Agenda Item No: 2 Page Numbers: 1-6 EAST RIDING OF YORKSHIRE COUNCIL THE CABINET 1 FEBRUARY 2011

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1 Report to: The Ca binet To appr ove as a correct record the Minutes of t he meeting of The Cabinet held on 1 Febr uary 2011 Contact Officer: 01 March 2011 Iain Edmiston Senior Committee Manager Telephone Number: E.mail: iain.edmiston@ eastriding.gov.uk Wards: All wards Agenda Item No: 2 Page Numbers: 1-6 EAST RIDING OF YORKSHIRE COUNCIL THE CABINET 1 FEBRUARY 2011 PRESENT: Councillors Parnaby OBE (in the Chair), M Chadwick, Evison, Fraser, Grove, Harrap, Jump, Owen and Peacock. Also in attendance: Press - 0 Public - 0 Councillors Allerston, Jefferson, McClure, Moore and Pearson attended the meeting as observers. The Committee met at County Hall, Beverley DECLARATIONS OF PERSONAL AND PREJUDICIAL INTERESTS - There were no declarations of personal or prejudicial interests MINUTES - Resolved - That the minutes of the meeting held on 18 January 2011 be approved and signed as a correct record MINUTES OF OVERVIEW AND SCRUTINY COMMITTEES - Resolved - That the minutes of the Children and Young People Overview and Scrutiny Committee of 11 January 2011 be received REVENUE BUDGET 2011/12 AND FINANCIAL PLAN 2012/13 AND 2014/15 - The Interim Director of Corporate Resources submitted a report setting out a Revenue Budget and Financial Plan. The Council faced a funding reduction of 30m over the next four years, and Grant Funding had been reduced to m in 2011/12, a reduction of 9.2%. The Council s early action in planning for funding reductions, by achieving service savings in 2009/10 of 11m, and further savings found in 2010/11 had enabled the Council to reduce the savings required in 2011/12 and equalise the savings over the next three years, providing time to manage required service changes. In preparing the budget proposals, Corporate Management Team (CMT) had identified savings of 9.548m within General Fund services to meet the resources available. All available resources had been allocated within the budget proposals. In 2011/12 revenue budget proposals were based on the Council s policies and priorities and had been prioritised and assessed for risk and equality impact. The CMT recommended budget for 2011/12 totalled 272.2m and required a Band D Council Tax of 1,212.20, the same amount as 2010/11, therefore representing a freeze in Council Tax. Councils that chose to freeze Council Tax in 2011/12 would have the resultant loss to their tax base funded at a rate of 2.5% by the Government in each of the next four years. That compensation would be made via an un-ringfenced Council Tax Freeze grant, and East Riding of Yorkshire Council would receive 3.606m per annum if it froze its Council Tax. CMT recommended maintaining the General Fund Reserve at 6.5m over the four year financial planning period. CMT also recommended that the Schools Budget for 2010/11 be set at the

2 final level of Dedicated Schools Grant as determined by the final January 2010 pupil count, with the exception of those schools budget related services which were currently financed from the Area Based Grant. The report set out a number of issues that had to be considered by The Cabinet in making any recommendations to Council. Resolved - (a) That the draft budget be referred to the Special Council meeting on 10 February 2011 as a basis for discussion; be approved, and (b) that a minimum General Fund Reserve balance of between 6.0m and 7.0m (c) that the draft Council Business Plan be submitted to Council on 10 February 2011 based on the proposals set out in the report, as updated for any decisions made at that Council meeting COUNCIL TAX 2011/12 - The Interim Director of Corporate Resources submitted a report outlining the issues with regard to setting the Council Tax for 2011/12. The Corporate Management Team Draft Revenue Budget of 2011/12 totalled 272.2m, equivalent to a Band D Council Tax of 1,212.20, with no increase on previous years. That excluded special expenses, Police, Fire, Parish and Town Council precepts. Special expenses totalled 0.46m in 2011/12 compared with 0.45m in 2010/11. Parish and Town Council precepts received so far, which the Council collected on their behalf, totalled 4.750m compared with 4.695m in 2010/11. However, 30 precept