Agendas, reports and minutes

Minutes of Meeting of the Finance, Housing and Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 26 February 2014 at 10.30 am.

Present:

Mr D Fallows, Dr D Alston, Mrs C Caddick, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr N Donald, Mr G Farlow, Mr L Fraser, Mr D Hendry, Mr R Laird, Mr C Macaulay, Mrs I McCallum, Mr D MacKay, Mrs D MacKay, Mr A Mackinnon, Mr H Morrison, Mr F Parr, Mr J Stone, Mrs C Wilson, Mr H Wood, Mr K Gowans (substitute)

Non Members also Present:

Mr R Balfour, Mr A Baxter, Mrs I Campbell, Miss J Campbell, Dr I Cockburn, Ms G Coghill, Ms J Douglas, Mr B Fernie, Mr M Finlayson, Mr J Gordon, Mr M Green, Mr R Greene, Mrs L MacDonald, Mr J McGillivray, Mr G MacKenzie, Mrs A MacLean, Mrs B McAllister, Mrs M Paterson, Mr M Reiss, Ms F Robertson, Mr J Rosie, Mrs A Sinclair

Officials in attendance:

Ms M Morris, Depute Chief Executive
Mr D Yule, Director of Finance
Mr G Westwater, Head of Property, Housing and Property Service
Mr A Maguire, Head of Property Partnerships, Housing and Property Service
Mr D Goldie, Head of Housing, Housing and Property Service
Mr S Fraser, Head of Legal and Democratic Services, Chief Executive’s Service
Ms V Nairn, Head of E Government, Chief Executive’s Service
Mrs S McKandie, Exchequer Manager (Policy & Development), Finance Service
Mr G Bull, Corporate Property Asset Manager, Housing and Property Service
Ms C Campbell, Maintenance and Service Support Manager, Housing and Property Service
Mr F MacDonald, Property Manager (Building Maintenance), Housing and Property Service
Mr C Anderson, Property Manager (Operational Estate Management), Housing and Property Service
Mrs K Lackie, Business Manager, Chief Executive’s Service
Mr J Shepherd, ICT Strategy & Projects Manager, Chief Executive’s Service
Mr J Robertson, Corporate Improvement Programme Manager, Chief Executive’s Service
Mrs T Page Customer Services Manager, Chief Executive’s Service
Mr M MacDonald, Human Resources Manager, Chief Executive’s Service
Mr K Fox, ICT Operations Manager, Chief Executive's Service
Ms E Barrie, Personnel Manager, Chief Executive’s Service
Ms G Falconer, Health & Safety Manager, Chief Executive’s Service
Ms C Christie, Learning & Development Manager, Chief Executive’s Service
Mr J Macdonald, Learning and Leisure Client Manager, Education, Culture and Sport Service
Mr E Boyd, Principal Engineer, Housing and Property Service
Mr S Carr, Policy Officer ( Climate Change), Chief Executive’s Service
Mrs L Dunn, Principal Committee Administrator, Chief Executive’s Service
Ms A Macrae, Committee Administrator, Chief Executive’s Service
Mr A MacInnes, Administrative Assistant, Chief Executive’s Service

An asterisk in the margin denotes a recommendation to the Council.  All decisions with no marking in the margin are delegated to the Committee.

Mr D Fallows in the Chair

Business

Preliminaries

In order to permit further discussion between Members and Officials, it was AGREED that the item on Dingwall office rationalisation, listed at item 13 on the agenda for the meeting, should be WITHDRAWN.

The Committee also NOTED an update provided by the Chairman in relation to promotional activity undertaken for the Hi-Scot Credit Union and that further updates would be provided in future.

1.  Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr J Ford, Mr B Gormley and Mr G Phillips.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 3 –   Mr A Christie, Ms J Douglas (non-financial)
Item 5 –   Mr A Christie (non-financial)
Item 6 –   Mr A Christie (non-financial)
Item 9 –   Mr A Christie (non-financial)
Item 12 – Ms J Douglas, Mr K Gowans, Mr F Parr (non-financial)
Item 14 – Mr A Christie (non-financial)
Item 17 – Mr A Christie (non-financial)
Item 20 – Mr H Wood (non-financial)
Item 21 – Mr A Christie, Ms J Douglas, Mr B Fernie, Mr K Gowans, Mr F Parr, (non-financial)
Item 28 – Mrs H Carmichael, Ms J Douglas, Mr K Gowans, Mr F Parr, Mr H Wood (non-financial)
Item 31 - Ms J Douglas, Mr K Gowans, Mr F Parr (non-financial)
Item 32 - Mr K Gowans (non-financial)
Item 39 – Mr A Christie, Mrs D MacKay, Ms A MacLean (non-financial)

Finance Service Items

3.  Welfare Reform Update
Aithisg Adhartais Ath-leasachaidh Shochairean

Declarations of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau and Ms J Douglas declared a non-financial interest in this item on the grounds of being a volunteer for the Badenoch and Strathspey Foodbank but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There was circulated Joint Report No. FHR-25-14 (124kb pdf) dated 13 February 2014 by the Director of Finance and Director of Community Services which provided information relating to Universal Credit: DWP’s expansion plans; landlords’ concerns and DWP’s undertaking to engage with the Scottish Federation of Housing Associations; and noted the progress being made with HMRC’s real time information system. 

