FINANCE AND ASSET MANAGEMENT SUB-COMMITTEE – 29 SEPTEMBER ... · PDF fileFINANCE AND ASSET MANAGEMENT SUB-COMMITTEE – 29 SEPTEMBER ... notes the Director of Finance’s action

FINANCE AND ASSET MANAGEMENT SUB-COMMITTEE – 29 SEPTEMBER 1998

A G E N D A

PART I - MEMBERS PUBLIC (INCLUDING THE PRESS)

(1) Apologies for absence and to report any changes of membership(2) Minutes of the meeting held on 14 July 1998(3) Disclosure of any other business items in Parts I and 2 to be raised by

Members(4) Disclosure of any other business items in Parts 1 and 2 considered urgent

by the chairman(5) To confirm that the items of business marked in Part 1 will be considered in

public and any items marked Part 2 will be considered in private(6) To note that none of the items fall within the provisions of Section 106 of the

Local Government Finance Act 1992(7) Report of the Officers

1. General Fund Revenue Outturn 1997/98 Page 12. Policy and Resources Committee Revenue

Outturn 1997/98Page 14

3. Finance and Asset Management Sub-Committee –Savings Options

Page 21

4. Approval of the 1997/98 Statement of Accounts Page 295. Financial Services – Service Plan Page 316. Hillingdon Direct Services Service Plan 1998/99 Page 377. HDS Revenue Budget Page 588. Land Exchange at Former Barnhill Secondary

School & Blmore Primary School, HayesPage 60

9. Land at Dawley Road/Guiness Close, Hayes Page 6410. The Grange, Pine Place, Hayes Page 6611. Sanctury Close, Harefield – Sale of Land Page 7412. Single Tenders and Authority for Action Page 7713. Council Tax and National Non-Domestic Rate –

Irrecoverable Amounts Written off UnderDelegated Powers

Page 80

(8) Any other business and urgent items in Part I

PART 2 - MEMBERS ONLY

14. Kingsend South Car Park

This report is included in Part II agenda as it containsexempt information relating to any terms proposed or to beproposed or to be proposed by or to the authority in the

Page 82

course of negotiations for a contract for the acquisition ordisposal of property or the supply of goods or services.(Exempt information under in the Local Government :(Access to Information) Act 1985 Schedule 1 Part 1, para9 and para 12 in relation to an opinion received fromcounsel on a matter affecting the Council.

15. National Non-Domestic Rate – IrrecoverableAmounts to be Written Off

This item is included in Part II of the Agenda as it containsinformation relating to the financial or business affairs of aparticular person (other than the Authority), (exemptinformation under Paragraph 7 of Part I, Schedule 12a ofthe Local Government (Access to Information) Act 1985.))

Page 88

(9) Any items transferred from Part 1(10) Any other business items in Part 2(11) Any other items of business in Part 2 considered urgent by the Chairman

PART I – MEMBERS, PUBLIC AND PRESS

Finance and Asset Management Sub-Committee – 29 September 1998 Page 1

GENERAL FUND REVENUE OUTTURN 1997/98 ITEM 1

CONTACT OFFICER: Paul WhaymandTELEPHONE: 01895 250816

SUMMARY

This report sets out the summary General fund outturn position for 1997/98.It updates Members on the provisional outturn position reported by the Director ofFinance to Policy Committee in July.

RECOMMENDATIONS

That the Committee ;

notes the General Fund revenue outturn for the financial year 1997/98.

notes the Director of Finance’s action to improve budgetary control andmonitoring.

INFORMATION

Introduction

1.1 The 1997/98 accounts have now been closed and the Statement of Accounts isreported separately on this meeting’s agenda, for Members formal approval inaccordance with the Accounts and Audit Regulations 1996. Detailed outturn reportsare being presented to Service Committees in the current cycle. The reportcovering the outturn for Policy and Resources Committee is reported separately onthis meeting’s agenda. This report summarises the final outturn position for theGeneral Fund.

1997/98 Revenue Outturn

1.2 A summary of the overall General fund outturn position is set out in Appendix A.

1.3 The outturn shows that the total net revenue spending in 1997/98 was £191.3mwhich was £5.7m less than the net budget figure of £197.1m. The final outturnwas only £4k greater than the provisional outturn reported by the Director ofFinance to Policy Committee in July.



A summary of the final balances position for 1997/98 is set out below:-

£k

Balances brought forward 1 April 1997 9,923Use of balances in 1997/98 (2,020)Variation in schools balances (263)Net useable balances carried forwardat 31 March 1998 7,640

The key points arising from outturn variances remain as they were in July :

◊ budget managers were cautious about their ability to generate austerity andother savings

◊ cash flow held up well, producing higher interest on balances ◊ technical adjustments arising from the Item 8 calculations under the 1989 Local

Government and Housing Act resulted in greater than expected General Fundsavings

◊ some additional income in certain budgets, particularly in Local Services, in the

final quarter of the 1997/98 financial year caused an increase in the projectedGeneral Fund underspend

◊ there were major undeclared underspends in Social Services 1.4 Although the outturn has not changed since the Director of Finance reportedthe outturn to Policy Committee in July, the reasons for the variances are nowmuch clearer. A significant amount of work in particular has been undertakeninvestigating the Social Services outturn variances. The results of this work can beseen in Appendix B which contains a summary of the detailed explanations ofbudget variances which are being reported to the respective service committees inthe current cycle. Budgetary control and monitoring 1.5 In view of the late identification of sizeable variances between budget andoutturn, the Director of Finance has reviewed procedures for budgetary control andmonitoring. These functions are carried out in each individual Service Group bytheir own staff. This arrangement reflects the fact that Group Directors areaccountable for the way their budgets are spent. It also avoids duplication of effortbetween service groups and the Finance Department and improves the mutualunderstanding of finance and service issues.



1.6 Most variances between outturn and budget are reported to Members duringthe course of the year but inevitably some further variances arise or are identifiedright at the end of the year. These can arise from a variety of causes includingvariations in demand-led services late in the year and technical accounting issueswhich emerge during the closing of accounts. 1.7 They can also arise where there is deliberate disregard of budget when makingexpenditure commitments or where information is held back. During 1997/98 therewere major underspends in Social Services totalling nearly £6m when the outturnwas finalised (apart from provisions for housing benefit adjustments), which werenot reported as part of corporate budget monitoring. A detailed analysis of themany variations indicates that much of this underspend could, and should, havebeen identified and reported during the year. Such actions only become apparentin retrospect when the final accounts show that what happened is not what wasreported. 1.8 Because there are no resources in Financial Services to double-check workdone in Service Groups, the system crucially relies on the commitment of GroupDirectors, and the ability of Heads of Finance, to work effectively. There wasclearly a very serious breakdown in the devolved arrangements in Social ServicesThis has caused the Director of Finance to review the current procedures. 1.9 Bringing the devolved accountants back under central control would be aretrograde step, and the Director of Finance does not support it. The currentarrangements can be strengthened by requiring a greater adherence to commonstandards of good practice and by the Director of Finance taking a more directmanagerial role in relation to the Heads of Finance. 1.10 One consequence of the planned improvements to devolution is that theprofessional responsibility of each Group’s Head of Finance to keep the Director ofFinance properly informed will be strengthened. This should prevent any GroupDirector being able to prevent a Head of Finance from giving an alternativeinterpretation of budget monitoring results, although this should rarely be an issue. 1.11 The Director of Finance is also considering the scope for improving the qualityof monitoring through: concentration on key areas of volatility or complexity;improved salary monitoring; introducing a degree of independent scrutiny byFinancial Services. Any improvements will need to be manageable within existingresources and the cost-effectiveness of budget monitoring will need to be keptunder review. 1.12 In order to improve the quality of information available to budget managers,Financial Services will soon be testing Discoverer 2000 software that may giveusers the greater flexibility to get management information out of the CFACS



system in a form that they find more convenient. Commitment accounting isalready available to those services whose purchasing patterns make it appropriate.Accounting-based systems are inevitably of limited assistance in consideringvolatile demand-led budgets, so monitoring of these types of budget will alwaysrequire a professional assessment of trends by budget managers themselves. 1.13 A particular problem has been spasmodic failure to give budgetary controlsufficient priority. Council resolutions requiring adherence to cash limits have notalways been adhered to, often as a result of specific Committee decisions. Thevalue of budget monitoring is undermined if the information gathered is not used toexercise budgetary control through corrective action by management or Membersas appropriate. 1.14 Proper budgetary control often requires use of virement procedures. Thisallows budget managers to take effective action to deal with potential budgetproblems and opportunities. Virements of a substantial value, say above£100,000, are likely to have policy implications or reflect significant changes inservice level and would therefore be reported to the relevant Committee. 1.15 Finally, it should be noted that although the total value of variations issignificant in absolute terms, it is still a small variation on the Council’s overallbudget. This reflects the fact that the budgeting process and monitoring through theyear are essentially sound. Inevitably, the low level of General Fund balancesgives rise to greater focus on what might otherwise be considered acceptablelevels of variation. LEGAL IMPLICATIONS The Legal Section has been consulted in the preparation of this report and confirmsthat there are no legal implications arising. BACKGROUND DOCUMENTS Report and minutes of Policy Committee July 1998



POLICY & RESOURCES COMMITTEE REVENUE OUTTURN 1997/98

ITEM 2

CONTACT OFFICER: Paul Whaymand

TELEPHONE: 01895 250816 SUMMARY This report sets out the revenue outturn position of Policy & Resources Committeefor 1997/98 and the latest revenue position for Finance & Asset Management Sub-Committee for 1998/99. RECOMMENDATIONS That Members note the revenue outturn for 1997/98 and the latest revenueposition for 1998/99. INFORMATION 1997/98 Revenue Outturn 2.1 This report identifies the overall position for the Policy & Resources Committeein 1997/98 comparing the latest approved budget for the year against the actualincome and expenditure. The report will recap on a number of items reported toMembers previously during 1997/98 as part of budget monitoring, and updateMembers on any other changes that arose by the time the accounts for the yearwere finalised. 2.2 Appendix A sets out the Sub-Committee’s actual net expenditure for the yearcompared to the approved budget. The outturn for the Sub-Committee was£11.539m which represents an underspend on the approved budget of £828k. Thisunderspend was broadly in line with that projected at the time of budget fixing.Appendix B shows an analysis of the variations for each service. For each of themain service groupings the following sections of the report will highlight anysignificant points regarding these variations. Finance Department 2.3 The Finance Department underspent by £107k. The underspend wasgenerated in a number of areas described below. Local Tax Collection (-£11K) - This net underspend was due to the combinationof an underspend of £73k on salaries arising from vacancies, an underspend onvarious non salary budgets of £40k and an under-achievement of court costs



income of £103k. The under-achievement of court costs income should not continuein 1998/99 after the agreement of Policy Committee in April to increase thecharges for costs. The underspend on salaries will not reoccur to the same extentbecause one of the Finance Department savings measures agreed for 1998/99was to fund salaries at 98.5% of a full establishment in the expectation of vacancysavings. NNDR (-£7k) - This underspend was a combination of a £39k under achievementof costs income and a £46k underspend on charitable rate relief. Other Finance Department Services (-£88k) - This underspend was generatedby vacancy savings across the Department, particularly in Internal Audit andAccountancy. As with the Local Tax Collection underspend, this salary underspendshould not reoccur due to the fact that vacancy savings are effectively built into thebase budget for 1998/99. In addition some of the longer term vacancies in Auditand Accountancy have now been appointed to. Chief Executive’s Office 2.4 The Chief Executive’s office underspent by £50k. The main variations were asfollows: Public Relations (-£34k) - This budget underspend due to the long term vacancyin the Head of Communications post and short term vacancies in other posts.Although these vacancies have continued into the current year, salary pressureselsewhere in the Chief Executive’s Office mean that the total salary position isunlikely to be significantly underspent. Corporate Management (-£12k) - This underspend is due to a combination ofvarious Chief Executive’s Office salary and non salary underspends. These do notlook like continuing into the current year due to the various savings proposals thatwere implemented at the start of the financial year. The other minor variations in the Chief Executive’s Office budgets are listed inAppendix B. Other Policy & Resources Services 2.5 These services underspent by £885k, the significant items being as follows; Other Income and Expenditure (-£726k) - This underspend was generated by 3main variations ; Insurance premium Refund (-£350k) - This was a one-off underspend broughtabout by Zurich agreeing to a refund when the Council extended the contract withthem.



