Agenda item.2 1 Kabinett anbefales til Council that. a Arm s Length Management Organisasjon ALMO Alternativ er godkjent for implementering. B Etter at ALMO ble opprettet, bør enhver fremtidig betydelig endring i leveringsvognen for boligtjenester føres av en robust Valg Vurdering Prosess, bortsett fra i tilfelle risiko for alvorlig skade for leietakere og eller leietaker tjenester. C ALMO bør opprettes som en ekte armlengdes organisert organisasjon, slik at ALMO har tilstrekkelig selvstendighet til å ta beslutninger til fordel for leietaker tjenester og forbedringer. d Implementeringsfasen for de valgte alternativene bør fortsette å inkludere et omfattende program for konsultasjon og engasjement med sentrale interessenter for å sikre at de er godt informert og står sentralt i prosessen. Dette bør spesielt omfatte fortsatt involvering av Leietakere Panel og Employee Focus Group strukturer, arbeider separat og som felles panel. e Rådet anser ado Rådgivende panel og Employee Focus Group konsultasjon og engasjement tilnærming som brukes i denne vurderingen på tvers av andre tjenestegrupper i Rådet. f Rådet vurderer å vedta en prosess for ansatte fra alle tjenestene som skal være aktivt involvert i videre kontinuerlig forbedringsaktivitet for å forbedre interne prosesser og systemer.2 2 Kabinettet ble enige om at, med forbehold for at Rådet vedtok å godkjenne anbefaling 2 1a ovenfor, bli vurdert og avtalt følgende anbefalinger vedrørende neste trinn og ordninger for gjennomføringen av ALMO-alternativet, nærmere beskrevet i 3 4 nedenfor. Oversight. i At boligvalgspanelet beholdes i format, men med endret tittel ALMO Joint Panel. b Prosjektstyring og rådgivning. At prosjektet skal fortsette å ledes av boligvalgsprogramdirektøren som programdirektør ALMO Implementation. ii At Rådet utnevner en midlertidig ALMO administrerende direktør for å gi råd og arbeid med ALMO Shadow Board og også til være ledende rådgiver for å utvikle den nødvendige detaljerte styring, ledelse og andre ordninger som kreves for ALMO å etablere seg og sette seg opp klar til å lede forvaltningen av rådets boligbeholdning på en effektiv måte. i Restbudsjettet tildelt for gjennomføring Aksjeopsjonsvurderingen brukes til å implementere ALMO-opsjonen.2 3 Myndigheten skal delegeres til administrerende direktør i samråd med lederen av rådet og kabinettmedlem for boliger for å ta beslutninger som er nødvendige for å lette gjennomføringen av det valgte alternativet.2 4 Leietakere og offiserer involvert i prosessen bør takkes for deres engasjement og bidrag til gjennomgangen. Rådgiver Mason kommenterte at det hadde vært en ære for henne å ha vært involvert i anmeldelsen og takket alle involverte. Hun bemerket at dette ville starte en ny fase for leietakere som bør forbli involvert i fremtiden og bemerket at hun fullt ut støttet implementeringen av en ALMO. Leader takket Councilor Mason og Arbeidsgruppen for deres støtte og arbeidet de hadde utført. Rådgiver Beardsworth kommenterte at hun veldig verdsatt arbeidet som hadde blitt utført og takket leietakere og ansatte. Hun kommenterte at de liberale demokrater var fullt støttende av den foreslåtte ALMO. Leader uttrykte sin takknemlighet til rådgiver Beardsworth og hennes parti for deres arbeid og støtte og kommenterte at han var fornøyd med korsfestet. Rådgiveren Mennell takket leietakere og ansatte for deres presentasjoner og hevdet bekymringene til Shah Hun bemerket at det fortsatt var behov for nye bygg og rimeligere boliger. Rådgiver Stone kommenterte at hennes opprinnelige angst på utsikter til å ha en ALMO hadde blitt avsatt gjennom hele prosessen, som hun merket som demokratisk og gjennomsiktig. Hun uttrykte noen bekymringer for at mer kunne ha blitt gjort for å involvere isolerte og sårbare leietakere. Hun bemerket at det fortsatt var en sh hjemsted og at det skal bli en økning i antall boliger