,026 tenants in receipt of JSA, of those 816 were in council owned accommodation managed by YHN. During 2014 the Revenues and Benefits service received 3,316 brand new claims from single people in receipt of JSA. It is difficult to predict from these figures how many will make new claims in the next year due to the number of people being sanctioned and also people who are in and out of work for short periods of time. The worst case scenario is that all 2,026 claimants may migrate to Universal Credit. At a recent meeting, the DWP advised that they anticipated 4,035 claims in Newcastle for Universal Credit between April and the end of the 2015/16 financial year. These claimants will be across all tenures and not all will have housing costs included in their claims.
2.1
Issues There are a number of challenges ahead not only for the claimants themselves but also for YHN and Newcastle City Council which are primarily around protecting rental income for the HRA and supporting claimants.
2.1.1
Direct Payment of Housing Costs The introduction of Universal Credit means that for most claimants who receive housing benefit under the existing system they will now become responsible for managing their housing costs. UC will be paid monthly in arrears and both of these changes will result in the need for personal budgeting from the claimant. For YHN, there are many challenges around the payment of housing costs directly to claimants and YHN’s ability to collect this rent. The demonstration pilots have helped to identify what interventions best help tenants, e.g. different levels of arrears at which direct payment reverts back to landlords, ways of providing support to tenants and using a range of payment methods.
2.1.2
Online Application and Management of UC Claim The default position for making and managing a UC claim is for it to be done online. This requires the claimant to have an email address, access to the internet and the skills to make the claim. Experience from Home Group is that it takes an average of 45 minutes to make a claim and there is no facility to save a claim part way through the process. Go Digital Newcastle have produced a guide “Where to get Computer and Internet Access, Advice and Training in Newcastle� On 16 December 2014 board received a paper on tenant broadband, this included proposals to provide free tablet computers to targeted customers Page 7 of 83
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subject to UC. Following this report, YHN have applied for £10K from the Local Government Association (LGA) Digital Experts Programme to deliver a pilot project to train digital champions to tackle those affected by welfare reform. We expect to be notified of the outcome of the bid in the next few weeks. The pilot project will offer a three tiered approach.
2.1.3
In phase one we are planning to deliver 4 focus groups with vulnerable customers (old, young, BME and disabled) to assess their training needs. All customers targeted could be affected by the introduction of Universal Credit.
In phase two they will have the opportunity to attend training and will receive a free tablet with internet connect for the year.
In phase three who hope to recruit at least 20 digital champions to help deliver our digital trailing going forward.
Access to Information Until recently there was lots of concern about the lack of clarity on data sharing between the DWP and housing organisations. YHN responded to a government consultation on data sharing arrangements. Following that consultation, the government have recently announced a change in data sharing legislation which will come into place in February 2015. This will allow the DWP, Local authorities and social landlords to share information on claimants to ensure that relevant and appropriate information to the UC claim is available.
2.1.4
Support for Vulnerable Claimants Discussions are already underway as to how partners will work together under the Universal Support Delivered Locally (USDL) model. This model provides a structure for the delivery of local support services to individuals needing additional help with the new demands of Universal Credit. Trials and tests of Universal Support are underway which include access to Digital support, triage (where the DWP are looking to co-locate services in at least one location in each DWP District during 2014/15), development of personal budgeting support initiatives (helping claimants to obtain bank accounts, debt advice and Alternative Payment Arrangements) through a partnership arrangement. The DWP philosophy is to support UC claimants to get used to monthly payments and manage finances successfully, making it easier to move into work. They are proposing to make a range of support services available to claimants not used to managing money. Jobcentre Plus Work Coach will direct claimants to help and advice that is available in their areas. This could include help from local organisations to open a bank account or to put together a monthly budget. Some people may also be offered support over the phone or face to face to help them. Online budgeting tools for claimants who can help themselves - such as those offered by Money Advice Service Page 8 of 83
and Citizens Advice. In addition to Jobcentre Plus Work Coaches, the DWP will operate a Universal Credit Service Centre. The City Council will be required to provide support to the service centre, specifically around assessing and interpreting housing costs. YHN are working with NCC to work through what the support model might look like under the partnership agreement. In particular YHN’s Advice and Support Service will piloting a new questionnaire to be used with customers to identify what support they may need to be ready for Universal Credit. The DWP have estimated that 5% of claimants will require personal budgeting support and 80% of those claims will be straightforward and the remaining 20% will be complex. They estimate that 5% of claimants will require supported online access and all of these claims are expected to be straightforward. It isn’t clear from early discussions if local economic conditions have been taken into account in this assessment although the DWP have confirmed that there will be the opportunity to review the costing model after go live. For YHN, one of the keys to success will be to identify cases which require managed payments, where the DWP pay the housing costs directly to the landlord for those customers who have been assessed as vulnerable and unable to manage their own money. The DWP have already established some criteria for this and officers will need to work within these parameters to ensure that the cases are identified early. The majority of supported and hostel accommodation will be exempt from UC and in those situations customers would still be expected to claim Housing Benefit for housing costs and UC just for their living costs i.e. the JSA element. 2.2
Anticipated Impact It has been reported that when it is fully implemented around 37% of claimants will be better off, 34% will be worse off and 29% will see no change in their disposable income because their entitlements to UC will match their current entitlements to means-tested benefits and tax credits. Overall, UC will benefit poorer families more than richer ones. The bottom six-tenths of the income distribution will gain on average, while the richest four-tenths will lose out slightly in the long run. On average, couples with children will receive more (in cash as a percentage of income) than couples without children, who will gain more than single adults without children. Lone parents will, on average, lose in the long run. But there will be winners and, losers amongst all family types. The following table shows the number of households expected to be in receipt of Universal Credit nationally and in Newcastle, and the estimated impact of the change. The Newcastle numbers are based upon the proportion of UK households living in Newcastle.
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% impact
No. of households – national
37% will be better off 34% will be worse off 29% will see no change Total no. of households
3.1 million 2.8 million 2.4 million 8.3 million
3
YHN Implementation Response
3.1
Specialist Income Management Service
No. of households – Newcastle 13,628 12,523 10,681 36,832
We know from the experiences of the pilot authorities that there are significant risks of big increases in rent arrears and additional resource requirements of organisations to minimise rent arrears and support tenants. In September 2013 Board approved proposals for specialist housing management functions in YHN, including new income teams. The new structure has been in place since June 2014 and we have invested in training and bespoke IT systems to assist officers in the management of arrears cases. We are starting to see the benefits of those changes with increased collection rates in the first three quarters of 2014/15 compared to the previous year. A detailed evaluation of the new services has been carried out and will be reported to Customer and Service Delivery Committee in March. 3.2
Universal Credit Implementation Project We are proposing to replicate the success of the previous welfare reform project by establishing a dedicated UC Implementation Project in YHN’s service improvement programme for 2015/16. To support the management of the project we have appointed a Universal Credit Implementation Manager for one year. The new post holder took up her role on 1 February; she has a strong technical background from her previous role in the Advice and Support Team and is experienced in delivering welfare reform projects under the previous project structure. Key themes of the project action plan are
Communication and training, internally and externally
Collection of tenant data, including national insurance numbers
Identifying vulnerable tenants that would qualify for managed payments
Reviewing tenancy agreements, including the pros and cons of establishing any day tenancies Ensuring rent payments are in place at the commencement of tenancies
Digital support for tenants
Board are asked to agree to receive quarterly progress reports on delivery of the project. 3.3
Partnership Working Page 10 of 83
We cannot successfully implement UC alone. YHN have been members of the council’s multi-agency Welfare Reform Strategy Board since its inception in 2012. In December that Board agreed to establish a UC Delivery Group which consists of representatives from the council, YHN, Jobcentre Plus and the DWP. The objectives of the group include
To provide recommendations and actions for consideration in successful delivery of Universal Credit; To oversee the development of an effective local support arrangements between the Council, YHN and the DWP, and to identify measures necessary to deal with complex cases; To utilise the group’s experience for the arrangements of implementing and delivering Universal Credit in Newcastle; To make suggestions for improvements for processes and protocols associated with delivery of Universal Credit; To regularly review the delivery plan and feed back to the Welfare Reform Board; To undertake specific tasks outside the meetings as agreed by the group
The first meeting of the group is 28 January 2015. 3.4
The Newcastle Universal Credit Support Partnership Triage Trial In preparation for UC the City council, YHN and Job Centre Plus are trialling a framework to strengthen the integration of support to people affected by the welfare reforms and to help them overcome the obstacles that they bring. It is hoped that this will enhance the development of the universal credit support partnership. The trial will inform our approach to how we identify and respond to those who need additional help to make and manage a universal credit claim by testing whether we have appropriate, relevant and timely services and support in place. We hope to collect information where alternative payment arrangements could be made to avoid our vulnerable tenants accruing rent arrears. The focus of the triage trial is on the development and delivery of a common triage process covering digital, financial, employment and housing. Our Advice and Support Team Manager is leading on the project on behalf of YHN and other services involved are Cherry Tree View and community Family Intervention Project. All staff involved will be completing a questionnaire and this will test how well using a coordinated and structured triage process could work for the City and how it can support the provision of consistent advice and information. A steering group has been established and the trial will commence on 9 February. Not only will this informal trial provide us with valuable learning points but it will provide knowledge and evidence which can be used to negotiate with the DWP to develop the broader direct partnership arrangements later in the year. Nationally there are 11 areas that are formally trialling key aspects of universal Support with the DWP across the UK. It is anticipated that they Page 11 of 83
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will be making their findings available in October 2015. 3.5
Income Management Strategy YHN’s income management strategy is in the process of being reviewed and updated. In due course the strategy will be presented to the appropriate committee for approval. The implementation of UC, the implications for customers, YHN and the HRA feature strongly in the strategy and there is a cross over between actions in the strategy and the UC implementation action plan. We will need to ensure that the actions across both pieces of work are coordinated and avoid duplication. We have the same lead officer for both areas of activity.
4
Business Implications.
4.1
Purpose and objectives The introduction of Universal Credit will impact on our ability to deliver against all of our objectives;
4.2
Make the money deliver Work together to create a brighter future. Create homes and neighbourhoods we can all be proud of
Value for money and efficiencies: YHN has already invested in its services to put the business in a good position to mitigate any risk from lost rental revenue and to support tenants to sustain their tenancies. The UC project will seek to implement processes and procedures that are efficient and provide value for money.
4.3
Financial Implications It is anticipated that there will be costs associated with the implementation of UC, e.g. training, communication materials, staffing resources and digital inclusion activity. YHN Board previously agreed to establish a reserve specifically for welfare reform related activity. This reserve is now managed by the council and we will seek to establish an approval route to utilise the reserve as needed. Experience from the UC pilots is that transaction and staffing costs increase. If we have similar experiences in Newcastle there may be an impact on our management fee. If rent arrears increase there may be consequences for the HRA 30 year business model. At this stage provision has been made for an increase in bad debts and it is not expected that there will be significant impact in 2015/16.
4.4
Impact on services / performance There is likely to be an impact on rental income collection with the introduction of UC and tenants in receipt of the benefit receiving housing costs directly. Services introduced as part of the Welfare Reform service review will go some way to mitigate risk however data sharing and support Page 12 of 83
to claimants is key to minimising this risk as roll out continues. 4.5
Outcome for tenants/leaseholders Over 64% of working age tenants are in receipt of housing benefit. The initial roll out commencing in April will have a relatively small impact in terms of numbers of tenants affected however if the implementation processes are not efficient there may be a significant impact for the individual tenants that do claim UC. Whilst leaseholders will not be affected in the short term, in the long term the impact for leaseholders is less clear. Leaseholders currently in receipt of Job Seekers Allowance, Income Support or Employment Support Allowance can get help with their mortgage interest payments through these benefits. We do not currently know how many of our leaseholders receive this help. Furthermore, the rules are different under Universal Credit for people claiming help with mortgage interest. As a result some of our leaseholders will no longer receive help with their mortgage interest and may at risk of defaulting on their mortgages, putting their homes at risk
4.6
Risk (reputation and relationship) A reduction in income collection may reduce our ability to maintain current levels of service provision and future investment in properties if we are unable to maintain the rental income stream. There is a risk of increased evictions and homelessness if tenants are not supported to manage their income and meet their housing costs. A risk register is to be established as part of the UC Implementation Project. There is also an additional risk to council tax income collection. Currently, by assisting tenants to make claims for Housing Benefit, we also help the Council to ensure that those tenants that need to claim help towards paying their council tax do so. When UC is implemented, we will need to consider how we can continue to assist the Council in their council tax collection by ensuring tenants continue to make claims for Council Tax support.
4.7
Environmental There are no direct environmental impacts following the introduction of Universal Credit.
4.8
Legal In September 2013 Board agreed to the principle of introducing 52 week rent payments. NCC’s Cabinet has endorsed that decision in December 2013 and we will work with the council to determine the most appropriate date to implement it for existing tenants. This will not be before April 2016. At present all tenancies start on a Monday, as UC is payable any day of the week we are also considering the benefits of tenancies commencing on any day of the week. This will be subject to approval by Board and the council and will require statutory consultation with tenants. As with the introduction of other welfare changes including the bedroom tax, Page 13 of 83
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there is the potential for an increase in the number of possession cases taken to County Court for non-payment of rent which will increase legal costs. 4.9
Equality and Diversity and Community Cohesion UC is only payable to tenants of working age; therefore a significant proportion of tenants that currently receive housing benefit will not be affected at the moment. Part time workers who are earning less than the equivalent of the minimum wage at 35 hours a week will now have to look for additional work under Universal Credit. In addition to affecting tenants, we have to be mindful this may include some of own employees and it is more likely to be female employees who are affected (particularly those who are lone parents).
4.10
Stakeholder Involvement/consultation: We have been working with the council and other partners as part of the welfare reform strategy board. We will be developing a communication plan as part of our UC implementation project that will encompass internal and external stakeholders.
5
Conclusion and recommendations
5.1
When Universal Credit is fully implemented it will affect a large proportion of council tenants. The administration of the benefit through online applications and direct payment of housing costs to the claimant are very significant issues for tenants, YHN and the HRA. The roll out is gradual and therefore we have an opportunity to agree and implement effective partnership arrangements that will provide appropriate support to tenants whilst maximising rental income. The challenges are such that it is considered appropriate that progress is monitored by Board.
5.2
Board is recommended to 1. Note the details of the initial roll out of Universal Credit in Newcastle 2. Endorse the proposals for a project in YHN’s service improvement programme 3. Agree to receive further reports on delivery of the project
6
Implementation
6.1
The YHN UC Implementation Project will meet monthly, lead officers will be identified for the themes within the project. Reports will be brought back to Board on a quarterly basis during 2015/16.
Background Papers Board report January 2012 Board report October 2012 Board report March 2013 Page 14 of 83
Board report May 2013 Board report September 2013 Board report March 2014
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Neil Scott, by telephone on 0191 278 8711 or email neil.scott@yhn.org.uk
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Board 10 February 2015 Corporate Procurement Strategy 2014 – 2018 Report by Chief Executive For Decision
1.
