Members are invited to disclose any interests in any of the items on the agenda at this point of the meeting. Members may still disclose an interest in an item at any time prior to the consideration of the matter.

11. Mercury Land Holdings (MLH) in-year Business Plan Update.

Councillor Jason Frost, Non Pecuniary, Councillor Frost is the Chair of the Strategic Planning Committee and as such declared a non pecuniary interest.  Councillor Frost left the room for all relevant agenda items and did not participate in debate or voting.  ...  view the full minutes text for item 32.

To approve as a correct record the minutes of the meeting held on 29^th November 2018 and 16^th January, 2019, and to authorise the Chairman to sign them.

The minutes of the Meetings of Cabinet held on 29^th November, 2018 and 16^th January, 2019 were agreed as a correct record and signed by the Chairman.

Cabinet:

The report was introduced to Cabinet by the Cabinet Lead Member for Finance and Property, Councillor Roger Ramsey. This detailed the contract award in relation to the upgrade from the current Oracle Corporate Enterprise Resource Planning (ERP) system platform to the next generation platform known as Fusion, Oracle’s cloud product.  ...  view the full minutes text for item 34.

Cabinet:

1.              Approved the capital strategy contained within this report noting its impact on both the capital programme and overall contribution to the setting of the revenue budget for 2019/20 and beyond

2.              Will Recommend to Council for consideration and approval the 2019/20 and ongoing Capital Programme (subject to business cases for the regeneration schemes being approved in line with the governance process)

3.              Agreed that the Chief Financial Officer be authorised to allocate funding from the Capital Contingency included within the draft Capital Programme.

4.              Approved the use of capital receipts to fund the revenue costs of two eligible proposals – the Oracle and CRM system transformations – under the MHCLG Guidance on the Flexible Use of Capital Receipts.

5.              Agreed that externally funded schemes can be added to the capital programme up to £500k as and when funding is confirmed. Any external funding over £500k will be subject to approval by the Chief Financial (s151) Officer.

6.              Agreed that the relevant Cabinet Member, together with the Cabinet Member for Finance and Property be delegated authority to commence tender processes and accept tenders for capital schemes included within the approved programme under the block programme allocations or delegation arrangements set out in this report.

7.              Noted the capital prudential indicators included within the capital strategy when approving the capital programme to ensure affordability.

Councillor Damian White, Leader of the Council presented the report to Council detailing the Council’s Capital Strategy and the associated Capital Programme for Cabinet to approve and to recommend on further to full Council.  The Council is required to approve the Capital Strategy as per the Prudential Code for capital  ...  view the full minutes text for item 35.

Cabinet were presented with a Corrigendum of amendments for the report and Appendices.  Cabinet agreed to accept these as follows:

Amendments to the Budget Cabinet Report

Corrigenda

(Amended items shaded)

Main Report page 84 of the Agenda pack

Paragraph 5.2 – Table amended

Appendix A page 102 of the Agenda Pack

Table amended

Appendix C

See Schedules next page – Pages 231, 232, 233 and 236 of the Agenda Pack

(Amended items shaded)

Cabinet:

1.     Agreed the Corporate Plan set out in Appendix G of the report.

2.     Agreed the Council’s General Fund Budget Requirement for 2019/20 to be set at £124.813m as set out in paragraph 5.3.2 and Appendix A of the report;

3.     Agreed The Delegated Schools’ draft budget set out in section 2.5 of the report;

4.     Agreed a 1.25% increase in Council Tax for 2019/20 as set out in paragraph 5.1 of the report;

5.     Agreed an additional 2% Adult Social Care Precept as in paragraph 5.1 of the report;

6.     Noted the Medium Term Financial Strategy position as set out in Section 4 and Appendix F of the report.

7.     Agreed the fees and charges schedule as set out in Section 6 and Appendix C of the report as amended.

8.     Noted the budget and risks as set out in Section 9 of the report.

9.     Approved the Council’s approach to general balances as set out in paragraph 7.3 of the report

10.Noted the requirements of  S106 of the LGA 1992 Act as set out in Section 1.

11.Agreed that if there are any changes to the GLA precept and/or levies, the Chief Financial (s151) Officer be authorised to amend the recommended resolutions accordingly and report these to the next Council meeting as required.