som bygges år etter år. Rådgiver Markham, som det aktuelle kabinettmedlemmet sendte inn en rapport og kommenterte at revisjonen hadde vært kraftig, gjennomsiktig og demokratisk. Hun bemerket at en En felles konklusjon ble nådd under vurderingen mellom alle involverte som indikerte at implementering av en ALMO var det foretrukne alternativet. Hun forklarte at leietakere fortsatt ønsket å beholde rådet som samlede utleiere - demonstrere tilliten som ble oppnådd, men bemerket at en ALMO ville levere generelle forbedringer og bærekraftighet til boligmassen. Leader uttrykte sin takk til de som hadde vært involvert i å gjennomføre revisjonen og til offiserene som var oppdraget i å gjennomføre revisjonen. Han takket alle de som hadde deltatt i møtet og takket representanter for hver gruppe som hadde sendt inn presentasjoner til møtet. Det anbefales at rådet det. Ar ms. Lederstyringsorganisasjon ALMO-alternativet er godkjent for implementering. b Etter at ALMO ble opprettet, bør enhver fremtidig betydelig endring i leveringsvognen for boligtjenester foregå av en robust Optimaliseringsprosess, bortsett fra i tilfelle fare for alvorlig skade for leietakere og / eller leietakerstjenester. c ALMO skal opprettes som en egentlig armlengdesforvaltet organisasjon, slik at ALMO har tilstrekkelig selvstendighet til å ta beslutninger til fordel for leietakerstjenester og forbedring. d Implementeringsfasen for de valgte alternativene bør fortsette å inkludere et omfattende program for konsultasjon og engasjement med sentrale interessenter for å sikre at de er godt informert og står sentralt i prosessen. Dette bør spesielt omfatte fortsatt involvering av byggeplaner og ansattes fokusgruppestrukturer, som arbeider separat og som felles panel. e Rådet vurderer å vedta leietakerepanelet og ansattes fokusgruppe konsultasjon n og engasjement tilnærming som brukes i denne gjennomgangen på andre tjenestegrener i Rådet. f Rådet vurderer å vedta en prosess for ansatte fra alle tjenestene som skal være aktivt involvert i videre kontinuerlig forbedringsaktivitet for å forbedre interne prosesser og systemer.2 2 Det, underlagt Rådet bestemmer seg for å godkjenne anbefaling 2 1a ovenfor, følgende anbefalinger vedrørende neste trinn og ordninger for gjennomføring av ALMO-alternativet, nærmere beskrevet i 3 4 nedenfor, blir det vurdert og avtalt. a Prosjektovervåking. i At boligvalgspanelet skal være beholdt i format, men med endret tittel ALMO Joint Panel. b Prosjektstyring og Rådgivning. At prosjektet skal fortsette å ledes av boligvalgsprogramdirektøren som programdirektør ALMO Implementation. ii At Rådet utpeker en midlertidig ALMO Managing Direktør for å veilede og jobbe med ALMO Shadow Board og også være ledende rådgiver for å utvikle nødvendig detaljert styring, m forpliktelser og andre ordninger som kreves for ALMO å etablere seg og sette seg opp klar til å lede ledelsen av rådets boligbeholdning på en effektiv måte. i Restbudsjettet som er tildelt for gjennomføring av opsjonen om opsjonen for aksjeopsjoner, brukes til å implementere ALMO-opsjonen .2 3 Myndighet skal delegeres til administrerende direktør i samråd med lederen av rådet og kabinettmedlem for boliger for å ta beslutninger som er nødvendige for å lette gjennomføringen av det valgte alternativet.2 4 Leietakere og offiserer involvert i prosessen bør takkes for deres engasjement og bidrag til granskingen. Report til fylkeskommunen.1 1 Carmarthenshire fylkeskommune står overfor betydelige utfordringer i møtene sine forpliktelser som utleier til ca. 9 300 husholdninger mars 2005 Fremtredende blant disse utfordringene er behovet for å forbedre boligens tilstand til oppfylle moderne levestandard og livsstil.1 2 Den walisiske forsamlingsregeringen s nasjonale boligstrategi, bedre boliger for Folk i Wales, utgitt i 2001, uttrykker sin visjon for boliger i Wales som. Vi vil at alle