Probation Service Provision Adjustment (-£350k) - This is a one-off adjustment.Negotiations with the Probation Service regarding their occupation of the CourtHouse in Uxbridge have reached a stage where it was felt that the provisionagainst the debt outstanding from the Probation Service would not be required. LRB Balances (-£43k) - As in previous years this relates to the continuing transferof balances from the ex GLC which are treated as windfall income. Industrial Estates (£83k) - This overspend is due to some of the tenants goinginto liquidation leaving a large shortfall on the rent income budget as well ascreating the need to provide for likely write-offs of rent debt. Coroners Court (£19k)- This represents the variance between the estimatedexpenditure (on which our levy payments are made in year) and the final outturn forthe service as informed to us after the end of the financial year by Hammersmith &Fulham. 1998/99 Finance & Asset Management Sub-Committee Revenue Position 2.6 The monitoring to date of the revenue budget for the current year has identifieda number of areas where significant variances from the original budget areexpected to arise. The main items to note are as follows : July 1998 Policy Committee Decisions - (£252k) - Policy Committee agreed tothe following items to be funded from balances in the current financial year ; £40k for the reopening of the job shop. This was agreed in light of the Councilsfinancial position and the fact that Policy Committee had agreed to establish fromcapital resources a redundancy provision of £1m. £200k to establish a corporate Best Value budget to meet the costs of corporateconsultation and additional staffing costs associated with the creation of a centralteam. An estimated £12.5k (in this financial year) for the creation of a Community SafetyOfficer post. Unallocated Savings Targets (£250k) - When the budget for the current yearwas set in March part of the proposal was that £500k savings should be achievedthrough additional income, alternative methods of service delivery and absencemanagement. This target was held centrally in Policy and Resources Committee inadvance of specific sums being identified by Groups. At the April Policy andResources Committee it was reported that Officers felt that £250k of this sumshould be achievable through additional income and absence management and itwas agreed that this sum would be allocated to Groups.



Uxbridge Market (-£100k) - Agreement has been reached with Prudentialregarding service charge refunds due to Hillingdon under the provisions in our leasegoing back to 1990. 2.7 Officers will continue to monitor the budget position regularly and reportsignificant findings to this Committee. LEGAL IMPLICATIONS The Legal section has been consulted in the preparation of this report and confirmthat there are no legal implications arising. BACKGROUND DOCUMENTS Report and minutes of Policy Committee September 1997 Report and minutes of Policy Committee July 1998



FINANCE AND ASSET MANAGEMENT SUB-COMMITTEE -SAVINGS OPTIONS

ITEM 3

CONTACT OFFICER: Brian Murrell/

Trevor Robinson TELEPHONE: 01895 250495/250559

SUMMARY This report provides details of options for savings in the budgets covered by thisSub-Committee as instructed by Policy and Resources Committee on 9 July 1998. RECOMMENDATIONS It is recommended that Members ; note the overall financial position of the Council, note all the options for savings set out in this report and indicate which, if any,should be pursued. INFORMATION Advice from Director of Finance 3.1 Members were informed in the previous Committee cycle that the Director ofFinance considered the Council’s finances to be in a serious position. At one point,it seemed possible that the Council’s balances may have become exhausted. Thiswas largely due to the lack of clarity concerning the Social Services revenueoutturn for last year. 3.2 Policy Committee was informed at its meeting on 9 July that detailed work onthe closing of the 1997/98 accounts had been carried out. On this basis, theDirector of Finance advised that the Council’s 1998/99 budget was still balanced,with estimated balances of £5.4m as at the end of the current financial year.However, this situation could change if there were to be any further overspends notalready identified at that time. Revenue budget monitoring carried out since Julyhas shown that this is still broadly the position, although there are some potentialoverspends being identified within the Social Services budget which the ActingDirector is taking steps to contain. A detailed budget review for the current yearwill be reported to Policy Committee in October. 3.3 The previous budget forecast for 1999/2000 showed a funding gap of £10.2m.A review of the budget forecast shows that taking into account known oranticipated developments could reduce the funding gap by around £2½m. This is



mainly a result of 2 things. First, a further assessment of the costs ofharmonisation of pay and conditions which shows that the original forecast of £3mfor this item can probably be reduced by half (but this is still subject to negotiation).Secondly, there are proposals being considered within Social Services which, ifsuccessful, would cover the remaining loss of Housing Benefit grant (around £1m)by adopting compensating savings. This would indicate a funding gap of nearly £8m. However, this depends on nofurther budget pressures arising, and existing additional pressures being contained.Most importantly, this makes no allowance for the possibility that the 1999/2000SSA Settlement could adversely affect the Council. All the indications, mostrecently from the Association of London Government, are that London as a wholeseems likely to suffer a substantial reduction in SSA. 3.4 It should not therefore be assumed that the pressure to make savings hasbeen reduced. This position also assumes that the loss of Social Services housingbenefit grant is covered by the revised arrangements now being implemented. 3.5 A further point to note is that the funding gap is determined by the assessmentof Government spending limits. The original forecast assumed a 5% increase yearon year for Hillingdon’s limit – this recognised that the Government was likely to putadditional resources into certain service areas, particularly Education. The recentGovernment Announcement on the outcome of the Comprehensive SpendingReview confirms this, and does not therefore mean that the assumption about thecapping limit can be changed. 3.6 The Chancellor’s Announcement, and the recent Local Government WhitePaper, both clearly signal an end to the existing capping arrangements. Howeverthere will continue to be some form of expenditure limitation, based on a morecomplex arrangement. The White Paper also states that in future, capping limitswill not be announced until after local authorities have set their budgets. This couldstart next year, as it does not require a change in legislation. 3.7 Even if the Council was able to achieve a budget increase of more than 5% in1999/2000, the “gearing effect” would apply, which means that the Council Taxincrease would be high – probably unacceptably so. For example, a budgetincrease of 10% would produce a Council Tax increase of around 25%. 3.8 A final point – this budget analysis makes no provision for adding backbalances, which should be considered as part of a longer-term budget strategy. 3.9 Taking all these factors into account, officers are still advising that a budgetreduction target of £10m should still be assumed. Budget proposals for thisCommittee are set out in this report. Members will clearly need to consider these,and make decisions accordingly. As the overall budget position will be reported indetail to the October meeting of Policy Committee, Members may also wish to



make recommendations to that meeting to be taken into account as part of theoverall review of the Council’s budget decision. Previous Committee Decision 3.10 At Policy and Resources Committee on 9 July 1998, members resolved thathaving regard to the most serious financial position as advised by the Director ofFinance and the substantial projected budget deficit in 1999/2000, it wasrecommended that : (I) Officers undertake an urgent budget review to identify all savings options andopportunities to form public/private partnerships to reduce expenditure whilstmaintaining services. (ii) Officers identify policies/procedures which are adding unnecessarily toexpenditure pressures. Following on from the above decision, Officers have considered all of the budgetsunder the responsibility of this sub-Committee to identify possible savings and/orpartnership schemes. Review of Savings Proposals 3.11 In summary, the proposals for savings within Finance and Asset ManagementSub-committee are as follows ; 99/00 Savings Full year Savings £k £k Chief Executive’s Office up to £360k up to £405k Finance Department up to £493k up to £698k 3.12 The figures are not exact because of the uncertainties of quantifying possiblesavings that may be generated through partnership savings in Finance, .Personnel and Legal. 3.13 A full summary of the details are set out in Appendix A. Chief Executive’s Office Savings 3.14 A comprehensive budget review of the Chief Executive’s Office has beenundertaken in accordance with the Policy Committee instruction. 3.15 The Chief Executive’s Office budget has maintained a good record of budgetmanagement, both in terms of delivering agreed reductions, and in operating withinits overall budget.



3.16 For this review the approach has been:- • To review systematically the options for income generation, management and

admin savings, options for outsourcing and for the cessation or reduction ofservices.

3.17 The review also recognised that given the size of the budget problem, theneed for radical proposals, and given the nature and structure of the CEO’sbudgets, it was no longer viable to adopt a top slicing/incremental approach tocuts. 3.18 The review identified the different parts of the office and distinguishedbetween:- • Core/corporate functions. In these areas the options for outsourcing or income

generation were limited. Many of these activities operate in very small teamsand the real choice would be about cessation rather than further incrementalreductions in service (e.g. Grants/Community Resources, EconomicDevelopment). The strategy of the review has been to recommend retainingservices in these areas and concentrating on other areas for potential savings.

• Support Services, in particular Personnel and Legal, where outsourcing or

partnership arrangements were a real option. • Direct Services where a combination of approaches was possible. Finance Department 3.19 It is the opinion of the Director of Finance that, after a number of years ofdelivering savings through efficiency measures, the scope for making furthersignificant savings through these means has now been exhausted. A vacancy factoris now built into salary estimates requiring staff to operate at less than fullestablishment. The only way to make further savings is to look for radical change.The main potential for significant savings in the Finance Department is throughpartnership arrangements. 3.20 The Finance Department is already pursuing partnership options underinstructions from the Best Value Sub Committee on 29 June to seek innovativeways of delivering financial services. A report on the progress made to date waspresented to Best Value Sub-Committee on 16 September. There are no firmdeals as yet to put to Members but initial discussions with the main companies inthe market suggest that they are interested in Revenues & Benefits in particularand to a lesser extent Payroll & Pensions. There was little interest in Internal Auditor Accountancy contracts. The figures quoted in this report (up to £350k in a fullyear) assume a 5% saving on the gross Financial Services budget.