Background information
1.1 The purpose of the Corporate Procurement Strategy (CPS) is to set out the vision and strategic aims which direct and govern our procurement activities. It covers the procurement of all works, goods and services undertaken by YHN. 1.2 The current version of our CPS, which supports the Value for Money and Business Strategies, was refreshed and approved by Finance and Resource Committee in June 2013, with a commitment to carry out a full review in 2014. 1.3
This report details the new CPS (Appendix 1) developed as a result of the 2014 review.
2.
Issues and concerns
2.1 There are no outstanding issues or concerns following consultation across YHN and Newcastle City Council (NCC). 3.
Approach
3.1 In order to deliver the project a working group was established which was made up of representatives from the Procurement and Business Strategy Teams. 3.2 The initial process involved a review of other ALMOs’ and Local Authorities’ CPSs, including NCC’s Commissioning and Procurement Plan. 3.3 The procurement priorities from the NCC Procurement Plan were then aligned with YHN’s strategic priorities to ensure that the CPS met the objectives and requirements of both YHN and NCC. Specialist input was sought in relation to environmental sustainability and equality and diversity from relevant YHN officers and Board Members Page 16 of 83
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3.4 Following completion of the review a draft copy of the new strategy was distributed for consultation to a selection of senior managers from each of YHN’s Directorates, as well as the NCC Assistant Director of Commissioning and Procurement. Finally a report was taken to Management Team for officer approval in December 2014. Comments and feedback at each stage were incorporated, as appropriate, into the current version of the CPS. 3.5 Finally an Equality Analysis, was undertaken on the CPS to ensure there were no adverse impacts on people from the protected characteristic groups. 4.
Our Corporate Procurement Strategy The CPS identifies a number of key outcomes for procurement activities which contribute to YHN’s strategic objectives. Details of these are summarised below and in turn are supported with specific actions in the CPS Action Plan.
4.1 Make the Money Deliver
Efficiency and Value for Money
Doing Business Electronically
Collaboration
4.2 Create Homes and Neighbourhoods we can all be proud of
Sustainability
Community and Customer Engagement
Equality and Diversity
4.3 Work Together to Realise a Brighter Future
5.
Fairtrade
Regeneration
Focus on Service Needs
The Business Implications
5.1 Mission and Strategic Objectives: This strategy directly contributes to our strategic objectives and ultimately to our Statement of Purpose to “Enable positive living for people in our homes and neighbourhoods”. 5.2 Value for money/efficiencies; Delivering value for money and efficiencies are stated outcomes in the CPS. There are a number of actions in the Action Plan to ensure that these outcomes are delivered including targets for procurement savings. In addition any sub EU threshold work awarded directly to NCC Communities Directorate is subject to a Page 17 of 83
value for money assessment, as approved by Board in November 2013. 5.3 Financial Implications As detailed above it is anticipated that the CPS will produce savings, which will have a positive financial impact on YHN and its clients. 5.4 Resources (financial, property, technological or human): The resources are in place currently to deliver the CPS although changes are being made to the Public Contract Regulations, which might have implications for resource requirements. The exact nature of these changes will become apparent in March 2015 and a full appraisal of their impact will be undertaken then. In addition post procurement contract management arrangements will continue to be maintained by the relevant service managers, where appropriate. 5.5 Impact on services/performance: Adoption of the strategy will result in improved levels of service and performance to our stakeholders, through the delivery of targeted outcomes in the action plan. 5.6 Outcomes for tenants/leaseholders: Procurement/efficiency savings can be re-directed to other service areas. 5.7 Risk: Failure to have an effective CPS in place will expose YHN to a number of risks. These risks include:
Legal risks - failure to comply with regulatory requirements including the Public Contract Regulations and the requirements of the Homes and Communities Agency; and

Financial risks - Not realising the full potential of procurement to make significant contributions to delivering savings, improvements in services and delivering added value benefits for tenants.
5.8 Environmental: YHN’s strategic approach to environmental sustainability is detailed separately in the Asset Management Strategy. The Corporate Procurement Strategy recognises our commitment to sustainability by adopting an effective and consistent approach, through our sustainable procurement statement, to ensure that environmental issues are considered at all stages of the procurement process, including actions within the action plan to achieve Level 2 of the Flexible Framework. 5.9 Legal: Procurement is governed by a number of legislative and regulatory provisions including the Public Contract Regulations. Having an up to date and effective CPS helps ensure compliance with the law and mitigates the risk of challenge. Page 18 of 83
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5.10 Equality and Diversity: We utilise the harmonised procurement documents which were produced by the local authorities that are members of NEPO. These documents include provisions to help ensure that we meet our equality and diversity obligations. In addition as part of the development of the CPS an Equality Analysis has been carried out to ensure there were no adverse impacts on people from the protected characteristic groups. We have a Equality and Diversity in Procurement Guidance Note for staff to help ensure that equality and diversity considerations are given due consideration in the procurement process and our Contract Management Toolkit covers equality and diversity in the context of contract management. 5.11 Stakeholder Involvement/consultation: A draft of the CPS was distributed to a representative from each of YHN Directorates, as well as the Assistant Director of Commissioning and Procurement at NCC. Feedback from this consultation was been incorporated into the CPS as appropriate. 6.
Conclusion and recommendations
6.1 Board is asked to :
7.
Receive and approve the Corporate Procurement Strategy 2014 – 2018 (as detailed in appendix 1)
Implementation
7.1 Following approval:
the CPS will be published on the YHN internet/intranet and staff signposted accordingly;
progress against the CPS Action Plan will be reported annually to Finance and Resources Committee; and
The CPS Action Plan will be reviewed and updated annually.
Appendices Appendix 1 - Corporate Procurement Strategy 2014 - 2018 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Chris Nicholson by telephone on 0191 2788632 or email christopher.nicholson@yhn.org.uk
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YHN’s Corporate Procurement Strategy 2014-2018
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YHN’s Corporate Procurement Strategy 2014-2018 -1-
YHN’s People Plan Page 20 of 83
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Version control table Version number: 1 Date original version produced November 2014 Date current version produced: November 2014 Frequency of action plan review Annually Due date for next formal review: 2018 Author: Chris Nicholson Contact details:
Chris Nicholson Procurement Manager Development and Procurement Team, Your Homes Newcastle, YHN House, Benton Park Road, Newcastle upon Tyne, NE7 7LX. E: christopher.nicholson@yhn.org.uk T: 0191 2788632 Other useful resources
Crown Commercial Services Service ccs.cabinetoffice.gov.uk North Eastern Purchasing Organisation www.nepoportal.org Procurement for Housing www.procurementforhousing.co.uk Communities & Local Government www.communities.gov.uk Government Equalities Office www.equalities.gov.uk
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1. Context 1.1
Introduction
This Corporate Procurement Strategy (CPS) sets out the vision and strategic aims which direct and govern our procurement activities, together with an action plan. The strategy covers our approach to the procurement of all works, goods and services we will undertake for the period 2014-2018. The strategy is complemented by a suite of policies, processes and toolkits for use by YHN staff, which can be found on the YHN intranet. Procurement is the process by which we obtain goods, services and works. All of our services involve procurement. There is a direct link between good procurement and the delivery of high quality and cost effective services to our customers. Our vision is to ensure that effective procurement positively contributes to our strategic objectives and service improvements for customers. Our procurement action plan (Appendix 1) shows how we will achieve this. 1.2
Background
YHN was set up by Newcastle City Council (NCC) as an Arm’s Length Management Organisation (ALMO) in 2004 to manage council properties, to improve housing in order to meet the Government’s Decent Homes Standard, and to provide a range of support services for NCC. Through our management agreement with NCC, the procurement of all goods and services is delegated to YHN. Our current management agreement runs until 2016, and any changes to the agreement after 2016 will be reflected in updates of the CPS. The way we procure goods is overseen by the YHN Board through regular update reports and discussions around key procurement issues. In April 2009 NCC and YHN set up Leazes Homes as a charity to provide high quality, affordable accommodation to people in need. Leazes Homes is now a company limited by guarantee with charitable status and is registered with the Homes and Community Agency as a provider of social housing. The Byker Community Trust was established in July 2012 with NCC council owned properties being transferred to the trust, and managed through a management agreement with YHN. YHN’s Procurement Team procures goods and services on behalf of NCC (Housing Revenue Account), Leazes Homes and the Byker Community Trust. This strategy has been developed to ensure that an effective and consistent approach to procurement is taken across all the procurements undertaken by YHN.
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2. Where we are now Since 2004, significant progress has been made in the development of the procurement function. Key achievements to date include:
Completion of a number of major procurements including: o o o o o o
Modern Homes programme framework Repairs and Maintenance Developer Framework Painting Programme Furniture Service Supply Framework Byker District and Group Heating upgrades, including the installation and funding of a biomass boiler and gas fired combined heat and power boiler. o Own your Own
Creation of a dedicated procurement team Implementation of contract database Implementation of e-tendering system Delivery of procurement services to both Leazes Homes and the Byker Community Trust Generation of procurement savings through: o o o o
Increased membership of consortia and the use of framework agreements Greater use of corporate contracts in conjunction with Newcastle City Council Aggregation of spend to improve purchasing power More effective control of our needs and the specifications which has minimised contractor price rises o Regulation of contract extensions. These activities have resulted in significant improvements in the efficiency and effectiveness of the procurement function within YHN, linked to increased value for money, savings and wider social, economic and environmental benefits over several years.
3. Why we need this strategy This strategy has been developed to align our procurement activity with NCC priorities and the YHN Business Strategy 2013-16. In addition the tables below summarise key national and local drivers impacting on this strategy.
National drivers
Public Services (Social Value) Act 2012 – places a duty on commissioners of services to consider economic, environmental and social benefits as part of the procurement process.
EU procurement legislation - sets out the legal requirements for free trade, open and fair competition, non-discrimination, equality and transparency in -5-
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procurement and commissioning and is incorporated into Public Contracts Regulations.
Procurement consortia – several local and national procurement consortia for the social housing sector have been established to reduce costs and improve quality through collective purchasing.
Single Equality Act - sees the procurement function as pivotal in driving through the equality and diversity agenda.
Comprehensive Spending Reviews (CSR) 2010 & 2013 – Together these cover the period to 2015-16 and align the allocation of public resources with the Government’s overall objectives as set out in the Coalition Agreement.
The Homes and Communities Agency (HCA) is instrumental in driving forward employment and training initiatives and securing increased value for money through procurement, as part of its Affordable Homes Programme.
The Government’s Construction Strategy (May 2011) – is intended to reform the way in which government procures construction across all sectors, and in doing so will, it is hoped, reduce costs by up to 20% by 2015.
The Governments Sustainable Procurement Action Plan “Procuring the Future” - developed by the Sustainable Procurement Task Force to help overcome barriers to sustainable procurement as part of the Governments Sustainable Development Strategy goal of making the UK a leader in the EU in sustainable procurement.
Local context
Newcastle City Council’s Commissioning and Procurement Plan - As a wholly owned subsidiary of Newcastle City Council YHN’s procurement strategy supports and underpins the Cities strategic objectives and goals.
YHN Business Strategy - Our business strategy sets out the principles by which our future decisions will be guided. It explains what our purpose is as an organisation, and sets out our strategic direction. It also explains how we intend to meet our strategic objectives and provides us and our customers with an overview of our direction. The CPS underpins our business strategy as we recognise that effective and efficient procurement is fundamental to the on-going success of our organisation.
YHN Delivery Plan - Our delivery plan, which is incorporated into the business strategy, sets out how we intend to achieve our strategic objectives on an annual basis. It is an operational document that identifies all our corporate (Top 20) and key service targets, including targets for our Business Development and Procurement Team
YHN Finance Strategy - This is aligned with the Business Strategy and -6-
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enables us to sustain a healthy financial position which will ultimately allow us to continue to provide excellent services for our customers. The Procurement Strategy underpins this strategy.
YHN Value for Money Strategy - Our VFM Strategy outlines how we deliver value for money to all our customers, stakeholders and partners through optimising the efficiency and effectiveness of all our in-house and external services. As a key contributor to value for money, the CPS specifically addresses our strategic approach to improving our current procurement processes.
Environmental Sustainability Policy Statement- This sets out our vision to become a leader on environmental sustainability and demonstrates our commitment to reducing the environmental impact of our business activities and is incorporated into our Asset Management Strategy. This means providing good quality, energy efficient homes and adopting the principles of “green procurement”. The CPS underpins this vision and outlines our commitment to sustainable procurement by adopting an effective and consistent approach, to ensure that environmental issues are identified and considered at all stages of procurement.
YHN Skills to Work Strategy - Our Skills to Work Strategy sets out how we create opportunities that enable our tenants and residents to improve their employability, become financially independent and move away from benefit dependency. We recognise the potential to create jobs or training opportunities with procurement partners and the two strategies have been closely aligned to reflect this.
Customer Service Strategy – Every Customer Matters– This explains our commitment to our customers to provide excellent and accessible services. It includes information about how we involve and empower our customers to improve services. In the Customer Service Strategy we explain our commitment to using customer insight and involving customers in our processes and the delivery of services, and our Procurement Strategy reflects this commitment in the way we procure goods and services.
Corporate Equality Policy - This is our overarching document outlining our strategic approach to promoting our equality and diversity agenda. It includes actions on removing barriers to accessing services and further embedding equality and diversity throughout the organisation.