skal ha muligheten til å leve i rimelige rimelige boliger for å kunne velge hvor de bor og bestemme om kjøp eller leie er best for dem og deres familier.1 3 Strategien er basert på det sentrale temaet for kvalitet og forsamlingen s ambisjon om å bringe alle sosiale boliger opp til den walisiske boligkvalitetsstandarden WHQS innen 2012.1 4 Veiledning utgitt av den walisiske forsamlingsregeringen WAG i 2002 for lokale myndigheter om Utarbeidelsen av forretningsplaner for sosialt boligbygging krever at rådene utpeker myndighetens formål eller oppdrag som et sosialt boligutleier. Sett opp målene og standardene for tjenesten. Sett opp en plan for å oppnå målene og standardene. prognoser som identifiserer ressurser som kreves og finansieringskilder for de valgte strategiene. Utarbeide et rammeverk for overvåking og evaluering av utviklingen i boligvirksomheten. gi identifikasjon og analyse av tilgjengelige alternativer og strategier. gi følsomhetsanalyse, som indikerer virkningen av endringer i nøkkelvariabler på prognosen, myndighetens planer for forsamlingen, viktige interessenter, spesielt leietakere, partnere og det bredere samfunnet.1 5 Det er tydelig en krav om at råd skal vise hvordan de skal oppnå WHQS.1 6 Ved utarbeidelse av det første utkast til forretningsplan under dette regimet, for innsending til WAG i mars 2003, ble det klart at Carmarthenshire County Council ikke kunne oppnå WHQS innen 2012 under eksisterende og forutse økonomiske ordninger.1 7 Retningslinjer som er gitt til rådene som angitt ovenfor krever at råd under slike omstendigheter må evaluere alternative forvaltnings - og økonomiske ordninger som kan sikre regjeringens mål for sosiale boligstandarder WAG har vært tydelig på dets vilje til å sikre fra alle råd en klar indikasjon på hvordan de har til hensikt å oppnå WHQS.2 HOUSING STOCK OPTIONS VURDERINGSPROJEKT.2 1 Rådet begynte en strukturert prosess i 2003 for å identifisere hvordan den kunne oppfylle forretningsplanleggings - og boligstandardkravene pålagt av WAG. Direktøren Strategic Projects ble instruert til å lede et bedriftsprosjekt til vurdere hvilke rådsmuligheter som er tilgjengelige for rådet for å forbedre tilstanden til boligmassen.2 2 Et prosjektinitiasjonsdokument som angir en begrunnelse og referanse for prosjektet, ble godkjent av styret i september 2003.2 3 Boligopsjonsopsjonene Evalueringsprosjektet ble derfor formelt lansert med sikte på å levere klare utfall. Klart uttrykte standarder for tilstand og ytelse av boliger og tjenester for forbedring og vedlikehold. En omfattende analyse og evaluering av alle mulighetene for forbedring av rådets egne bolig lager detaljer av de økonomiske implikasjonene av hver og de realistiske utsikter for levering av hver. Identifikasjon av det foretrukne alternativet for forbedring og styring av boligbeholdningen, som avtalt av fylkeskommunen og dets leietakere gjennom en prosess med engasjement og omfattende konsultasjon. En detaljert og gjennomsiktig begrunnelse for årsakene til valg av det foretrukne alternativet. Etableringen av en formell dialog med den walisiske forsamlingsregeringen om valgvurdering med sikte på å sikre at den aksepteres av det foretrukne alternativet. Formell råds godkjenning for å fortsette til levering av det foretrukne alternativet. Endring av lokal boligstrategi, Operasjonsplan og bolig Stock Business Plan i lys av det foretrukne alternativet.3 OPTIONS APPROISAL PROCESS.3 1 Vice premiärminister ODPM, den walisiske forsamlingsregeringen og andre organisasjoner som er interessert i boligforbedringsagenda, som Leietaker Deltakelse Advisory Service TPAS, Community Housing Task Force CHTF, etc, har mellom dem publisert en Considera Selv om veiledningen utstedt av ODPM og andre ikke har noen formell jurisdiksjon i Wales, da boliger er en avviklet funksjon, har den likevel gitt en nyttig referanse og har informert om de lokale valgmålsvurderingsprosessen. 