Agenda and minutes

Cabinet - Monday 14 July 2014 7.00 pm

Venue: Room 8, Lambeth Town Hall, Brixton Hill, SW2 1RW. View directions

Contact: Gary O'Key, Tel: 020 7926 2183 Email: gokey@lambeth.gov.uk 

Items
No. Item

1.

Declarations of Pecuniary Interest

    Under Cabinet Rule 1.5.2, where any Cabinet Member has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (para. 4)) in any matter to be considered at a meeting of the Council, a committee, sub-committee or joint committee, they must withdraw from the meeting room during the whole of the consideration of that matter and must not participate in any vote on that matter unless a dispensation has been obtained from the Monitoring Officer.

    Minutes:

    There were no declarations of pecuniary interest.

2.

Minutes of Previous Meeting pdf icon PDF 91 KB

    • View the background to item 2.

    To approve and sign the minutes of the meeting held on 28 April 2014 as a correct record of the proceedings.

    Minutes:

    RESOLVED: That the minutes of the previous meeting held on 28 April 2014 be approved and signed by the Chair as a correct record of the proceedings.

3.

Delivery of Leasehold Services pdf icon PDF 103 KB

    (Report 20/14-15 and appendices)

    Key decision

    All wards

     

    Report authorised by: Strategic Director, Commissioning: Helen Charlesworth-May

     

    Portfolio: Cabinet Member for Housing: Councillor Matthew Bennett

     

    Contact for enquiries:

    Sumitra Gomer, Lead Commissioner; 020 7926 4208, sgomer@lambeth.gov.uk

    Additional documents:

    Minutes:

    (Report 20/14-15 and appendices) (Key decision – call-in deadline Friday 25 July 2014)

     

    The Cabinet Member for Housing introduced the report which responded to Leaseholders’ concerns about the way the Lambeth Housing Standard (LHS) had been delivered and the charges made to leaseholders.  It was acknowledged that neither Lambeth Living nor the Council had been quick enough to respond to these concerns.  The 38 point Leasehold Action Plan (LAP) responded to the findings and recommendations of the Joint Task and Finish Group, and would be used to hold Lambeth Living to account. 

     

    The LAP would be updated on a rolling basis as it was a live document based on the representations which had been received.  The report of the Lambeth Leaseholder Council Working Group (LLCWG) would be included on the Action Plan and a response given by Lambeth Living. 

     

    The report was the start of a process.  The Council would work with the Leaseholders Council to scope an independent audit to be funded by the Council.   The Council would ensure that leaseholders were only charged for what was fair and appropriate.

     

    The Cabinet Member for Housing thanked the leaseholders and officers who had contributed to the report.

     

    Cabinet received the following representations:

     

    ·         Melissa Madjitey, Vice Chair of Leaseholders Council and Member of the Task and Finish Group,  was pleased that the Council established the Task and Finish Group and whilst acknowledging the significant challenge of  the LHS said there were concerns about its delivery.   She was pleased that the Council had signed new contracts which would result in savings, but was concerned that contracts for the Mechanical and Electrical (M&E) works had not been retendered as they should be market tested.  The use of the independent expert to oversee the auditing was welcomed and the Council needed to build up trust.  Delivery of the LHS remained a key concern; for example the inability to secure pain and gain savings in an environment where costs were falling.  Lambeth Living had to be a robust client and review invoices.  There was an intention to review long term supply chain management.

    ·         Malcolm Russell, LLCWG said that the Joint Task and Finish Group was a good response to leaseholder concerns and a good basis for further work.  It had been built upon by the LLCWG which had received wide support from leaseholders.  The Independent Expert had said that the Working Group report would address the significant problems which still existed, such as pain and gain clauses and the use of Qualifying Long Term Agreements.  Items from the Working Group report should be included in the Action Plan.  The Leasehold review was a work in progress, the areas of overpayment needed to be addressed, for example an independent survey on one estate had identified 3.5 million on savings.

    In response to the points raised by the speakers and from a member, the Lead Commissioner and the Director of Property Services made the following points:

     

    ·         The M&E contracts, which had been let in  ...  view the full minutes text for item 3.

4.