The report then considered some issues arising from the wider Welfare Reforms and in particular the Housing-related impacts for tenants of the Council and other landlords; and the impact that Universal Jobmatch and the “Claimant Commitment” was having on Work Clubs.  A useful update regarding the Scottish Legal Aid Board’s Making Advice Work Project was also provided.   Also shown were statistics on Under Occupancy; rent arrears; and Discretionary Housing Payments that were providing short term mitigation for some households; the Benefit Cap; and the Scottish Welfare Fund.

Members’ attention was drawn to the award of £1,178,903 to the Highland Council by the DWP for Discretionary Housing Payments in 2014/15.  This represented an increase on the 2013/14 award and was in addition to the Scottish Government’s announcement that it would make an additional £15m to support the mitigation of welfare reform in Scotland.

During discussion Members recognised that 1721 Highland Council tenants had been affected by Under Occupancy rules, of which 32% were currently in arrears.  However, it was queried whether there had been analysis of tenants’ not in arrears but yet struggling financially and whether Housing Associations were also recording similar patterns of rent arrears.  The Welfare Reform Working Group was due to meet with Ministers again in March 2014 and it would be essential that the Council armed itself with comprehensive information, including an analysis of the needs of households who had strived not to fall into rent arrears.  Clarification was sought on the intention to amend legislation to close the “loophole” affecting some clients currently affected by the under occupancy rules.

It was difficult to understand why the arrangements for establishing “switchback payments” were not progressing more quickly and this matter should be taken up again with MPs.  Referring to landlords’ concerns in this regard, it was queried whether the Council had been involved in discussions with the DWP on this.  It was further requested that an update note be provided to the Committee on this issue.

It was noted that the Council’s Scottish Legal Aid Board funded project entitled “Reaching the Unreached”, Money Advisers had managed to provide support and advice to 37 social housing tenants.  This represented 37 households which, without intervention, would otherwise have been homeless.  Further, it was requested that more recent figures be provided on the use of foodbanks as those reported in the Appendix to the report did not cover the Christmas and New Year period which was a particularly difficult period for families. 

Members welcomed the unified and positive approach that the Council had adopted to address the impacts of welfare reform and stressed the need to continue lobbying.  This was particularly critical as the bulk of welfare reform measures would not affect the Highlands for another 18 months and the Council needed to remain vigilant. 

It was confirmed that officers had attempted to contact everyone affected by the under occupancy rules and not just tenants in arrears.  It was requested that further details of people who were not in arrears but were affected by welfare reform should be included in the next report to Committee.  It was confirmed that there were frequent meetings with Registered Social Landlords and while there were no specific figures available, it was anticipated that rent arrears would be at a similar rate as experienced by the Council.

It was recognised that the information on foodbanks was out of date and work was underway to update these figures.  It was also confirmed that the Council had been working with the Scottish Federation of Housing Associations and would be seeking to influence discussions going forward on the issues surrounding arrangements for direct payments.

The Committee:-

i. NOTED the updated information contained in the report;
ii. NOTED that relevant statistics shown in the Appendix attached to the
   report and that updated information would be presented to Members in
   respect of the demand on foodbanks; and
iii. AGREED that a briefing note be provided to the Committee on the “legal
    loophole” in relation to the under occupancy rules and in respect of
    arrangements for switchback payments.

4.  Finance Service Revenue Monitoring to 31 December 2013
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 31 Dùbhlachd 2013

There was circulated Report No. FHR-26-14 (41kb pdf) dated 3 February 2014 by the Director of Finance which provided information on the revenue monitoring position for the Finance Service for the period 1 April to 31 December 2013.

It was reported that the Finance Service had incurred net expenditure of £7.713m against an annual budget of £11.840m.  At this point in the year an overspend of £0.405m was projected.

The Committee:-

i. APPROVED the Finance Service Revenue Monitoring Report for the period
   to 31 December 2013; and
ii. NOTED the action being taken to address the current forecast overspend.

5.  Corporate Revenue Monitoring  to 31 December 2013 
Sgrùdadh Teachd-a-steach Corporra gu 31 Dùbhlachd 2013

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-27-14 (103kb pdf) dated 13 February 2014 by the Director of Finance which presented the revenue budget expenditure position for the period to 31 December 2013 and the projected year end position.

It was reported that the General Fund had a total annual budget allocated to Services of £563.839m; year to date actual of £325.498m and an estimated year end position of £561.052m, giving an estimated year end underspend of £2.787m.

In response to a query it was advised that the balance available in the Council’s non earmarked General Fund of £17.601m did not include the current year end projected underspend of £2.787m.  The Council, at its meeting in June 2013, reaffirmed the policy of retaining a minimum General Fund balance of at least 3% of the Total Revenue Budget.  The current projected year end budget position was approximately £4m to £5m above that minimum reserve of 3%.

The Committee APPROVED the Revenue Expenditure Monitoring Statement as at 31 December 2013 which showed a predicted net underspend of £2.787m.

6.  Corporate Capital Monitoring Report to 31 December 2013
Aithisg Sgrùdaidh a’ Chalpa Chorporra gu 31 Dùbhlachd 2013

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-28-14 (48kb pdf) dated 13 February 2014 by the Director of Finance which provided an overview of expenditure on the General Fund and HRA capital programmes for the period 1 April to 31 December 2013 and the projected year end position for 2013/14.