3 2 The Carmarthenshire Housing stock options vurdering er utført i henhold til beste praksis veiledning og har dekket følgende viktige stadier. Identifisere de viktigste interessenter. Administrere prosessen. Designe en detaljert prosjektplan. Definere målene. Opprette informasjon behov. opsjonsvurdering. Fastsettelse av grunnposisjonen til Rådet. Identifisering og evaluering av alternativene. Å treffe beslutning om vei videre. Identifisering av nøkkelpersoner.3 3 De sentrale interessenter er identifisert og inkludert i vurderingsprosessen fra begynnelsen av rådsoffisører , trukket fra alle relevante avdelinger, leietakere og fagforeningene har vært pa rt i prosjektgruppen gjennom hele medlemmene har vært engasjert i formelle prosesser, herunder styret og kontrollkomiteen for boliger. Ytterligere detaljer om medlemsmessig engasjement og rapportering er gitt i vedlegg 1 Valgte medlemmer fra alle de viktigste politiske partiene, og leietakere har sammen vurdert opsjonsvurderingen gjennom den tidligere boligstyrelsen. Administrering av prosessen.3 4 I starten ble det opprettet et prosjektgruppe med klar referanse for å overvåke opsjonsvurderingen. Teamet, ledet av direktør Strategic Projects, inkluderte rådsmedlemmer fra en rekke faglige disipliner, inkludert boliger, finans, juridisk, organisasjonsutvikling og kommunikasjon, sammen med representanter for viktige interessentgrupper, inkludert leietakere, boligpersonale og fagforeningene. Leietakerrepresentasjon reflekterte de geografiske områdene i fylket.3 5 Prosjektteamet har møttes jevnlig hver fjerde dag i hele projunkturen ekt å styre sin effektive fremgang Undergrupper ble etablert for å håndtere de mest utfordrende problemene innen finans og kommunikasjon. Utvikling av en detaljert prosjektplan.3 6 En detaljert prosjektplan ble utarbeidet og gjennomført på et tidlig stadium. Dette har blitt oppdatert regelmessig under Prosjektets løpetid En kommunikasjonsplan ble utviklet og vedtatt på et tidlig stadium for å sikre at alle interessentgrupper ble holdt informert om fremdrift med prosjektet og å dele informasjon om sentrale problemstillinger og hvordan de ble håndtert. Denne planen har også vært regelmessig gjennomgått av kommunikasjonsundergruppen og endret etter behov. Definisjonen av målene.3 7 Målene som skal oppnås gjennom evalueringsprosjektet for boligmateriell er klart definert i prosjektinitiasjonsdokumentet. De er reprodusert i punkt 2 3 ovenfor Fremgang mot Hovedmålene er beskrevet i avsnitt 4 i denne rapporten, og ytterligere vedtak er påkrevd gjennom anbefalingene Informasjonsbehov.3 Et viktig element for valgevalueringen var identifikasjonen tidlig på prosjektets informasjonsbehov. Informasjon ble samlet og om nødvendig oppdatert på følgende kritiske områder. I Stock Condition En detaljert stock condition undersøkelse ble gjennomført i 2002, og dette ga rådet en betydelig mengde data. Men da prosjektet utviklet seg ble det tydelig at dataene ikke var strukturert i et format som bidrar til økonomisk og forbedringsmodellering til nivået av raffinement som nå kreves En betydelig mengde datamanipuleringsarbeid var nødvendig, og dette hadde innflytelse på prosjektets fremgang. Organisatoriske endringer rundt forholdet mellom boligdivisjonen og den nye bygningsdivisjonen og en større omstilling av boligdivisjonen, som finner sted samtidig med opsjonsvurderingen, introduserte komplikasjoner for prosjektet og avslørte en smal kapasitet i personalkroppen for håndtering av tilstandsdata for data. Behovet for å håndtere kapasitet og prosess for fremtidig innsamling og vedlikehold av lagerbetingelsesdata har dukket opp som et sentralt tema for fremtidig ytelse av tjenesten og risikostyring a Det er anbefalt å styrke dette arbeidsområdet, se anbefaling 2. ii Finansielle prognoser Detaljert informasjon om