3.21 The other options are ones that have previously been rejected by Members.Moving staff who are currently weekly paid to monthly could generate up to £50ksavings in the Finance Department and may generate other savings in support staffdealing with payroll matters in service Groups. A detailed report on this option wentto Policy and Resources Committee in April 1998. 3.22 Moving the first instalment date for Council Tax payments from 1 May to 1April will produce estimated cash flow savings to the Council of £257k p.a. 3.23 Council Tax payers can currently pay their council Tax at any Post Office freeof charge. Each transaction costs the Council 47p and the total cost for 1997/98amounted to £46k. The equivalent charge through paying at a bank is 6p. Thereare a range of options from removing the free payment facility to splitting thecharge between the Council and the taxpayer that would produce savings of up to£41k p.a. LEGAL IMPLICATIONS The Legal section has been consulted during the preparation of this report andconfirm there are no legal implications arising. BACKGROUND DOCUMENTS Policy Committee report April 1998 Best Value Sub-Committee reports June 1998, September 1998



APPROVAL OF THE 1997/98 STATEMENT OF ACCOUNTS

ITEM 4

CONTACT OFFICER: Paul Whaymand

TELEPHONE: 01895 250816 SUMMARY This report sets out the background to the requirement for Members to formallyapprove the Statement of Accounts together with some brief notes on thestatements. RECOMMENDATIONS That the Sub-Committee approves the Statement of Accounts for thefinancial year ended 31 March 1998. INFORMATION Requirement For Approval 4.1 The Accounts and Audit Regulations 1996 introduced a number of changes toaccounting practice. A report was submitted to Finance & Property Sub-Committeein June 1996 outlining the main changes. One important change was therequirement that the Statement of Accounts has to receive approval by aCommittee of each Local Authority by 30th September each year, starting with theStatement of Accounts for the 1996/97 year. 4.2 The DOE stated that the two main aims of these changes was to : • encourage audited bodies to produce timely accounts of good quality; • promote the concept of corporate governance (as set out in the Cadbury

Report)

4.3 This already has a good record of closing the accounts and the changesbrought about by these regulations have not presented a problem.

4.4 The responsible financial officer still retains responsibility for the preparation ofthe statement of accounts and is required under Regulation 8(3) of the Accountsand Audit Regulations to certify their fair presentation. The Members’ role is todemonstrate their ownership of the accounting statements and their confidence inthe process by which accounting records are maintained and the statementsprepared.



Statement of Accounts

4.5 The Statements of Accounts have been distributed prior to the meeting as aseparate document. Copies are available to members of the public on request. Theaccounts have an explanatory forward which briefly explains the purpose of each ofthe accounts. The format of each accounting statement and the minimumdisclosure for each note to the accounts are all prescribed in the Code of Practicefor Local Authority Accounting.

4.6 The audit of the accounts by District Audit began at the end of July and is still inprogress. This process will be completed during the Autumn and the accounts willbe formally published by the 31 December. If there are any changes that areagreed during the audit process the accounts have to be re-presented to theCommittee either to be noted or approved depending on the materiality of anychanges.

LEGAL IMPLICATIONS

4.7 The Legal Section has been consulted in the preparation of this report andconfirm that there are no legal implications arising.

BACKGROUND DOCUMENTS

Finance and Property Sub-Committee report June 1996.The Accounts and Audit Regulations 1996.Policy & Resources Committee report September 1997.



FINANCIAL SERVICES - SERVICE PLAN ITEM 5

CONTACT OFFICER: Janice MauleTELEPHONE: 01895 250567

SUMMARY

This report sets out the main issues for the Financial Services department in thecurrent year.

RECOMMENDATION

That the Sub-Committee endorses the Service Plan.

INFORMATION

5.1 The Government is embarking on a process of change in local governmentlegislation, much of which will impact on the financial work of the authority. Thisincludes the introduction of Best Value (although Compulsory CompetitiveTendering remains in place for the time being), changes to the revenue and capitalfinance regimes, and changes to the Non-Domestic Rate to facilitate closerworking with the local business community. The Comprehensive Spending Reviewhas identified the Government’s priorities for its own spending on localGovernment, at the same time as confirming the Government’s commitment tokeeping spending increases under control. This leads to the conclusion that acommon objective across the department will continue to be the need forcontinuous improvement.

5.2 Clarity about the objectives of the department and each of its teams is animportant part of Investors in People. Each section has its own service plan, whichis discussed with staff, and is linked to other processes such as the individualDevelopment Plan. Specific objectives are grouped together in the Appendix underkey themes.

5.3 The Corporate IT team is currently reporting to the Director of Finance,pending the outcome of the Chief Executive’s review of the organisational structureof the Council. This paper incorporates their plan.

Key Themes

Information Technology

5.4 The Finance department is heavily dependent on IT systems to undertake all itsprincipal activities, both as a service provider within the Council and as the local taxcollecting service. The three major strands of the department’s IT strategy are



Year 2000 complianceMaintaining the investment to enable staff to use systems effectivelyPursuing developments to improve the service

5.5 The first two areas are either in progress already or will be undertaken duringthe remainder of the year. The final category will include some feasibility studieswhere implementation will be largely determined by organisational issues.`

Staff

5.6 The Finance department has attained Investors in People status and nowneeds to plan for a three yearly review by ensuring that all staff have an annualPerformance and Development Agreement review and a personal developmentplan and by producing an annual training plan.

5.7 Team Briefing has been introduced as a means of improving communication tostaff. This has been working well but a survey of staff views on its effectivenessis currently being undertaken. This will be used to identify further improvements.

5.8 The Health and Safety Plan is reviewed annually and Health and Safety ispromoted in the department. Training is provided to Managers and Supervisors tomeet new requirements such as risk assessment. Quarterly reviews of eachsection are carried out and reported to the Departmental Health and Safety team.

Finance

5.9 The department will continue to deliver its services within budget and proposalsfor further savings are reported elsewhere on this agenda. We also have asignificant role to play in supporting other Groups and contributing to corporatework on the budget.

Performance

5.10 In the current year, the emphasis will be on Income as this is the department’sBest Value pilot but the setting of standards and monitoring of performance isrelevant to all financial services. During the current year we will be reviewingservice provision, consulting with clients (whether internal or external), and thenusing the results to feed back into future decisions. We will also be establishingkey performance indicators and the means of monitoring the information. Thesewill be based on a mixture of quantitative and qualitative measures and will alsoincorporate any Council-wide performance measures and Audit Commissionperformance indicators.



Relationships

5.10 As part of ensuring that Finance is effective, we have to have good workingrelationships with staff in other Groups, the many outside organisations we dealwith, and above all, with the public and staff who are our customers. During thecoming year there will be customer care training for all staff, to build on existinggood practice. Other work, such as training of a technical nature, will ensure thatstaff can deliver services that are relevant and valued by their users.

Prioritisation

5.11 Very little of the department’s work could be considered discretionary andmuch of it is subject to strict timetables imposed either by Government or by theCouncil’s own processes. This makes it important that additional work is prioritisedto ensure the continued delivery of key requirements, as additional resources areunlikely to be available to deal with pressures.

5.12 Members will appreciate that the plan is subject to review and amendment inthe light of changing priorities during the year.


Team plans



FINANCIAL SERVICES - SERVICE PLAN FOR 1998/99

Activity Section

Information Technology

Complete the review of current systems and equipment toidentify Year 2000 issues.

All

Complete transition to Delphi payroll system Corporate IT & PayrollReplace pensions computer equipment Pensions & Corporate ITPhased upgrade of systems AllImproved reporting and interrogation facilities Payroll, Accountancy, Audit, RevenuesGreater integration of systems Accountancy, Payroll, Corporate ITPromote increased use of scanning and electronic filing Corporate IT

Staff

Implement Investors in People Action Plan for reassessment AllDevelop staff roles in merged teams Payroll & Pensions, AccountancyMaintain regular Health & Safety reviews and monitor results AllProvide information on AVCs and new Regulations PensionsMaintain Performance & Development Agreement process AllKeep staff informed AllDevelop training plan AllManage the transfer of staff from ICL/CFM Corporate IT

Finance

Deliver services within existing budgetProvide financial advice, including on new legislation Accountancy



Ensure restructuring changes are reflected in budgets andaccounting information

Accountancy, Audit

Develop and deliver proposals for savings AllReduce backlogs of pensions work PensionsProduce information for actuarial revaluation of Pensions Fund PensionsNegotiate settlement with Contributions Agency Payroll

Performance

Develop local performance indicators AllComplete the Best Value pilot in Income AccountancyRectify performance problems in Non-Domestic Rates Revenues & Corporate ITImprove management of corporate budget preparation andmonitoring

Accountancy

Implement new legislative requirements Payroll & Pensions,Consider further Best Value reviews AllImprove Council Tax collection to over 95% RevenuesCodification of standards and good practice All

Relationships

Customer Care training for all staff AllSeek customer views on current services and respond tocomments

Payroll & Pensions, Audit, Corporate IT

Maintain and enhance good working relationships with otherGroups, external bodies

All

Survey of non-domestic ratepayers Support ServicesReview publications, leaflets Revenues, Support Services



Prioritisation

Risk assessment used to develop audit plans AuditSupport to Best Value throughout the Council Accountancy, Audit, Support Services,

Corporate ITFinance CCT Support Services, RevenuesRisk management promoted in other Groups Support ServicesTimetabling for recovery, billing, CCT preparation RevenuesDevelopment of formal IT Strategy for the Council Corporate ITReplacement of Council’s Telephone system Corporate IT



HILLINGDON DIRECT SERVICESSERVICE PLAN 1998/99

ITEM 6

CONTACT OFFICER: M D OakleyTELEPHONE: 01895 250634

SUMMARY

This Report reviews the Groups operational performance during 1997/98 and setsout the objectives for HDS for the current year in accordance with the PolicyCommittees Position Statement.

RECOMMENDATIONS

1. That the achievements made during 1997/98 be noted.

2. That the objectives be adopted as the Service Plan for 1998/99

INFORMATION

1998/99 SERVICE PLAN

CONTENT

1. The Past Year Review

1.1 Corporate Programme1.2 Financial Performance1.3 Staffing Issues1.4 Heath and Safety

2. Individual Service Achievements and the Objectives for 1998/99

3. The Group and Best Value



1. THE PAST YEAR REVIEW

1.1. Corporate Programme

The majority of services provided by HDS are under contractual or service levelarrangements with Client groups. The achievement of corporate priorities istherefore limited to some extent by the provisions in these contractualarrangements. However, throughout the year, HDS as part of the Council hastaken steps to acknowledge our responsibilities and ensure that the Council’scorporate themes are actioned as fully as possible throughout the whole Group.

Our Corporate objectives relate to:-

a. Budget Managementb. Customer Carec. Best Valued. Investors in Peoplee. Community Safetyf. Anti-Racial Harassment

Key Achievements 1997/98

• The Group played a full part throughout the year to the Corporatemanagement of the Council’s financial and property resources through itsOfficer participation on the Budget Review Group and the Property ReviewGroup.

• The organisational culture of HDS is focused towards the delivery of high

quality and valued services over a diverse range, to the residents andbusinesses of the Borough. The Groups aim is to deliver continuousimprovement in its level of Customer Care, as our front line services featurehigh on the list by which the Council is judged. The General Manager of HDSrepresents the Corporate Customer Care Team on the Management Board. The Group has continued to build on the Service improvements in previousyears and all HDS staff will attend further Customer Care training anddevelopment over the next six months as part of the Councils initiative to furtherimprove standards.

• HDS have enthusiastically embraced the concept of Best Value. Thepreparation and successful tendering for services against private sectoropposition already operates within Group. HDS is actively working on BestValue projects in Groundcare Services, Passenger Services and Building



Maintenance which account for approximately 50% of the DSO annual turnover.Best Value will enables the Council to take a holistic approach to serviceprovision by looking at both the Client Side commissioning and monitoring coststogether with the contractor role to form a view on whether the current servicedelivery arrangements are efficient and give the residents both quality and valuefor money.