It was reported that the General Fund statement showed a total net programme budget of £87.253m.  The expenditure to date on the programme was £56.965m and the year end estimated outturn was £90.816m.  The estimated year end position was an overspend of £3.563m which was a reduction of £0.807m from the position reported to the last Committee on 22 January 2014 when an overspend of £4.370m had been forecast.

The Committee APPROVED the financial position of the General Fund and HRA capital programmes as at 31 December 2013.

7.  Treasury Management: Summary of Transactions: January 2014
Rianachd Ionmhais: Geàrr-chunntas de Ghnothaichean: Am Faoilleach 2014 

There was circulated Report No. FHR-29-14 (50kb pdf) dated 3 February 2014 by the Director of Finance which provided details on the Treasury Management transactions for January 2014, reflecting activity undertaken to manage the Council’s cash flows, and borrowing to fund capital expenditure.

The Committee NOTED the Treasury Management Summary of Transactions report for January 2014.

8.  Treasury Management Strategy Statement and Investment Statement 2014/15
Aithris Ro-innleachd Rianachd Ionmhais agus Aithris Tasgaidh 2014/15

There was circulated Report No. FHR-30-14 (243kb pdf) dated 12 February 2014 by the Director of Finance which in compliance with the Chartered Institute of Public Finance and Accountancy Code of Practice on Treasury Management in Local Authorities, a Treasury Management Strategy Statement and Investment Statement for 2014/15 had been submitted for scrutiny and interest.

The report detailed the proposed Treasury Management Strategy for 2014/15 and Treasury Limits for 2014/15 to 2016/17.  Borrowing requirements for past/current year, as well as estimates for future years were shown.  The Council’s borrowing strategy for 2014/15 gave increasing consideration to a strategy of de-risking by taking longer-term borrowing.  The report provided commentary on the economic outlook, prospects for interest rates and provided details on the annual Investment Strategy.

In response to questions from Members, it was advised that the majority of the Council’s loans were taken from the Public Works Loan Board (PWLB) and there were penalties or discounts when rescheduling debt from medium to long term or vice versa.  In terms of the Council’s exposure to risk, it was not possible to give an absolute guarantee on any deposit.  To minimise risk the Council had an investment strategy and deposits were spread amongst a number of institutions and there were limits to how much could be deposited in any institution.   The Council had appointed Capita as treasury advisor to the Council and they produced a credit worthiness report and provided the ratings for three separate credit agencies for Banks.  The Council tended to only invest in Banks which had the highest rating.  The period, amount and type of institution that deposits were invested in were regularly monitored.

In terms of the Council’s total level of debt which was £728.1m as at 31 December 2013, the vast majority of this debt related to historical decisions taken by this Council and its predecessors. The prudential code that the treasury strategy was based on looked at debt over the long term and the key criteria were affordability, prudence and sustainability. Investment plans had to be sustainable and affordable over a long period of time.  The total level of borrowing was managed in terms of the decisions made by the Council in relation to the level of capital programme it wanted and the affordability of this.  Consideration would be given to what the absolute level of debt should be over the longer term.

Following discussion, the Committee NOTED:-

i. the Treasury Management Strategy Statement and Investment Statement
  for 2014/15 and the Prudential Indicators as detailed in Appendix 2 of the
  report; and
ii. that, in compliance with the Chartered Institute of Public Finance and
   Accountancy Code of Practice on Treasury Management in Local Authorities,
   the Treasury Management Strategy Statement and Investment Statement
   for 2014/15 would subsequently be submitted to the Council for approval on
   13 March 2014.

9.  Finance Service Quarterly Performance Report
Aithisg Dèanadais Seirbheis an Ionmhais

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-31-14 (92kb pdf) dated 12 February 2014 by the Director of Finance which provided a summary of key and statutory performance indicators for the Finance Service as at 31 December 2013.

The report provided performance monitoring details on the council tax in-year collection rate; non domestic rates in-year collection rate; the business improvement district levy; business administration – speed of processing; customer income maximisation and money advice; payment of invoices; and attendance management.

In response to a query regarding how much flexibility could be given to residents in the payment of Council Tax who were facing financial hardship, it was advised that the Council had 16 different types of payment methods for Council Tax and it offered more flexibility in payment than the majority of other Local Authorities.  However, the Finance Service was reviewing these payment methods in terms of efficiency, as there were costs associated with each of them.

Members congratulated Staff for the continuing improvement in the collection rate of the Business Improvement District Levy which reflected the pro-active approach to collection by the Council.

The Committee NOTED the Statutory and Key Performance Indicators for the Finance Service in respect of Quarter 3 from 1 October to 31 December 2013.

Housing and Property Service Items 

10.  Housing and Property Service Revenue Monitoring
Sgrùdadh Teachd-a-steach Seirbheis an Taigheadais is na Seilbhe

There was circulated Joint Report No. FHR-32-14 (90kb pdf) dated 17 February 2014 by the Director of Community Services and the Director of Planning and Development which presented the current position to 31 December 2013 with regard to the Revenue Monitoring Statements for the Housing Revenue Account, other Housing and Property Revenue Account, Property Revenue Maintenance and the Building Maintenance Account.

The report indicated that there had been a change in loan charge estimates due to lower interest rates and the use of short-term rather than longer-term borrowing in the first half of the year.  As a result this had significantly contributed to the year-end HRA surplus of £665,000 but as interest rates were expected to rise, the projected underspend was a one-off in the current financial year.