notifications were still outstanding and would be reported to Council. The Fire and Police Authority precepts, which the Council collected on their behalf, were due to be set on 14 and 15 February respectively and those would be reported to the Council on 23 February Resolved - (a) That the formal Council Tax resolution be submitted to Council on 10 February 2011 for approval including the following elements:- Budget at the level to be recommended Special expenses Parish and Town Council precepts (b) that the final Council Tax resolution inclusive of Fire and Police Authority precepts be submitted to the Council on 23 February 2011 for approval, and (c) that the Interim Director of Corporate Resources, or other officers as may be nominated by him, be authorised to take all necessary action to collect and recover non-domestic rate and Council Tax on behalf of the Council, including taking and appearing in any legal proceedings arising from and necessitated by non-payment in making Attachment of Earnings Orders TREASURY MANAGEMENT STRATEGY 2011/12 - The Interim Director of Corporate Resources submitted a report setting out the Council s Financial Strategy. Treasury management was the management of the Council s cash flows, its banking, money market and capital market transactions; the effect and control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. The Department for Communities and Local Government had issued guidance under the Local Government Act 2003 requiring local authorities to set out their policies for managing investments and for giving priority to the security and liquidity of those investments.

3 The Strategy was drawn from the Council s Treasury Policy Statement and covered investments, borrowing, the outlook for interest rates, the management of associated risk and the policy to be adopted on minimum revenue provision. The Strategy was considered by the Audit Committee on 28 January Resolved - That the Council, on 10 February 2011, be asked to recommend the approval of the Treasury Management Strategy and minimum revenue provision policy HOUSING REVENUE ACCOUNT BUDGET 2011/12 - The Interim Director of Corporate Resources submitted a report setting out issues around the Housing Revenue Account Budget 2011/12 and financial projections for 2012/13 to 2014/15, and the impact of those on council house rents, reserves and balances. The projected Housing Revenue Account balance, following the Communities and Local Government Rent Calculation at 31 March 2012 was 9.103m. Provisional budgets for 2012/13, 2013/14 and 2014/15 were shown for information and forward planning. A 2m working balance to meet future years projected peaks and capital expenditure for maintenance to decent home standards, renewal of stock and estate improvements, as previously identified, fluctuations in interest rates and to meet any unforeseen or out of the ordinary event to continue to be maintained. A budget strategy paper linked financial planning and management to the medium term financial requirements. The overall increase in Housing Revenue Account subsidy loss to the Council in 2011/12 (the final year of subsidy) was estimated at 1.772m, however that would be partially offset by increased rent income, which would be related to the level of the rent increase. The Government s Localism Bill would abolish Housing Revenue Account subsidy and introduce self-financing of the Housing Revenue Account from rental income, to begin in April That meant the Authority having to take on additional debt, calculated by a formula, anticipated to be in the region of 172m. Rent convergence used by the Government in setting 2011/12 guideline rents for subsidy calculations was now 2015/16 to accommodate the RPI for September 2010 at 4.6%. Based on the Government s formula calculation, the proposed average 48 week rent for the Authority was 68.92, an average increase of 4.89 or 7.64%. For dwellings let under the New Build programme or acquired under the Purchase and Repair Scheme, any rents set in 2010/11 would be increased by 5.1%. A lower increase would result in the loss of base rental income of 0.333m in 2011/12 for every 1% reduction, which would also impact on future years and was not recommended. The Council s Tenants Forum Group representatives had been consulted and supported the