4. Our Strategic Priorities (What we will do) The YHN Business Strategy 2013 – 2016 explains our overall purpose and our strategic objectives and this procurement strategy supports delivery of our business strategy. This section explains how we intend to do this with specific actions and targets included in the action plan, at Appendix 1. The tables below set out our strategic objectives and the way in which procurement activities support them. -7-
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Appendix 1
4.1
Make the Money Deliver
Efficiency and Value for Money
We will continuously improve the way in which we procure to improve our services in terms of value for money, quality, effectiveness and efficiency We will pursue savings in all of our procurement activities We will encourage our suppliers to be innovative and to do more for less We will only use external professional services where we are sure a procurement will provide value for money and is the most efficient and effective means of achieving our objectives
We need to ensure that efficiency and value for money is delivered across all aspects of procurement in YHN. We have set challenging targets in our action plan to improve efficiency and value for money, which we will achieve through effective management of our procurement process (see Section 6.4). For example, options appraisal is the stage of the process that requires the most detailed work and innovative thought about service provision. It is critical that the appraisal is based on firm foundations of service definition and market intelligence. In addition external professional services will only be used when necessary and in accordance with our guidelines and Financial Regulations. Doing Business Electronically
We will find better, more effective ways to do business We will use information and communications technology to improve accessibility to our tender opportunities and increase competition
E-procurement, or doing business electronically, is an increasingly important way of procuring goods and services. We will use information and communications technology to improve:
accessibility to our tender opportunities and the efficiency and effectiveness of our activities, including the piloting of an e-auction
Consequently our partners and suppliers will be encouraged to do business electronically to reduce costs and improve communication. Collaboration
We will undertake collaborative procurement with the other public sector organisations within the City for the benefit of the City and to achieve improved outcomes as well as value for money
Innovative collaboration is about dismantling traditional ways of thinking about and managing procurement relationships. We are committed to exploring new ways of working with our partners and other organisations. We have relationships with a number of organisations who we can collaborate and benchmark with to create efficiencies and value for money savings. Such organisations include North Eastern Purchasing Organisation (NEPO), Procurement for Housing (PFH), NE Procurement (NEP), Northern Housing Consortium (NHC) and Crown Commercial Services (CCS). -8-
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4.2
Create Homes and Neighbourhoods we all Can be Proud of
Sustainability (social, economic and environmental)
We are committed to sustainable procurement to achieve value for money on a whole life basis in terms of generating benefits not only to YHN but also to society and the economy, whilst minimising damage to the environment We will recognise (within the confines of public procurement law) how social value linked to economic, social and environmental improvements can be made for local communities through our procurement activities We will seek to ensure that decision makers consider the environmental impact of commissioning proposals and cease wherever possible to procure solutions that are environmentally damaging We will apply a simple environmental assessment to all procurement requests, where appropriate
Sustainable procurement has been defined, by the Government’s Sustainable Procurement Task Force, as “a process whereby organisations meet their needs for goods, works and services including utilities, in a way that achieves value for money on a whole life costing basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment”. Our action plan shows our commitment to sustainable procurement. We will use our procurement process to ensure that social, economic and environmental issues are considered at every stage and as part of the whole life cost of a contract, in line with our obligations under the Social Value Act (2012). We will also promote good sustainable practice with those we do business with. We use the Department for Environment, Food and Rural Affairs Flexible Framework for Sustainable Procurement to drive this forward. Specific ways in which we will use sustainable procurement to benefit the local community and local economy are through encouraging local purchasing of goods and services and creating local employment and training opportunities. This includes where appropriate adopting provision under Article 19 of the public sector procurement directive to reserve contracts for supported factories and businesses who employ disabled staff. Our commitment to ”Green procurement” means reducing the environmental impacts of our procurement activities. Green procurement is relevant to most areas of business activity from construction, furniture, IT equipment to transport. By making informed choices about the products we buy, we will make a real difference to the environment. Through Green procurement products and services that minimise environmental impacts will be selected. We will also use our purchasing power to promote productive use of resources and materials. This means integrating environmental considerations into all stages of procurement; from avoiding unnecessary purchases and identifying greener products, to the specifications used for contracts and whole life costing.
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Green products are made or operate in a way that:
Uses fewer natural resources Contains fewer hazardous or toxic materials Has a longer life span Consumes less energy or water in production or use Can be reused or recycled on disposal Generates less waste, for example by being made from recycled materials, using less packaging or being recycled by the supplier.
Community and Customer Engagement
We will conduct our procurement processes, so that wherever possible, we can secure community improvements relating to the subject matter of our contracts
We are committed to listening and talking to our communities and customers about what they want. Our values and overall strategy are set out in our Customer Service Strategy. Where we can involve customers in procurement, service users and community organisations will play a key role in options appraisals for key services and regeneration projects where their involvement is an essential part of the process. Examples of how we engage with customers include involving them in procuring goods that we buy for our furniture service NFS, and involving a YHN Board Tenant Representative in evaluating tender submissions from suppliers. Equality and Diversity
We strongly support equal opportunity, equal access and positive outcomes for all sections of the community when procuring goods, works and services We will aim to ensure that organisations which provide services on our behalf comply with equality legislation and promote equality, to ensure that people and communities fulfilling their true potential
The Equality Act 2010 requires public authorities, in exercise of their functions, to have due regard to the need to:
Eliminate discrimination, harassment and victimisation and any other conduct that is prohibited by or under the Equality Act. Advance equality of opportunity between people who share a relevant protected characteristic and people who do not share it. Foster good relations between people who share a relevant protected characteristic and those who do not share it.
In order to ensure that we meet our legal obligations, and to underpin our strong commitment to equality issues, we have carried out an Equality Impact Assessment as part of the development of this strategy. This has shown us that the CPS only has positive outcomes for protected characteristic groups. Examples of these positive impacts include use of Article 19
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procurement where possible, and requirements in our procurement documents that cover the equality performance of those who are tendering to provide goods or services. 4.3
Work Together to Realise a Brighter Future
FairTrade
We are committed to ensuring fairness is considered in relation to every significant procurement decision made and this will be incorporated into the role of our Board As a Fairtrade City we will use the procurement process to encourage our suppliers to consider Fairtrade products in the knowledge that this can improve the lives of farmers and workers and their communities in developing countries.
Fair Trade is an organised social movement and market-based approach that aims to help producers in developing countries to promote sustainability. It advocates payment of a fair price, as well as social and environmental standards, in areas related to the production of a wide variety of goods. Fair Trade’s strategic intent is to work with marginalised producers and workers in order to help them move towards economic self-sufficiency and stability. Products from developing countries are often sold at prices that do not afford their producers a decent standard of living. ‘Fair Trade’ aims to alleviate poverty and "humanises" the trade process by making the producer-consumer chain as short as possible so that consumers become aware of the culture, identity and conditions in which producers live. Newcastle has been a “Fair Trade City” since February 2003. We are committed to increasing awareness of Fair Trade in Newcastle to explore the scope for procuring Fair Trade products. Regeneration
We will work with local suppliers and the Voluntary community sector to consider the scope for further improvements in our procurement processes. We will ensure that locally based organisations are ‘procurement ready’ and have the skills and knowledge to benefit from public sector procurement opportunities We will package our contracts to maximise the local economic and employment benefits for our Working City We will promote the creation of apprenticeships and traineeships through the Council’s procurement processes, ensuring that companies awarded large public sector contracts support the development of new skills
We value the contribution to service provision made by small and medium-sized enterprises (SMEs), social enterprises (SEs), voluntary and community-sector suppliers, and black minority ethnic groups (BMEs). We are committed to working with a diverse range of suppliers to ensure they are given every opportunity to understand our requirements and gear themselves up for procurement opportunities. We can help improve community well-being both in the local and regional economies by encouraging local purchasing of goods and services and creating employment and training opportunities. We recognise the potential to use jobs created as part of procurement contracts to help our customers improve their employability and get into work. We will amend the procurement/new build tender application process so that tendering contractors have to say
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Appendix 1
how they will support our employability agenda by offering opportunities for our tenants. When a contract is awarded we will work with the contractor to help fulfil these commitments.
Focus on Service Needs
We will proactively engage service users wherever we can to consider what might be the unintended consequences of procurement options before plans are put in place or decisions are made
It is important that the needs of service users are fully analysed and considered during any procurement process. This analysis must take account of the current level of met and unmet needs and how this may change in the future.
5. How we will make it happen 5.1
Governance and Leadership
We have established governance arrangements to provide leadership and clear direction to all of our procurement activities. The key groups and individuals are outlined below:Board
Governance of major procurement projects.
Finance and Resources Committee
Delegated authority for the development and implementation of this Strategy; and
Chief Executive
Responsible for delivery of YHN’s Corporate Procurement Strategy.
Development and Procurement Team
Central point of contact for all procurements; and Identifying and delivering procurements, providing procurement and contract management support and advice: and sign posting to the most appropriate source of expertise; and Reporting progress against the Procurement Strategy Action Plan
5.2
Policies, processes and toolkits supporting this strategy
We have developed a range of key policies, processes and toolkits to support the delivery of a high quality, effective and consistent approach to procurement across YHN, which are available to all our staff through our staff intranet. These are revised, added to and updated regularly. - 12 -
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5.3
Responsibility for the procurement strategy
Responsibility for the development and implementation of our procurement strategy lies with the YHN Finance and Resources Committee, in conjunction with the Chief Executive who has overall responsibility for ensuring delivering of our procurement strategy.
5.4
Procurement Cycle
Traditionally procurement activity has focussed predominantly on the specification and tendering stage of the contract process. However it is now widely acknowledged that the benefits of optimising the experience and expertise of procurement professionals has a much wider reach and should be maximised throughout the entire procurement process from the definition of requirements to the ultimate disposal of the asset as illustrated below.
Define the Requirements
Disposal
Contract Management
Market Research
7 Procurement Cycle Receipt, Inspection and Payment
Option Appraisal
Contarct Award
Specification
Tendering and Evaluation
5.5
Monitoring and review
The YHN Chief Executive will review progress against the action plan on a regular basis. Reports will be submitted annually to Finance and Resources Committee providing an update on progress and outcomes achieved. The Committee is made up of YHN Board members from all constituent groups. The next full review of the Procurement Strategy will be in 2018, however as a living document the action plan will be reviewed annually in the interim.
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6. Contacting Us Please contact us if you have any questions or comments about our Procurement Strategy: Officers Jon Mitford
Head of Development & Procurement
Chris Nicholson
Procurement Manager
Write to:
Development & Procurement Team, YHN House, Benton Park Road, Newcastle upon Tyne, NE7 7LX.
Telephone:
0191 278 8600
Email to:
jon.mitford@yhn.org.uk christopher.nicholson@yhn.org.uk YHNprocurement@yhn.org.uk
Website:
www.yhn.org.uk
A guide on how to do business with YHN can be found by found on our web site by clicking here Contracts can be viewed by visiting our electronic tendering web site: http://www.qtegov.com This link will take you directly to the North East Procurement Organisation Portal where all 12 local authorities in the North East advertise procurement opportunities.
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Collaboration
Doing Business Electronically
Efficiency and Value for Money
Required Outcome
Create Homes and Sustainability Neighbourhoods we all can be Proud Of
Make the Money Deliver
Corporate Priority
8. Action Plan
Procurement Manager Environmental Sustainability Coordinator + Procurement Officer Environmental Sustainability Coordinator Sustainability Working Group Sustainability Working Group Sustainability Working Group Sustainability Working Group Sustainability Working Group
Develop opportunities to enable delivery of at least one new collaborative procurement
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Initiate a programme of supplier engagement, involving senior management
Develop and deliver sustainability training to relevant staff, including advanced training for key staff, involved in procurement activity Evaluate the need for and develop a Sustainable Development Strategy and procurement policy, or appropriate alternatives Assess the organizational expenditure analysis for key sustainability risks, scope for change and buyer influence Undertake a detailed examination/update of the sustainability performance of high impact suppliers
Develop a simple environmental assessment, including where and when this will be used in the procurement process.
Establish a corporate sustainability working group to drive/co-ordinate activity linked to the Flexible Framework
Pilot an e-auction as an electronic means of doing business to improve efficiency
Review methodology for calculating procurement savings
Procurement Manager Procurement Manager Procurement Manager Procurement Manager Procurement Manager
Responsibility
Implementation an effective Category Management approach to planning and managing our third party spend. Deliver annualized procurement savings that as a minimum cover the cost of the procurement team Deliver annualised procurement savings relating to our ongoing third party spend of at least 5%
Actions
7
Apr 2016
Jul 2016
Apr 2015
Oct 2015
Dec 2015
Apr 2015
Mar 2015
Mar 2016
Mar 2016
Mar 2015
Mar 2016
Mar 2015
Apr 2015
Anticipated Completion Date
Appendix 1
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Work Together to Realise a Brighter Future
Corporate Priority
Focus on Service Need
Regeneration
Equality and Diversity
Community and Customer Engagement
Required Outcome
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Novate purchase contracts to align with any changes in service provision between the Council’s Housing Revenue Account and Your Homes Newcastle
Incorporate service user feedback into procurement evaluation criteria for works of a similar nature
Develop a suite of method statements related to local regeneration criteria which can be incorporated and evaluated as part of the procurement process. Implement the revised EU procurement directives, including those designed to support the engagement of SME’s, following incorporation into UK legislation
Establish methods of engagement with under-represented groups to promote equality of opportunity
Work with the customer involvement team to identify procurements that will involve stakeholder involvement
Review and consider the approach by Newcastle City Council to its Social Value Act obligations and adopt as appropriate
Develop a sustainable approach to supply chain management by ensuring principle contractors adopt the key contract terms across the supply chain.
Actions
Head of Assets and Regeneration, Technical Services Manager Procurement Manager
Procurement Manager Procurement Manager Procurement Manager
Sustainability Working Group Head of Development and Procurement Procurement Manager
Responsibility
Mar 2015
Mar 2014
April 2016
Apr 2015
Dec 2015
April 2015
Feb 2015
Apr 2016
Anticipated Completion Date
Appendix 1
Board 10 February 2015 Strengthening tenant engagement Report by Assistant Chief Executive and Director of Corporate Services For Decision 1.
Background information
1.1 One of the priorities stated in the Newcastle City Council (NCC) Cabinet report on ‘The Future Management of Council Owned Housing in Newcastle’ in December 2013 was for NCC and YHN to work together to explore the options for strengthening the tenants’ voice in the governance of YHN. One of NCC’s corporate priorities is to be a co-operative council and exploring options for strengthening the tenants’ voice is an important part of this approach. NCC recognises that tenant involvement is a significant cornerstone of the YHN assurance framework, being systematically tied into service improvements through mystery shopping, tenant inspection, service user focus groups and other activity. Tenant Board members also play an important part in overall governance of the organisation. However, as set out in the paper NCC wishes to discuss and explore options developing our approach and improving the offer to tenants. We are keen to embrace this ambition as, although we currently involve tenants in many ways, we acknowledge that it is worthwhile seeking opportunities to enhance our approach. In particular, board members may be interested in more direct connectivity with tenants and their views, in order to influence decision-making. This report will provide background information on YHN’s current approach to tenant involvement and outline how we can improve the tenant offer through new opportunities for tenants to get involved. 1.2 YHN’s current approach to tenant engagement YHN supports tenant engagement through a mixed approach of engaging with tenants’ and residents’ groups across Newcastle, and involving individual tenants who don’t wish to be part of a tenants’ and resident’s group. Newcastle Tenants’ and Residents’ Federation (NTRF) is currently funded by the Housing Revenue Account (HRA) as the umbrella organisation to support and develop democratic tenants’ and residents’ groups. Their work is managed through a Service Level Agreement (SLA) with NCC. In addition to the community development support and training to support tenants’ and residents’ groups, NTRF also hold consultation events on issues relevant to Page 36 of 83
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tenants, influence policy and service delivery and are responsible for tenant scrutiny which is a requirement set out in The Regulatory Framework for Social Housing. To complement this, YHN’s Business Strategy service facilitate engagement for individual tenants, employability opportunities through a tenant training programme, and provide advice and guidance to the rest of the organisation to ensure a coordinated, consistent approach to tenant engagement. Customer feedback is used to shape service provision to meet the needs of our customers. This is done through a range of mechanisms which includes:
Service user focus groups;
Mystery shopping;
Customer inspections;
Performance Plus group;
Estate inspectors;
Telephone surveys;
A readers’ panel;
Scrutiny group for environmental participatory budgeting approach, and
Large scale events for customers to influence strategy.
YHN also offers a range of activities to complement the scrutiny work delivered by NTRF to ensure that we, on behalf of NCC, are meeting the requirements of the Regulatory Framework set out in the Tenant Involvement and Empowerment standard. This includes tenants influencing and shaping customer promises, local offers and the annual report. Staff from across YHN also facilitate tenant engagement in a number of other ways, including:
2.
Tenant engagement in environmental issues such as tenant inspections;
Staff actively support local communities by attending tenant groups meetings, estate walkabouts and events including regular face to face contact with tenants on estates, and
One to one consultation and public meetings on the investment programme.