The Committee APPROVED the monitoring statements to 31 December 2013 for the Housing Revenue Account, Other Housing and Property Revenue Account and Building Maintenance account and progress with the Property Revenue Maintenance programme.

11.  Housing and Property Service Capital Budget 2013/14
Buidseat Calpa Seirbheis an Taigheadais is na Seilbhe 2013/14

There was circulated Joint Report No FHR-33-14 (163kb pdf) dated 17 February 2014 by the Director of Community Services and the Director of Planning and Development which provided an update on the position regarding expenditure to 31 December 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital Programmes. 

The HRA Capital Programme showed a total budget of £41m, comprising £17.558m for the mainstream programme and £23.442m for Council house building.  It showed the overall level of spend to 31 December 2013 at £28.367m of which £13.220m related to the mainstream programme, £14.444m related to new build and £0.703m related to new build through the temporary accommodation reprovisioning project.  Members were asked to approve a number of proposed amendments to the mainstream programme, the details of which were outlined in the report.

The report also provided comment on the programmes relating to the Non HRA Capital Programme, Private Sector Housing Grant Programme and the Property Capital Programme 2013/14.

In particular, the inclusion of the doors and windows project in Dalneigh as part of the planned programme of works was welcomed.

The Committee APPROVED the:-

i. current position to 31 December 2013 for the HRA Capital, Non HRA Housing
   Capital and Property Capital accounts; and
ii. amendments to the HRA Capital Programme as detailed at Section 1 of the
   report.

12. Property Revenue Maintenance Budget 2014/15: Proposed Budget Allocation
Buidseat Cumail Suas Teachd-a-steach Seilbhe 2014/15: Riarachadh Buidseit a Thathar a’ Moladh

Declaration of Interest - Ms J Douglas, Mr K Gowans, Mr F Parr declared non-financial interests in this item as Directors of High Life Highland but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There was circulated Report No. FHR-34-14 (396kb pdf) dated 17 February 2014 by the Director of Planning and Development which set out proposals for the allocation of the 2014/15 Property Revenue Maintenance Budget using the same basis as had been adopted in previous financial years.  Approval of proposed works was being sought to ensure that early progress could be made on specifying and commissioning work.

In particular, the planned programme for radon monitoring was welcomed.

The Committee APPROVED the proposed work categories, budget allocations and project proposals for the 2014/15 Property Revenue Maintenance Budget.

13.  Dingwall Office Rationalisation
Sgioblachadh Oifis Inbhir Pheofharain

This item had been withdrawn at the start of the meeting.

14.  Review of Rent Arrears Management Policy: Under-occupancy Charge  Ath-sgrùdadh air Poileasaidh Rianachd Fiachan Màil: Cìs Fo-shealbh-ghlacaidh

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-36-14 (51kb pdf) dated 17 February 2014 by the Director of Community Services which explained that at the Finance, Housing and Resources Committee meeting in April 2013, it had been agreed to amend the Rent Arrears Management Policy so that for a transitional period of one year, and where the Director of Housing and Property was satisfied that tenants who were subject to reduction in benefit through under occupancy were doing all that they reasonably could to avoid falling into arrears, the Council would use all legitimate means to collect rent due except eviction.  Consequently, this policy change now required review to agree the approach beyond March 2014.

In this regard, and in considering a continuation of the policy change regarding eviction for those tenants impacted by the under-occupancy charge, it was confirmed that the current situation regarding discretionary housing payments budgets and other Scottish Government mitigating funding had to be considered. Continued funding would enable the Council to continue supporting tenants impacted by the under-occupancy charge to the end of March 2015.

During discussion, clarification was requested in relation to the number of tenants who would have faced eviction had the current policy change not been implemented in April 2013 and also a breakdown of the evictions to date.

The Committee:-

i.  NOTED the risks detailed in the report;
ii. AGREED to extend the following amendment to the Rent Arrears
   Management Policy for a further year:-

that for a further period of one year, and where the Director of Community Services was satisfied that tenants who were subject to a reduction in benefit through under-occupancy were doing all that they reasonably could to avoid falling into arrears, the Council would use all legitimate means to collect rent due, except eviction; and

iii. AGREED that further information be provided to Members of evictions
    prevented and general statistics on evictions.

15. Rent Levels in Temporary Homeless Accommodation 
Ìrean Màil ann an Taigheadas Sealach do Dhaoine gun Dachaigh

There was circulated Report No. FHR-37-14 (60kb pdf) dated 17 February 2014 by the Director of Community Services which provided details on the current cost of provision and rent levels in temporary accommodation in Highland.

In this regard, it was reported that the Council had a legal duty to provide temporary accommodation to homeless people and had been able to reduce the number of people in temporary accommodation through the success of the Homeless Prevention team from 575 in March 2012 to 477 in March 2013.  The most affordable solution for people living in temporary accommodation was to find suitable permanent housing.  The most affordable type of temporary accommodation was the Council’s HRA properties.

The Temporary Accommodation re-provisioning project would allow the Council to increase its supply of more affordable HRA properties and reduce the use of contracted rooms thereby allowing more affordable temporary accommodation to be offered to homeless people. Rents in leased properties and contract/spot purchase rooms and the associated service charges were currently applied on the basis of full cost recovery and were funded from the General Fund. 

