Agenda Item 3
HEBRIDEAN HOUSING PARTNERSHIP Board Minutes of Meeting held in the Cabarfeidh Hotel on Wednesday 27 November 2013 @ 5.00pm
ITEM
DISCUSSION PRELIMINARY PROCEDURAL MATTERS
1
Attendance & Apologies Present
Apologies
Staff & Consultants In Attendance
David Blaney (Chair) Kevin Paterson Norman M MacLeod Calum MacKay Alasdair MacKenzie John A MacIver DJ MacRae Daniel Coyle (via Skype) Mairi Bremner (via Skype)
Jane MacKinnon Iain MacMillan George Lonie (Vice-Chair)
Angus Lamont Dena MacLeod John MacIver Iona France Angela C Smith Peter O’Donnell Laura-Jayne Davis Katrina Palmer Angus MacNeil Stephen Nicol
The Chair advised the Board that Cllr John A MacIver had tendered his resignation and would be standing down from the Board with this Board meeting. On behalf of Board and Officers, Mr Blaney thanked Cllr MacIver for his contribution to HHP and wished him well for the future. 2
Declaration of Interest Kevin Paterson declared an interest in Item 20 as he is a member of Positive Action in Housing.
3
Minutes of Board Meeting of 4 and 12 September 2013 4 SEPTEMBER 2013 Items 20 & 22 The Director of Resources advised that a response had been received from WIFTRA in respect of the Gifts and Hospitality Policy and the Membership Policy consultations that took place in September 2013, and a response would be compiled and returned to WIFTRA in due course. The minute of the Board meeting of 4 September 2013 was submitted and approved as a true and accurate record of the proceedings of that meeting. 12 SEPTEMBER 2013 The minute of the Board meeting of 12 September 2013 was submitted and approved as a true and accurate record of the proceedings of that meeting.
4
Action Sheet A suggestion was made to send Membership packs to RTOs. The Action Sheet was approved.
5
Date of Next Meeting The date and time of the next meeting will be 19 February 2013 at 5:30pm.
6
Membership Update The Board noted the Membership update.
7
Health & Safety There were no items to report. DEVELOPMENT
8a
Development Programme 2013/14 The Chief Executive updated the Board on HHP’s Development Programme. Gibson Gardens was handed over and there was currently no development on site. Members queried unit costs and the Director of Resources responded to say that reports would be made available to Board members accordingly.
Members also asked if any problems had been encountered with heating systems at Gibson Gardens. The Investment Manager advised that some issues had been encountered with tenants not using the controls correctly, but Clerks of Works were addressing them. It is agreed that:
8b
a)
Progress with the Development Programme 2013/14 at Appendix 1 be noted; and
b)
The Programme forecast spend to 30 September 2013 at Appendix 2 be noted.
ITEM TAKEN IN PRIVATE FINANCE
9
Business Plan Monitoring Report The Chief Executive provided an update on the Business Plan Monitoring Report. The Development aspect of the Business Plan would be picked up later in the meeting. It was agreed that:
10
a)
The updated monitoring report be noted; and
b)
A revised Business Plan 2014/15 – 2016/17 to include the resource implications of the new build assumptions submitted to the Funder be reviewed at the February Business Planning Day and by the Board at the February 2014 meeting.
Budget Timetable 2014/15 The Director of Resources advised that this was a standard timetable for rent setting, and the Finance Working Group would meet in January 2014 to go through the budgets in detail. It was likely that RPI would be less than shown in the report. The last RPI for October 2013 was 2.6% and it was expected to drop further. Members stated that they felt that a longer consultation period was desirable and that January 2014 was not the ideal time to consult with tenants on rent setting. The Director of Resources advised that the consultation period could start earlier as there were already good indications available of what RPI was likely to be. Calum Mackay felt that a more in-depth discussion was required on rent setting at a later date. The Board approved the:
11
a)
Budget timetable for 2014/15 as at Appendix 2; and
b)
Consultation process for 2014/15 rent setting.
Management Report to 30 September 2013 The Finance Manager took the Board through the Management Report to 30 September 2013. The Budget was approved in February 2013 and there is currently a £2.8m surplus. Expenditure is behind budget in respect of development but should be up to budget by the end of the year. A high level Income and Expenditure account and key ratios were included at Appendix 1 for reference. The Covenants are currently well covered. The Board agreed to note the management information at 30 September 2013 as detailed in Appendix 1.