12.Agreed that to facilitate the usage of unringfenced resources, the Chief Financial Officer in consultation with Service Directors will review any such new funds allocated to Havering; make proposals for their use; and obtain approval by the Cabinet Member for Financial Management, ICT (Client) & Transformation.

13.Delegated to the Chief Financial Officer in consultation with Service Directors the authority to make any necessary changes to service and the associated budgets relating to any subsequent specific grant funding announcements, where delays may otherwise adversely impact on service delivery and/or budgetary control, subject to consultation with Cabinet Members as appropriate.

Cabinet will recommend to Council for consideration and approval:

·       The Council’s General Fund Budget Requirement for 2019/20 to be set at £124.813m as set out in  ...  view the full decision text for item 36.

Councillor Damian White presented the report to Cabinet and detailed some amendments to be made.  Cabinet were presented with a Corrigendum of amendments for the report and Appendices.  Cabinet agreed to accept these as follows:

Amendments to the Budget Cabinet Report

Corrigenda

(Amended items shaded)

Main Report page 84 of  ...  view the full minutes text for item 36.

Cabinet:

1.              Approved the Housing Revenue Account Budget as detailed in Appendix 1. 

2.              Agreed that the average rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be decreased by 1% from the week commencing  2^nd  April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this report.

3.              Agreed that the average rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, be reduced by 1% from the week commencing 2nd April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this report.

4.              Agreed the four rent-free weeks for 2019/20 as being: week commencing 19th August 2019, the two weeks commencing 16^th and 23^rd December 2019, and the week commencing 30^th March 2020.

5.              Agreed that service charges and heating and hot water charges for 2019/20 are as detailed in paragraph 2.2.2 of this report.

6.              Agreed that the service charges for homeless households accommodated in the Council’s hostels in 2019/20 are as detailed in paragraph 2.2.3 of this report.                               

7.              Agreed that charges for garages should be increased by 3.4% in 2019/20 as detailed in paragraph 2.3.1 of this report

8.              Agreed that the service charge for the provision of intensive housing managementsupport in sheltered housing for 2019/20 shall be as detailed in paragraph 2.4.1of this report. 

9.              Agreed that the Careline support charge should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

10.           Agreed that the Telecare support charges should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

11.     Approved the HRA Major Works Capital Programme, detailed in Appendix 2a of this report and refer it to full Council for final ratification.

12.     Approved the HRA Capital expenditure and financing for the 12 Sites Joint Venture and Bridge Close detailed in paragraphs 3.5.1 to 3.5.17 and Appendix 2a of this report and refer it to full Council for final ratification.

13.     Approved the £10m Estate Improvement Programme detailed in paragraph 4.4 and Appendix 2a of this report and refer it to full Council for final ratification.

Councillor Joshua Chapman, Cabinet lead member for Housing presented the report to Cabinet.  This detailed the Housing Revenue Account Budget and HRA Capital programme.

2019 is the last year of the 1% reduction in rents so the Council has had no option than to reduce rents by this amount.  Next  ...  view the full minutes text for item 37.

Cabinet:

1.               Approved the Treasury Management Strategy Statement (TMSS) 2019/20.

2.               Approved the Treasury Management and Prudential Indicators set out in Appendices 1 and 2 of this report.

3.               Approved the Annual Minimum Revenue Provision (MRP) Statement for 2019/20 set out in Appendix 7 of this report.

4.               Recommended the annual TMSS and MRP statements 2019/20 to Council for approval.

5.               Delegated future changes required to this Strategy to the Chief Operating Officer in consultation with the Cabinet Member for Finance and Property. This will provide the additional flexibility to swiftly respond to changing financial markets. 

Councillor Roger Ramsey, Cabinet Lead Member for Property and Finance presented the report to Cabinet.  The Treasury Management Strategy for 2019/20 is a statutory report and covers two main areas:

·       Capital Financing Proposals

The report summarises the Council’s Capital Expenditure plans and sets out the associated prudential indicators and these  ...  view the full minutes text for item 38.

To consider whether the press and public should now be excluded from the remainder of the meeting on the grounds that it is likely that, in view of the nature of the business to be transacted or the nature of the proceedings, if members of the press and public were present during those items there would be disclosure to them of exempt information within the meaning of paragraph 1 of Schedule 12A to the Local Government Act 1972; and, if it is decided to exclude the public on those grounds, the Committee to resolve accordingly on the motion of the Chairman.