The majority of people in temporary accommodation were in receipt of housing benefit and affordability was less of an issue in these cases.  However, analysis showed that affordability could be an issue in leased accommodation where both members of a couple were working full time although this could be mitigated by ensuring that the financial situation of all applicants was fully considered when placing them in temporary accommodation.

During discussion, Members raised the following issues:-

• it was important to acknowledge the significant and positive work which had been undertaken and thanks should be conveyed to the staff involved;
• whilst recognising the successes which had been achieved, it was important that the situation continued to be monitored and improved upon where possible;
• the re-procurement exercise carried out in 2013 had resulted in reduced costs for the provision of contracted rooms; 
• the temporary accommodation re-provisioning project would allow the Council to increase the supply of the more affordable HRA properties and reduce the use of contracted rooms and this was welcomed;  
• there was a need for Members to become more involved where possible and specifically in terms of understanding the issues involved and in this regard a meeting should be arranged at an early date with Officers and should include the Chair, Mrs M Davidson, Mrs M Paterson and Mr G Phillips; and
• it was recognised that the storage of furniture was often a problem when people had to go into temporary accommodation and it would be helpful if consideration could be given to possible solutions in this regard.

Thereafter the Committee AGREED to retain the current charging arrangements in relation to rents in temporary accommodation on the basis of full cost recovery and NOTED:-

i.  the positive impact of the Temporary Accommodation Re-provisioning
    project on the affordability of homeless accommodation;
ii. that staff placing homeless people in temporary accommodation would take
   full account of affordability on a case by case basis and place them in the
   most appropriate accommodation available; and
iii. that where there were issues of affordability and no appropriate temporary
    accommodation available, staff would ensure homeless people were fully
    aware of the cost implications, had access to income maximisation and
    money advice and were fully aware of their other housing options. Such
    cases would be reviewed weekly and applicants offered more suitable
    affordable accommodation as it became available.

16.  Update on the Tenant Participation Strategy
Fios as Ùr mu Ro-innleachd Com-pàirteachas Luchd-màil

There was circulated Report No. FHR-38-14 (67kb pdf) dated 13 February 2014 by the Director of Community Services which provided information about the impact of The Scottish Social Housing Charter on the scope and content of the next Tenant Participation Strategy. The report also set out the process and timescale for developing a revised Tenant Participation Strategy and Action Plan.

It was advised that a wide range of participative activities had featured in Highland.  In particular, there had been a growth in the number of tenants taking part as an individual, rather than the more traditional method of joining an organised tenants group.  Involvement in communication, information and consultation was currently the most common area of tenant involvement.

It was advised that the revised Tenant Participation Strategy and Action Plan would aim to align tenant involvement activities with performance management. 

Members were supportive of the actions being taken to promote tenant engagement.  The importance of encouraging meaningful participation with tenants was emphasised, including furthering direct input into service delivery and monitoring.  In response to questions raised, assurance was given that: as part of the review, officers would be giving consideration to inclusion of tenants’ organisations which did not meet the current specified criteria; and that meeting venues were arranged to suit the needs of people attending with meetings held locally where possible.

The Committee:-

i. NOTED recent and current tenant participation activity;
ii. AGREED the approach to developing a new Tenant Participation Strategy;
   and
iii. NOTED that a consultative draft strategy would be presented to a future
    meeting.

17.  Housing and Property Performance Report
Fios as Ùr mu Ro-innleachd Com-pàirteachas Luchd-màil 2014/15

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Joint Report No. FHR-39-14 (214kb pdf) dated 27 January 2014 by the Director of Community Services and Director of Planning and Development which provided information on how the Housing and Property Service performed in relation to Scottish Social Housing Charter and other performance indicators during the third quarter of 2013/14. 

Key performance indicators had been selected and performance information was presented in relation to Complaints; Repairs; Tenancy Management; Rent Arrears; Homelessness/Homeless Prevention; and Staff Absence.

Improvements in times taken for repairs, and the decrease in use of temporary accommodation were welcomed.  In discussion, issues were raised regarding apprising Members of longer-term voids in their Ward, and the potential impact of the Council’s withdrawal from use of private temporary accommodation on town and city centres.

The Head of Housing responded to Members’ concerns, and in particular drew attention to the report submitted to the meeting on 22 January 2014, (Item 12 refers) which had provided an update on progress with withdrawing from the use of private temporary accommodation in town and city centres and had given an undertaking that regular progress reports would be provided to the Committee. 

The Committee:-

i.  NOTED the information provided on housing performance from 1 April to 31
   December 2013; and
ii. AGREED that Officers advise Ward Members of specific local information on
   longer-term voids, particularly in rural areas.

Chief Executiv's Service

18.  Chief Executive’s Service and Members Revenue Expenditure Monitoring
Seirbheis an Àrd-oifigeir agus Buill: Sgrùdadh Caiteachas Teachd-a-steach 

There was circulated Report No. FHR-40-14 (38kb pdf) dated 13 February 2014 by the Chief Executive which provided information on the revenue monitoring position for the Chief Executive’s Service for the period to 31 December 2013.

In this regard, it was reported that there had been a net increase in the Service budget of £0.127m since the previous reporting period, primarily due to cross service ICT transactions. 