• The Group is pleased to report to Members its continuing success with

the Council’s Investors in People programme for its staff, and our firm belief inthe benefit, both to our staff and to the services we provide, of this initiative.Seven Service Areas (both blue and white collar services) have now achievedthe award and the remainder to the Group is on target for accreditation by April1999. Furthermore our Modern Apprenticeship Scheme, run in partnership withWest London TEC, is working well and gives an excellent opportunity foremployment and training for some of the Borough’s young people. We nowemployee 22 Modern Apprentices.

• HDS Officers continue to be actively involved in Community Safety

initiatives and through the successful installation and implementation of theCCTV system in Uxbridge High Street have seen levels of street crime reducedby 30%.

• Our Waste Services staff continue to assist in practical ways in the fight

against racial harassment through our Racist Graffiti Removal Service. 1.2 Financial Performance 1997/98 The year-end return to the Council from the HDS Group was £1,127,788.Achieving this high level of financial performance is assisted through a continuingemphasis on financial controls and close day to day monitoring between ServiceManagers and the devolved Finance team under the Head of Finance. A separateand detailed report is made to this Committee on the individual performance ofeach Trading Unit during 1997/98 and the current position at Week 18 in 1998/99.These details will be considered under Part 2. Only one Service Area of the Group(Groundcare Services) was not able to meet its rate of return. This was for thesecond year running and recommendations for the future of the Service wereapproved by the Best Value Sub Committee on 16 September 1998. 1.3 Staffing Issues • Harmonisation Discussions with the Trades Union have commenced and options been put forwardto address the reduction to 37 hours from 1 April 1999. These will continue as partof the Council’s corporate initiative whilst the cost is not insignificant it is believed tobe manageable via productivity measures.



• Investors in People The Service Areas of Property Consultancy, Building Maintenance and SecurityServices have recently been recognised as Investor in People and join four otheraccredited Service Areas. Work is continuing in the remaining HDS Services andwe are on line to achieve recognition throughout the Group by the end of April1999. Real tangible benefits continue to be reported by Service Manager’s interms of increased productivity, income and staff motivation as a result of the‘Investors in People initiatives. • Modern Apprenticeships HDS working in partnership with West London Training and Enterprise Councilsuccessfully recruited eight young local people during 1997/98 as part of the firstphase of our Modern Apprentice Employment Programme and this year havealready recruited a further four Apprentices. The Apprentices all receive on the job training and day release facilities, whereappropriate, to enable them to achieve the NVQ level three standard in theirchosen career. In addition HDS Leisure Management are continuing their programme to trainmembers of staff who are under the age of 25 to achieve a NVQ level three inSports and Recreation. Currently there are 13 people who are enrolled on thisModern Apprenticeship programme. During the course Apprentices learntransferable skills such as communications, customer care and informationtechnology as well as specific abilities required by the sports and recreationindustry. As part of this ambitious programme, which is one of the largest of itskind in the country, six senior Leisure Officers have been trained to become NVQAssessors, and undertake all internal assessments thereby minimising the cost tothe Council. One of the key themes to be addressed at national and local level is that ofunemployment amongst young people. The Modern Apprenticeship Scheme inconjunction with the possible expansion of the trading base as trading restrictionsare lifted by the Government, will enable HDS to continue to create newemployment opportunities within the Group. Furthermore, HDS, with West LondonTEC, hope to be able to develop the programme over the next two years and offerNew Deal placements in construction related activities. Several of our Modern Apprentices have been working with the local Prince’s TrustVolunteers Group as part of their 20 week development programme for youngunemployed people between the ages of 16 and 25. The Apprentices



programme, which lasts for 20 days, enables them to develop team building anddecision making skills together with increased motivation and self confidence –skills which are all important in today’s workplace. The involvement of the Borough with this scheme and its notable successes hasbeen widely publicised and has led to several other London Boroughs agreeing tosend staff on the PTV programme. 1.4 Health and Safety Health and Safety continues to be of the highest importance for the Group and arange of training courses have been developed by the Group during the year tomatch the demand for training from the various Service Areas and other CouncilDepartments on a rechargeable business basis this very successful initiative willcontinue during 1998/9. Our commitment to Health and Safety was recognisedduring the year when the Group received the Four Star British Safety CouncilAward following an extensive external audit of our safety managementarrangements. All HDS Service Managers have successfully completed a four day training courseleading to the award of the Institute of Occupational Safety and Health ‘ManagingSafely’ certificate and this training programme is now being widened to includeSupervisors. 2. INDIVIDUAL SERVICE ACHEIVEMENTS AND OBJECTIVES FOR 1998/99 2.1 BUILDING CLEANING 1997/98 Achievements • The successful winning of all four Building Cleaning contracts under CCT

arrangements, our tender bids were not only successful they also offeredsavings to the Council clients.

• The successful setting up of our accredited Building Cleaning Training Unit

in conjunction with the British Institute of Cleaning. All out operational staff andmany external clients have and will be trained in all aspects of specialistcleaning tasks.

• Developed and enhanced other areas of the cleaning business such as

window cleaning and specialist cleaning of IT equipment.



1998/99 Objectives • To further develop our specialist cleaning facilities within the air

conditioning and extraction fields and the deep cleaning of kitchen and hygieneareas of the business.

• To look to further develop our training unit in partnership with thelocal/national training agencies and increase income from external sources.

• To take on some of the Client Agents former roles in that we now deal

directly with each client department and therefore have made corporatesavings.

2.2 CATERING SERVICES 1997/98 Achievements • The successful implementation of the agreed service delivery change from

conventional meals to a frozen meal service operating from the Civic Centrekitchen.

• The opening of a new bespoke shop within the Civic Centre offering awide range of catering services to the staff. The facilities now available are inresponse to our customer survey which has recently been carried out.

• The development and upgrading of the Depot Canteen facilities and theintroduction of a tailored service in line with out customer and businessoperational needs. These included revised opening times, healthier eatingoptions, reading materials and an upgraded vending service.

• The successful financial turn around of the catering business which is now

for the first time ever showing a positive position. 1998/99 Objectives • To introduce and implement phase two of the service delivery change from

conventional meals to a frozen meal service within the remaining kitchens,(Ascot Court and Grassy Meadows). This new service is planned to begin inOctober 1998, and will offer the service user a variety and quality meal serviceto their home.

• To further develop the shop service within the Civic Centre.



• To develop and upgrade the Colonnade Restaurant facilities whilst

releasing space for other uses. • To expand our market share by increasing the marketing of Civic Hall hire

facilities. • To upgrade the vending services on offer. • To maximise the efficiency of the Catering business by further seeking

trade from external opportunities. 2.3 FLEET MANAGEMENT Achievements 1997/98 • Re-negotiated Plant Maintenance Contract • Re-tendered the tyre replacement contract resulting in savings of 8% 1998/99 Objectives • Progress strategy on vehicle and plant hire and maintenance in

accordance with policy agreed by Best Value Sub Committee.

• Review organisational arrangements in order to match revised policy onvehicle maintenance.

• Review services provided by Specialist Workshops and investigateexternal market opportunities in order to improve the financial return.

• Progress discussions with suppliers to seek cost effective methods ofreducing noxious emissions from all Fleet vehicles.

2.4 FACILITIES MANAGEMENT 1997/98 Achievements • Successfully managed the services provided to all users of the Civic

Centre within budgeted costs. • Managed the introduction of CCTV for Uxbridge Town Centre resulting in a

30% reduction in street crime in the first six months.



1889/99 Objectives • Progress on the proposals for improvements to the Civic Centre

Reception in line with the Health and Safety Executives recommendations. • As client for Security Services ensure a continuing improvement in

services to staff and customers through the increased use of moderntechnology.

• Improve Customer Care at all levels through training. • Ensure the smooth introduction of the Council’s new telephone system

which will result in major improvements in customer access to Council Services.

• Progress the new signage scheme for visitors to the Civic Centre.

• Produce an accommodation audit of the Civic Centre and all other Counciloffices with recommendations for economy savings.

• Further develop the commercial approach to Printing, Stationary and other

business opportunities within the Service Area. GROUNDCARE SERVICES 1997/98 Achievements • Groundcare has faced its toughest year since the implementation of CCT.

With the wettest spring for over 100 years, Service re-organisation, agencystaffing and a much harder monitoring regime all having a part to play.

• A new plant maintenance contract was negotiated and has proved to be asuccess. Major improvements in machine downtime. Closer working with theservice provider – Fleet Management also added to its success.

1998/99 Objectives • Review the provision of plant and vehicles, staffing, self monitoring etc. as

part of the Best Value process.

• To continue to market services externally in all areas within the legalframework.

2.6 BUILDING MAINTENANCE



1997/98 Achievements • Building Maintenance is the Council’s sole day to day maintenance

contractor for housing repairs, operating four areas based fully comprehensivecontracts. These contracts were originally awarded to us in August 1996 asthe result of successful competitive tendering.

• 1997/98 financial contribution of £85,026 to the Council’s General Fund

and £151,277 to the Housing Revenue Account • 95 – 99% ratings in customer satisfaction recorded in Housing Tenants

Survey (target 87%).

• Existing contracts extended to March 2001 on the basis of satisfactoryperformance.

• Achieved standards required of the ‘Investor in People’ initiative and arenow fully accredited as an ‘Investor in People’ organisation.

• Modern Apprentices initiative progressing well with six young people now

training as Electricians, Plumbers and Carpenters under this scheme. • The London Equal Opportunities Federation (LEOF) – this is an

organisation that positively promotes enterprises run by black people, womenand people with disabilities. HDS Building Maintenance is an affiliate memberof this organisation and was the first London Borough to join.

• Construction Skills Certificate Scheme (CSCS) – this registration scheme

for construction operatives who can demonstrate achievement of a recognisedlevel of competence. It covers a range of construction occupations. Health andSafety awareness training is a mandatory requirement of the scheme. Aspresent 16 HDS staff in relevant trades are registered and others awaitregistration.

1998/99 Objectives • As part of our commitment to providing a cost effective and efficient

service to our clients we have been investigating the introduction ofcomputerised communication with our field staff. We have now identified asuitable supplier and are proposing to commence trials in October.

Our client is similarly interested in this initiative and as a result of our identifyingprovider, is expanding the possibility of increased integration of this new systemwith our own.



• Continue and extend Modern Apprentice Scheme. • The Housing Department has identified the repairs reporting process of

their Service as a ‘Best Value’ pilot. At this stage we were invited to participateon their working party to provide a contracting input. As the project hasunfolded our involvement has become increasingly important and we have nowjointly agreed to extend the original terms of reference from the project to fullyencompass the contracting/delivery of the repairs service.

• Our Housing client has commenced the replacement of their computerised

repairs reporting system and we are liaising closely with our clients to ensureas smooth a transition as possible. This transfer is programmed to commencein January 1999.

2.7 PROPERTY CONSULTANCY 1998/99 Achievements • Property Consultancy’s second year in its CCT Contract has been very

successful and the new relationships created have worked very positively. • The new offices at Harlington Road Depot continue to be beneficial in terms of

reduced overhead costs, improved working environment and the ability to workaway from other pressures.