Issues and concerns
2.1 Although tenant engagement is at the heart of YHN, there is scope to strengthen the offer to tenants and give even more opportunities to influence key decisions. In particular, more direct dialogue between Board members and involved tenants could be developed. This would enable tenants to clearly see a link between their engagement and strategic decisions taken by Board and its committees. It would also allow more tenants to get an insight into the role of Board members which may encourage more applications for tenant board member positions. Work is ongoing at NCC to define roles and structures involved in a strategic, independent tenant voice and to enhance residents’ routes into involvement around housing more broadly. It is intended that our offer forms a sub set of the whole and ultimately reinforces it. Page 37 of 83
3.
The possibilities
3.1
Officers from YHN have suggested a number of potential options for developing the relationship between Board and involved tenants which are detailed below. These options have been discussed with officers from NCC at the NCC/YHN Review Programme Board. The options are listed below at sections 3.2 to 3.7 in a proposed priority order. Board is asked to agree the prioritised list of options for increasing tenant engagement detailed in section three to be used as a basis for consultation with tenants, or agree subject to amendment.
3.2
Board members could work directly with tenants who are involved in the Performance Plus group which monitors how YHN is performing in key service areas. Tenants could be supported to develop their skills to help them present their findings to committees. This will improve transparency and openness for tenants and influence on service improvements.
3.3
Themed meetings could be facilitated to help us in policy and service development. This will give tenants more opportunities to have their say and an opportunity to understand tenants’ priorities across different parts of the City and diverse communities.
3.4
We could help deliver local Councillors’ priorities through our joint working with NCC’s Communities service. We would work with members to identify how we can address local priorities using the £50,000 fund for participatory budgeting.
3.5
Tenants could showcase how their involvement has made a difference and influenced decision making by designing and delivering a market place event at the next YHN Annual General Meeting (AGM) in September 2015. This event could focus on the range of involvement mechanisms with tenants at the forefront of the event. This approach would expand the relationship with our Board and tenants would gain further recognition for their involvement activities.
3.6
We could establish a tenants’ forum to influence our Service Improvement Programme (which forms part of our Delivery Plan). This new approach for tenants would increase their scope to influence key projects, service reviews and strategies within the improvement programme. We could develop a training programme to help support tenants through this process to ensure they are informed and have the necessary skills to support this approach. This group could also report directly into YHN Board and its committees.
3.7
Tenants could be given representation on the Board Time Limited Committees. This would give tenants direct influence over decisions made and recommendations to YHN Board. They would also steer the approach to tenant consultation more widely in these projects. It would also be an opportunity for tenants and Board members to work together on joint projects.
3.8
In addition, it is proposed that we contact all Board members to invite them to 2015 annual thank you event for involved customers, which is due to be held in July. This event would be scheduled to coincide with a meeting of YHN’s Board to be held at the same location. Tenants will then be invited to attend the Board meeting to learn more about our Board and the decision making process. Page 38 of 83
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3.9
4.
It is proposed that any additional engagement activities offered would run alongside the existing tenant engagement structure and would be delivered within existing resources. As part of the new approach we would need to review the ways that we promote customer involvement opportunities. Working with tenants to develop the offer
4.1 Although we have considered some possible options for strengthening the offer to tenants, and are asking Board to consider their priorities, it is vital that our offer works for tenants. We will work in partnership with tenants to further develop the proposals and agree a way forward. We propose that a detailed consultation plan should be developed and presented to Customer and Service Delivery Committee on 16 March 2015. 5.
The Business Implications
5.1
Mission and Strategic Objectives: The proposals detailed in this report support the delivery of corporate objective to ‘work together to realise a brighter future’ by developing our tenant engagement framework.
5.2
Value for money/efficiencies: The proposed options for strengthening tenant engagement would be delivered within existing resources.
5.3
Financial Implications: There are no implications as a direct result of this report as the proposed options for strengthening tenant engagement would be delivered within existing resources.
5.4
Resources (financial, property, technological or human): There are no implications as a direct result of this report as the proposed options for strengthening tenant engagement would be delivered within existing resources. If Board and tenants are interested in developing all of these options the work will, of course, need to be phased.
5.5
Impact on services/performance: Tenant engagement has helped enable YHN to improve performance. Extending this engagement should further strengthen tenant satisfaction and ensure that the services delivered are responsive and appropriate.
5.6
Outcomes for tenants/leaseholders: The proposals in this report will offer increased opportunities for tenants to influence decision making and develop a stronger relationship directly with Board. It will also give involved tenants the chance to develop their skills and a greater insight into how their views influence decision making.
5.7
Risk (reputation, relationship): Embarking on too many initiatives simultaneously could lead to inadequate preparation and evaluation which would be detrimental to the intended outcomes. For this reason the suggestions in paragraphs 3.2 to 3.7 have been ranked. Those which we anticipate would have significant positive impact as well as being straightforward to deliver are prioritised.
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5.8
Environmental: There are no implications arising directly from this report. 5.9 Legal: There are no implications arising directly from this report. 5.10 Equality and Diversity and Community Cohesion: YHN monitors all involvement activity across different demographic groups to ensure we engage with tenants that represent all the communities we serve. Will need to ensure any increased opportunities for engagement are accessible to all tenants. The consultation plan to be developed will detail how we will engage with tenants from across all the communities we serve. We will also undertake equality impact analysis when further developing our proposals. 5.11 Stakeholder Involvement/consultation: Officers from NCC have been consulted as part of developing the options presented in this report. Once Board priorities are understood it is proposed that a detailed tenant consultation plan is presented to Customer and Service Delivery Committee in March as detailed in section 4.1.in order that any changes delivered are those that tenants wish to see. As the aspiration to strengthen engagement was a crucial part of the NCC review of YHN, progress will be reported through the Programme Board and on to the Oversight Group at NCC. 6.
Conclusion and recommendations
6.1 Board is asked to: Agree the prioritised list of options for increasing tenant engagement detailed in section three to be used as a basis for consultation with tenants, or agree subject to amendment. Agree that all Board members should be invited to participate in the annual ‘thank you’ event for involved tenants as described at 3.8. Approve the proposal to present a plan for tenant consultation to Customer and Service Delivery Committee for approval on 16 March 2014. 7.
Implementation
7.1 Next steps are: Develop detailed consultation plan Present plan to Customer and Service Delivery Committee on 16 March 2015 Work with tenants to develop the proposals and agree a way forward Report to Board in July 2015. Background Papers NCC Cabinet Report December 2013 – The Future Management of Council Owned Housing Stock Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Louise Horsefield by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk Page 40 of 83
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Board 16 December 2014 (5.00pm to 7.15pm) Present: O Grant (Chair), J Common, L Doherty, P Dibbs (from 6.00), D Down, P Dutton, V Dunn, D Huddart (until 6.30), J McCarty, A Mirza, J Purvis, J J Reid, N Shukla, E Snaith (until 6.00), L Stephenson, J Stokel-Walker, M Talbot. In attendance: John Lee S Breslin N Scott D Langhorne J Davison D Creighton H Garbutt Siobhan O’Neil M Burn J Vinton G Ellingham J Wylie A Allison J Hancox L Horsefield T Kirkham A Senior 323
Chief Executive Assistant Chief Executive and Director of Corporate Services Director of Tenancy Services Director of Property Services Company Secretary Executive Assistant to the Chief Executive Environmental Services Manager Business Strategy Head of Support and Care Head of Assets and Regeneration Head of IT Head of Business Services Head of Income and Tenancy Management Environmental Services Coordinator Head of Business Strategy Newcastle City Council Newcastle City Council
WELCOME The Chair welcomed everyone to the meeting and reminded members to turn off their mobile phones.
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APOLOGIES Apologies were received from T Moore and L Middlemiss.
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DECLARATIONS OF INTERESTS There were no declarations of interest arising.
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CHAIRS ITEMS Submitted: Report by the Chair (previously circulated and copy attached to Official Minutes). The Chair’s report covered 3 areas; request for feedback on new agenda layout, details of the Board away day in February, and an invitation to the Community Spirit Awards on 12th February. The Board were requested to contact the Chair directly or Jill Davison will collate any feedback and comments. The Chair also updated the Board that Judith Common, Vice Chair would be resigning from her position as Independent Board member with effect from 31 Page 41 of 83
March 2015, as the Board of Durham Housing Group will become live and Judith concentrates on her role as Chair. 327
HEALTH AND SAFETY John Lee presented the item, explaining that health and safety updates would be by exception on every Board agenda. There was one Health and Safety issue to update Board members regarding an increase in fire alarm activations in multi-storey properties. YHN have met with Tyne and Wear Fire Brigade and are investigating the incidents, which seem to be as a result of the sensitivity of a new system installed. Questions/Comments: A Board member queried the set-up of the smoke and heat detectors in the properties and John Lee confirmed these are all integrated and linked to the control room. A Board member commented on the excellent set up of the control room having been shown a demonstration during a recent visit. John Lee responded that the offer of a demonstration would be opened to all council members and board members.
328
CUSTOMER & SERVICE DELIVERY COMMITTEE ANNUAL REPORT Submitted: Report by the Chair of the Customer & Service Delivery Committee (previously circulated and copy attached to Official Minutes). Paul Dutton presented the report which outlined the key purpose of the committee and highlighted the work undertaken by the committee during the past year. The activity included the following;
Reviewing the performance of the investment programme.
Reviewing approaches to customer satisfaction of the repairs and maintenance service. The committee specifically considered how deaf customers are able to give their views.
Looking at the Customer Service Excellence standard, for which we have received confirmation of our accreditation.
Received presentations on the provision of new and remodelled older peoples accommodation at Central Walker and Moor House.
Approved the questionnaire for the Survey of Tenants and Residents, and received a presentation of the results at its last meeting.
Reviewed the property designations and local lettings plans, the committee also considered our approach to the allocation of multi storey blocks.
Involvement in the reviews of the Advice and Support service and the Young Peoples service.
Committee have received two reports during the period that set out the right to buy position and an update on the Leasehold service improvement plan.
Customer insight activity is reported to Committee three times a year. the report describes the range of customer engagement activity carried out by YHN Page 42 of 83
Questions/Comments: A Board member commented on section 1.6 of the report with regard to attendance and raised the issue that this occurred across all committees. The Chair responded that the availability of all members had been sought and some alterations to meeting days and times had been implemented which should help with attendance. Customer and Service Delivery committee will now meet on a Tuesday rather than Monday. A Board member questioned the demographics of the city in relation to the committee agreeing the local lettings plans, and whether it was possible to see a schedule of the property designations. Neil Scott agreed to circulate the programme. 329
NEWCASTLE CITY COUNCIL BUDGET Tony Kirkham delivered a presentation outlining the budget position of Newcastle City Council, the presentation outlined the budget challenges, the phased approach to the development and consultation of proposals, the council’s focus on priorities and values, proposals involving partners, and areas of joint working with YHN. The consultation will go public 17 December and all IIA’s (Integrated Impact Assessments) will be available on the website. Questions/Comments: A Board member commented that the demographics of the city are changing and asked how the city were ensuring that they consulted with key stakeholders in the proposed engagement. Tony Kirkham responded that there are various means of engagements, with the city’s programme of “Let’s Talk” events which interact with a range of communities, specific area meetings, on-line consultation, and engagement with the business community as well as the community and voluntary sector. The city has a good track record of engagement and responses in previous years have been really high. He explained that the Integrated Impact Assessments on each of the budget proposals demonstrates how the proposals could impact on different groups including ethnicity, gender, age, geography, and these are at a targeted operational level and have been written by the service areas’ officers and heads of service. Cllr McCarty added that as well as the individual IIAs there is also a cumulative impact assessment of the proposals looking across the whole council. A Board member commented that the 40 page PDF documents on the website are difficult to access and full of jargon, it would be useful for the Council to provide a 2-3 page summary in plain English. John Lee proposed to collate all the relevant information and summarise the impacts on YHN which will be circulated to members
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RENT AND SERVICE CHARGES Tony Kirkham delivered a presentation which outlined the outturn position for 2013/14, the review in assumptions, the impact of these assumptions on the debt position over five years, rent and service charge options and the implications of each rent increase level. The presentation concluded with a timeline of next steps, which will conclude with a decision at City Council Cabinet in January 2015. Page 43 of 83
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Questions/Comments: The Chair commented that there was a concern from Board members that the detail of these proposals were not shared in a report prior to the meeting, but added this is the first year of the new arrangements regarding the management of the HRA and hopefully next year there will be a more systematic approach in place. A Board member commented with regard to the benefit cap, and advised that a lot of tenants pay full rent and do not claim benefits. The high percentage of people in work need to be considered. The added factor of the possible increase in council tax will also put stress on people’s outgoings and the council should ensure these proposals are announced together. A Board member echoed the concern that Newcastle has a lot of “in work poor” facing a lot of pressures and was concerned we are adding to it. With regard to the consultation period it seems a very short period of time to ensure views are sought. J McCarty confirmed the proposals were being published 17 December at 5.30pm and the consultation would be open until the end of January, the Cabinet will agree the final budget on 23 February. There was a collective view from Board members that in the past the different options along with the impacts are usually presented to the Board, and it was disappointing that this has not been followed this year. A Board member commented that everyone shares the passion and ethos to make a difference and act in the fair interest of tenants to ensure a balance is achieved and it was disappointing they had not been given the opportunity to do this. A Board member requested whether it was possible to come back to the Board with a further report before 23 February, possibly at the 10 February meeting. T Kirkham responded to all the comments raised and explained that the options had taken into consideration the impact for tenants and residents of Newcastle as a whole. The details of the rent and the council tax proposals will be in the same document. He noted that the different options for the percentage increases being considered were lower than what had been implemented over the last couple of years. He added that unfortunately the decision on the rent levels needed to be made by the end of January, to facilitate the decision making process for agreement and sign off and then publication on rent statements, so it is not possible to come back to the 10 February Board. T Kirkham explained this year there had been a range of issues to consider, with new guidelines and assumptions to run on the models and assured the Board that in the future the details would be presented earlier. J Lee concluded the item by adding that himself and the YHN team will support the Council and Tony Kirkham team as much as they can. He added it was a difficult situation in that the budget and rent level processes do not run together. The rent increase is a big exercise as a minimum of 28 days’ notice is required. So tenants will need to be informed in February. J Lee added that, Board will recall the presentation on the financial disaggregation of YHN and the HRA, and the strategic management of the HRA, and explained that the rent levels falls into the new arrangements which Page 44 of 83
are the responsibility of the City Council. The Board should treat this year as an exception and be assured that there will be prior consultation next year. It will be considered whether to have a special board meeting in the third week of January prior to the Cabinet meeting of 28 January, Board will be updated in the new year. 331
NCC REVIEW AND FINANCIAL DISAGGREGATION John Lee gave a verbal update to the Board with regard to the status of the NCC review. The merger of the HR and OD service was progressing and now working on a service level agreement. The review will now concentrate on two areas; the contact centre and enquiry centre evaluation, and the new management agreement with a proposal of what the new document will look like will be ready March 2015. With regard to financial disaggregation, more details will be discussed at the away day, but essentially the split of core YHN business activities from the HRA, which NCC were now responsible for, presented a lot of positive opportunities for YHN. J Lee expressed his thanks to Lisa Forrest, Head of Finance and Mark Nicholson at NCC for the excellent progress made to date.