12
Treasury Report to 30 September 2013 The Director of Resources updated the Board on the Treasury Management activities in the second quarter of 2013/14 and advised that a report had been prepared by Michael Leslie, of JC Rathbone, in respect of hedging options. Once Members have had a chance to consider the report in detail, Mr Leslie will be invited up to address the Board again, potentially at the February 2014 Board meeting. The Board agreed to:
13
a)
Note the quarterly report on the Analysis of Investment and Borrowing as shown at Appendix 1;
b)
Note the outstanding loans at 30 Sept 2013 of £5.202m;
c)
Note the cash balance at 30 Sept 2013 of £1.800m; and
d)
Review and consider hedging options as detailed in the report prepared by Michael Leslie of JC Rathbone at Appendix 3 with a view to taking a decision at February 2014 Board meeting.
Funder’s Valuation The Director of Resources advised that this report followed on from the last Board meeting, where the Board had been assured that a copy of the Funder’s Valuation would be made available to them once it arrived. The existing value of stock at 31 March 2013 was £19,096,000. The Board noted the: a)
Existing Use Value at 31 March 2013 of 2,217 units is £19,096,000; and
b)
Valuation report for 2013 as at Appendix 1.
MANAGEMENT 14
Update to Financial Regulations The Director of Resources advised that the Board’s approval was being sought in respect of an operational amendment to the Financial Regulations, which were approved by the Board in February 2013. It was agreed that Para 6.3.10 of the Financial Regulations be replaced with the following: “Properly authorised invoices are paid within suppliers’ terms or within 30 days of date of invoices whichever is the earliest.”
15
Anti-Social Behaviour and Estate Management The Director of Operations advised the Board that this was a standard report which gave an update to the Board in respect of Anti-Social Behaviour and Estate Management. The Chief Executive advised that a meeting is due to take place with the Police on 5 December 2013, in respect of a previous Anti-Social Behaviour case, and he will update the Board on the outcome. The Board agreed to note the Report.
16
Repair and Maintenance Contract – 6 Month Service Review The Assets and Contracts Manager introduced the Board to the fifth mandatory Repairs and Maintenance Contract 6 month review on performance. The score for this review is 110, which is lower than the previous score of 113. The scoring of these reviews will be the leading factor as to whether the contract will be extended beyond the initial 5 year term. Members requested that a copy of the FES FM Ltd staffing structure, in relation to HHP, be made available to them. The Board agreed to note the Report.
17
Repair and Maintenance Contract 13/14 Update The Assets and Contracts Manager provided an update on Planned and Cyclical Maintenance for 2013/14 and identified some emerging issues in the management of these, with particular regard to the cleaning of flues. The Board was advised that reports had been received that many flues were not being cleaned by tenants with open fires and some of them were in a very poor condition. This is considered a Health & Safety risk, and it was felt appropriate to include the cleaning of flues in the annual cyclical maintenance programme. The repair and maintenance issues affecting the properties at Cnoc Mòr, Breasclete, were highlighted. Options to address these were being investigated and discussions had taken place at the Investment Working Group. It was agreed that the Repairs and Maintenance Policy (June 2009) be amended to include the following paragraph: “Flues in properties with solid fuel heating systems will be cleaned on an annual basis. This will be included in the annual cyclical maintenance programme.”
18
Welfare Reform Update The Service Development Manager gave a report to the Board on the implications of the Welfare Reform Act for HHP. The main update was in respect of the “Bedroom Tax”. At the time of writing the report, HHP tenants in receipt of DHP amounted to 87, however, the actual figure was now c. 129 but it is still undersubscribed. The main reason given by those who have not applied for DHP is that they do not want to transfer. Arrears had increased from £11,923 at the September 2013 Board meeting to £16,806 currently. Norman Macleod stated that there was a concern that if all monies were not used there may be less made available in future years. In addition, it was suggested that it should be made clear to tenants that DHP does not have to be paid back if a tenant does not accept a transfer. Kevin Paterson also stated that there was a feeling amongst many tenants that HHP’s Allocations Policy gave them a property that was deemed suitable for their needs at one point, but they were now being forced to move out of these properties as a result of Welfare Reforms. It was felt that if the need to apply for a transfer was removed then more eligible tenants would apply for DHP. The Chief Executive advised the Board that two attempts had been made to contact Mr Alexander MP, and neither letter had been acknowledged. The Board suggested that a further reminder be sent and HHP should “keep pushing”. The Board was also advised that Mr Angus Campbell, Leader of CNES, has a meeting with Mr Mundell, Under Secretary of State for Scotland, and he will put forward the case for an exemption for the islands. The Director of Operations advised that a small number of DWP offices across the country had rolled out a Universal Credit pilot, Inverness being one of the offices, and the Board would be updated in respect of how it was progressing. The Board noted the Report and the implications of the changes for HHP.