prognoser for inntekter og investeringer ble samlet tidlig. Finansregime for boliger endret i løpet av prosjektet med fremtiden for Major Reparasjon Tillatelse MRA for kapital arbeider med eksisterende bygninger som erstatter den tidligere tilleggsavtale for kredittgodkjennelse fra 1. april 2004 Innføringen av forsiktighetslånsordningen på samme dato ga Rådet nye friheter for å bestemme egen lånekapasitet i boligen konto. iii Bedriftspåvirkning Hvilket alternativ som er valgt for fremtiden vil det få innvirkning på Rådet Den nøyaktige effekten vil avhenge av det aktuelle alternativet. Det er sannsynlig at det vil være implikasjoner for forholdet mellom ulike divisjoner og boligdepartementet og i tilfelle overføring Det er sikkert å være implikasjoner for fylkeskommunen når det gjelder overføring av ansatte og omfanget og effektiviteten av gjenværende funksjoner. En bedriftskartleggingsøvelse ble ferdigstilt i et tidlig stadium i prosjektet for å identifisere arten, omfanget, omfanget og verdien av støtten tjenester som tilbys til boligfunksjonen av andre divisjoner i områder som ekschequer, andre finansielle tjenester, bygningstjenester, konsulenttjenester, gateway-tjenester, juridiske tjenester, demokratiske tjenester osv. Denne øvelsen informerte valgmålsettingsprosessen og en innledende verdi for pengene studie utført av rådsrådgivere for å vurdere omfanget av effektivitetsgevinster innenfor eksisterende arbeidsprosjekter p ractices. iv Boligforsyning og etterspørsel En lokal boligmarkedsvurdering ble gjennomført i 2002, men siden den gang har det vært betydelig endring i det samlede boliglandskapet med store økninger i boligprisene som påvirker etterspørsels - og behovsprosesser. I løpet av de siste to årene har rådet sett en markert økning i antall personer og husholdninger som presenterer seg som hjemløse, og dette har påvirket rådets kapasitet til å møte det grunnleggende behovet. Lokal boligmarkedsanalyse ble derfor oppdatert i løpet av høsten 2004 for å informere opsjonsvurderingsprosjektet og aksjene bærekraft øvelse, som er en sentral funksjon for fremtidig planlegging. v Nåværende ytelse Den nåværende ytelsen til alle elementene i boligtjenesten var kjent fra rutinemessig ytelsesadministrasjon. Resultatdata informerte grunnlinjeplaneringsprosessen og identifisering av viktige områder som behøvde forbedring. Tilbakemelding av opsjonsvurdering.3 9 Evalueringsprosessen for boligmateriell har vært hensiktsmessig Resourced gjennom en direktør ble utnevnt til å lede prosessen fra begynnelsen og prosjektgruppen har inkludert toppledere, blant annet ledere, fra de mest relevante divisjonene. Finansiering ble avsatt fra boliginntektskonto for å skaffe ekstern støtte til rådet og leietakere for å sikre at tilstrekkelig kapasitet og kompetanse var tilgjengelig.3 10 Utnevnelsen av en uavhengig leietakerrådgiver ITA DOME Consultants, valgt av leietakere, på et meget tidlig stadium i prosessen, i samsvar med anerkjent beste praksis, har sørget for at leietakere har vært fullt ut engasjert i hjertet av alternativene vurdering prosess og effectivel y støttes gjennom hele kurset. Etablering av basisposisjon.3 11 Som angitt ovenfor ble baseposisjonen som angitt nåværende tilstand for boligtjenester, identifisert tidlig i prosjektet og har informert opsjonsvurderingen. Identifisering og evaluering av alternativene. 3 12 Alle alternativene som potensielt er tilgjengelige for lokale myndigheter i Wales for forbedring av boligbeholdningen, har blitt identifisert og rapportert om. En øvelse for å sile det brede spekteret til en liste over muligheter som praktisk mulig var mulig for Carmarthenshire ble fullført og godkjent av styret i September 2004 Tre valgmuligheter har blitt evaluert i detalj og danner basis for denne endelige vurderingsrapporten for ytterligere valg, se også avsnitt 5 nedenfor. Å treffe en beslutning om veien fremover.3 13 Denne rapporten presenterer funnene av opsjonsvurderingsanalysen og ber om at Fylke Rådet velger sitt foretrukne alternativ for å sikre forbedring av boliger til Carmarthenshire Homes Standard som inkorporerer WHQS.4-PROGRESSEN MOT NØKKELMÅL OG MILESTONER OPPFINNT. 