Also, the budget showed a projected net year end underspend of £0.052m as compared to a predicted underspend of £0.040m which had been reported to the Committee in January 2014. In addition to a small overall pressure in Customer Services, an under achievement in income for Licensing continued to be predicted although this had improved by £0.025m since the last reporting period. Pressures continued to be offset by savings arising from staff vacancy management and reduced spend in other budgets and it was noted that the Service would continue to work to manage pressures across all of its budget headings to achieve a balanced position at the end of the year.

The Committee AGREED the Revenue Monitoring Report for the period from 1 April to 31 December 2013.

19.  Chief Executive’s Service: Capital Budget Monitoring 2013/14
Seirbheis an Àrd-oifigeir: Sgrùdadh Buidseat Calpa 2013/14

There was circulated Report No. FHR-41-14 (40kb pdf) dated 17 February 2014 by the Chief Executive which set out the position on the Chief Executive’s Service 2013/14 capital budget for the period to 31 December 2013.

In this regard, it was reported that the budget showed a projected combined underspend of £2.697m at the end of the financial year which was an increase on the position which had been reported to the Committee in January 2014, when an underspend of £2.581m had been predicted.

Further information was also provided on the predicted underspends on the Kingussie Office Rationalisation Project, ICT Contract Asset Investment, the Unified Communications Project and the project to regenerate Cameron Square, Fort William.

The Committee AGREED the Chief Executive’s Service Capital budget monitoring report for the period to 31 December 2013.

20.  Carbon CLEVER Funding
Maoineachadh Càrboin Ciallaich

Declaration of Interest - Mr H Wood declared a non-financial interest in this item as Chair of the Highland Cycle Campaign but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion

There was circulated Report No. FHR-42-14 (44kb pdf) dated 7 February 2014 by the Head of Policy and Reform which sought approval for funding to support the Carbon CLEVER Cycles project and to sponsor the Etape Loch Ness cycling sportive.

In this regard, it was confirmed that, in relation to Carbon CLEVER Cycles, SSE had made an offer to implement a pilot electric bicycle scheme in Inverness which would be installed in two clusters of six bicycles operated by a smart card. The total capital works cost of the scheme would be in the region of £40,000 which SSE would procure and they would also be the contracting authority for the leasing of the bicycles.

In relation to Etape Loch Ness, which was a 67 mile closed road cycling challenge around Loch Ness, it was advised that this could prove to be a flagship cycling event for the Highlands, Scotland and the UK in that it had attracted entrants from across the country and internationally. The 1000 places had sold out in a matter of hours and a target of over 4000 participants by 2017 was anticipated.    

During discussion, Members raised the following issues:-

• it was envisaged that the bicycles would generate revenue and the fact that a self-sustaining costing model was under development was encouraging;
• the proposals within the report represented a unique opportunity to attract inward investment which could benefit the whole of the Highland area and it was vital that they were pursued and supported;
• the potential benefits on an economic and tourism level should be appreciated;
• the encouragement for healthy lifestyles was welcomed;
• there was a need to follow up on a previous Cycle Project which had been initiated in the Inverness area and specifically to try and locate bicycles which had been purchased at that time and which could perhaps be utilised again; and
• the potential for increased cycling in the area was welcomed and in this regard it would be helpful if information could be obtained on the users of the scheme as it progressed.

The Committee AGREED that a contribution of Council funding be awarded to:-

i. the Carbon CLEVER cycle scheme in 2013/14 of £10,000, made up of
  £5,000 from a budget in the Chief Executive’s policy team and subject to a
  successful application for £5,000 from the Inverness Central Ward
  Discretionary Budget; and
ii. sponsorship of the Etape Loch Ness of £10,000 in 2013/14, made up of
  £5,000 from a budget in the Chief Executive’s policy team and £5,000 from
  the Highland Culture Fund for events.

The Committee also NOTED that applications for funding would be considered at the City of Inverness Area Committee meeting on 4 March 2014 for Common Good Funding of £5,000 towards the carbon CLEVER cycles and £5,000 for sponsorship of the Etape Loch Ness.

21.  Customer Services Review 2
Ath-sgrùdadh air Seirbheisean Luchd-cleachdaidh

Declarations of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau; Ms J Douglas, Mr F Parr declared non-financial interests in this item as Directors of High Life Highland; Mr K Gowans declared a non-financial interest in this item as a director of High Life Highland and as his spouse was an employee of High Life Highland; and Mr B Fernie declared a non-financial interest in this item as a Member of the Hi-Scot Credit Union, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion.

There was circulated Report No. FHR-43-14 (478kb pdf) dated 17 February 2014 by the Depute Chief Executive which explained that the Customer Service Review 2 focused on the changing behaviour of customers.  The report proposed that the Council delivered services in line with the Customer Engagement Strategy to meet the changing needs of the Council’s customers, in a way that customers wished to transact, at a time which most suited their lifestyles.  The review presented an opportunity to invest in a new website and utilise new technologies to support self-service to enhance the customer experience and provide an affordable and sustainable service with easier access for more people across Highland communities.