recommendations. The Housing Revenue Account Business Plan would be updated to reflect current information and decisions. Resolved - That the following recommendations be submitted to the Special Council meeting on 10 February 2011:- (a) That the Housing Revenue Account Budget for 2011/12 incorporating an average rent increase of 7.64%, excluding HCA Grant aided New Build and Purchase and Repair dwellings which are to be increased by 5.1%, be approved; (b) that the increase in 2011/12 for service charges separated out from rents in 2007/08 be increased by an average of 5.1% be approved, and (c) that other rents, fees and charges for 2011/12, as set out in Appendix 5 to the report deposited in group offices and at public deposit points, be approved ANNUAL PERFORMANCE ASSESSMENT - ADULT SOCIAL CARE 2009/10 - The Director of Children, Family and Adult Services submitted a report providing an update on the Annual

4 Performance Assessment for Adult Social Care for 2009/10. The Care Quality Commission had awarded East Riding an overall score of performing well for delivering outcomes. For each of the individual seven outcomes, four were reported as performing well and three as performing excellently. That was an improvement on the performance in 2008/9 when five were assessed as performing well and two were assessed as being excellent. An Action Plan had been developed to ensure continued improvement. Resolved - That the Action Plan be approved AWARD OF FRAMEWORK AGREEMENT FOR THE PROVISION OF MENTAL HEALTH PROMOTION SERVICES - Two tenders had been submitted to provide low level mental health promotion services. These had been evaluated and Hull and East Yorkshire Mind had been identified as the most economically advantageous tender to specification. The project was a jointly funded initiative which would reduce impact on more costly statutory services. Resolved - That the three year contract for the provision of mental health promotional services (with the facility to extend for a further two years at the sole discretion of East Riding of Yorkshire Council) to Hull and East Yorkshire Mind be approved EMPTY PROPERTY AT 11 LANSDOWNE ROAD, BRIDLINGTON, YO15 2QU - The Director of Environment and Neighbourhood Services submitted a report setting out issues around the compulsory purchase of a property at 11 Lansdowne Road, Bridlington. The property was a long term empty property. During the 14 years in which the property had lain empty it had been the subject of numerous complaints and there had been concerns that the property was having a detrimental impact on the area, possibly leading to devaluation and an inability to market properties effectively. The property had been the subject of anti-social behaviour issues including unauthorised entry and general vandalism. The report sought further agreement for the compulsory acquisition of the property. Resolved - (a) That exercising the powers contained in the Housing Act 1985 and the Acquisition of Land Act 1981, a Compulsory Purchase Order be made for the acquisition of 11 Lansdowne Road, Bridlington, as identified on Plan No ( the Order Map ); (b) that notwithstanding the above the Council continues to seek the acquisition of the property by agreement on terms to be negotiated and approved by the Director of Planning and Economic Regeneration, and (c) that if the acquisition at (b) above is successful a Compulsory Purchase Order procedure be discontinued HOUSING REVENUE ACCOUNT SELF-FINANCING REFORM - The Director of Policy, Partnerships and Improvement submitted a report setting out issues around the financial reform of the Housing Revenue Account (HRA). The Spending Review reaffirmed the Government s intention to replace the current complex financing system with a new, transparent, self-financing arrangement that devolved power to councils and would enable tenants and local tax payers to hold their local authority to account for the cost and quality of housing. Self-financing had been delayed until April 2012, when the Government through primary legislation would abolish the current system. This would be presented as part of the Localism Bill. The report provided an update on recent developments and modifications to the proposed finance reform and proposals to deal with the implications to the Council under self-financing.