332
NORTH KENTON DEMOLITION AND RE-DEVELOPMENT Submitted: Report by the Director of Property Services (previously circulated and copy attached to Official Minutes). David Langhorne, Director of Property Services presented the report which set out the details of the project and the financial business case in order to progress with the scheme. The project includes the demolition of 92, one bedroom flats within five, five storey blocks on Banbury Road, Apsley Crescent and Hillsview Avenue and the re provision of 65 general needs apartments in new three storey accommodation on the Banbury Road site. D Langhorne outlined the report which described the variety of issues which make the blocks unsuitable, an update on the successful re-housing of tenants, the award of the contract to Keepmoat, and the intention to seek HCA grant via the Continuous Market Engagement element of the Affordable Homes Programme. Board received a supplemental report for this item which provided further details of the proposal to use modern methods of construction for one of the blocks, this will provide a comparison to the traditional construction methods used on the other block creating a unique learning opportunity for both YHN and Keepmoat. D Langhorne explained that the revised business case was presented in the supplemental report which also included the additional of solar panels to the project, and the possible option to utilise the loft space of the block to increase the units by 6 across the two blocks. Comments/Questions: A Board member questioned whether there was enough data already available regarding modern methods of construction, and what would be done with the data gathered. D Langhorne responded by explaining this was an unique opportunity where two identical buildings were constructed side by side so Page 45 of 83
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could be compared like for like. D Langhorne explained that the learning will be utilised in future build programmes to improve the efficiency of sites and move towards a zero carbon approach. A Board member questioned whether there was a lift in the three storey blocks, as tenants find it more and more difficult to use the stairs and we should be looking to make buildings more age friendly. D Langhorne responded that there is no provision for a lift, as it was the intention of housing younger tenants in these blocks. This is something can look into in order to future -proof the buildings. A Board member questioned whether there will be enough demand for the block built out of non-traditional methods and whether tenants will be happy to move in. D Langhorne responded that the blocks would look identical visually and the end user will not be aware of any difference. A Board member commented that this was an exciting opportunity and asked for assurances that the scheme would provide employment and training opportunities and that the learning would be shared with other partners. A Board member commented that the learning should be on-going and that future repairs and maintenance costs on the two blocks should be compared, so cost savings are known during the build and on-going. A Board member questioned whether cycle storage would be provided at the blocks. They also questioned the construction methods as current blocks which have concrete floors become very cold and expensive to heat when there are vacant flats above. D Langhorne responded to the comments and questions made, advising members that the ongoing repairs and maintenance will be monitored and that the lift issue could be re-looked at by Customer & Service Delivery Committee. J Lee added that the current stock in the city was built prior to 1970 where noise was not such a problem, but the design standards are more sophisticated now. He confirmed cycle storage is part of the planning requirements so will be provided, and that the provision of a lift will increase the price, but there may be an opportunity to create a design to then retrofit. The financial appraisal would be re-looked at and emailed to Board members. RESOLVED; Board received the report and; Agreed in principle to undertake one block using modern methods of construction and one block using traditional methods of construction. Agreed that there is a bid made to the HCA for this project based on the different construction types. Provided authority to proceed with this principle on the basis the cost of construction is within 10% of the overall capital cost (as per financial regulations). This would be on the basis the 30 year payback is still in a positive position. Agreed to receive a further report on the project if the bid to the HCA is unsuccessful and value engineering cannot provide a solution within the 30 year payback period. Page 46 of 83
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TENANT BROADBAND Submitted: Report by the Director of Corporate Services (previously circulated and copy attached to Official Minutes). S Breslin introduced the report informing Board members this was the third report on the Tenant Broadband project, and this report includes a reminder of the rationale, an update on activity to date and a proposed action plan and links to other digital agendas. G Ellingham then presented the detail in the report which explained that a lot has been learnt over the last 12 months, what does and doesn’t work. There is an agreement that we need to stop talking and get on with our plans as the introduction of universal credit is planned for 2015 it is vitally important for tenants to be on-line. G Ellingham talked through the action plan presented in the report on pages 20-25, which covered short, medium and long term actions for the range of different user groups such as sheltered accommodation, young people’s accommodation, tower blocks, and low rise blocks as well as covering skills, training and support. Board were then referred to section 6 and the recommendations. Comments/Questions: A Board member commented that this was such an important piece of work considering 36% of the population are not on-line and referring to the previous presentation from Tony Kirkham where Council services will go on-line; it puts people at a disadvantage. A Board member added that this is important for getting jobs as well, as people need to be on-line to search and apply for jobs. Ensuring easy access is the most important aspect of this project. A Board member commented that the report presented was excellent and that the recent Universal Credit pilot cities provided some insight into people’s needs and that it wasn’t just the initial application but long term support that was required as the universal credit system required all changes to circumstances to be managed on-line as well. A suggestion was made that a Board member became a digital champion. A Board member raised an issue of caution with regard to section 4.8 of the report which discusses accessing our services and others on-line, a lot of tenants are on low incomes and don’t have cards to enable payments or shopping on-line. A Board member praised the developments made in a short period of time and highlighted that options regarding European funding should be explored as there were calls for projects for the ERDF and ESF funding areas. The Chair commented that the issue surrounding skills and employability can be explored by the Employability task and finish group when it meets. RESOLVED; Board received the report and; Expressed support to the Council for the adoption of the medium and long term elements of actions 1-4 of the programme set out in section 4, above within a procurement of wi-fi services for public buildings and Page 47 of 83
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social housing, appropriately supported by funding from the Housing Revenue Account. Approved actions 5-8, together with the short-term element of action 1.
MINUTES The Board considered the minutes of the meeting held on 4 November 2014, these were approved as a correct record and duly signed by the Chair.
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ANY OTHER BUSINESS No other business recorded.
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ITEMS FOR INFORMATION RESOLVED – That the following items be received for information: i)
Chief Executive Report
ii)
Equality and Diversity update
iii)
Quarter 2 performance report
iv)
Delegated Decisions
v)
Board Forward Plan – February
vi)
Committee Minutes
EXCLUSION OF PRESS AND PUBLIC RESOLVED – That in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.
……………………………………….. Mrs O Grant Chairman 10 February 2015
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Board 10 February 2015 Chief Executive’s Report
For Information 1.
Introduction
1.1
This report aims to bring Board Members up to date with some of the activity that YHN has been involved with recently as well as with national developments that may be of interest to them as Board Members. This report includes:
Building cleaning contract Stonewall 2015 High Court ruling on under occupation charge DWP Data sharing Tenant Broadband – procurement update
2
Building cleaning contract
2.1
In 2009 it was identified that a number of low rise blocks in the City were receiving a cleaning service to the communal areas as part of the cleaning SLA with the Council which it is estimated cost £78,000 of the total value of the contract worth £1,015,175.
2.2
Since then considerable work has been undertaken in reducing the value of that SLA to £177,000 through a combination of market testing, Concierge review and changes to the scope of the specification.
2.3
It is expected and it is explicit in the Tenancy Agreement that tenants are responsible for the cleaning of communal areas. This has varying degrees of success, working well in some blocks and less so in others, to the extent that ‘one off’ cleans sometimes need to be done to restore a minimum standard of cleanliness. Over time Managers have identified a number of blocks where a regular cleaning service would be beneficial.
2.4
In 2012 tenants were consulted about the potential for introducing a ‘paid for’ cleaning service in communal areas and were generally in favour of this but with some concerns around the potential cost (average of £4.89 per week), frequency and recoverability of the charge through Housing Benefit.
2.5
Management Team recently discussed a proposal that would increase the current scope of the cleaning service SLA with the Council from 7 blocks (192 properties) to 401 blocks (3,218 properties) and where the estimated £593,083.23 cost is recovered from the tenants benefiting from the service.
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This would result in a minimum weekly charge for tenants in these blocks of £3.83. 2.6
The impact of this on individual tenants when taken in the round with proposed rent, service charge and council tax rises in terms of the charges would be that the: smallest increase is £5.62 per week or £275.38 per year largest increase being £7.07 per week or £346.43per year average increase is £6.04 or £295.96 870 tenants are not in receipt of any Housing Benefit (HB) and therefore would have to pay all of the increase. Additionally, 529 tenants who are currently under occupying would need to increase their contribution to HB deductions and this could mean they had to pay between £11.14 (£545.86 per year) and 31.93p/w (£1,564.57 per year). It is unlikely that any rent would be pushed over affordable rent levels. Costs to the 318 leaseholders would be recovered as an annual charge.
2.7
Consultation with tenants and councillors in the first week of 2015 has shown that of the 202 of tenants who responded (6% response rate) the vast majority (84%) were against the proposal. Some of the responses were on behalf on numerous individuals and in total cover 583 properties of which 219 were in favour- this should be noted with some caution however as 192 of these were contained within one Councillor response and may not necessarily reflect the views of all the residents in the blocks. The top five reasons for response by theme were: 1. I will struggle with the costs/ The cost is too expensive 2. I already clean my block 3. Housing Benefit Issues and questions as to how it will work 4. I don’t see the need for the service / I am against this proposal 5. The tenancy agreement should be enforced / I don’t want to pay to clean up other peoples mess
2.8
Given the consultation response and the issues involved the next steps will be to carry out further work and look at other options reporting back to Board if any proposal requires Board approval. Any changes to the service that include an adjustment to rent and service charges will need Cabinet approval.
3
Stonewall 2015
3.1
Board will be aware that we have been members of Stonewall since 2008. Stonewall was founded in 1989 and is a professional campaigning organisation in matters and issues on behalf of Lesbians, Gay men, and Bisexual (LGB) people. As well as being a lobbying group, the purpose of Stonewall is to improve services and employment for LGB staff. YHN subscribes to Stonewall and are able to gain advice and information in relation to any work matters. The Stonewall Workplace Equality Index is the definitive national benchmarking exercise showcasing Britain’s top employers for lesbian, gay and bisexual staff. It provides employers with valuable feedback and allows them to measure their continued improvement.
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3.2
YHN provided its first a submission to the Stonewall workplace index in 2009 and at that time ranked at 267 out of 317 submissions, only 13 of which were housing providers .
3.3
Having used the submission to drive improvement in YHN, our ranking improved the following year when we entered the Top 100 at 90 and by last year (2014) had reached a ranking of 30th (174/200 points).
3.4
Stonewall revises the Index criteria every three years. 2015 is the first year of the new Index cycle and has seen a major change in the criteria which Stonewall describes as being ‘….stringent yet succinct; pushing top performers to new heights while providing a framework for thought and action for employers at the start of their journey.’ The new index has certainly proved to be challenging. There has been a marked move towards an outcome based assessment in that it is asking organisations to demonstrate what difference their action has made rather than solely providing evidence that specific actions have taken place e.g they want to know if our career development initiatives demonstrate results and how rigorous targeted initiatives are, not merely what they are.
3.5
Stonewall say that the index gets more competitive every year, with new organisations joining all the time as others leave. Even with ongoing improvement and development our submissions have been made with the realistic expectation that YHN will be assessed as having all the foundations in place with some specific areas of best practice rather than being outstanding in every criteria. We had thought it unlikely that we would improve on last year’s ranking at 30 with the possibility that a change in emphasis may result in a lower ranking in 2015.
3.6
YHN has been ranked at 98 with 110/200 points, we do not yet know what this means in reality. The achievement of remaining in the Top 100 should not be underestimated. Only nine other social landlords made the Top 100 and Gentoo was singled out as one of eight organisations who have ranked in the top ten at least three times in the last five years and therefore are not ranked. We do not know yet how many organisations took part in 2015 and we will not receive our specific and formal feedback from Stonewall until 11 February, the day after Board.
3.7
When we have analysed our results and digested the Stonewall feedback information about our position and the best way to move forward will be contained in future equalities and diversity update reports.
4
Landmark ‘bedroom tax’ ruling overturned by High Court judges
4.1
In a first for the UK, three High Court judges have overruled a landmark ruling previously taken in a lower tribunal, that size matters when it comes to defining a bedroom for the purposes of ‘under occupation deductions’ from Housing Benefit.
4.2
The Department for Work and Pensions took the issue to a second tier hearing after a ground-breaking test case in Fife ruled that size and usage should be taken into account when deciding what constitutes a bedroom (based on overcrowding legislation) and that many people currently
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affected by a 14% or 25% deduction would now become exempt . 4.3
The appeal judges have said that there was no legal definition of a bedroom and it was up to local authorities to explain why they had defined certain rooms.
4.4
Commentators on the judgement have highlighted that it contradicts itself several times in places and could end up costing Local Authorities significant sums of money in justifying decisions made on every disputed room.
4.5
The tenants who brought the original case now intend to appeal to the Court of Session against the decision but the hearing is unlikely to be before the general election in May. Board will be kept updated about any change to this ruling.
5
DWP data sharing –change in law
5.1
The government has changed the law to allow the Department for Work and Pensions (DWP) to share universal credit claimants’ personal data with social landlords, councils and charities.
5.2
On 23 January, Ministers laid down a controversial new statutory instrument to enable councils, housing associations, Citizens Advice bureaux, credit unions and charities to access information on universal credit claimants, so they can offer financial advice and support.
5.3
The information that can be shared includes details of debts, benefits, medical records and level of computer literacy. The move is in response to housing organisations calling for more data-sharing with the DWP so that they will know when tenants are claiming universal credit and they can be offered appropriate support.
5.4
When the government was consulting on the changes earlier last month, national tenant body the Tenants’ and Residents’ Organisations of England (TAROE) condemned the proposals, saying they went ‘too far’ and were ‘very, very dangerous’. However, a summary of responses to the consultation from 113 housing associations, advice charities and representative bodies showed 96% of organisations were positive about the government’s proposals.
5.5
In its response to the consultation, also published on 23 January, the government said it would be pressing ahead its plans, which will come into force on 13 February.
5.6
The consultation paper revealed that the National Housing Federation (NHF) had warned against ‘assuming that social landlords have sole or lead responsibility for supporting tenants. ‘They think DWP through the agency of Jobcentre Plus has a key role in ensuring that vulnerable tenants have access to personal budgeting support.’
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6
Tenant Broadband – procurement update
6.1
Following the report to Board in December 2014, we have been working with the Council to combine the procurement of a free wi-fi service for public buildings (such as libraries) with the first delivery phase of our aspiration to provide a similar service to Council tenants. December’s report provided indicative costs for each property type we were considering, but not an estimate of the overall cost. For procurement and budgetary purposes, we estimate the cost of providing free wi-fi as a managed service for three years in the communal areas of all Council sheltered schemes, young peoples’ residential schemes and tower blocks to be £462k. We expect the actual cost, following procurement, to be significantly lower. We are still working to identify appropriate ways of providing wi-fi within low-rise buildings, and this is not included in the estimate above. The Council is currently waiting to hear whether the Department for Culture, Media and Sport will meet some of this cost. If not, a proposal will be presented to the Council’s Investment and Delivery Group in March, seeking approval to provide budget for the work from the Housing Revenue Account. In parallel to this work, YHN has made a joint bid with the Council to the Local Government Association for funding to support a project to provide free internet-enabled tablet computers to new Universal Credit claimants.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Diane Creighton, Executive Assistant to the Chief Executive on 0191 278 8701 or diane.creighton@yhn.org.uk
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Board 10 February 2014 Blakelaw 165 estate remodelling Report by Director of Property Services
Information
1. 1.1
Protect – not for publication
Circulation of this report is limited because the information is considered to be sensitive and is exempt in accordance with YHN’s Information Policy and Section 16 of Standing Orders
Background information The Blakelaw “165” estate was built in 1968. The estate consists of two and three bedroom bungalows and three and four bedroom houses. 59 of the properties are privately owned. A site plan is attached as appendix one. The local area has already benefitted from investment which includes an external insulated render scheme to the nearby Blakelaw multi storey blocks. This work has dramatically improved the appearance of these blocks and the thermal comfort of tenants. In addition, the area has benefitted from a mixed tenure new build project which was delivered by Leazes Homes.