London Councils: London LGPS Collective Investment Vehicle pdf icon PDF 147 KB

    (Report 21/14-15 and appendix)

    Key decision

    All wards

     

    Report authorised by: Strategic Director, Enabling: Guy Ware

     

    Portfolio: Deputy Leader (Finance and Investment): Councillor Paul McGlone

     

    Contact for enquiries:

    Frank Higgins, Head of Financial Strategy, Strategic Finance; 020 7926 9316, fhiggins@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    (Report 21/14-15 and appendix) (Key decision – call-in deadline Friday 25 July 2014)

     

    The Deputy Leader, Finance and Investment, introduced the report and said that the collective investment vehicle would enable collaboration between boroughs on the management and investment of pension funds.  He noted that the report should have been considered by the Pension Fund Investment Panel (PFIP) prior to the meeting of Cabinet and Corporate Committee; however the meeting of the PFIP would now take place after Cabinet.  The following statement was read out from Councillor Garden, the Chair of PFIP and Corporate Committee. 

     

    “I met with the Head of Financial Strategy on 2nd July and received a thorough debrief as to the content of the report and the benefits to the Pension Fund of Lambeth participating in the Collective Investment Vehicle (CIV).  It is unfortunate that the Pension Fund Investment Panel was unable to meet prior to Cabinet, but I would like it put on record that I am fully supportive of the recommendations contained in the report.  Furthermore, I and the vice-chair, Councillor Sabharwal, attended a briefing session on the 9th July at London Councils where an update on progress to date, some detail about current thinking around structures and governance, and an overview of next steps and the proposed timeline to ‘launch’ were provided.  As such we feel that we have sufficient information to endorse Lambeth's participation in the CIV.”

     

    RESOLVED:

     

    (1)  To agree participation in the establishment of the London Collective Investment Vehicle (CIV)

    (2)  To agree to participate in the establishment of a private company limited by shares to be incorporated to be the Authorised Contractual Scheme Operator (the ‘ACS Operator’) of the CIV, the ACS Operator to be structured and governed as outlined in this report.

    (3)   To agree to become a shareholder in the ACS Operator, and to contribute £1 to the ACS Operator as initial capital;

    (4)  To appoint the Chair of the Pension Fund Investment Panel (or its successor body)  to exercise the Council’s rights as shareholder of the ACS Operator;

    (5)  To agree to join the London Boroughs “Pensions CIV Joint Committee”, to be formed under section 102 of the Local Government Act 1972 and to delegate to such Joint Committee those functions necessary for the proper functioning of the ACS Operator, including the effective oversight of the ACS Operator and the appointment of Directors.

    (6)  To note the Council’s submission in response to the CLG’s consultation paper ‘Local Government Pension Scheme: Opportunities for Collaboration, Cost Savings and Efficiencies’.

     

5.

Financial Planning Report: Allocating Resources to Outcomes pdf icon PDF 562 KB

    (Report 22/14-15 and appendices)

    Key decision

    All wards

     

    Report authorised by: Strategic Director, Enabling: Guy Ware

     

    Portfolio: Deputy Leader (Finance and Investment): Councillor Paul McGlone

     

    Contact for enquiries:

    Frank Higgins, Head of Financial Strategy, Strategic Finance; 020 7926 9316, fhiggins@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    (Report 22/14-15 and appendices), (Key decision – call-in deadline Friday 25 July 2014)

     

    The Deputy Leader, Finance and Investment, introduced the report and noted that the Council that the council had a three year funding deficit of £96 million for the period 2014/15-2016/17.   The Council therefore needed to commission well and would prioritise the services which the residents cared most about.  

     

    The following Cabinet Members made the following points:

     

    ·         The Cabinet Member for Health and Wellbeing welcomed the report as a summary which set out the responsibilities and requirements of the Council to provide services which in the areas such as health and wellbeing there was a growing and changing demand at a time when resources were reducing.  Services needed to be procured differently and the Council needed to use public health funding in order to move to a prevention agenda.

     

    ·         The Cabinet Member for Early Years, Youth & Families said that the area of significant overspend children’s social care had been managed within the budget.  The Council could not turn away from the people who needed help and was committed to supporting vulnerable people.   The council had recently been awarded £38 million for the Lambeth Early Action Partnership as set out on page 119 of the agenda. 

     

    ·         The Leader of the Council said that the LEAP funding was excellent news and was a good example of the Council’s partnership work.

     

    ·           The Cabinet Member for Children & Adult Services said that the Council needed to transform its services which would be a massive change for it and its partnership organisations. 

     

    In response to questions raised by Members the Strategic Director of Enabling made the following points:

     

    ·         The report gave a foundation for the work of the outcomes panel.  It set out the overall resources that the Council would invest in the three outcomes.  