The Cabinet went into closed session on occasion whilst discussing agenda items 11 to 15 which contain exempt reports.  These items were considered at the beginning of the agenda as set out by the Leader of the Council.

The Cabinet went into closed session on occasion whilst discussing agenda items 11 to 15 which contain exempt reports.  These items were considered at the beginning of the agenda as set out by the Leader of the Council.

Cabinet:

1.       Approved the Mercury Land Holdings Limited Business Plan 2019/20 attached at exempt Appendix 2 of the report.

2.       Agreed to delegate authority to the Leader of the Council, after consultation with the s151 Officer, the Director of Regeneration Programme Delivery and the Director of Legal and Governance, approves the detailed business cases and related viability assessments and funding requirement for the individual schemes noted within the Business Plan as they may be presented during the business plan period in order to enable them to proceed.

3.       Agreed in principle to provide total capital funding to MLH up to a maximum of £135.85 million in respect of projects contained in exempt Appendix 2 through a combination of equity investment and state aid compliant loans subject to detailed approved business cases made under delegated authority in recommendation 2 above.

4.       Agreed to delegate authority to the S151 Officer to agree, after consultation with the Director of Legal and Governance, the completion of all relevant agreements and appointments of relevant professionals relating to the provision of debt finance by the Council to MLH. 

5.       Agreed to delegate to the sS151 Officer, following consultation with the Director of Asset Management, and the Director of Legal and Governance, the authority to determine the principles and processes by which any assets shall be disposed of and the terms of disposal to MLH.

Cllr Roger Ramsey presented the report to Cabinet detailing the Mercury Land Holdings (MLH) Business Plan and Budget Update.  MLH was established in November, 2015 with the Council acting as both shareholder and funder.  The Council’s objectives for setting up the company were to generate an acceptable return for the  ...  view the full minutes text for item 40.

Cabinet:

1. Approvedthe draft Rainham and Beam Park Regeneration Joint Venture LLP Overarching Business Plan 2019-20, full details of which are contained within the Exempt Agenda Report.

2. Agreed that the Leader of the Council and Cabinet Member for Housing after consultation with the s151 Officer, the Chief Executive Officer and the Director of Legal and Governance, approve the finalised Overarching Business Plan 2019-20, and possible later incorporation of an additional site known as the ‘Rainham Opportunity Site’ as may be presented during the Business Plan 2019-20 period.

3. Agreed to Endorse and Recommend to Council the budget allocation set out in this report to include the related site known as ‘Rainham Opportunity Site’ with the Rainham and Beam Park Regeneration Scheme.

4. Agreed that the s151 Officer, after consultation with the Cabinet Member for Housing, responds to the service of any notice as described in Section 8.4 of this report, served by the Rainham and Beam Park Regeneration Joint Venture LLP, indicating a willingness or otherwise to participate in making third party debt available from the Council, subject to contract and due diligence.

5. Agreed that the s151 Officer, after consultation with the Chief Executive and The Leader of the Council, may enter into funding agreements consistent with the Treasury Management Strategy and Council’s Scheme of Delegation.

6. Agreed the revised capital profile which brings forward £1.5m capital expenditure from 2019/20 to 2018/19.

Councillor Joshua Chapman, Cabinet Lead Member for Housing presented the report to Cabinet detailing the Rainham and Beam Park LLP Business Plan and budget update. In March 2018, the London Borough of Havering entered into a Joint Venture (JV) with Notting Hill Genesis.  This JV was established to stimulate the  ...  view the full minutes text for item 41.

Cabinet:

1. Approved the Havering and Wates Regeneration Joint Venture Business Plan dated January 2019, as attached at the exempt agenda report.

2. Agreed to delegate to the Leader of the Council, after consultation with the s151 Officer, the Director of Regeneration and the Director of Legal and Governance, the authority to approve the business cases, related viability assessments and incorporation of an opportunity site known as Chippenham Road as may be presented during the Business Plan 2019-20 period.

3. Agreed that the s151 Officer responds to the service of any notice as described in the exempt agenda of this report served by the HWR indicating a willingness or otherwise to participate in making third party debt available from the Council, subject to contract and due diligence.