• Property Consultancy fees are very competitive in relation to external providers.

This has been emphasised by the Consultancy winning a considerable amountof “non Council Client” work from schools’ private funds, Grant MaintainedSchools and other bodies including a Housing Association.

• Property Consultancy has been responsible for the design and construction of a

number of temporary school classrooms and extensions, a number of HRAfunded housing projects including Peter Fagan House Mature PersonsAccommodation, and is fully involved in the many new buildings resulting frommany relocations from Barnhill School.

• Property Consultancy has worked closely with Education Services to

successfully bid for considerable resources from the Government’s New Dealsfor Schools initiative. A number of these projects are in various stages ofcompletion. The Consultancy will continue this working relationship withEducation Services for further rounds of bidding for these resources.

• In January 1998 Property Consultancy received accreditation under the

Investors in People standard.



1997/98 Objectives • Property Consultancy will continue to provide a quality total design, construction

and maintenance service for the Council’s property to enable Clients toeffectively deliver their service.

• Property Consultancy will continue to ensure the maximum use of its resources

by looking to widen its existing client base and review its staffing mix. Theprevious thrust of attention was to Housing Associations and a breakthrough inthis area has now been achieved with a commission successfully completed.Attention will now be turned to the area of nursing and residential homes.

• The Select List of Contractors is a very important tool for the Council and

Property Consultancy is currently undertaking the production of a new List. Theadoption of this new List will provide the Council with contractors who meet theCouncil’s health and safety and equal opportunities requirements and haverecognised expertise in the building environment. The new List will becompleted by the end of 1998.

• Property Consultancy will carefully consider its structure to ensure that it is

prepared for the Best Value regime and will take part in a further review of theClient Agent arrangements in relation to costs.

2.8 PARKING ENFORCEMENT SERVICES 1997/98 Achievements • A complete review of the Parking Enforcement operation was undertaken in the

period June to September 1997 and recommendations were made to the Clienton areas which could be improved to generate more income.

• Some of these recommendations were put into place, resulting in an increase in

productivity. Overall performance was significantly improved. • For the period of April 1997 - March 1998, 48,000 parking notices were issued

(exceeding contract requirements), the DSO returned £5,500 to the Client andmet its statutory rate if return.

As a result of the Policy Committee decision in February the management of theParking Enforcement operation was placed under the control of Local Services,and this Parking Service was transferred to that Group on the 1st April 1998. SECURITY SERVICES



1997/98 Achievements • Security Services have continued to expand into new areas of business. In

December 1997 we took over monitoring of the Uxbridge Town Centre CCTVScheme, this involves Security staff identifying incidents and relaying informationto the Police Control room in Uxbridge. The Scheme has proved to be highlysuccessful, with a decrease in crime of 30% in the area the CCTV networkcovers.

• Additional CCTV schemes such as St. Andrews roundabout, Harlington Road

Depot and cameras being placed at the Blenheim House construction site inUxbridge have already been linked to the control room during the summer of1998.

• The CCTV Control Room has capacity to take on the monitoring of extra

cameras and this area is being explored in order to create additional income.Establishments such as Schools are showing a particular interest in being linkedto CCTV Scheme and it is envisaged that with new technology such as ISDNlines that this could be done cost effectively.

• Uxbridge Town Centre will soon have a radio network which will allow

shopkeepers and businesses in the area to communicate with each otherregarding any problems that they are encountering, such as shoplifters. A radiolink will be established in the CCTV Control Room, as this will allow ShopKeepers to request that CCTV cameras be moved in their direction in order forsuspects to be monitored and identified.

• Security Services have recently received approval from Scotland Yard to

monitor burglar alarm systems which are located at Council establishments. Thiswill not only improve response times to activations but will also save the Councilmoney in cutting out the third party who currently monitors the alarms.

• Conflict Management Training is offered by the Security Services to ‘front-line’

members of staff. This training will be carried out by staff who have completed aformal training course and is certificated by an independent training company.

• Stronger links with the Metropolitan Police have been established not only

through the CCTV Scheme but also as a result of the Security Manager beingdirectly involved in the Police/Security Steering Group.

• Security Services were recognised as Investors in People in June 1998. 1998/99 Objectives



• To continue with Service improvements whilst maintaining the budgetforecast for 1998/99.

• Review service provision with the Client to maximise the benefit fromCCTV in relation to Civic Centre monitoring.

• Ensure Security Services are delivered in accordance with the principles

of Best Value. 2.10 ESTATES AND VALUATION 1997/98 Achievements • Negotiated with a number of Housing Associations to sell land for

residential development in which the Council will receive nomination rights ofoccupation.

• Negotiated with a considerable number of third parties in respect ofgranting or taking leases, licences etc, compensation for land taken for highwayworks e.g. Hayes By Pass, or depreciation of value and other property work tomeet Service needs.

• Managed the Council’s non-Service property portfolio, including Housingshops, to ensure rent arrears are kept to a minimum yet in sympathy with theCommittee’s policies.

• Further developments at Park Lodge Farm Centre to improve efficiency

and make facilities at the farm available to the public including the opening of arural bygones museum.

• Asset Management of all the Council’s property including revaluation of

part of the Asset Register, reassessment of the major buildings valuesregarding the insurance cover and negotiation of a number of proposals foralteration of the rateable values of service properties to obtain a reduction inrates paid.

• Reviewed replacement Geographic Information System propertymanagement applications and recommendations purchase of specialistsoftware.

1998/99 Objectives • To assist in the development of an Asset Management Plan by setting up

a database and providing data.



• Provide advice to Corporate and the Service clients on property mattersincluding acquisition and disposal of land and property management to meetService needs.

• Continue to seek reductions in rates or insurance premiums paid whereever possible, including the Civic Centre.

• To ensure that the Services that are provided are continually reviewed to

ensure a quality service delivery. • To complete the setting up of the replacement G.I.S. applications for the

Council’s Terrier and Asset Register and arrange to complete the data input byproject management.

• To ensure that all staff have the skills and experience to deliver quality andprofessional services.

2.11 HIGHWAY SERVICES 1997/98 Achievements • Once again exceeded the rate of return and contributed £70,097 to the

Group budget, although the Service normally rely on the winter frost/grittingoperations to enhance income, the past winter period proved to be the mildestexperienced with very little frost, let alone snow. We therefore sought workfrom various clients and customers to enable us to contribute towards our aimof making a substantial the rate of return.

• Highway Services were officially accredited as an ‘Investor in People’ andwere formally presented with a recognition plaque on the 17 April 1997.

• A survey amongst clients covering 14 key Service elements in Highways,Sewers and Public Lighting confirmed continuing satisfaction.

• As nominated contractor for Thames Water Plc, they undertook a series

of Health and Safety spot checks on blockage clearance over a three monthperiod, commencing from April to assess the standards being applied by 43operational contractors which included 35 Local Authorities and eight externalcompanies.

• The Review Team of Thames Water have decided to issue three awards

to the top organisations, Highway Services were selected for a ‘HighlyCommended’ award and will receive a cash prize and a trophy. The cash prizewill be donated to the Mayor’s Charity.



1998/99 Objectives • Although at present on line with budget projections, our main aim is that

this should be maintained if services area effected by a reduction in our client’sbudget.

• • Make the rate of return required by legislation. • Maintain and expand our market share. • Ensure that production levels are such that we remain financially viable.

• Complete all jobs to the clients/users satisfaction. • Form a partnership with our approved specialist sub-contractor to continue

to provide a high level, cost effective and efficient service to the residents of theBorough.

2.12 WASTE SERVICES 1997/87 Achievements • The high profile area continued to deliver a high quality Refuse Collection

service to residents during 1997/98. This is supported by the Resident’sOpinion Survey.

• This was the first full year of the new contract having commenced in

January 1997. Strict financial controls resulted in profits exceedingexpectations.

• Service delivery was effected by vehicle reliability. • Waste Services continues to be a forward thinking unit, providing a service

that is valued by the residents. 1998/99 Objectives • 1998/99 has seen four new replacement vehicles arrive. However, a

rolling programme of vehicle replacement is essential to maintain servicestandards.

• The move towards harmonisation may result in the need to change

working practices. Discussion currently revolves around the one hour reductionper week as from 1 April 1999.



• In conjunction with Local Services a pilot recycling programme wasimplemented on 14 September 1998.

2.13 ENVIRONMENTAL SERVICES (STREET CLEANSING) 1997/98 Achievements • 1997/98 once again saw the profile of Street Cleansing raised. In order

to meet the challenge, new staff were employed and underwent training inorder to provide greater flexibility.

• The Service operates under stringent financial controls which have

resulted in a surplus exceeding the rate of return required under legislation. • Staff continue to show commitment in an area where expectations are

constantly being raised. The Service operates seven days a week andprovides 24 hour emergency stand-by.

1998/99 Objectives • For 1998/99 we have set demanding financial targets and will look to

achieve an upward movement in performance in the 1999 Opinion Survey. 2.14 LEISURE MANAGEMENT Past Year to April 1998 • The uncertainty of Leisure Management’s position within the overall

Council structure led to apprehension and a reduction in staff morale throughoutthe year. Despite this the service and attention that the staff have given to thepublic has remained committed and totally professional

• 32 existing Leisure Services staff who are under 25 years of age have

either completed or are well on the way to qualifying as Modern Apprenticesand achieving NVQ Level 3 in Sports and Recreation. The programme iscontinuing to prove to be very successful with many new and imaginative ideascoming forward from the staff.

• The year was difficult for Leisure Management due to further reductions in

expenditure by the Leisure Client side. Noticeable was the delay in theauthorisation of essential maintenance works to Leisure sites, which in extremecases led to the temporary closure of some facilities and loss in income. Thissituation has now been addressed by the Client.



• The overall lack of investment in Leisure facilities throughout the Boroughhas resulted in a fall in usage and income, with customers using other , betterequipped local facilities. Opportunities for capital investment which will showsignificant short-term revenue paybacks have been identified.

• Although the Leisure Card system was introduced last year and Leisure

Management staff continue to operate the system, there are hardwaredeficiencies which result in some management information and financial/usagereports not being easily accessed. These ongoing problems mean that theLeisure Card system is still not being fully utilised. This problem is now beingaddressed.

1998/99 Objectives • Seek capital injection of funds into Leisure Management for income

generating projects and the improvement of facilities. • Work in conjunction with the Client Side to investigate ways in which new

investment can be introduced into Leisure facilities within the Borough. • Work in conjuction with the Client to seek National Lottery funding to

enhance service provision. • Continue to assist the Client in the preparation of a bid to secure funding

for the Townfield site development. • Further develop the Modern Apprentice scheme within the Service area

and to capitalise on the outputs from the extensive training and developmentprogrammes.

• Achieve Investor in People recognition by January 1999. 2.15 PROPERTY SERVICES AGENCY 1997/98 Achievements • Negotiation of Development Agreement for Uxbridge Town Centre Project.

This is now being carried out by Capital Shopping Centres to provide a multi-purpose shopping centre with Debenhams Department Store, shops, multi-screen cinema and other facilities.

• Assisted in the achievement of other major property related projects

including the disposal of Barnhill site for a new secondary school and a multi-purpose Housing, Leisure and Education development at Townfield site inHayes.