5 Whilst the abolition of the current unfair Housing Subsidy System was welcomed as a matter of principle, there was concern about the financial debt burden the Authority would be required to take on under the redistribution of debt, again on an unfair basis. Resolved - (a) That the Housing Investment and Business Plan be reviewed, along with other efficiencies required to be undertaken to reflect the need for addressing the envisaged increase in the significant level of debt and decisions made in respect of HRA rent increases in 2011/12 within the context of self-financing; (b) that the implications of the proposals on the East Riding be communicated to local MPs and the Housing Minister, and changes. (c) that the Local Government Association be asked to monitor the impact of the 4102 SCHOOL TERM DATES - The Director of Children, Family and Adult Services submitted a report setting out school term dates for the 2012/2013 academic year. The dates had been consulted on with the Joint Consultative Committee. Resolved - That the school term dates for the academic year 2012/13, as detailed in Appendix 1 to the report, as available in group offices and at public deposit points, be approved STRATEGIC RISK REGISTER REVIEW - The Interim Director of Corporate Resources submitted a report setting out the outcome of a review of the Strategic Risk Register for the period ending 30 November Risk owners had provided assurances that controls continued to operate effectively and provided an update of action undertaken during the quarter to mitigate risk. The report detailed a number of risks that had increased, but had been offset by greater controls. The risks associated with ICT failure had reduced following investment in IT infrastructure. Resolved - That the updates to the Strategic Risk Register be approved FORWARD PLAN OF KEY DECISIONS (MARCH - JUNE 2011) - The Interim Director of Corporate Resources submitted a report updating the Forward Plan of Key Decisions. The Local Government Act 2000 required that to be a four month rolling plan which must be updated on a monthly basis. Resolved - That the Forward Plan of Key Decisions for the period March to June 2011, as deposited in group offices and at public deposit points be approved EXCLUSION OF THE PRESS AND PUBLIC - Resolved - That the press and public be excluded from the meeting for the consideration of Minutes 4106 to 4109 on the basis that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act In making its decision The Cabinet confirmed that having regard to all the circumstances it was satisfied that the public interest in maintaining the exemption outweighed the public interest in disclosing the information AWARD OF CONTRACT FOR PERSONAL BUDGET SUPPORT SERVICES FOR THOSE ON CASH PERSONAL BUDGETS - The Director of Children, Family and Adult Services submitted a report outlining the outcome of a tender process for personal budget support services for those on cash personal budgets.

6 Resolved - That a two year contract (with the facility to extend for up to a further two years at the sole discretion of East Riding of Yorkshire Council) for the provision of personal budget services to those on cash personal budgets be awarded to Penderels Trust AWARD OF FRAMEWORK AGREEMENT FOR THE PROVISION OF STATUTORY INDEPENDENT MENTAL HEALTH CAPACITY ADVOCACY AND NON-STATUTORY GENERAL ADVOCACY SERVICES - The Director of Children, Family and Adult Services submitted a report outlining the outcome of a tender process for the provision of statutory independent mental health capacity advocacy and non-statutory general advocacy services. Resolved - That a contract for the provision of statutory independent mental health capacity advocacy and non-statutory general advocacy services be awarded for a period of three years (with the facility to extend for up to a further two years at the sole discretion of East Riding of Yorkshire Council) to Cloverleaf Advocacy 2000 Limited on the basis of a sole provider framework MEASURED TERM CONTRACT FOR THE INSTALLATION, MAINTENANCE AND PERIODIC INSPECTION AND TESTING OF CLOSED CIRCUIT TELEVISION SYSTEMS - The Director of Environment and Neighbourhood Services submitted a report regarding the contract for the installation, maintenance and periodic inspection and testing of closed circuit television systems. There were a number of outstanding issues to be resolved before the contract could be awarded. Resolved - (a) That subject to the satisfactory resolution of the outstanding issues noted in the report, Exell Technology Limited be awarded the Measured Term Contract for CCTV Systems with an estimated contract value of 175,000 per annum, to run for three years with an option to extend for a further two years at the Council s discretion; (b) that in the event that the outstanding issues detailed in the report were not resolved, that the Director of Environment and Neighbourhood Services be authorised to replace that company with another company as necessary, those companies being selected in order of their ranking, and (c) that in the event that permitted organisations, as noted in the EU Notice from outside the Council (eg other local authorities, police and fire authorities) formally request access to the new agreement, that the Director of Environment and Neighbourhood Services be authorised to approve such a request TENDER FOR THE PROVISION OF ACTUARIAL SERVICES TO THE EAST RIDING PENSION FUND - The Interim Director of Corporate Resources submitted a report setting out the tenders received for the provision of Actuarial Services to the East Riding Pension Fund for the period 1 April 2011 to 31 March 2015 with an option to extend for a further two years, reviewable on an annual basis, following the expiry of the initial contract period. Resolved - that Hymans Robertson be appointed to provide Actuarial Services to the East Riding Pension Fund for the period 1 April 2011 to 31 March 2015 with an option to extend for a further two years, reviewable on an annual basis, following the expiry of the initial contract period.