Agenda and minutes

To approve as a correct record.

The minutes were confirmed and signed as a correct record.

A report was presented to the Committee outlining the draft Housing Decarbonisation Strategy for 2024 to 2035.

It was noted that this strategy does not take the Council to the government target of net zero for 2050. This was due to the need to develop a realistic and achievable strategy that officers felt could be delivered, taking into account the estimated cost of £200,000k to fully decarbonise the Housing Stock and the uncertain reliability of clean heating solutions.

The strategy set out a two-tier approach. The first being to achieve, where possible, an Energy Performance Certificate (EPC) level C rating on all Council owned Houses by 2035. The second was to investigate the reliability and effectiveness of clean heating solutions, such as air source heat pumps, while adopting a fabric first approach to retrofitting the housing stock.

The Strategy set out a five year HRA capital budget programme. Officers aimed to top up the capital funding with government grants from the Warm Homes Social Housing Fund Wave 3, to assist with retrofitting and achieving EPC Level C. A retrofit consultant and contractor would be required for this work. This would be a three year programme, which would also require match funding, and would see up to 450 properties benefit from energy efficient upgrades. Match funding would be built into future capital budgets.

In response to member questions, officers explained that:

·         they expected government targets to change continuously over the next few years. Authority for the Deputy Chief Executive and the Head of Housing to make amendments to the strategy were included into the recommendations. The achievability of government targets would depend on the levels of funding available.

·         the current EPC ratings for the Council’s Housing stock were set out on page 18 the report.

·         not many other landlords currently had a decarbonisation strategy for their housing stock due to financial limitations. Those landlords that do have a strategy tended to be those with a larger financial capacity to carry out the work.

R E S O L V E D – that:

A.    the draft Housing Decarbonisation Strategy 2024 – 2035 be approved

B.    authority be delegated to the Deputy Chief Executive and Head of Housing to make minor amendments to the strategy in relation to revised government targets and guidelines.

C.   the decision taken under urgency powers to appoint a contractor to complete works in accordance with the Social Housing Decarbonisation Fund Wave 2.2 funding agreement be ratified.

D.   the procurement and appointment of a retrofit consultant to support the Council’s application for grant funding under the governments Warm Homes Social Housing Fund Wave 3 and the procurement and appointment of a retrofit contractor to facilitate the associated work be approved.

The Committee received a report seeking the approval to procure a contract to undertake a stock condition survey for all Council owned properties and an Energy Performance Certificate (EPC) survey where necessary.

A stock condition survey is important in order to assess of the condition of the main elements of properties to ensure that they are safe and free from any serious hazards.

An energy performance certificate survey would also be carried out by an accredited assessor to determine the energy efficiency of a property through a thorough inspection of the property's structure, its insulation, heating, cooling systems and lighting.

Registered providers of social housing were required to ensure that properties met the standards set by the housing regulator. Undertaking a stock condition survey would provide accurate up to date information, enabling the Council to ensure compliance in its housing and to budget for future works required.

The completion of both a stock condition and EPC survey would support the aims and objectives of the Housing Decarbonisation Strategy.

In response to member questions, officers explained that the procurement process would take place through a procurement framework. Potential contractors would have completed their original due diligence in order to be able to access the framework and would have completed value for money assessments. Contract management would then be overseen by a contract manager within the property services team to ensure that works were delivered on time and on cost.

R E S O L V E D – that:

A.    the procurement of a contract to undertake a stock condition survey and Energy Performance Certificate for all Council owned homes in accordance with the Council’s Contract Standing Orders and the Public Contract Regulations 2015 be approved.

B.    delegated authority be granted to the Head of Housing, Director of Resources and Deputy Chief Executive in consultation with the Chairman and Vice Chairman of the Committee to award the contract to the most economically advantageous tenderer.

C.   the Head of Housing, Director of Resources and Deputy Chief Executive be authorised to enter into all necessary agreements with the preferred contractor to provide stock condition surveys and Energy Performance Certificates for the housing stock as set out in recommendation A.

D.   delegated authority be granted to the Head of Legal and Monitoring Officer to execute and enter into all necessary contractual agreements.

Officers presented a report to the Committee regarding a revised delivery model for ground maintenance services on Housing Revenue Account sites.

A review had been undertaken of both the General Fund and Housing Revenue Account (HRA) grounds maintenance approach. Grounds maintenance delivered on HRA sites in the past few years had fallen short of the Council’s expected standards.

The proposed operating model would see the implementation of an inhouse grounds maintenance team comprising of 10 operatives and a supervisor for HRA activity. This model proposed to include not only the grass cutting services which were previously provided, but also hedge cutting and shrub bed maintenance.

The Service Level Agreement, as set out in Appendix A of the report, set out the specification, performance and monitoring requirements to ensure residents would receive the services that they expected.

Work had been undertaken to cost the new operating model, which for year one would total £474k, compared to a current annual cost of £390k. In addition, there would be a £100k upfront cost for the purchase of equipment and machinery, funded by the HRA Capital Programme.

In recognition of the poor service received by residents during the previous two years, it was proposed that fees for grounds maintenance not be increased above the CPI rate as set at September 2024, that being 1.7% for the financial year 2025-26. Fees will then be reviewed as part of the fees and charges exercise for 2026-27.

In response to member questions, officers clarified that:

·         a supervisor would have responsibility for delivery of the service. Regular meetings with Housing Officers, as well as an online reporting form for residents, would help to ensure that the service is delivered to a satisfactory level.

·         the new operating model would bring the various previous delivery models into one model, giving the Council more control for a small additional cost.