4 1 Følgende er en oppsummering av fremdrift oppnådd mot hvert av målene som ble etablert i prosjektinitiasjonsdokumentet som gjengitt i punkt 2 3.4 2 Mål - Klart uttrykte standarder for tilstanden og ytelse av boliger og tjenester for deres forbedring og vedlikehold. Carmarthenshire Homes Standard.4 2 1 Den walisiske boligkvalitetsstandarden, utgitt av den walisiske forsamlingsregeringen WAG i juni 2001, fastsetter den nasjonale standarden for bostedsforholdet Alle sosiale boliger blir utfordret av WAG for å oppnå WHQS i alle sine hjem innen 2012.4 2 2 I Carmarthenshire faller tilstanden til rådhus generelt ikke i forhold til WHQS i varierende grad. Dette skyldes i stor grad offentlig underinvestering i opprettholdelsen av bestanden over en periode på mange år Forholdsundersøkelsen i 2002 viste at bare 266 råd pr Operties av de 10.500 som ble holdt på den tiden, møtte WHQS fullt.4 2 3 Mens WHQS inneholder eksplisitte spesifikasjoner for mange elementer i stoffet i et hus, standarder for andre aspekter, som for eksempel det lokale miljøet i hvilke hus er lokalisert, er ikke foreskrevet.4 2 4 I begynnelsen av en prosess for å vurdere hvordan den kunne bevege seg frem mot å oppnå høyere standarder i sitt sosiale boliger ønsket fylkeskommunen å vurdere relevansen av WHQS til de faktiske forholdene i Carmarthenshire, særlig i forhold til leietakere forventninger og prioriteringer for forbedring Mens det ble anerkjent WHQS som nasjonal standard etablerer referansen ble det følt at for lokale forbedringsprogrammer å være effektive for å tilfredsstille leietakers behov og preferanser måtte de informeres av en klar retning fra leietakere rundt prioriteringer for deres hjem og lokalsamfunn Målet var å produsere en lokal standard - The Carmarthenshire Homes S tandard - som innlemmet WHQS innenfor en standard som ble enige mellom fylkeskommunen og dets leietakere for å gjenspeile behovene, ambisjonene og prioritetene til rådsleietakere i Carmarthenshire.4 2 5 I desember 2003 utnevnte fylkeskommunen Research and Marketing Ltd RM for å gjennomføre en omfattende undersøkelse av leietakere for å etablere leietakere syn på WHQS og deres hensiktsmessighet til sine hjem Totalt ble det gjennomført 1000 strukturerte intervjuer med individuelle husholdninger, valgt for å være statistisk representativ for den totale leietaksen, og en rekke interessenter ble arrangert Intervjuer og fokusgrupper ble også gjennomført med boligpersonale, inkludert de som støttet leietakere med spesifikke behov.4 2 6 RM rapporterte sine funn i april 2004 Disse har senere blitt brukt til å definere Carmarthenshire Homes Standard The Carmarthenshire Homes Standard inneholder for levering av WHQS og ytterligere forpliktelser utover WHQS, for eksempel installasjon av karbonmonoksyd e detektorer i alle boliger Finansiell modellering innenfor opsjonsvurderingen er basert på lokalstandarden, noe som er høyere enn WHQS.4 2 7 Det arbeidet som fylkeskommunen har gjennomført for å godta en lokal standard med sine leietakere gir best mulig plattform for Fremtiden da det sikrer at leietakerens ønsker er sentrale i beslutningsprosessen Carmarthenshire s handlinger på dette området trekker oppmerksomhet fra lengre unna og blir anerkjent som god praksis. Hos servicestandarder.4 2 8 I 2004 ble boligavdelingen fundamentalt gjennomgått måten all utleier tjenester leveres til leietakere Denne øvelsen ble gjennomført parallelt med den organisatoriske utviklingsundersøkelsen som resulterte i en omstrukturering av divisjonen og betydelige forbedringer ble implementert i forholdet