1.2
The 165 estate is popular with good transport links and is supported by a successful community centre. It has benefitted from both an external and internal package of improvements through YHN’s modern homes programme. Residents on the estate have raised a number of concerns relating to the design of the estate, which includes lots of narrow walkways throughout the estate known as “rat runs” and a lack of defensible space. This can facilitate the fear of crime and anti-social behaviour and feelings of vulnerability. The design of the estate also results in access difficulties for emergency services with bungalows being accessed only through the narrow walkways.
1.3
As a result of these concerns the local councillors funded work through Northern Architecture to work with local residents in order to identify their
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aspirations for the estate. YHN were involved in a multi-agency project steering group which ensured resident involvement was at the heart of the project. The key issues identified from this work are: Solving pedestrian routes to remove the’ rat runs’. Improving parking areas. Re facing doors and windows to overlook parking areas and create a more sociable estate. Provision of much needed defensible space. Demolition of garages to create more space and give cars better access to the estate. Improve the estate’s appearance by using render and cladding. Create a more logical flow to the estate. Reduce the fear of crime.
1.4
1.5
Since the conclusion of the work by Northern Architecture, YHN have continued to work with residents to develop a project which addresses these issues. The Investment Programme approved by Board in December 2012 identified this estate as a priority within the environmental block fund for estate remodelling.
2.
Project Update
2.1
The project has been out to tender and the contract has been awarded to Keepmoat.
2.2
The approved project addresses the issues by: Demolishing all garages to improve site lines and to create space for additional parking. Demolishing a number of properties, again to improve sight lines, but to also open up access to the bungalows. Providing within curtilage parking where possible. Moving a number of doors and windows onto the front of the property to encourage natural surveillance of cars and open space. Installing metal fencing to the frontage of properties to create defensible space. Providing a render finish to all properties to improve the appearance of the estate. Closure of many of the footpaths to remove the ‘rat runs’ on the estate. A visual of what the estate will look like when complete is attached as appendix two.
2.3
The rehousing of tenants is underway and has been the most challenging part of this project. When rehousing under these circumstances tenants receive dedicated support, priority for bidding and Homeloss and Disturbance PROTECT - INTERNAL USE ONLY Page 55 of 83
Keepmoat will programme their start on site once the remaining tenants have been rehoused. It is anticipated this is likely to be June 2015. The demolition of these properties and the garages will be the first activity in their programme. The overall programme is expected to take 62 weeks and will be complete by September 2016. 2.4
2.5
The scheme will be in accordance with Secured by Design principles. The Community Safety Liaison Officer at NCC and the Crime Prevention Officer from Northumbria Police has been involved in the designs to ensure we maximise the potential to design out crime and the fear of crime. The funding identified within the Investment Programme is: Project Blakelaw Estate remodelling
2014/15 £000 30
2015/16 £000 2,470
2016/17 £000 1,000
Total £000 3,500
3
Issues and concerns
3.1
Rehousing – In order to deliver a successful scheme a number of tenants will need to be provided with alternative accommodation. For many this is seen as a positive, however for a small number there has been some resistance In particular one tenant would prefer to stay and despite many discussions the position has reached a stalemate. The ultimate sanction would be to serve notice and use legal powers to encourage the tenant to move. However given the age and circumstances of the tenants this is not felt to be an appropriate course of action, therefor it is our intention to change the design to allow this property to remain. This will impact on the adjacent properties. By acceding to this request we run the risk of receiving complaints from those affected. Clearly should circumstances change we will re-visit this aspect and indeed should the tenants move in the future there will be scope to carry out this aspect of work.
3.2
Owner-Occupiers – to deliver this project there is a need to deliver work to owner occupiers’ homes. The mix of work required varies from property to property and can include:
External render to give the estate a consistent visual appearance.
Some properties require their front door and a window moved to overlook the parking area and create a more sociable estate.
Replacement doors and windows.
Environmental treatment. PROTECT - INTERNAL USE ONLY Page 56 of 83
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compensation of £4,900. Three have now moved, four are on offer, nine are actively bidding on suitable accommodation and discussions are on-going with one further tenant whowould prefer to stay in their current home.
To make the scheme work we need to apply all aspects of the design to both the social and private properties. There are a total of 34 houses in private ownership that require works to their property. They all require varying works to adhere to the design principles of the wider estate. NCC has agreed to fund this element of work which totals £106,706. 4.
The Business Implications
4.1
Mission and Strategic Objectives: This report links with our strategic objectives to make the money deliver, to create homes and neighbourhoods we can all be proud of and work together to realise a brighter future.
4.2
Value for money/efficiencies: This project has been procured through a competitive tender process which ensures we achieve value for money.
4.3
Resources (financial, property, technological or human): Financial – there is a capital cost to deliver this work of £3.5M. This includes the estate remodelling and also fees and contingencies. This budget is identified within our Investment Programme over a three year period.
4.4
Impact on services/performance: There will be a positive impact on repairs and maintenance as many of the repairs are as a result of vandalism and anti-social behaviour. The improvements should also have a positive impact on housing management resources who should be dealing with fewer complaints about anti-social behaviour.
4.5
Outcomes for tenants/leaseholders: The estate remodelling will improve living conditions on this estate for our tenants and the owner occupiers. The selective demolition will enable access to the bungalows for emergency services.
4.6
Risk (reputation, relationship): The only risks identified with this project are highlighted in section 3.
4.7
Legal: The legal implications are those associated with the procurement and construction process.
4.8
Equality and Diversity: Rehousing is being carried out via Tyne and Wear Homes to ensure there is a fair and consistent approach to the allocations.
4.9
Stakeholder Involvement/consultation: Consultation has been carried out with the tenants and residents on this estate, local councillors and also NCC staff within the Fairer Housing Unit. There have been a number of estate consultation events to develop the proposals for this scheme. These have included:
Youth conversation workshop which talked to young people about their lives on the 165 estate
Winter film event – this was an outdoor event which projected children’s films onto a wall in the estate. The novelty of this event attracted residents from the estate PROTECT - INTERNAL USE ONLY Page 57 of 83
Workshops on the key themes which emerged from the consultation.
Consultation events to keep residents updated on progress
Regular updates to the Residents’ Association
Individual home visits to those tenants affected by the demolition.
5.
Conclusion and recommendations
5.1
This remodelling project provides an opportunity to overcome the issues and concerns which have been raised by residents for many years. Board is recommended to receive this report for information and note the progress made on this project.
6. 6.1
Implementation
Continue with the rehousing of those tenants who are impacted by the demolition.
Aim for a start on site in June 2015 subject to the progress with the rehousing.
Completion in September 2016 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jen Vinton, Head of Assets and Regeneration by telephone on 0191 278 8789 or email jen.vinton@yhn.org.uk.
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GS -YHN/Property and Contracts/Assets&Prorgramming/GIS ArcMap/Blakelaw 165 - Estate 307 plain plan with boundary GS
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This map is based upon Ordnance Survey material with the permission of Ordnance Survey on behalf of the Controller of Her Majesty's Stationery Office, © Crown copyright. Unauthorised reproduction infringes Crown copyright and may lead to prosecution or civil proceedings. Newcastle City Council, 100019569, 2012.
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NEWCASTLE CITY COUNCIL SOCIAL VALUE COMMITMENT RESPONSE
Following YHN Board in early December 2014, Board Members requested a response from the Council to their queries in relation to the Council's proposed Social Value Commitment. We have responded to each of the points raised by YHN Board and hope that this helps to address any concerns with adopting the principles as outlined in the original Social Value Commitment. The Commitment is due to be presented to Cabinet in February 2015 for agreement in principle. Any changes to the Council's procurement processes would not be made until the response to the government’s consultation on the new EU Public Contracts Regulations is released. If Cabinet approve the proposals in principle, we intend to carry out a wider consultation process with internal officers in the business and the Councils external supply chain. The consultation will be overseen by Cllr Dunn portfolio Member for Resources who has responsibility for Commissioning and Procurement and Rachel Baillie, Assistant Director Commissioning and Procurement. As part of the wider consultation, we will work collaboratively with our stakeholders, including YHN, to ensure that any changes to the Council's procurement processes do not build unintended negative consequences into our commissioning and procurement activity. Please see below our response to each point raised by YHN Board: YHN Board Queries and the Councils Responses 1.
A Board member asked for the inclusion of reference to sub-contractors in the commitment as this would enable contracts to be amalgamated.
1.1
The Social Value commitment will apply to our full Supply Chain (first, second and if applicable third tiers). Currently through our tendering process we ask potential bidders to identify where sub-contracting arrangements are envisaged and confirm that they will ensure that any of their sub-contractors will conform to the requirements of the Council.
1.2
In relation to Social Value outcomes, we will ensure that it is outlined in the Invitation to Tender that requirements need to feed through to tier two subcontractors. Bidders will be asked to demonstrate how they will ensure that any sub-contracting arrangements will contribute to the Social Value requirements and will be scored accordingly. This will ensure alignment throughout our supply chains and our contracting/sub-contracting arrangements. Page 61 of 83
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20 January 2015
2.
A Board member commented that it was important to develop an employability framework alongside this commitment and this could be explored at the task and Finish group.
2.1
The Social Value Task Group are keen to ensure this commitment links with other strategic policies, such as employability, as this will be an important factor in securing sustained Social Value outcomes.
2.2
The work of the Social Value Task Group will be fed into the ongoing work around employability in the City to make sure that the delivery mechanism which Social Value offers, is aligned to the overarching employability framework. This will be especially important as the group work to develop measures and metrics for monitoring Social Value impacts.
2.3
These discussions are also taking place with key Officers about how Social Value links with other core outcomes such as climate change.
3.
A Board member asked how much more work would this put onto an already onerous tendering process and would it not put small companies off tendering.
3.1
We have been working with representatives from SME’s and VCS organisations in the City to try and minimise the amount of work this would require to ensure that unnecessary bureaucracy is not built into the process.
3.2
We have therefore established a review group with representatives from SME’s in the City so that we can design the process around them. While there will be some work required for organisations to demonstrate Social Value outcomes, we have had feedback to say that many SME’s are doing this anyway but currently don’t have an opportunity to demonstrate the added value.
3.3
Inclusion of Social Value within the tendering process will also be proportionate to the value of the contract.
3.4
Our Action Plan sets out an intention to seek feedback on how the process is working for organisations and revisit any areas which are not working well – the tendering process is one area that we will be closely monitoring.
3.5
The Action Plan also sets out an intention to invest in the local marketplace to ensure they are tender-ready, and understand the process so that they are well placed to respond and demonstrate, Social Value within contract opportunities.
4.
John Lee reported that YHN already embrace the social value act and need to monitor how we add value more, this may add more time and effort on to the process and this may be a concern for SMEs.
4.1
We agree that some excellent work has already been carried out within YHN and the Council to embed Social Value principles in the way that we commission and procure and both would be able to report Social Value outcomes against specific contracts however, we feel that we believe we can do more to capture and routinely build this into our contract activity. Page 62 of 83
The Act applies only to services and contracts over the EU Threshold, but the Council embraces the concept fully by applying Social Value considerations across all three pillars (Economic, Environmental and Social) on every piece of procurement activity over £5,000 for all goods, works and services.
4.3
The Council has monitored Social Value outcomes from commissioning and procurement activity over the past few years to see how and where we add value. Through current monitoring and analysis, we have found that the majority of added value comes from large projects/contracts.
4.4
Our proposals for over the EU Thresholds are not changing dramatically. Our focus for this level will be around training for Officers on how to be creative when building Social Value into their contracts to achieve greater outcomes for local organisations and our communities. It is proposed that we do this in collaboration with NEPO and the12 member authorities to share best practice, resources and to create a Social Value toolkit.
4.5
For under the EU Threshold activity, our emphasis has been on how to drive Social Value outcomes from the smaller projects/contracts. SME’s add a lot of value to the City and through our proposals we want to support, not hinder, SME’s to win more business. We propose do this by further streamlining our procurement processes, removing pre-qualifications and risk assessments, simplifying our quotation and tender documentation and widening the use of the Quick Quote factuality. Also, as part of regional collaboration, specific Social Value events have taken place for the North East supply chain which helps and supports potential bidders by clarifying how to build Social Value considerations into their tender response. Specific events have been held for SMEs to tailor training for their needs.
4.6
We envisage working closely with the Social Value Task Group to ensure that the methods used are proportionate and do not disadvantage local SME’s in the process. We will seek feedback throughout the implementation and design period to ensure that the methods we introduce are developed in line with the feedback we receive from SME’s.
5.
A Board member commented that the view of Social Value should not be a top down approach and that the local residents should be consulted on what they would like to see as outcomes.
5.1
Social Value benefits should be aimed at addressing the issues that local communities say are important to them. We therefore want to consult with our communities through the Commissioning stage of the process to shape the Social Value outcomes and metrics we seek and develop. They will then feed through into the Procurement stage to embedded into the Invitation to Tender.
5.2
We have so far used information from recent consultations with residents, aligned with the Council’s four priorities, to develop some guiding principles for Social Value in the City. When the Task Group develop the underpinning measures that will support this, we will shape these around the views of local people through consultation. Page 63 of 83
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4.2
5.3
We also know that what local communities see as important can change over time as circumstances change. We will therefore seek to revisit these outcomes at appropriate intervals to ensure they still reflect what local people tell us they want.
6.
A Board member also commented that the employment outcomes and jobs created should last longer than the length of the project/contract.
6.1
We ultimately would like any Social Value outcomes that we secure to be sustained as this has the most beneficial impact for our communities. We will consider the longer-term implications of training and employment opportunities secured through our contracts to try and ensure they are as sustainable as possible.
6.2
While we will not be able to enforce outcomes after a contract has ceased, we will work with organisations at the start of the contracting period to ensure the long-term impacts of their activity is considered and planned for e.g. through exit strategies where appropriate.
6.3
We will also consider these consequences during the Commissioning stage of any renewal of contract or delivery of redesigned services. As part of the proposal to Cabinet we will be embedding Social Value considerations as part of the Commissioning stage as well as the Procurement stage of the Commissioning and Procurement cycle. This will allow us to consult pre-tender on Social Value outcomes as part of a wider Commissioning consultation process with communities, businesses and other stakeholders.
6.4
Jobs created through a particular contract may also be applicable for TUPE transfer depending upon the amount of time spent on the contract. TUPE considerations would be applied to any renewal of contract and information will be passed onto potential bidders as part of the procurement process. If the incumbent organisation is unsuccessful, then the person would transfer to the new successful organisation provided that TUPE applied. This potentially would secure sustainability for the person.