19
Tenant Satisfaction Survey The Service Development Manager gave an update in respect of the Tenants’ Satisfaction Survey that had been carried out in September/October 2013. A 20% written response rate had been returned, and a further telephone survey of 441 tenants was carried out in order to achieve the 40% minimum response rate. The overall satisfaction level for the 2013 survey is 73% with 16% of tenants dissatisfied. The full results will now be analysed and a further report will go to the February 2014 Board meeting on actions required as a result of the
survey. The Board noted the Report. 20
Board Training Plan 2013-15 The Corporate Governance Manager updated the Board on the results of the Training Needs Analysis that had been carried out earlier in the year, in order to compile a Board Training Programme for 2013-15. The Assessment of Training Needs identified that the Board sought training in the following areas:
Self-Assessment;
Welfare Reform;
Scottish Social Housing Charter; and
HHP’s Business Plan.
Several training providers had been contacted and it was estimated that the cost of providing this Training Programme would be c. £6,450. It is anticipated that the Programme will get underway in February 2014. It was agreed that:
21
a)
the Assessment of Training Needs at Appendix 1 be approved; and
b)
the Breakdown of Costs at Appendix 2 be approved.
Charter Progress Report The Corporate Governance Manager gave an update on progress towards readiness for the Scottish Social Housing Charter. There are still some technical issues to be worked out regarding system readiness but they are being addressed in conjunction with MIS. A Mock Annual Return on the Charter (ARC) was completed to 31 October 2013 by staff and the results, in unchecked format, were at Appendix 2 to the report. The Board was asked to note the report and to approve a consultation process with tenants and partner organisations in respect of some aspects of the Charter. It was agreed that:
22
a)
progress against preparation for the implementation of the Scottish Social Housing Charter be noted;
b)
consultation in respect of “locally agreed targets” with tenants and other partner organisations be approved; and
c)
consultation in respect of how the ARC will be reported to tenants and stakeholders be approved.
Regulator’s Visit The Chief Executive gave an update on the Regulator’s recent visit and drew the Board’s attention to the minute of the meeting which had been issued as an additional paper. There were 3 main aspects touched on: the Business Plan, Welfare Reform and SHQS. In conclusion, the regulation plan would be focused on fewer areas. The verbal update in respect of the Regulator’s visit was noted.
23
Gas Installations The Investment Manager advised the Board that a decision was being sought in respect of arrangements for the installation and management of propane/butane gas cylinder installations in HHP properties. It has come to light that gas appliances are being fitted into HHP properties and there is concern that they may not be installed properly and not be receiving annual safety checks. It was recommended that HHP take a proactive approach to such installations to ensure safety. It was agreed that: a)
The forthcoming internal gas audit be expanded to corroborate the HSE guidance on propane/butane gas cylinders and appliances to allow the Gas Safety Policy and Procedures to be updated; and
b)
The Gas Safety Policy be amended to include: “Tenants who wish to use appliances that require the use of propane/butane cylinders must obtain permission from HHP before they are installed. The installations must be carried out by Gas Safe registered engineers and appropriate certification must be provided to HHP. These must subsequently be serviced on an annual basis failing which permission will be withdrawn”. INVESTMENT
24
Investment Programme 2013/14 The Assets & Contracts Manager gave an update on the current Investment Programme. Two lots had been completed and another two are to complete before Christmas. One of the recommendations to the report was to approve an additional reserve list, and another was to replace Murray Place with Morison Avenue in respect of window replacement, owing to planning issues in the conservation area surrounding Murray Place. Members queried the situation with some gas fires which had been shut down and not repaired. The Director of Operations advised that HHP was trying to find replacement parts for fires that had parts
condemned, but that was proving difficult for some fires due to their age. If any fires were disconnected, HHP was ensuring that radiators in living rooms were of a sufficient size to heat the room. This was also the most economical way for tenants to heat rooms. Members were advised that a report on options would be brought forward at a later date if it proved impossible to source parts for fires. It was agreed that:
25
a)
Progress with the Investment Programme as at Appendices 1 and 2 be noted;
b)
The substitution of window replacement at Murray Place (24 units) with Morison Avenue (19 units) be approved;
c)
The properties at Appendix 3 be approved for inclusion in the 2013/14 programme if required in substitution for any refusals which are encountered; and
d)
To utilise the DECC grant income as it is received.