It was reported that the proposal was to move to a service delivery model based on 12 ‘community hub’ Service Points, from the current 35 Service Points, and facilitated self-service in all 40 Highland libraries, details of which were set out in Appendix 1 to the report.  The review would deliver the Council’s agreed savings target of £160,000 by June 2015 as well as releasing a further £195,000 which would be reinvested in the remaining Community Hubs, Service Centre and Website management. This would create 16 new posts which would be available as redeployment opportunities for staff affected by the proposals.  The proposal was to implement the changes over an extended period of fifteen months to the end of June 2015 and this would allow consultation with communities on local solutions for service delivery, including outreach services. It was emphasised that the outcome of the review was not a reflection on the service point staff who continued to provide excellent services to their customers and local communities.

The Chair suggested that the proposal represented the right strategic approach to the future delivery of sustainable customer services within communities in response to changing customer demand for contact by phone, online and outwith normal working hours.  He also confirmed that there would be no compulsory redundancies for staff affected by the proposals, and no change to service provision within communities until appropriate replacements were in place. Further any member of the public who either required or had requested a face to face contact within those communities subject to change, could make an appointment suitable to them.

The changes would be implemented over an extended period of time between any decision being made and 30 June 2015.  This would allow for a phased programme of closures and an extended period to consider staff opportunities to maximise redeployment. The implementation phase would ensure there was engagement with local Members and communities to ensure that all options for local access to self-service were considered and that any new arrangements which are put in place would be the most suitable for that community.

Thereafter, a number of Members commented on the proposals as follows:-

• the review followed on from Customer Services Review 1 which had been agreed by the previous Council. Since that review the footfall numbers at service points had continued to decline. Therefore in recognising the excellent service provided by the Service Point Network, the Council had to move forward and respond to modern demands in terms of how customers wished to engage in the 21st Century;
• in terms of implementation a key issue was the need to consult with communities and local Members to identify local issues and deliver local solutions particularly in remote rural areas with fragile economies and a high proportion of elderly people. It would also be helpful for reports on progress to be brought to Area Committees;
• that the High Life Highland staff affected by the review would re-graded to HC3 to reflect the change in their duties, however their terms and conditions and levels of pay would not be subject to change;
• the report recognised that changes to working practices were required to ensure that remote working was used more extensively in remote and rural areas to protect jobs and sustain those communities;
• in regard to elderly or vulnerable people there was a commitment that services could be accessed by phone or by face to face contact. In addition to this the proposed outreach service would have the potential to deliver an improved and more personalised service to those customers in communities which would no longer have a dedicated Service Point; 
• that the roll out of the next generation Broadband project in the Highlands would enhance the ability to use on-line and web services; and that failure to achieve savings in this area might result in cutbacks in other essential services given the significant overall level of savings the Council was required to deliver over the next few years.
  

Following on from the above, a number of Members expressed concern that the geography of the Highlands and issues around the sustainability of rural communities had not been given sufficient weight in the review, and that the proposal effectively discriminated against those communities in that it did not provide equal access to services for all.  The evidence base which had informed the review had not taken into account customer contact time with staff, which was not recorded, and it was also suggested that the number of customer contacts at service points was being under reported. A more robust plan was required in regard to alternative service delivery in those areas, rather than a review based on footfall numbers and financial considerations.

Concern was also expressed at the lack of prior consultation in regard to the review with the staff and local communities. The report should have been submitted to the full Council to allow Members across all the Wards affected by proposals to have an input on the issue. The full cost and policy implications of the review required further consideration, including the costs associated with delivering outreach services and those associated with voluntary severance.

It was suggested that the savings associated with the current proposal were not significant and the proposals should be reconsidered in view of the level of representations received from local communities and community councils.

A number of Members also expressed concern in regard to the following issues:-

• that the Service Point network was considered the Council’s flagship, and the quality of service provided by the staff was widely valued and recognised as the face of the Council in communities. It would therefore be a backward step to reduce that network;
• that review would impact on the most vulnerable and elderly in society, and also those with literacy issues, who required help and support in accessing services and who might have difficulties in using the self-service or on line facilities;
• there had been wide consultation in regard to the previous customer services review and following which the decision had been taken to reduce the savings target in order to protect service points and their staff. Customer Services Review 2 was therefore separate to the previous review and formed part of the Administration’s budget proposals;
• that opportunities for staff redeployment in rural areas would be limited;
• that High Life Highland staff affected by the review had been advised they would be downgraded to HC3, suffering a loss in salary.  It had been confirmed that there would be no enhancement of that salary in respect of the additional duties they would be required to undertake on behalf of the Council;
• that rural areas were being disadvantaged as a result of the proposals through the potential loss of jobs in the area and the significant travel distances that would be involved in accessing Council services, noting that  there was only one community hub on the west coast; 
• there were specific issues around the timetable for the closure of Durness Service Point in terms of consultation and providing replacement services; and
• that many customers would experience difficulties in accessing web and online services due to the broadband capacity in some areas of Highland.

Further concerns related to issues around the fact that many of the applications dealt with at service points required the customer to provide proof of their identification in person; and that the removal of service point staff from buildings might have implications in terms of the operation and shared use of premises.  

The Leader of the Opposition advised that she had contacted the community councils on these proposals via email to which a significant number of replies had been received.  She requested that these be tabled at the meeting and a recess provided to allow Members time to consider them but the Chairman declined this request. 

During the discussion and in response to specific questions the Head of E-Government reported that all customer contacts should be recorded on the CRM system, and that she would discuss with individual Members any specific issues they had in this regard.  There would be no additional costs to High Life Highland arising from the review and she was aware that its Chief Executive had agreed to the principles of the review. Staff safety was taken extremely seriously and appropriate measures would be implemented in terms of outreach services. The Registration Service had been reviewed and would be subject to ongoing review as part of the process to seek ongoing service improvements.