     

    ·         The Council would continue to monitor the budgets as it had done over the past three years when cuts of £79 million had been made.  Improvements were being made to financial monitoring information.

     

    RESOLVED:

     

    1)    To agree the approach to Resource Allocation being developed to support co-operative commissioning and to direct Outcome Panels to develop commissioning plans and capital investment proposals to deliver outcomes within the resource envelopes set out in Section 2.

    2)    To re-affirm the Council’s commitment to delivering the existing revenue savings plans for 2014/15 (£25.4m savings) and 2015/16 – 2016/17 (£37.6m savings) as set out in paragraphs 2.5 to 2.13.

    3)    To note the 2013/14 General Fund outturn of £332.45m against a budget of £332.66m.

    4)    To note the balanced outturn for the 2013/14 HRA.

    5)    To note the 2013/14 Capital Investment Programme outturn of £183.6m against a budget of £186.0m and note the overview of Capital Investment of £543m over the four years to 2013/14 in Appendix 6.

    6)    To note the key revenue risks for 2014/15 as set out in paragraph 4.27 onwards.

    7)    To recommend approval of the revenue virements set out in paragraphs 4.36 and 4.37.

    8)    To agree the  ...  view the full minutes text for item 5.

6.

Community Insurance Trading Company pdf icon PDF 172 KB

    (Report 23/14-15 and appendices)

    Non-key decision

    All wards

     

    Report authorised by: Strategic Director, Enabling: Guy Ware

     

    Portfolio: Deputy Leader (Finance and Investment): Councillor Paul McGlone

     

    Contact for enquiries:

    Mark Nicolson, Head of Improvement Risk & Insurance, Corporate Assurance, Enabling; 020 7926 9305, mnicolson@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    (Report 23/14-15 and appendices), Non-key decision

     

    The Deputy Leader, Finance and Investment, introduced the report and said the proposal was a good example of an enabling council delivering a service to the community.  In the future it was possible that the model could be extended to provide other professional services.

     

    The following Cabinet Members made the following points:

     

    ·         The Leader of the Council congratulated the team who had developed the proposal.

    ·         The Cabinet Member for Neighbourhoods said that the proposal was a good example of enabling communities. 

     

    REOLVED:

     

    1)    To note the consultation and engagement activity which had been undertaken to date on providing insurance cover to community organisations.

    2)    To instruct officers to proceed to establish the community insurance trading company with funding of up to £121, 042 from the Cooperative investment Fund.

     

7.

Adoption of Lambeth Community Infrastructure Levy (CIL) Charging Schedule pdf icon PDF 2 MB

    (Report 24/14-15 and appendices)

    Key decision

    All wards

     

    Report authorised by: Strategic Director, Delivery: Sue Foster

     

    Portfolio: Cabinet Member for Jobs and Growth: Councillor Jack Hopkins

     

    Contact for enquiries:

    Clive Fraser, Lead Regeneration, Strategy and Policy, Neighbourhood and Investments; 020 7926 1178, CFraser@Lambeth.gov.uk

     

    Minutes:

    (Report 24/14-15 and appendices), (Key decision – call in deadline – 25 July 2014)

     

    The Cabinet Member for Jobs & Growth introduced the report and said that CIL provided a new income stream resulting from the growth in building of residential accommodation and offices in the borough.  There had been a significant amount of public consultation on the proposal and 25% of the receipts would be invested in local projects.  A built-in review mechanism would enable reassessment of the level of CIL if land values changed. 

     

    RESOLVED:

     

    (1)          To note the outcome of the examination in public and the recommendation by the independent examiner, as set out in the Lambeth CIL Charging Schedule (Appendix 1 of the report).

    (2)          To recommend to the full Council that it resolves to approve the Lambeth CIL Charging Schedule.

     

    (3)          To approve the following CIL-related documents for the operation of CIL in Lambeth:

    ·           Lambeth CIL Regulation 123 List (Appendix 2)

    ·           CIL Instalments Policy (Appendix 3)

    ·           Statement of Availability of Discretionary Relief for Exceptional Circumstances(Appendix 4)

    ·           Policy Statement concerning Discretionary Charitable Relief for Investment Activities (Appendix 5).

     

    (4)          To note that the Cabinet will receive a further report in September 2014 recommending adoption of a revised Section 106 planning obligations SPD.

     

8.