Investment Programme 2015-19 The Assets & Contracts Manager presented to the Board proposals to commence the procurement process for the next 4 year Investment Programme. The current framework is due to expire in March 2015 so the procurement process will have to commence soon. There are a number of changes to Scottish and EU procurement and as legislation is new and unchallenged, it is recommended that a consultant be appointed to guide HHP through the process. The Corporate Governance Manager will make information available to the Board via email in respect of Scottish and EU procurement. It was agreed that:
26
a)
the Investment Programme for 2015–19 be procured via a 4 year framework contract; and
b)
consultancy support be procured to provide support and guidance on the procurement project.
SHQS Update The Investment Manager updated the Board in respect of the current position regarding progress towards achieving compliance with the Scottish Housing Quality Standard (SHQS). The final Stock Condition Survey concluded that 84% of HHP’s stock was compliant. A refinement exercise was then carried out to look at the failures and these would be re-classified where appropriate or would be addressed in the Investment Programme during 2014/15. The Board agreed to note the Report. POLICIES & STRATEGIES
27
Members’ Expenses Policy The updated Members’ Expenses went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved. Following a recommendation from the Audit & Risk Committee the Board approved the Members’ Expenses Policy at Appendix 1.
28
Staff Expenses Policy The updated Staff Expenses Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved. Following a recommendation from the Audit & Risk Committee the Board approved the Staff Expenses Policy at Appendix 1.
29
Control of Payments and Benefits Policy The updated Control of Payments and Benefits Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved. Following a recommendation from the Audit & Risk Committee the Board approved the Control of Payments and Benefits Policy at Appendix 1.
30
Recruitment Policy The updated Recruitment Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved. Following a recommendation from the Audit & Risk Committee the Board approved the Recruitment Policy at Appendix 1.
31
Allocations Policy The updated Allocations Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.
Following a recommendation from the Audit & Risk Committee the Board approved the Allocations Policy at Appendix 1. 32
Rent & Service Charges Policy The updated Rent & Service Charges Policy which included the Rental Policy for New Build went to the Audit & Risk Committee earlier in the day. The Committee felt that the Board should further discuss the Policy with particular regard to the ‘Mortgage to Rent’ (MTR) element included at 8.7 in the updated Policy. In terms of the MTR applications that had been received to date, HHP had been unable to make the financing work – borrowings would have to increase or the Government’s recommended assumed rent levels would have to be used. Implications for both scenarios were discussed and it was concluded that it would be desirable and enabling to try to utilise the MTR scheme, but each property acquired under this scheme should be treated on an individual basis. The Board agreed that:
33
a)
the Rent and Service Charges Policy at Appendix 1 be approved subject to an amendment at 8.7 in respect of recommendation ‘b’; and
b)
to enable HHP to participate in the Government’s Mortgage to Rent (MTR) scheme, each MTR application will be assessed on an individual basis. Where the private finance requirement exceeds 35% of the price the rent charged will be derived from the Government’s assumed rent and will remain for the next 30 years or until the applicant vacates the property permanently.
Cycle to Work Scheme The Finance Manager introduced the Cycle to Work Scheme to the Board and advised that it was a Government tax exemption initiative introduced to promote healthier journeys to work and reduce pollution. Several Housing Associations were already running the scheme and employees benefited, via a monthly salary sacrifice, through which a bike and cycle equipment could be purchased. It was agreed that the Cycle to Work Scheme be approved.
MEETING WENT INTO PRIVATE SESSION
Chairperson
Mr David Blaney
SIGNED
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DATE
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