We hope our response clarifies matters and alleviates concerns. If you need any further response on the Social Value proposals, please contact the Officers detailed below: Rhonda Eagle,
Senior Procurement Advisor
0191 211 4949
rhonda.eagle@newcastle.gov.uk Laura Choake,
Commissioning Programme Manager
laura.choake@newcastle.gov.uk
Page 64 of 83
0191 211 5281
Page 65 of 83
No.
9
8
7
6
5
4
3
2
1
David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services
David Langhorne - Director Property Services
Directorate/ Delegated Officer
Thomas Gaughan Community Centre Allotment
Pitched Roof replacement 2015/16
Hilltop & Denton House Windows and Doors
Garage Roof Phase 2
Balcony Infill Programme
Ecology Surveys for 15/16 roofing programme Rye Hill East Estate – Boundary Wall Replacement
Cragston Park Estate Walls
Scheme Riverside Dene and Greenford Road Multi Storey Window Restrictors
11iv
£74,200 from Life Cycle Improvements - Unbonded Walls £24,556.50 from External roofing programme £577,725.49 from Life Cycle Improvements - Unbonded Walls £213,547.60 from YHN Environmental Programme £336,613.08 from External roofing programme £541,405.6 from Lifecycles– External Windows and Doors £6,380,042.71 from External Roofing Programme £36,259.81 from Investment programme - Participatory Budget
£40,926.23 from Health & Safety Investment
Cost/ Budget provision
Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 4 November 2014 and 9 January 2015
Board 10 February 2015
1
1107
163
181
60
134
1107
15
299
Number of Units
John Flowers Ltd Roofing Contractor Straightline Construction Ltd John Flowers Ltd Roofing Contractor Highways and Localised Services
Walker
Citywide
Denton
Citywide
Citywide
Westgate
Joshua Thomas Construction Ltd BCA Northern
Citywide
Blakelaw
Elswick, Walker
Ward
Argus Ecology
BCE
BCE
Contractor
Page 66 of 83
Shield Court Home Loss & Disturbance
Maytree House Parapet walls additional Communal Upgrade Coquet Avenue Heaton Park Court Participatory Budget
Citywide Door Replacement Programme
Melbourne Court Asbestos
Water Hygiene Works 2014-2018
David Langhorne - Director Property Services
David Langhorne - Director Property Services David Langhorne - Director Property Services David Langhorne - Director Property Services
David Langhorne - Director Property Services
David Langhorne - Director Property Services
David Langhorne - Director Property Services
14
15
16
Disabled Adaptations Repairs 2014 - 2017
Common Purpose Leadership training for Property Services Mangers
Purchase and deployment of Office365 Enterprise Agreement
Survey of Tenants and Residents (STAR)
David Langhorne - Director Property Services
David Langhorne - Director Property Services
Sheila Breslin - Director Corporate Services
Sheila Breslin - Director Corporate Services
18
19
20
21
£15,518.4 from Asbestos budget – investment programme £171,247.40 over 4 years from specific revenue budget with associated costs Funding of £29,366.24 over 2 years from Revenue code 1HG00/D315 ( District Heating) Funding of £1,182,162 over four years from R&M budget 1HBSP/B176 Funding of £23,000 of which £10,000 is funded from OD Training budget & the remaining £13,000 from across Property Services efficiencies Funding of £128,424.60 will be met from current IT budgets (1YC04 D553) Total expenditure of £15,520 to be funded from existing Business Strategy budgets
£848,265 from Investment programme-lifecycle
£252,000 from HRA Investment Programme – Sheltered Housing provision £91,963.83 from H&S Unbonded walls programme £136,790.04 from Investment programme-Communal upgrade £21,491.99 from Investment Programme-Participatory budget
n/a
n/a
n/a
n/a
1920
n/a
156
866
72
12
52
40
BMG Research
Microsoft
Common Purpose
Easibathe
Switch 2
IWS, Clearwater and Hertel
Building and Commercial Enterprise Henderson Site Services
Highways (HLS)
BCE
BCE
n/a
Citywide
n/a
N/a
Citywide
Citywide
Citywide
Ouseburn
Citywide
Ouseburn
Parklands
Westgate
Ouseburn
All capital projects were approved as part of the Investment Delivery Programme contained within a report entitled ’30 Year HRA Financial Model and Other Financial Issues’ which was considered by the Board on 11 December 2012.
Meter reading renewal
David Langhorne - Director Property Services
17
13
12
11
10
Board 10 February 2015 Board Forward Plan 1
Board Forward Plan
1.1
This Board Forward Plan lists the reports known at the present time that will be presented at the Board meeting on 24 March 2015 (or amended date subject to confirmation): Board Reports Finance & Resources committee annual report
Non-confidential
Digital report
Non-confidential
Ferguson Lane Bungalows
Non-confidential
HCA Affordable Homes programme – Continuous Market Engagement
Non-confidential
Customer Service
Non-confidential
Quarter 3 Performance
For information
YHN Disaggregation
Protect
Delivery Plan 2015-16
Protect
Byker contract
Protect
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison, Company Secretary by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk
Page 67 of 83
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Board 10 February 2015 Board 2015 dates 1.
Board 2015 dates
1.1
Following the change in Board cycle reverting back to 6 weeks, set out below are the confirmed dates for 2015, up to and including the 2015 AGM. 2015 24 March 5-7pm 5 May 5-7pm 16 June 5-7pm 28 July 5-7pm
1.2
The cycle of meeting dates will be reviewed again at the AGM.
1.3
The full Board and Committee calender for 2015 is attached for your information.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison, Company Secretary by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk
Page 68 of 83
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22 September AGM 4pm, followed by Board meeting 5-7pm
Board and Committee Calendar 2015 Date Meeting 13 Customer & Service Delivery Committee cancelled 15 Finance & Resources 20 Commercial 22 Health and Safety training
Timing 4.30-6.30pm
February 2015
3 10 26
Commercial cancelled Board Audit
4pm – 6pm 5pm to 7pm 5pm to 7pm
March 2015
17
4.30-6.30pm
24
Customer & Service Delivery Committee Board
April 2015
2 28
Finance & Resources Away day
5pm to 7pm Tbc
May 2015
5 12 21 19
Board Commercial Audit Customer & Service Delivery Committee
5pm – 7pm 4pm – 6pm 5pm to 7pm 4.30-6.30pm
June 2015
16 25
Board Finance & Resources
5pm to 7pm 5pm to 7pm
July 2015
9 14
5pm to 7pm 4.30-6.30pm
21 28
Audit Customer & Service Delivery Committee Commercial Board
August 2015
20
Audit
5pm to 7pm
September 2015
15
4.30-6.30pm
22
Customer & Service Delivery Committee Board (and AGM)
October 2015
1 13 20
Finance & Resources Commercial Board
5pm to 7pm 4pm – 6pm 5pm to 7pm
November 2015
10
Customer & Service Delivery Committee
4.30-6.30pm
19
Audit
5pm to 7pm
1
Board
5pm to 7pm
December 2015
*Please note that meeting dates can be subject to change.
Page 69 of 83
5pm to 7pm 4pm-6pm 5-7pm
5pm to 7pm
4pm – 6pm 5pm to 7pm
4pm to 7pm
11vi
Month January 2015
1
Finance and Resources Committee 24 July 2014 (4.30 pm - 6.45 pm) Present: L Stephenson L Doherty V Dunn J Purvis J Yugire
(In the Chair)
IN ATTENDANCE L Forrest A Allison W Keilty G Ellingham S Archbold B Elder J Clifford C Nicholson A Lister A Baker J Miller 72
Head of Finance Head of Income and Tenancy Management Head of HR, OD and Customer Service Head of IT OD Manager HR Manager Financial Controller Procurement Manager Lead Corporate Accountant Management Support Democratic Services
APPOINTMENT OF CHAIR FOR THE MEETING In the absence of the Chair and Vice Chair it was RESOLVED that L Stephenson be appointed Chair for the meeting.
73
APOLOGIES FOR ABSENCE Apologies for absence were received from P Dibbs, D Down, P Dutton and E Snaith.
74
DECLARATIONS OF INTEREST V Dunn declared a personal interest in agenda item 12 as Chair of the North East Procurement Organisation. MINUTES OF THE MEETING HELD ON 10 APRIL 2014 The minutes of the meeting held on the 10 April 2014 were approved as a correct record and signed by the Chair. Page 70 of 83
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75
2
76
ACTION LIST REVIEW RESOLVED – that the action list be received and updated accordingly.
77
CAPITAL PROGRAMME Submitted: Report by Financial Controller (previously circulated and copy attached to Official Minutes) J Clifford introduced the report which informed members of the current projected spend of the 2014-17 Housing Revenue Account capital investment programme, in order to provide them with oversight of the use of capital funding and to comply with Financial Regulations. The following issues/queries were raised during debate:
In response to a query about the impact the Newcastle City Council (NCC) review on YHN capital expenditure, L Forrest explained that it would be necessary to align YHN and NCC strategies in relation to headline numbers. In future YHN might not have so much control over the total capital programme amount but YHN would still execute the capital programme.
Members discussed the issue of those tenants who refused to have work undertaken to their properties as part of the Lifecycle programme because they did not want the upheaval of their kitchen being replaced one year, their bathroom the following year and then their boiler the year after, for example. These tenants had indicated they would prefer to wait and get all the work done at one time. Members recognised the need to achieve a balance between meeting the needs of tenants whilst also achieving efficient and effective maintenance programmes.
It was suggested that if there were large numbers of tenants refusing to have the Lifecycle work undertaken to their properties, it may be necessary to give consideration to changing the approach and replacing bathrooms, kitchens and boilers in one year. Officers advised that this was an emerging issue that would need to be picked up with the asset management team. If the strategy had to be changed this would also have implications for the procurement strategy.
It was felt that part of the reason some tenants may be reluctant to have work undertaken over a period of years instead of in one go, because some tenants had had a negative experience during the Decent Homes works and had not known where to complain about the issues that had arisen. A Allison commented it was recognised that there had been some problems and improvements had been made in this area. There was now an in house liaison officer for the capital programme.
It was noted that the debt position 2014 – 15, outlined in section 4.3, was a result of the Priority Blocks coming to an end and no decision having yet been taken about 2017 onwards.
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RESOLVED- that: i. The movements in the investment programme be approved. ii. The figures for the number of tenants who were refusing to have work done under the Lifecycle programme to be analysed after 12 months, in order to assess the scale of the issue and to then consider whether any action was needed depending on the level of refusals. 78
TREASURY MANAGEMENT UPDATE - VERBAL A Lister gave a verbal update on the current position in relation to Treasury Management advising that two new loans had been taken out with Hampshire County Council and Medway Council. NCC were aware that gilt prices were likely to increase which would affect the cost of Public Works Loan Board borrowing. So they were likely to take out more of this type of borrowing this year. L Forrest commented that it was clear from the NCC review that the strategy of managing Treasury Management was moving from YHN to NCC, in future it was likely that YHN would be kept updated about the decisions that had been made in relation to Treasury Management. Members queried what governance processes would be put in place to allow YHN Board to have scrutiny of this process in future. L Forrest advised that discussions would be held about such practicalities. RESOLVED – that the update be noted.
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ARREARS MONITOR Submitted: Report by Head of Income and Tenancy Management (previously circulated and copy attached to Official Minutes) A Allison introduced the report which provided a detailed breakdown of arrears at the end of the 2013/14 financial year. In terms of leasehold service charges, she explained that work was being undertaken looking at whether a payment period of 12 weeks was more realistic for leaseholders, when invoices were issued near the close of the financial year, as this would make it more likely that that money could be collected. She advised that the income collection staff were now all in one service under M Grainger, Income Manager. They were now also specialist collection staff out in the hubs. It was expected that these changes would make a difference with an increase in collection rates over the next 12 months. RESOLVED – the report be received. SICKNESS ABSENCE Submitted: Reports 1 and 2 by Head of HR, OD and Customer Service (previously circulated and copy attached to Official Minutes)
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B Elder introduced the 2 reports which provided (a) an update on the sickness statistics for YHN for the last financial year 2013/14 and (b) an update of the sickness absence statistics for the current financial year up to the end of May 2014, drawing members’ attention to the next steps to tackle sickness absence as detailed in the second report. The following issues/ comments were raised during debate: The uncertainty caused by the NCC review could be a contributory factor to level of sickness absence which may mean that this may reduce once the review had been concluded. There was a need in times of organisational change to work to minimise the stress caused to staff by uncertainty around the changes The benchmarking table in section 5.1 would be more useful if it provided a comparison with other YHN type organisations, but it was acknowledged that some of organisations may not be prepared to share information. It was suggested that the increase in the amount of mental health related sickness absence reported may be partly due to the fact that staff may feel more comfortable in reporting sickness absence caused by stress, as a result of work had been undertaken in the organisation around stress and stress management. Work had been undertaken looking at the parts of the organisation that had the highest levels of stress related sickness absence to assess whether there were any symptomatic causes within particular departments/ sections, this work had shown there were not any prevailing factors in the workplace that were causing this stress. Members felt that the 1½ day workshop on stress management which was mandatory for new managers should be compulsory for all managers’ not just new ones. The actions detailed in the ‘next steps’ should show a positive result in the next update report. The ultimate outcome would be that managers were better prepared to deal with sickness absence in the organisation in a consistent egalitarian manner, whilst maintaining compassion, The key issue was to reduce the level of sickness absence in the organisation. It was queried whether the age profile of the staff was impacting on sickness absence levels. Officers indicated that they could look at this and bring information back to a future meeting. RESOLVED – that : i. The Sickness Absence Update (report 1) be received. ii. The Sickness Absence Update (report 2) be received. iii. The suggestion that the workshop on stress management be compulsory for all managers rather than just for new managers be taken into consideration. iv. Information be brought back to a future meeting on whether the age profile of the organisation had any bearing on sickness absence levels.
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YHN BUSINESS STRATEGY ICT PLAN 2013- 2016 Submitted: Report by Head of ICT (previously circulated and copy attached to Official Minutes) G Ellingham introduced the report which set out a progress report on the Business Strategy ICT Plan 2013-16 outlining the three strands Inclusive Digital Housing Services; Location Independent Working and Smarter Use of Information and technology. In terms of working more closely with NCC in future he stressed the importance of maintaining sufficient agility whilst at the same time achieving efficiencies. Members referred to the amount of work that had been carried out in the organisation in relation to ICT and complimented G Ellingham and his team on this work. They recognised the complexities of some of the new areas that were being introduced and also the work to link more closely with NCC. RESOLVED – that the report be received. PEOPLE STRATEGY UPDATE Submitted: Report by Head of HR, OD and Customer Services (previously circulated and copy attached to Official Minutes) W Keilty and S Archbold gave a presentation on the People Strategy 2014-16 which outlined YHN’s ambition pointing out that it may be influenced by the outcome of the NCC review.They outlined the drivers and challenges; highlighting the importance of effectively managing change commenting that there was a real commitment to manage change and support staff through this change. The following issues/ comments were raised during debate: Priority 1 – Great leadership - whilst it was acknowledged that great leaders were not always managers but sometimes were team members, it was, however, stressed that managers should always be great leaders. Priority 2 – Optimum performance –
Members highlighted the need to manage the expectations of staff in relation to the outcomes of continuous personal development. A member commented that many of the courses appeared to be targeted more towards managers and senior staff and stated that it was important to have training available to all levels of staff. Members who had been involved in the previous year’s staff awards asked that the categories/criteria for the awards be simplified as it was felt that this would encourage more engagement from staff.