• Negotiated the acquisition of Lake Farm, a 60 acre site to provide a newpark for Hayes.

• As Client Agent managed the Corporate Property Budget including the

commissioning of work from Estates and Valuation, Property Consultancy andLegal Services.

• Successful court actions to protect the Council’s financial and property

interests in relation to compensation matters and encroachments on Councilland.

• Implementation of Council policy on the restructuring of Council shop

leases. 1998/99 Objectives • The development of an Asset Management Plan supported by the GIS

Asset Database. • Initiate a further comprehensive land review to identify property suitable

for alternative use or disposal. • Implement initiatives directly and through commissioning professional

services, to reduce expenditure on property. • Firmly establish the role of the Property Services Agency in providing

strategic management of the Council’s property assets and the lead role on allproperty related projects.

• Improve communications on property matters within the Council and all

services. • Assist services in developing their service related property plans. • Continue to effectively manage the Estates and Valuation contract and

commissioning of other professional services from Property and EngineeringConsultancies, Legal Services and external specialist property advice.

2.16 ENGINEERING CONSULTANCY 1997/98 Achievements • Successful completion of a diverse range of municipal engineering projects

returning a good financial rate of return to the Council. Budget areas includenot only CCT, but also miscellaneous service agreements and agencycommissions.



• Key schemes include: £2.5m A4/Moor roundabout improvement. SRB

highway refurbishment £1m. Structural assessments landscape works andpublic building works.

• Continued support of our ‘Investment in People’ initiative (IIP) together

with quality Assurance and Professional Development of staff. • Maintenance of a planned rolling programme of IT investment to capitalise

on efficiency savings flowing from new technology. 1998/99 Objectives • Continue with our SRB rolling programme implementation and TPP

infrastructure works. • Extend and improve service delivery and support customer care. • Investigate any new external market opportunities; monitor legislation and

progress Best Value processes. • Encourage our good staff relationships and monitor our in-house skill base

to ensure that we have the correct skill mix to meet Council work demands. • Uphold our proven flexible and versatile output capability. • Comply with all Council initiatives, non-discriminatory personnel issues and

Health and Safety standards. 2.17 PASSENGER SERVICES 1997/98 Achievements • To split transport provision for the Social Services Colham Green Day

Centre in half to accommodate its move to two separate sites. This wasachieved on time and within the budget of the one original site.

• Education Transport Services were put out to tender with new and already

known operators being re-assessed. Contracts were placed and commencedon time after the Easter holiday 1998.



1998/99 Objectives • In the course of the year three Social Services Day Centres are due to

move from the Barnhill site to new sites in different parts of the Borough. Thiswill create a major operation to reorganise the transport without incurring extraexpense. We remain committed to doing all we can to ensure that the transitionruns smoothly.

• Passenger Services is taking park in a pilot project under the Best Value

scheme. This will involve consulting the users of our Service to obtain theirviews on the service currently provided and areas where improvements couldbe made. Comparisons of the costs of our service with those of otherBoroughs are taking place to ensure that the Borough is getting the best valuefor money. Arising from these exercises a plan of action will be developedsetting new targets in terms of service and cost.

• In addition to Best Value, we are reviewing with Social Services our costs,

and suggesting alterations to the way their Service is operated, that will allowthe current level of service to continue at a lower cost. This is in response toSocial Services financial position and their need to reduce expenditure.

2.18 ANIMAL WELFARE 1997/98 Achievements • Continued to provide a comprehensive welfare service for all

domesticated animals throughout the Borough. Animals handled ranged fromdogs and cats to goats and snakes.

• Responsive stray dog collection service which has handled 98 dogs since

the beginning of the year with the vast majority being either re-claimed or re-housed.

1998/99 Objectives • To continue to develop the animal identification microchip implementation

service across the Borough in response to the possible relaxation of the currentquarantine requirements.

• Undertake responsible pet ownership sessions at schools to raise

awareness of the responsibilities involved in correctly looking after pets.

3. THE GROUP AND BEST VALUE



3.1 HDS in common with other parts of the Council which have market testedtheir services under CCT has already moved along way along a part of the journeytowards Best Value. The theme of competitive testing is well understood within theGroup as savings are forced out of overheads through the need to match marketrates. Work is being done at the moment to see how this CCT philosophy can beusefully applied to services which operate on the basis of a client/contractor splitwhich can result in a duplication of effort. The cost of Building Cleaning Services tothe Council has already been reduced through the variations to the Client Sidemonitoring and greater end user involvement.

The ability for the Council to benchmark services against the private sector andother authorities (in addition, as opposed to testing solely through competition) iswelcomed. This will enable quality and price to be matched to the market placeand to customer demand as evidenced through consultation. HDS aim to continueto match or exceed our customer demands as described in the specifications.However, we accept that there will be services which will need to be provided indifferent ways and in conjunction with the private sector if Best Value in all areas isto be achieved. We are looking at these options at the moment in respect of ourGroundcare Services business and some other elements of the Services weprovide. HDS already work in close partnership with a range of local business,agencies and consultancies to provide our services in the most economic way andthe resulting profits are returned to the Council.

HDS is currently testing over £9 million of its work under Best Value pilots, and itsobjective is to extend this testing into all its other Services at the earliest possibleopportunity. This does present resource pressures and a programme of testingwill be agreed and reported to the Best Value Sub Committee at its next meeting.

3.2 One of the principles of Best Value that will continue to underpin theapproach of HDS to service provision is ‘What’s best is what works’. Thereis no single route to achieving continuous improvement to service and theGroup recognises there will always be room for improvement in order tomeet its objectives of providing services which are consistently ahead of ourcustomers expectations.

LEGAL IMPLICATIONS

There are no perceived legal implications.

HEAD OF FINANCE COMMENTS

All the figures are those previously reported to the Director of Finance, and thereare no other financial implications at this stage in the year.

BACKGROUND DOCUMENTSPolicy Committee - 9 July 1998 – Position Statement



Best Value Sub Committee – 16 September 1998 – Groundcare Services



HDS REVENUE BUDGET1997/98 OUTTURN1998/99 WEEK 18 POSITION

ITEM 7

CONTACT OFFICER: M D Oakley/ K SoniTELEPHONE: 01895 250634/250070

Appendix A is contained in part 2 of the agenda as it contains informationclassified ass exempt under paragraph 8 of Schedule 12A of the LocalGovernment (Access to Information) Act 1985: “The amount of any expenditureproposed to be incurred by the authority under any particular contract of theacquisition of property or the supply of goods or services.”

SUMMARY

This report advises Members of the year-end results for each HDS Service Areafor the 1997/98 financial year. It provides details on the performance of each of theHDS accounts at Week 18 – July 1998, the year-end forecast for 1998/99 and theidentified areas of savings to be addressed .

Recommendedations

1. To note the performance and results for 1997/98.2. To note the overall financial position of HDS as at week 18 – July 1998

and to contribution being made by the Group to the Council’s GeneralFund.

3. That discussions be progressed both internally and externally in orderto explore all the options for Groundcare Services.

INFORMATION

1997/98 BUDGET - General Comments

• As a result of further Group overhead reductions and increased spend bythe Client Departments, a year-end surplus was achieved of £801,593 plus£326,195 returned to Clients. A total of £1,127,788. A detailed breakdown ofthis figure is attached at Appnedix A in Part 2 of this report.

1997/98 Key Points• Groundcare Services forecast as loss of £120,000. A range of actions

was introduced to reduce this loss, and at year-end the actual loss was£75,783.

• Security Services CCTV staffing costs although un-budgeted were funded

by HDS up to 31 March 1998.



1998/99 BUDGET • The Policy Committee on 23 January 1998 considered a report from the

Director of Finance setting out details of the potential funding gap in theGeneral fund budget. The report recommended that Group Directors shouldreport to Services Committees with options for savings, the level of which relateto controllable budgets. A saving of £80,000 from the Civic Centre budget wasidentified and has been achieved through savings on telephone accounts, staffturnover, retirements and additional income from car parking and generaleconomies.

• HDS was tasked with achieving a surplus of £245,000 during 1998/99 and

carrying the unbudgeted costs of £65k of the Uxbridge Town Centre CCTV forthe first six months. Due to increased income the revised year-end forecast, asat July 1998 is now a surplus of £442, 000. It is anticipated that all ServiceAreas with the exception of Groundcare Services will achieve or exceed currentforecasts.

• A detailed breakdown of income and expenditure and the year-end

forecast for the first 18 weeks – July 1998 is attached as Part 2 of this Report. • A recovery action plan was introduced by Groundcare Services which

would achieve a break-even position at the year-end. Due to the very wetspring/summer it has become apparent that Groundcare will not be able toachieve a break-even position. It should be noted that Grounds Maintenancewas selected as a Council Best Value Pilot, and the current review which willinclude all elements of Grounds Maintenance including the Client Side, isunderway.

• The Best Value Sub Committee received a report on the future of the

Service at its meeting on 16 September 1998 and agreed that the GeneralManager explore all options both internally and externally for the continuance ofGroundcare Services.

LEGAL IMPLICATIONS

Under the various contracts competitively tendered HDS is required to have apositive rate of return. This has not been achived with Groundcare Services. Legalcomments in relation to Groundcare Services are in another report submitted tothis Sub-Committee.


Policy Committee – 9 January 1998Best Value Sub Committee – 16 September 1998



LAND EXCHANGE AT FORMER BARNHILL SECONDARYSCHOOL & BELMORE PRIMARY SCHOOL, HAYES

ITEM 8

CONTACT OFFICER: Mayur PatelTELEPHONE: 01895 277279

SUMMARY

This report seeks the Sub-Committee’s approval to permit the exchange of land atthe above schools between the Council and the Funding Agency for Schools.

RECOMMENDATION

That the Sub-Committee gives approval to the exchange of the land (subjectto the terms set out below) on the basis that the land hatched black shownon Plan No: HAY.645 dated 18 August 1998 will be transferred to the Councilby the Funding Agency for Schools and the land cross hatched black will betransferred to the Funding Agency for Schools by the Council.

INFORMATION

8.1 On 2 March 1998 the Policy and Resources Committee approved the revisedterms of sale for the Barnhill site shown as edged black on Plan No: HAY.645 tothe Funding Agency for Schools. This sale was completed on 23 July 1998 by wayof a grant of a 150 year lease by the Council at a premium of £3,300,000.

8.2 The Funding Agency for Schools wishes to exchange land with BelmorePrimary School based on the new secondary school being built at the eastern(Yeading Lane) end of the Barnhill site. As a result, it requires part of the playingfield of the Belmore Primary School shown cross-hatched black on Plan No:HAY.645 and in return is prepared to surrender back to the Council the land shownhatched black currently forming part of the Funding Agency for Schools 150 yearlease.

8.3 The Education Committee on 23 June 1998 gave approval to the governingbody of Belmore Primary School reaching an agreement with the Funding Agencyfor Schools on an exchange of land as stated in 2 above which would provide theschool with exclusive use of its own entrance road, a new car park and anenvironmental study area.