Co-operative Local Investment Plans (CLIPs) and Neighbourhood Community Infrastructure Levy (CIL): Boundaries and Decision-Making pdf icon PDF 781 KB

    (Report 25/14-15 and appendices)

    Key decision

    All wards

     

    Report authorised by: Strategic Director, Delivery: Sue Foster

     

    Portfolio: Cabinet Member for Jobs and Growth: Councillor Jack Hopkins

     

    Contact for enquiries:

    Trisha Boland, Co-operative Council Implementation Lead, Delivery;

    020 7926 3481, TBoland@lambeth.gov.uk

     

    Minutes:

    (Report 25/14-15 and appendices), (Key decision – call-in deadline Friday 25 July 2014)

     

    The Cabinet Member for Jobs & Growth introduced the report and thanked Michael Ball of the Waterloo Community Development Group and officers who had helped to develop the proposals. The report was the beginning of an evolutionary process.

     

    The following members of the Cabinet spoke in favour of the proposals:

     

    ·         The Leader of the Council welcome the approach of setting up a trial CLIP in Stockwell and commented that it was important for residents in an area where there was development to see a community benefit.  The 25% investment in local projects would enable the council to build capacity and resilience in its communities.

    ·         The Deputy Leader, Policy welcomed the programme starting in Stockwell.  She praised the partnership approach and said she looked forward to other areas being developed.

    ·         The Cabinet Member for Health and Wellbeing said that he welcomed the CLIPS and asked for sensitivity in working with some residents who were on the peripheries of large neighbourhoods. 

    ·         The Cabinet Member for Children & Adult Services said that she supported community involvement in decision making and was pleased that the approach was based on the Neighbourhood Engagement Panels (NEP). 

    RESOLVED:

    (1)          To the approve the decision-making process:

     

    a.    Identification of proposals and priorities for CLIPs should be led by the community within agreed principles, standards and parameters.

    b.    Ward councillors should provide local leadership to develop CLIPS.

    c.    The Cabinet Member for Jobs and Growth will agree the operational framework developed for CLIPs.

    d.    The Council, as the accountable body, will be responsible for establishing and managing CLIPs by developing an operational framework setting out principles, standards and parameters using co-operative principles.

     

    (2)          To approve 7 boundaries for the development of Co-operative Local Investment Plans (CLIPs). 

     

    (3)          To approve the timetable and next steps for developing and agreeing the first CLIP, to cover the Stockwell CLIP area, by the end of the financial year, also noting the budgetary implications.

     

    (4)          To note that the Strategic Director for Delivery, in consultation with the Cabinet Member for Jobs and Growth, has delegated authority to co-produce the process for developing, establishing and managing the operational process of CLIPs.

     

9.

Enabling Future Investment in Brixton Central pdf icon PDF 99 KB

    (Report 26/14-15)

    Key decision

    Coldharbour ward

     

    Report authorised by:

    Strategic Director, Delivery: Sue Foster

    Strategic Director, Enabling: Guy Ware

     

    Portfolio: Deputy Leader (Finance and Investment): Councillor Paul McGlone

     

    Contact for enquiries:

    Tom Bridgman, Delivery Lead – Regeneration; 020 7926 0176, tbridgman@lambeth.gov.uk

     

     

Minutes:

(Report 26/14-15) (Key decision – call-in deadline Friday 25 July 2014)

 

RESOLVED:

 

(1)   That the Part II report is classified as information exempt from publication for the reason set out in the report

 

(2)   That the discussion on the report be held in the public domain without disclosing any exempt information.

 

The Deputy Leader, Finance and Investment, introduced the report which recommended that the Council buy the headlease of International House so that it would own the entire land outright which would provide land in central Brixton for future redevelopment.  It would also mean that the Council was released from the repairing lease and would save the Council £754,000 per year in rent.

 

The Cabinet Member for Early Years, Youth & Families welcomed the proposal which was indicative of the way in which the Council was working in a different way.   It made good financial sense and would enable the Council to work closely with the community.

 

RESOLVED:

 

(1)          To agree to acquire the headlease for International House, within the agreed funding envelope set out in the Part II to this report in order to enable future investment linked to the Brixton Central masterplan,

 

(2)          To delegate the conclusion of the negotiations, including the timing of the acquisition and the satisfactory mitigation of the outstanding issues, (as set out in Part II), to the Strategic Director for Enabling, in consultation with the relevant Cabinet member(s).