4. Agreed that the s151 Officer, after consultation with the Chief Executive and the Leader of the Council, may enter into 3^rd Party funding agreements consistent with the Treasury Management Strategy and the Councils Scheme of Delegation

5. Authorised the Director of Regeneration in consultation with the Director of Legal and Governance to make variations to the JV Development and Members agreements to enable forward funding of Napier and New Plymouth and inclusion of the Chippenham Road site into the Havering and Wates Regeneration LLP.

6. Agreed the phasing and works packages for the 12 HRA Regeneration Sites, as identified at 2.1, subject to any changes made by the Leader in approving the business cases.

7. Authorised the Director of Housing to arrange for the service of demolition notices at the appropriate time in relation to all affected properties on the named estates and schemes in this report.

8. Agreed to continue to develop the proposals for the Blue Line and Opportunity Sites.

Councillor Osman Dervish, Cabinet Lead Member for Environment, presented the report to Cabinet.  The Havering and Wates Residential LLP will deliver the 12 Estates Regeneration Programme which was approved by Cabinet in January, 2018.

This programme is a residential led regeneration plan that will renew the Council’s housing stock on  ...  view the full minutes text for item 42.

Cabinet:
 

1. Agreed the Bridge Close Regeneration LLP Business Plan 2019, as attached at Appendix A.

2. Agreed that the Leader of the Council, after consultation with the S151 Officer, the Director of Regeneration and the Director of Legal and Governance, approve detailed business cases, related viability assessments, funding arrangements and legal agreements as may be presented during the Business Plan 2019 period.

3. Agreed to Endorse and Recommend to Council budget allocation to include £111.7 million within the proposed capital programme.

4. Agreed, in the event of approval of 2 and 3 above, to delegate to the Director of Regeneration, after consultation with the S151 Officer and the Director of Legal and Governance, the authority to take all steps to enable the approval of the terms of the agreements associated with the Council’s acquisition of interests from Bridge Close Regeneration LLP relating to a new primary school, a health hub and affordable housing, including any related financial arrangements and the appointment of relevant professionals.

5. Agreed in principle for the Council to facilitate third party lending of debt to the Bridge Close Regeneration LLP.

6. Agreed, in the event of approval of 5 above,that the s151 Officer responds to the service of any notice served by the Bridge Close Regeneration LLP, indicating a willingness or otherwise to participate in making third party debt available from the Council, subject to contract and due diligence.

7. Agreed, in the event of approval of 5 above, that the s151 Officer, after consultation with the Chief Executive and The Leader of the Council, may enter into funding agreements consistent with the Treasury management Strategy and Councils Scheme of Delegations.

Councillor Robert Benham, Deputy Leader and Cabinet Lead Member for Education, Children and Families outlined the report to Cabinet.

On 15^th November, 2017, Cabinet approved a Limited Liability Partnership (LLP) for the purpose of meeting the Council’s regeneration objectives for Bridge Close. The Capital budget was approved in February,  ...  view the full minutes text for item 43.

Cabinet:

1.          Approved to directly award a demolition contract with Wates Construction Ltd. (WCL) to facilitate the demolition of Napier and New Plymouth House (NNP) in Rainham and Solar, Serena and Sunrise Courts (SSS) in Hornchurch, subject to approval of the JVLLP Wates Business Plan by Cabinet and in preparation for housing regeneration.

2      Approved a waiver of contract rules to allow the direct award of a works contract for the demolition of Napier and New Plymouth House and Solar, Serena and Sunrise Courts.

3.          Agreed to endorse and recommend the inclusion of a budget of £4.144m for the demolition within the proposed HRA capital programme that is being considered by Cabinet in a report elsewhere on this agenda, as part of the annual Housing Revenue Account (HRA) rent setting and capital programme report and that this is recommended to Full Council for final approval in February 2019.

Noted

4.          The Council to undertake the demolition and partial enabling of Napier and New Plymouth House and Solar Serena and Sunrise Courts.

Councillor Viddy Persaud, Cabinet Lead Member for Public Protection and Safety, presented the report to Cabinet.  This details the requirement to bring demolition work forward to facilitate and expedite the works for regeneration.  This is to accommodate progress made so far to carry forward the Work Package One sites.  This  ...  view the full minutes text for item 44.