8.4 TERMS

a). The Council will receive 2,699 square metres of land shown hatchedblack on the plan and the Funding Agency for Schools will receive 2,698square metres of land shown cross-hatched black.



b). The FAS will at its own cost build a new car park, environmental studyarea and carry out other works in accordance with Drawing No:84411/AA/10 Rev. 1 dated 17 April 1998 and specification by 31 March2000 to the reasonable satisfaction of the Council. The Council wouldneed to approve the specification prior to commencement of the works,such consent would not be unreasonably withheld.

c). The FAS will construct, at its own cost, boundary fences shown by ‘T’marks on the plan in accordance with prior approval of the specificationby the Council not to be unreasonably withheld. The FAS will beresponsible for repairs and maintenance of the fences shown by the ‘T’marks.

d). The FAS will, at its own cost, plant any new shrubs to be specified bythe Council along new boundary fences and lay or alter any pitches andbe responsible for their maintenance or replacement for one year afterplanting.

` e). The FAS will be responsible for the payment of the Council’s legal costsof £850.00 and surveyors fees of £500.00.

f). Subject to approval of the Belmore School Governors.

These terms are being reported to the Belmore School Governors forapproval.

8.5 The proposed land exchange is fair and reasonable in terms of valuation.

CHIEF EXECUTIVE’S (POLICY TEAM) COMMENTS

The proposed land exchange is expected to benefit both the Belmore PrimarySchool and the new secondary school.

The proposed land exchange will only proceed if planning permission is granted forthe new school to be built at the Yeading Lane end.

DIRECTOR OF EDUCATION COMMENTS

The land exchange will be of great benefit to Belmore Primary School and has thesupport of the School, the Local Education Authority and the Education Committee.



LEGAL IMPLICATIONS

There are no legal comments.

DIRECTOR OF FINANCE COMMENTS

On the basis of advice and terms for transfer set out above, the proposed landswap does not create any costs for the Council.

Background Documents

Policy and Resources Committee - 30 September 1997Policy and Resources Committee - 19 February 1998Policy and Resources Committee - 2 March 1998Education Committee - 23 June 1998



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LAND AT DAWLEY ROAD/GUINESS CLOSE, HAYES ITEM 9

CONTACT OFFICER: Martin WhiteTELEPHONE: 01895 250936

SUMMARY

This is to report a correction to the appropriation value given for a piece of land ina previous report to the Policy and Resources Committee on 19 February 1998.

RECOMMENDATION

That the Sub-Committee notes the information in the report.

INFORMATION

9.1 The Policy and Resources Committee on 19 February resolved to approve theappropriation of land shown cross-hatched black on the plan attached at appendixA at a value of £150,000.

9.2 Officers have since realised that this figure was entered in the report in errorand the correct valuation of the land for appropriation should have been £400,000.This latter figure has been valued by the Estates and Valuaton Officer andapproved the Head of Property Services Agency.

LEGAL IMPLICATIONS

This report has no legal implications.


The correction will lead to a revised adjustment in credit ceilings between theHousing Revenue Account and General Fund. The overall effect of the adjustmentwill be to show a small saving for the General Fund and a smal cost to the HRA.


Nil



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THE GRANGE, PINE PLACE, HAYES ITEM 10

CONTACT OFFICER: Ron SchrieberTELEPHONE: 01895 250470

SUMMARY

On reference from the Housing Development Sub-Committee, the Sub-Committeeis requested to consider the provision of a community use at The Grange sitefollowing consultation with residents.

RECOMMENDATION

That full public consultation for alternative uses on the site be carried outbefore any further decisions are made.INFORMATION

10.1 At its meeting on 15th September 1998 the Housing Development Sub-Committee considered a report (attached at Appendix 1) which summarised thecurrent situation regarding The Grange, outlined the feasibility for social housingdevelopment on the site, and recommended that the whole site be disposed to asocial housing association for social housing.

10.2 Members of the Sub- Committee expressed the view that a community useshould be retained on the site and that local residents should be consulted ondevelopment proposals.

10.3 Accordingly, the Sub-Committee resolved:

1. That the Finance and Asset Management Sub-Committee berequested to consider the provision of a community use at TheGrange site following consultation with residents.

2. That the provision of affordable housing on The Grange site be

agreed in principle, subject to Resolution 1 above.

3. That officers be instructed to contact Hillingdon and HarrowHealth Authority to establish whether it has any plans for the clinicadjoining the site that could be included in consideration of any sitedevelopment of The Grange.

LEGAL IMPLICATIONS

There are no legal implications at this stage.




At present there is insufficient information available on proposed options to carryout a detailed financial analysis. This will be completed as soon as the informationrequired becomes available.


Minutes of Housing Development Sub-Committee, 15.9.98



HOUSING DEVELOPMENT SUB-COMMITTEE - 15 SEPTEMBER 1998

CONTACT OFFICER: RUPERT BRANDON EXTN: 3717

THE GRANGE, PINE PLACE, HAYES

1 SUMMARY

1.1 This report summarises the current situation on the Grange Centre, outlinesthe feasibility for social housing development on the site and recommendsthat the whole site be disposed to a housing association for social housing.

2 RECOMMENDATIONS

2.1 That this Sub-Committee recommends to Finance and Asset ManagementSub-Committee that the whole site edged black on the attached Plan No.G510/14 dated 27th August 1998 be sold for social housing developmentsubject to a satisfactory financial analysis and the approval of terms by theHead of Property Services Agency.

2.2 That, subject to the conditions of recommendation 1 being satisfied, thisSub-Committee recommend to Finance and Asset Management Sub-Committee and Education Youth and Leisure Committee the appropriation ofland hatched black in the plan from community purposes to Housing Act1985 purposes.

3 BACKGROUND

3.1 In June 1996, the Finance & Property Sub-Committee resolved toappropriate The Grange (shown edged black on the plan) from purposesunder the Education Act 1944 to purposes under Part II of the Housing Act1985 and instructed officers to submit a planning application forredevelopment of the site for social housing. In August 1996 Planning Sub-Committee approved a social housing scheme requiring the demolition of theGrange building and the construction of 13 dwellings (1,2 and 3 bedroomhouses and flats).

3.2 Having considered approaches from the local Grange Park ResidentsAssociation who wished to use the Grange building, Members approved arevised housing scheme at Policy and Resources Committee on 23rdJanuary 1998. This scheme involved the sale of land adjacent to theGrange building to the Hillingdon Housing Consortium for a smaller socialhousing development, and the appropriation of the remaining area of land(hatched black on the plan), including the Grange building, back toCommunity & Environment Committee for community use.

APPENDIX 1



3.3 Planning approval was obtained in December 1997 for a social housingscheme of 4 units (2 no. 3 bed houses and 2 no. 2 bed flats) on the siteadjacent to the Grange Building, subject to a Section 106 Agreement.However, negotiations with the Hillingdon Housing Consortium did notachieve disposal of the social housing site before the first 1998/99Committee cycle and Members resolved at the Housing Development SubCommittee meeting on 11 June 1998 to obtain reports from officers on thefeasibility of developments on three sites in the Council’s Social HousingProgramme. This report deals with The Grange site.

4 INFORMATION

Community Involvement

4.1 Following the Policy and Resources Committee decision on 23rd January1998, officers were instructed to assist the Grange Park ResidentsAssociation in developing its constitution to ensure it was an organisationcapable of committing itself successfully to the running of the GrangeCentre. The Council budgeted £14,500 for essential repairs to the building,with the intention that the Residents Association would become financiallyresponsible for the property after these essential repairs had been carriedout.

4.2 Since the Committee decision, little progress has been achieved in returningthe building to community use, and it continues to be a target for persistentbreak-ins and vandalism. Progress in establishing a community associationto oversee the running of the Centre has been difficult.

4.3 Whilst there is some commitment amongst members of the local communityto see the Grange retained for community use, the Council has also beenapproached by several residents who would prefer the site to be used forhousing and not community use.

4.4 One of the suggested community uses for the building was as a base forHillingdon Community Transport, which needs to be relocated from theBarnhill site. The proposal was for HCT to share the building with theresidents association; however, the association rejected this idea andargued for sole use of the building.

4.5 A key issue which remains unresolved is the level of funding which would berequired to enable the Grange to operate as a centre providing communityfacilities. No budget provision exists to support the running costs anddevelopment of the Grange; the building is very difficult to heat due to itsdesign and layout and the age of the heating system. The experience ofgroups who have previously used the building have shown that withoutsignificant financial support, community activity is not a viable proposition.The Crown Centre for the Deaf ran into financial difficulty as a result of their



attempts to keep the building warm, and resorted to using only a small areaof the building.

4.6 For the Grange to be run as a community concern, there will be arequirement for continued financial assistance from the Council. Presentindications are that this might be in the order of £30,000 for the first year,reducing in subsequent years. However, in view of the close proximity tohouses it is unlikely to be acceptable for the Centre to be operate a licencedbar to generate income; consequently substantial financial assistance islikely to continue to be required from the Council.

4.7 A further concern for officers is the condition of the building. As statedabove, there is a budget of only £14,500 for essential repair andmaintenance work. However, this covers only basic health and safety works,and the recent incidents of vandalism have served to create additionaldamage for which there is no budget provision. As with the requirement forthe Council to provide ongoing financial assistance to support communityactivities, provision would also need to be made to restore the building to auseable condition and fund future repairs and maintenance.

Social Housing Development

4.8 A social housing scheme for three properties in Pine Place, adjacent to theGrange site, is proceeding. Nos 4 and 9 Pine Place were sold by theCouncil to the Consortium on 31st March 1998. Along with No. 3 Pineplace, these properties will be rehabilitated and enlarged to produce 3 no.family houses, with £ 253,826 local authority social housing grant (LASHG).This scheme is not affected by consideration of any of the other options inthis report.

4.9 In addition, officers have investigated the feasibility of the following socialhousing options on the Grange site. In considering these, Members shouldbe aware that the developing housing association was previously successfulin attracting a Housing Corporation grant allocation of £252,000 for thedevelopment of the whole Grange site, assuming £36,000 per unit. ShouldMembers decide not to pursue social housing on this site, officers wouldhave to negotiate with the Corporation for the reallocation of these funds; ifunsuccessful, the allocation would be withdrawn.

a) Partial development of the Grange site as agreed on 23rd January1998

4.10 Planning permission has been granted for a new build scheme of 2 x 3 bedhouses and 2 x 2 bed flats scheme, subject to a S106 agreement beingsigned for financial provision to relocate of the entrance to the Grangebuilding. Negotiations with the developing housing association havedetermined that a sum of £37,533 would be required to fund the scheme,



which would also draw down £144,000 of the Housing Corporationallocation (4 units @£36,000 each)

4.11 The balance of £37,533 could be approved as LASHG, though officers arealso discussing with Acton Housing Association the possibility of obtainingadditional funding from the Housing Corporation.

4.12 Any disposal would be subject to a financial appraisal and negotiation ofterms.

4.13 Alternatively, the above requirement could be met fully by withdrawing theS106 requirement, and disposing of the land at discount. However,Members should note that funding would then not be available to relocatethe Grange Centre’s entrance and there would be a difficulty in using thebuilding for community purposes. This would also be subject to a financialappraisal to ensure the terms of disposal represented value for money anddid not contravene existing committee resolutions on the level of discount tobe applied to land sold for social housing.