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Priority 3 – Healthy, Engaging and Inclusive
Members commented that communication was key and it was important that managers ensured that staff felt engaged in the organisation and empowered. The conclusions of the NCC review, should result in more certainty for staff. It was hoped that the implementation of these policies should have a positive impact on staff engagement and also sickness levels.
RESOLVED – that: i. The report and presentation be received. ii. Officers take on board the feedback made during debate. 83
PROCUREMENT STRATEGY AND ACTION PLAN UPDATE Submitted: Report by Procurement Manager – Development and Procurement (previously circulated and copy attached to Official Minutes) C Nicholson introduced the report which detailed progress against the current Corporate Procurement Strategy action plan. He advised that of the 20 actions 18 had been completed. He outlined the reason the 2 red actions had not been completed, as detailed in the report. Members suggested that it would be useful for Board Members to look at the Social Value Act; the amount YHN did in relation to the Social Value Act and to promote this as a positive aspect of the organisations work. RESOLVED – that the report on progress against the corporate procurement action plan to date be received.
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INFORMATION GOVERNANCE Submitted: Report by Head of IT (previously circulated and copy attached to Official Minutes) RESOLVED – that the report be received.
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Customer and Service Delivery Committee 15 September 2014 (4.30 - 6.32 pm)
PRESENT P Dutton, Chair N Shukla D Down T Moore J Reid J Yugire IN ATTENDANCE N Scott I Gallagher M Burn J Urwin K McMaster P Lumsden S Halliwell S Darroch 131
- Director of Tenancy Services - Head of Property Maintenance - Head of Support and Care - Head of Housing Options - Young Peoples Service Manager - Health and Safety Manager - Advice and Support Manager - Democratic Services, NCC
APOLOGIES FOR ABSENCE Apologies were received from Councillor D Huddart.
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DECLARATION OF INTEREST IN ANY ITEM TO BE CONSIDERED AT THE MEETING None. MINUTES OF THE MEETING HELD ON 21 JULY 2014 RESOLVED – That the minutes of the meeting held on 21 July 2014 be agreed as a correct record and signed by the Chair. Matters Arising:(i)
Welfare Reform Service Review Implementation Update (minute 124 refers). 1st bullet – a structure chart had been prepared and circulated to the member who had made the request. 5th bullet – A site meeting had taken place with Councillor Down to consider options for improving the area of land. Page 76 of 83
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Investment Programme (minute 123 refers) – Information had been provided to J Vinton to be included with work on the Central Walker retirement village development and considered at a meeting with TWAM scheduled for 1 October.
ACTION LIST AND WORK PLAN Submitted: Report by N Scott (Director of Tenancy Services) to provide information on the Customer and Service Delivery Committee workplan and the action list (previously circulated and copy attached to Official Minutes). The following key points were noted:(a)
Workplan
November 2014:
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An item had been added to explain the implications for YHN of the new AntiSocial Behaviour powers available from next month for Police, Local Authorities and ALMOs. A report to be presented on the findings of the Advice and Support Review and Young People’s Service Review, to also incorporate discussion scheduled for later in the meeting.
HEALTH AND SAFETY POLICY Submitted: Report and presentation by P Lumsden, Health and Safety Manager to seek comment on the draft revised health and safety policy attached as Appendix one, in advance of the policy being submitted to YHN Board for approval on 30 September 2014 (previously circulated and copy attached to Official Minutes). The Committee was provided with an overview of the background to the review of the Health and Safety (H&S) policy which, responded to YHN’s attainment of OHSAS accreditation in 2013 and ongoing direction from the Health and Safety Executive to make H&S more accessible for the users and the general public. The key changes were noted to reflect the requirements arising from OHSAS 18001 accreditation and included a more streamlined and concise approach that was accessible for employees, tenants and the public who interacted with YHN. Points raised in discussion
The succinct and clear approach was welcomed that had been taken to the explanation of H&S roles and responsibilities. The need for regular updates was highlighted, to enable the Board to satisfy itself that YHN was correctly discharging its responsibilities. It was noted that arrangements were in place for bi-annual reporting to YHN Board. Responding to a query, an outline was provided of the steps being taken to ensure that the H&S policy was embedded into everyday working life. The H&S policy would be made available on the intranet and a communication sent out to ensure that staff were familiar with the new policy and understood their responsibilities. 18001 accreditation required constant challenge. The Page 77 of 83
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In response, it was noted that the new framework for tendering required contractors to adopt equivalent H&S standards. P Lumsden explained the accreditation requirements placed on contractors employed by the City Council and YHN (i.e. Construction line accreditation etc). The H&S team also undertook site spot checks and would report any concerns to the site manager and YHN’s technical services team to follow-up. If there was a major issue the team would not hesitate to inform the HSE to close the site. Responding to a query, P Lumsden confirmed that the Trade Unions were formally involved at various levels in the H&S process within YHN. The policy had been shared with them and no concerns had been expressed. The report to YHN Board would formally note the Trades Union role – Action P Lumsden. A committee member commented that mental health wellbeing training would be a useful addition to the policy document. P Lumsden confirmed that a member of the H&S team was currently undertaking Mental Health Wellbeing training and agreed that the report should reflect this. – Action P Lumsden. A Board member proposed the need to undertake an early Equality Impact Needs Assessment (EINA) to provide the Board with stronger assurance beyond that stated in section 6 of the draft policy, that it would be “very unlikely to have a negative impact on any of the protected groups under the Equality Act 1970”. The Chair commented that it would also be important to understand whether any protected groups may be over represented in more exposed or hazardous areas of work, to ensure they were not disproportionately disadvantaged. I Gallagher acknowledged these points. RESOLVED – that the report and draft Health and Safety Policy 2014, attached at Appendix one, be received and comments noted. Page 78 of 83
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YHN H&S team undertook regular compliance audit and would drive forward the process through staff training and follow-up. The need was identified for arrangements to prevent against staff becoming ill or injured. It was explained that one to one meetings with line managers was the starting point for identifying individual concerns with issues then being referred to the H&S section to progress as necessary. It was noted that understanding and awareness of H&S should mirror the successful integrated approach adopted within the organisation to Equalities and Diversity issues. A committee member suggested that while everyone in YHN was responsible for health and safety, the appointment of an H&S Champion at Board level could be an effective way to drive forward the issue. I Gallagher agreed that it was important to promote buy-in across the organisation and would welcome discussion with the YHN Board on this. P Lumsden noted that training was planned in October, for YHN Board members, on the Board’s role and responsibilities in relation to the new H&S policy. He also confirmed that committee members were welcome to join in specific H&S training sessions if they wished to do so, and this would be made clear in the report to YHN Board. The Chair queried how, YHN ensured that contractors adopted a positive approach to Health and Safety against the backdrop of increasing budget and cost pressures.
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REVIEW OF LOCAL LETTINGS PLANS Submitted: Report by Head of Housing Options to update the Committee on the four approaches proposed to be adopted following the review of the city’s Local Lettings Plans (LLPs) across the range of accommodation to which it has access (previously circulated and copy attached to Official Minutes). Background to the review process was outlined as set out in section one and two of the report. The Committee was then referred to the four proposed approaches: – (i) Local Lettings Plan: General Needs; (ii) Local Lettings Plan: Nomination Agreement; (iii) Local Lettings Plan: Extra Care Housing for Older People; and (iv) Local Lettings Plan: Supported Housing Schemes and an overview provided of each, as detailed in sections 3.1 to 3.4 of the report. In discussion the following key points were then raised:
It was explained that the requirement for an age limit of 55 and over for Extra Care Support was largely funding related but the accommodation also tended to be more tailored to the needs of that age range. Where a client did not meet the necessary criteria there was still an obligation on the Allocation Panel to make appropriate provision. A Committee member welcomed the Extra Care LLP proposals, but queried whether demand for this type of accommodation was being met and what steps were taken where there was insufficient capacity e.g. referral to another provider or adaptation of existing homes. J Urwin noted that the key driver was to provide choice. Where a tenant wished to stay in their own home adaptations could be made to accommodate this. In terms of demand, there was currently sufficient capacity for this type of housing, with new schemes being developed in response to projection of future need. At present, the service could therefore be quite responsive. It was confirmed that tenants could ask to be put on a waiting list for age restricted accommodation in advance of turning fifty five. Care requirements would have to be assessed to ensure the accommodation was appropriate for their level of need. There was some flexibility on age as long as the accommodation was the best fit for the tenant. It was confirmed that Sunderland City Council and Gentoo had both withdrawn from Tyne and Wear Homes. There was however still some accommodation available in Sunderland through Registered providers who still preferred to use this mechanism. A Committee member welcomed and sought more information on the broader approach being taken to consultation and also queried the outcome of the EINA process. It was explained that in developing LLPs, internal consultation had been carried out for each type of accommodation which had attempted to engage with a broader group of stakeholders to both seek views and raise awareness. This had resulted in robust debate to produce a balanced approach. Each plan had also been the subject of an EINA to ensure there was a clear understanding of the wider implications of placing any restrictions on a particular type of accommodation and recent work in this regard was noted in relation to Roeburn Way. Page 79 of 83
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N Scott commented that whereas, previously, consultation would have been channelled through tenant group representatives, this time, correspondence had been sent to all residents, supplemented by drop in sessions and door knocking to ensure as wide a view as possible was obtained. Welcoming the work being undertaken in conjunction with the City Council around Extra Care provision, the Chair queried whether there was independent oversight of decisions made by the Allocations Panel and also whether YHN was able to provide support to tenants who wished to challenge decisions and may be more vulnerable. J Urwin explained that there was a right of appeal set down in law and clear reasons had to be given where an application was refused. The broad representation on the Panel also ensured that all aspects of an application were properly considered. He also confirmed the arrangements in place to support tenants who made an application, including identifying, if necessary, a suitable representative (often a relative) to support the tenant with their application or appeal. A committee member asked whether the increased demand for smaller properties was impacting on waiting lists. J Urwin confirmed that there were a significant number of under occupied premises and a lot of people waiting for two bedroom properties. There was also a high level of one bedroom homes which could not be let. YHN undertook a pre-tenancy risk assessment to ensure that if a premises was to be under occupied, it was affordable for the tenant. Separate work was also ongoing in relation to future sustainability and links to the investment programme. RESOLVED – That the report be received and the Committee’s comments noted in relation to the proposed lettings plan.
EXCLUSION OF PRESS AND PUBLIC RESOLVED – That the press and public be excluded during discussion of agenda item 8 because of likely disclosure of confidential information.
DATE AND TIME OF NEXT MEETING 4.30 pm on 10 November 2014.
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Finance and Resources Committee 16 October 2014 (4.40 pm - 6.05 pm) Present: E Snaith P Dutton L Middlemiss (observer)
(In the Chair)
NOTES OF INQUORATE MEETING IN ATTENDANCE S Breslin L Forrest W Keilty L Horsefield J Clifford M Grainger B Elder R Wilkinson S O’Neil A Lister J Miller 1
Director of Corporate Services and Assistant Chief Executive Head of Finance Head of HR,OD and Customer Service Head of Business Strategy Financial Controller Income Manger Human Resources Manager Human Resources Business Strategy Financial Services, NCC Democratic Services
APOLOGIES FOR ABSENCE Apologies for absence were received from P Dibbs, V Dunn, J Purvis, and L Stephenson.
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MINUTES OF THE MEETING HELD ON 24 JULY 2014 Deferred to the next meeting. ACTION LIST REVIEW Stress Management Workshops The 1 ½ day stress management workshops was now to be undertaken by all managers rather than just new managers. People Strategy The actions had been completed. Page 81 of 83
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Procurement Strategy It was noted that Newcastle City Council (NCC) had a draft social value commitment which was going to Board in December. RECOMMENDED – that the action list be received and updated accordingly. 4
30 YEAR MODEL AND FUNDING DECISIONS A Lister gave a PowerPoint presentation and responded to members’ queries. The following issues/queries were raised during debate:
It was noted that NCC had not expressed an opinion on the level of reserves. The same process YHN used for setting the level of reserves would now be undertaken by NCC. This information would only come to YHN in future for context as it was no longer the responsibility of Board, as the decision making now rested with NCC. The Director of Resources, NCC had stated that he did not want to lose the insight of YHN on these matters. The exact details of how this would happen in practice were still to be worked out but the idea was that this committee would be asked to express a view. The Chief Executive, YHN, Chief Executive, NCC and the Director of Resources, NCC were to have a discussion about whether there was any role for YHN in the evolution of these discussions. The Chair stressed the urgent need for clarity for Finance and Resources Committee in relation to this. In order to allow the members to consider the information in advance, the Chair asked that in future a written report be circulated with the agenda rather than having a presentation on the day.
RECOMMENDED – that Sheila Breslin discuss urgently with John Lee the request by the committee for clarity around: i. ii.
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How decisions would be made in future and whether or not there would be any role for YHN in the evolution of those discussions; Whether Finance and Resources Committee would to be responsible for a number of financial issues that were no longer going to Board for discussion, as they had done in the past.
CAPITAL PROGRAMME Submitted: Report by Financial Controller (previously circulated and copy attached to Official Minutes) J Clifford introduced the report which informed members of the current projected spend on the 2014-17 Housing Revenue Account capital investment programme to allow oversight of the use of capital funding and to comply with Financial Regulations. Members were advised that YHN would still have a role managing the capital programme and may be able to make changes up to a limit set by NCC Cabinet. Page 82 of 83
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RECOMMENDED – that L Forrest discuss with J Davison how the recommendation in the report could be taken via delegated authority given that the meeting was inquorate. 6
ARREARS MONITOR Submitted: Report by Income Manager (previously circulated and copy attached to Official Minutes) M Grainger introduced the report which provided committee with a breakdown of arrears at 31 August 2014. The following issues/queries were raised in debate:
In response to a member’s query L Forrest advised that the monitoring of key performance indicators for arrears was likely to remain the responsibility of Finance and Resources Committee. The Chair commented that it would be helpful to have a breakdown of the arrears data by client group as well as by geographical area, as this could help to identify patterns of arrears that could then be specifically targeted and tackled. The introduction of the Rentsense software system which would work alongside the Northgate Housing Management system would take away a lot of the ‘technical ‘arrears’.
RECOMMENDED – that:i. The report be received. ii. Officers look at analysing the arrears information by client group as well as by geographical location. 7
EQUALITY AND DIVERSITY - PRESENTATION RECOMMENDED – that the presentation be referred to Board.
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FINANCE SERVICE REVIEW - IMPLEMENTATION UPDATE Submitted: Report by Head of Finance (previously circulated and copy attached to Official Minutes) Deferred.
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TREASURY MANAGEMENT STRATEGY - VERBAL Deferred. EXCLUSION OF PRESS AND PUBLIC RECOMMENDED – that the press and public be excluded from the meeting during consideration of the following item.
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