·         due to the need for purchasing new equipment, part of these costs would be met by the 2024-25 budget. As residents would not be billed above the CPI increase, the HRA would take on the shortfall for the first year.

·         TUPE transfer would occur for the previous team to be included into the inhouse team.

R E S O L V E D – that:

A.    the revised operating model be approved, ensuring an adequately resourced team to deliver grounds maintenance services on Housing Revenue Account sites.

B.    the increase in budget required to deliver the operating model as specified within this report be approved.

A report was presented to the Committee seeking approval for a full budget for the Sea Cadets site and to commence the process of appropriation of the site to facilitate its future development for new housing.

The site had been acquired from the Ministry of Defence in 2023 for the purpose of providing affordable rented Council homes. Work on the site had been progressing since then, with pre-application planning advice received in July 2024 and a public consultation being held in August and September 2024, comments and concerns from these had been considered by officers and the architect. Pre-application highways advice was also sought. It was expected that a planning application would be submitted in the next few weeks.

A successful bid to the One Public Estate Brownfield Land Release Fund was  successful with a £250k grant awarded to cover the cost of demolition and remediation of contaminated soil on the site.

It was noted that during the public consultation period, no third party came forward to claim any rights over the land.

In response to member questions, officers explained that:

·         feedback from the consultation was mixed but as expected. Concerns from members of the public largely related to design, parking and highways, all of which had been considered as part of the redesign.

·         the plan for the site was still for 16 units, predominantly 2 or 3 bedroom houses and one fully accessible 1 bed wheelchair bungalow.

·         in regards to the timeline, officers were aiming to move the project along quickly but were constrained by a number of factors, such as the time required for the planning process. Officers were hopeful of getting the project to Planning Committee in Spring 2025. If permission is granted, tendering for the works contract will then commence and it was hoped that work on site would begin in Summer 2025.

R E S O L V E D – that:

A.    a budget of £8,154,000 be approved

B.    authority be given for officers to commence the process of appropriating the land from housing to planning purposes in accordance with section 122 (1) of the Local Government Act 1972.

C.   authority be provided to the Deputy Chief Executive:

                      i.        to sign a memorandum for the scheme stating in each case that the land is appropriated from housing to planning purposes;

                     ii.        at the appropriate time, to sign a memorandum for the scheme stating that the land is appropriated from planning purposes to housing.

D.   authority be delegated to the CEO in consultation with the Council’s relevant group leaders (as detailed in Standing Order 46 of the Council’s Constitution) to procure and award a contract for the proposed development to the most economically advantageous tenderer, subject to the outcome of the planning process and construction costs being within the approved budget;

E.    the above approval to proceed includes the appointment of any other specialist consultants and surveyors to act for, or advise, the Council and the commissioning of necessary reports to take the schemes forward  ...  view the full minutes text for item 166.

The Committee received a report seeking ratification of a decision taken under urgency powers, in accordance with Standing Order 35, to increase the HRA capital budget with regards to health and safety compliance.

At the previous committee meeting, in September 2024, authority to procure a contract had been granted. Authority to increase the associated budgets was not requested, due to ongoing discussions with the procurement framework and the first choice supplier.

Before the contract was confirmed, authority was sought under urgency powers to increase the Capital Health and Safety Budget within the HRA and approve additional General Fund Capital expenditure to ensure health and safety compliance within the Council's corporate assets. Officers explained that this was done in consultation with Group Leaders and the Chair and Vice-Chair of this committee.

R E S O L V E D – that the decision taken under urgency powers in accordance with Standing Order 35 of the Constitution to increase the HRA capital budget for health and safety compliance under the Council’s urgency powers be ratified.

The Committee received a report outlining the Quarter 2 2024/25 performance against Key Performance Indicators (KPIs) and the Risk Register. One of the KPIs had not been met, with Appendix A of the report providing comment on this.

The Housing Risk Register was set out in Appendix B of the report. It was noted by Officers that risks H5, H6 and H8 would be reviewed following the approval of a number of recommendations at this meeting.

The position of the Council House Building Programme at the end of Quarter 2 was set out in Appendix C of the report.

Members complimented officers on their work in the completion of the Uplands Scheme in Warlingham after a number of setbacks.

Officers responded stating that handover of the properties was completed that day, with residents being able to collect keys shortly.

R E S O L V E D – that the Quarter 2 2024-2025 performance and risks for the Housing Committee be noted.

A report was presented to the Committee outlining the position of the Revenue and Capital budgets for the committee, including the Housing Revenue Account (HRA) as of Quarter 2 2024/25.

A 21k overspend was highlighted for the Housing General Fund, this was an additional £6k to the £15k overspend from Q1. In relation to the General Fund savings tracker, the savings were expected to be achieved by the end of the year. Risks to the General Fund were the same as at Q1, these were being monitored for any potential additional costs.

For the Housing Revenue Account (HRA), at Q2 there was a £110k underspend driven by unspent gas and electrical budgets. These initial budgets were set with global events being taken into account, the impact of these were not as severe as anticipated.

The Disabled Facilities Grant was highlighted as having spent £91k at the end of Q2, representing 22% of the budget. The full budget was forecast to be spent by the end of the year 2024-25.

The HRA Capital budget was noted for having £494k of slippage, predominantly due to net slippage of £2,255k in the Council House Building Programme being offset by improvements to the Housing Stock which had been brought forward.

R E S O L V E D – that the Committee’s Revenue and Capital budget forecast positions as at Quarter 2 / M6 2024/25 be noted.