4.14 Should Members wish to pursue this option, the future of the remainder ofthe site, including the Grange Centre, will also require a decision.

b) Develop the whole of the Grange site

4.15 The developing housing association has also proposed, subject to planning,a scheme to develop the whole of the Grange site by demolishing theGrange Centre and building 11 new homes. The financial assessment,based on a 14 unit scheme (including the three Pine Place properties)indicates a sum of £245,305 would be required to fund the scheme inaddition to the full Housing Corporation allocation of £252,000 and LASHGof £253,826 already funding the redevelopment of the Pine Place properties.

4.16 Were the site to be transferred at nil value the requirement for additionalpublic subsidy in the form of social housing grant would reduce and theterms would be subject to the same safeguards detailed above.

Officers have also examined non-social housing options for the site:

c) Dispose of all or part of the site on the open market

4.17 The value of the site for sale on the open market is set out in Appendix A inPart II of this agenda.

d) Demolish and /or leave vacant

4.18 The Grange Centre has recently been subject to several break-ins andvandalism which has exacerbated the deterioration of the property. Should



Members determine not to lease the building to the Residents Association,nor to otherwise dispose of it, there will be a substantial and continuingmaintenance liability to the Council. Officers estimate that the Council hasspent £400 on call outs and emergency boarding since the site becamevacant, and recently steel shuttering has had to be erected, having a hirecharge of £95 per week.

4.19 Officers have estimated the total cost of demolition of the site to groundlevel to be in the region of £35,000, although there will still likely be someon-going revenue implications to the Council with regard to security, removalof fly-tipping etc.

5 PLANNING INFORMATION

5.1 The S106 agreement for this scheme has, to date, not been signed. Anyrequest to remove this requirement will need to be referred back to PlanningSub-Committee for further consideration. A decision would then likely bedependent on whether the Council resolved to retain or dispose of theGrange Centre.

6 LEGAL INFORMATION

6.1 A restrictive covenant applies to the Grange Centre and the adjacent landunder which use of the land is restricted to a “labour hall”. It is not known ifanyone is entitled to enforce this covenant.

6.2 However, if the land is appropriated back for housing purposes, any personentitled to enforce the covenant can only claim damages form the Counciland not an injunction to prevent the development from proceeding. Thedeveloping housing association have taken the view this will not significantlyaffect progress on the scheme.

7 FINANCIAL INFORMATION

7.1 At present there is insufficient information available on the proposed schemeto carry out a detailed financial analysis. This will be completed as soon asthe required information becomes available.

8 BACKGROUND DOCUMENTS

Finance & Property Sub-Committee, September 1995Finance & Property Sub-Committee, June 1996Finance & Property Sub-Committee, March 1997Policy & Resources Committee, January 1998Housing Development Sub-Committee, June 1998



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SANCTUARY CLOSE, HAREFIELD - SALE OF LAND ITEM 11

CONTACT OFFICER: Ron SchrieberTELEPHONE: 01895 250470

SUMMARY

On reference from the Housing Management and Maintenance Sub-Committee,this report recommends that a small area of land that has no development potentialbe sold to local residents.

RECOMMENDATION

That the land shown hatched on the Plan attached as Appendix A be sold tolocal residents on terms and conditions approved by the Head of PropertyServices.

INFORMATION

11.1 At its meeting held on 21 July 1998, the Housing Management andMaintenance Sub-Committee was informed that, when originally constructed, theSanctuary Close estate required a pumping station to provide adequate waterpressure to individual properties. Since that time the water board had improvedthe water pressure to Harefield in general. This had led to the pumping station andequipment becoming redundant and, ultimately, obsolete.

11.2 The pumping station and the small access area to it had become acongregation area for local children. Although the area was gated off and anti-vandal paint applied to the walls surrounding the pumping station, youths hadcontinued to gain access to the area and cause nuisance to residents overlookingthe pumping station.

11.3 Following requests from local residents work had been undertaken todemolish the pumping station and remove the obsolete equipment. This had left asmall parcel of land to the rear of 30-33 Sanctuary Close which also abutsCranfield Cottage, Hill End Road, as shown on attached map. The land did nothave any development potential.

11.4 All residents overlooking the area had been consulted and had expressed aninterest in purchasing a piece of the land to be included within the curtilage of theirgarden, subject to price and agreed terms.

11.5 It was proposed to continue negotiations with the residents concerned anddivide the area for use as an extension to existing gardens with each party to beartheir own legal costs in completing the conveyancing of the transaction.



11.6 The Housing Management and Maintenance Sub-Committee declared theland surplus to requirements and requested this Sub-Committee to sell the landto local residents on terms and conditions approved by the Head of PropertyServices.

LEGAL IMPLICATIONS

While the land remians in the Council’s ownership the Council has a common lawduty known occupiers liability to prevent others gaining access to their landespecially if there is a possibility of harm occurring. This is even in the case oftresassing children. Sale


The sale of this land will genrate a small capital receipt for the Council.


Report to and Minutes of Housing Management and Maintenance Sub-Committee,21 July 1998

sanctrep.doc



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SINGLE TENDERS AND AUTHORITY FOR ACTIONHILLINGDON DIRECT SERVICES

ITEM 12

CONTACT OFFICER: C R NormanTELEPHONE: 01895 250931

SUMMARY

This report summarises the action taken by the General Manager of HDS inrespect of the acceptance of Single Tenders and Authority for Action sinceFebruary 1998.

RECOMMENDATION

That the report be noted.

INFORAMTION

12.1 Revised delegations to the Chief Executive and Group Directors wereapproved by the Whips Sub Committee on 22 November 1993.

12.2 Delegation of Single Tender Action and Authority for Action is subject to areport to the appropriate Committee on the action taken.

12.3 The attached table details the tenders accepted by the General Manager ofHDS since February 1998, together with the value of the project.

LEGAL IMPLICATIONS

There are no legal implications


Tenders are in line with estimates.


Minutes of the Whips Sub Committee – 22 November 1993



HILLINGDON DIRECT SERVICESSINGLE ACTION TENDERS AND AUTHORITY FOR ACTION

DATE LOCATION PROJECT

ESTIMATEDCOST

£ CONTRACTOR

SINGLETENDER

ORAUTHORITY

21.2.98 St. Andrews Subways,Uxbridge

Installation of CCTV SecurityCameras

£20,255.00 ADL Security Services A

19.2.98 Ruislip Youth Centre Refurbishment Works £30,000.00 HDS (Building Maintenance) S

20.2.98Hayes Park HouseKitchen and TasmanHouse

Refurbishments HP Hse: £14,090.00 Tasman: £13,614.00

R. Imhoff & Son Ltd A

20.2.98 Mead House Security and Pager System £10,992.50 Haes Systems S

9.3.98 Mead House Internal Alteration Work To be funded from£50,000 Grant

R. Imhoff & Son Ltd S

10.3.98 Block D, HarlingtonRoad Depot

Provision of Offices for Car ParkingStaff

£20,000.00 HDS (Building Maintenance) S

19.3.98 Mad Bess Woods Installation of a Portaloo andShower Block

£8,183.00 Portasilo Ltd S

23.3.98 Grangewood SchoolClassroom Extension and InternalAlterations with Works to theNursery

£130,000.00 Modern Homes A

26.3.98 Coteford Junior School Proposed Single Classroom Unit £69,300.00 Rollalong A

11.5.98 William Byrd School Replacement of Air Conditioning £90,000.00 Reycol SVC A

4.6.98Deansfield,Southbourne Gardensand Hobart Road

Provision of Four Modular Buildings £1.4m Rollalong Ltd, Wernick Group,Terrapin Ltd, Portakabin Ltd

A

5.6.98 Ryefield EPH Nurse Call System £11,458.00 Haes Systems S

5.6.98 Knightscote EPH Nurse Call System £11,920.00 Haes Systems S

1.6.98 Cranwell Youth Centre Construction of a New Centre £230,000.00 Rollalong Ltd, Wernick Group,Terrapin Ltd, Portakabin Ltd

A

18.6.98 Honeycroft Day Centre Re-Roofing Works £59,600.00 The Breyer Group S

18.6.98 Milupa House Proposed Housing Services Offices £387,745.76 P. Brady Ltd A

29.6.98 Deansfield TeachersCentre

Demolition £35,000.00 Clifford Devlin S

2.7.98 West Drayton School Replacement Roof Covering andAssociated Works

£80,933.00 D. Tye Roofing S

3.7.98 Hayes Stadium Replacement Floor to Stadium £34,500.00 Granwood Flooring S



3.7.98 Harlington Road Depot Refurbishment of Gully EmptyingVehicle

£10,956.00 Whale Tankers Ltd S

31.7.98 Belmore PrimarySchool

New Extension (2 No. AdditionalClassrooms)

£136,000.00 AJR Renovations A

10.8.98 Maintenance Contract Maintenance of fire Alarms £44,500.00 Haes Systems Ltd S

10.8.98 New Moorcroft School Automatic Dosing Equipment forthe Hydrotherapy Pool

£6,000.00 USF Stranco Ltd S



COUNCIL TAX AND NATIONAL NON-DOMESTIC RATE -IRRECOVERABLE AMOUNTS WRITTEN OFF UNDER DELEGATEDPOWERS

ITEM 13

CONTACT OFFICER: Amanda HailstoneTELEPHONE: 01895 250358

SUMMARY

This report contains details of irrecoverable amounts of Council Tax and National Non-Domestic Rate which have been written off by officers under delegated powers in the lastquarter.

RECOMMENDATION

That the Committee note the amounts written off by officers under delegatedpowers.

INFORMATION

Under the scheme of delegations, officers have delegated powers to write off income due tothe Council in respect of sums up to £5,000, subject to quarterly reports to the Finance andAsset Management Sub Committee summarising the action taken.

This report contains details of irrecoverable amounts of Council Tax and National Non-Domestic Rate which have been written off by officers under delegated powers in the lastquarter.

COUNCIL TAX

A total of £10,243.68 has been written off in respect of Council Tax. This is made up asfollows:

Range No. ofcases

Amount

£.pUp to £100 756 7,832.55

£100.01 to £500 7 1,253.88£500.01 to £1,000 2 1,157.25

Total 765 10,243.68



The reasons that these amounts have been written off are as follows:

Reason No. ofcases

Amount

£.pMoved away - unable to trace 335 4,525.78Ratepayer deceased - Estate insolvent 70 2,720.34Dissolved / Dormant Companies 1 547.11Uneconomical to Collect 358 1,840.31Others 1 610.14

Total 765 10,243.68

NATIONAL NON-DOMESTIC RATE

A total of £273,888.77 has been written off in respect of National Non-Domestic Rate. Thisis made up as follows:

Range No. ofcases

Amount

£.pUp to £100 17 815.98

£100.01 to £500 25 7,588.04£500.01 to £1,000 28 21,141.51

£1,000.01 to £2,000 39 56,522.73£2,000.01 to £3,000 26 63,524.63£3,000.01 to £4,000 16 58,370.33£4,000.01 to £5,000 16 65,925.55

Total 167 273,888.77

The reasons that these amounts have been written off are as follows:

Reason No. ofcases

Amount

£.pMoved away - unable to trace 71 113,429.21Bankrupt 9 15,885.66Dissolved / Dormant Companies 16 24,533.35Company in Liquidation 62 108,364.60Uneconomical to Collect 2 74.20Others 7 11,601.75

Total 167 273,888.77

Background documents - Case papers and lists of amounts written off.