The Depute Chief Executive confirmed that total savings of £355,220 would be generated by the review, of which the sum of £195,000 would be re-invested in additional posts at the remaining community hubs to take account of additional workload, and also in the service centre and web management team, with the remaining £160,000 being delivered to the Council as savings. The Council’s Asset Management Team continued to review in conjunction with the Customer Services Team the opportunity for co-location and shared use of premises.

Thereafter, the Chairman, seconded by Dr D Alston, MOVED the recommendations within the report.

As an AMENDMENT, Mrs C Wilson, seconded by Mrs I McCallum, moved there should be equal access to services for everyone across Highland and that the status quo regarding our 35 service points should remain.  Any future changes to the service point network should be done in full consultation with communities, staff and local Members. The compensatory saving should be taken from the extra interest from the Loans Fund which was traditionally underspent, and which this year had a sizeable surplus.

On a vote being taken, the MOTION received 13 votes and the AMENDMENT received 9 votes with no abstentions and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Alston, D; Caddick, C; Christie, A; Fallows, D; Farlow, G; Gowans, K; Hendry, D; Laird, R; Macaulay, C; Mackay, D (W5); Parr, F; Stone, J; Wood, H.

For the Amendment:
Carmichael, H; Davidson, M; Donald, N; Fraser, L; Mackay, D (W2); Mackinnon, A; McCallum, I; Morrison, H; Wilson, C.

Decision

The Committee:-

i.  AGREED the revised service delivery model of 12 community hubs as
   outlined in the report;
ii. NOTED the work undertaken as part of the Customer Services Review 2 and
AGREED the £160,000 of savings which would be delivered as a result of
   this review;
iii. APPROVED the revised staffing structure as outlined in Sections 14 and 15
   of the report; and
iv. AGREED the implementation arrangements as outlined in Section 18.1 of
    the report.

At this point, the meeting was adjourned for lunch at 2.05 pm and reconvened at 2.45 pm.

22.  Unified Communications
Pròiseact Chonaltraidhean Aonaichte

There was circulated Report No. FHR-44-14 (51kb pdf) dated 7 February 2014 by the Depute Chief Executive which gave an update on the Unified Communications (UC) Project.  The report outlined the current progress with the project and the estimated ongoing costs and savings that could be realised from the deployment of the UC solution.  The report also sought final approval to proceed with the project.

It was reported that the Project would bring a number of benefits to the Council, including affordable replacement of ageing and failing telephone systems, and support for mobile and flexible working by bringing together telephony, video conferencing and instant messaging. It would also include the ability for the functionality to move with the user, in that it would be accessible via a laptop, desktop or in future via a smart phone or tablet, to reduce dependency on expensive ISDN phone lines, and reduce call charges.

The Project Team had been working with Argyll and Bute Council and Fujitsu Services to enable the pilot to support the Dingwall Office Rationalisation project and other aspects of the UC solution as detailed in the report.

During discussion, and in response to a question, the ICT Strategy and Projects Manager confirmed that a domestic broadband speed of 1-2 Mbps should suffice for a Member to participate in a video-conference from home.  Members were also advised that they would be given an opportunity to attend a demonstration of the pilot scheme in Dingwall, in order to gain a better insight into the new system’s potential.

The Committee:-

i. AGREED to enter into the shared services agreement with Argyll and Bute
   Council and start implementation of the project; and
ii. NOTED the benefits and savings to be achieved through this project.

23.  Corporate Improvement Programme
Prògram Leasachadh Corporra

There was circulated Report No. FHR-45-14 (169kb pdf) dated 12 February 2014 by the Depute Chief Executive which advised that the Corporate Improvement Programme (CIP) was progressing well with a target to achieve £5.98m in efficiency savings for the period 2013/14 and 2014/15.  In addition, the process for identifying the next programme of work was underway.

The report provided a progress update on the individual projects included in the Programme, and in regard to savings targets. It was also reported that CIP2 was schedule to finish on 31 March 2015. The Senior Management Team was currently discussing the longer term budget planning process for 2015/16 onwards and it was confirmed that the CIP would be part of a set of initiatives to deliver savings. In this regard the CIP Team had extensively researched a list of ideas for projects, and those projects recommended for further development would be reported to the Council in March 2014.

In speaking to the report, the Programme Manager highlighted the proposal to hold a Member workshop on the Income Generation project, to review current activities and produce further ideas on increasing income generation which could be explored further.  Members welcomed this opportunity to feed in a range of ideas.

In response to questions, the Programme Manager commented that adaptation of the Council’s existing online forms to the new Council website was planned and not expected to be onerous; and confirmed the role of High Life Highland in locating an appropriate store for the Council’s physical information records.  He also undertook to respond directly to individual Members on questions relating to the detail of current income generation figures, as appended to the report, and also the current status of the earlier review of small wind turbines in school grounds. 

The Committee:-

i. NOTED the good progress with the delivery of the Corporate Improvement
   Programme and the mitigating actions being taken to ensure the Programme
   and savings were delivered on target;
ii. NOTED the development of a new Programme; and
iii. AGREED that a workshop be organised for Elected Members to discuss
    income generation ideas as set out in Appendix 1 to the report.