mellom boligtjenester og andre tilbydere, spesielt bygningen Services Division.4 2 9 Gjennomgangen ledde til publisering i august 2004 av ac Omfattende boligstøtteinformasjon og spesifikasjon av servicestandarder som dekker alle områder, inkludert kontaktinformasjon, grunnleggende støtte og rådgivning, klageprosedyre, leieforhold, fordeler, spesielle behov, miljøtjenester mm. Veiledningen er distribuert til leietakere.4 2 10 Denne endringen Programmet har allerede oppnådd forbedrede resultater med en undersøkelse av leietakere som ble gjennomført i løpet av januar 2005, og avslørte en betydelig økning i leietilfredshet med boligtjenestene. 4 3 Mål - En omfattende analyse og evaluering av alle mulighetene for forbedringer av rådets s egen boliginformasjon om de finansielle konsekvensene av hver og de realistiske utsikter for leveransen av hver enkelt. 4 3 1 Den 29. september 2004 mottok styret en rapport som beskriver omfanget av strategiske muligheter som potensielt er tilgjengelige for de lokale myndigheter og konsekvensene av hver for Rådet, dets leietakere og ansatte.4 3 2 Ikke alle th e strategiske alternativer presenterer praktiske løsninger i Wales for tiden, hovedsakelig på grunnlag av lovgivnings - og finansieringsrammen på plass i Fyrstendømmet. Styret ble bedt om å sile de strategiske alternativene for å identifisere de som presenterer reelle utsikter i Carmarthenshire for den forutsigbare fremtiden og løst at tre alternativer evalueres i detalj. Jeg beholder boligbeholdningen, undersøker om nødvendig muligheter for forsiktig opptak hvor dette ikke medfører for høye leieøkninger. ii En storstilt frivillig overføring av hele råds boligmasse, blant annet undersøkelse av muligheten for en fellesskapsmessig modell. iii En hybridløsning, som kan inkludere delvis overføring. Valg av alternativ evaluering.4 3 3 Disse tre alternativene er siden blitt evaluert i detalj og utgjør det sentrale problemet med denne rapporten. Analysen er oppsummert i avsnitt 5 nedenfor. Holdbarhet og verdi for pengene av Investering.4 3 4 En bærekraftstudie gjennomført av rådets rådgivere bekrefter at investering i aksjen er berettiget og representerer verdi for pengene.4 4 Mål - Identifikasjon av det foretrukne alternativet for forbedring og styring av boligmassen, som avtalt av fylkeskommunen og dets leietakere gjennom en prosess med engasjement og omfattende konsultasjon.4 4 1 Resultatene av opsjonsvurderingsanalysen har blitt presentert til leietakere og en strukturert konsultasjon om opsjonene har blitt tilrettelagt av ITA En rapport produsert av ITA som sender inn meninger og preferanser til leietakere, er inkludert i Vedlegg 3 og er oppsummert i Seksjon 5 5.4 5 Mål - En detaljert og gjennomsiktig grunnlag for årsakene til valget av det foretrukne alternativet.4 5 1 Årsakene til vedtakets vedtak må dokumenteres.4 6 Formål - Etableringen av en formell dialog med den walisiske forsamlingsregeringen om valgmåling med sikte på å sikre sin aksept av det foretrukne alternativet.4 6 1 Gjennom opsjonene har evalueringsprosedyrene og - medlemmene opprettholdt en dialog med motparter ved den walisiske forsamlingsregeringen. Leader og administrerende direktør har møtt ministeren for sosial rettferdighet og regenerering og hennes tjenestemenn på en antall anledninger for å holde ministeren informert om fremgang.4 6 2 Landstingets vedtak vil bli formidlet til WAG kort tid etter at det er gjort, med sikte på å sikre WAGs støtte til rådets foreslåtte strategi. Rådet var pålagt av Forsamlingsregeringen til å sende inn en bostedsplan for næringseiendom innen utgangen av mars 2005 Rådet kunne ha blitt utsatt for sanksjoner av WAG dersom det ikke var tilfelle utarbeidet en plan innen denne dato Utkastet til forretningsplan er inkludert i vedlegg 2 Planen refererer til opsjonsvurdering og mens den indikerer en potensiell fremdrift, har det blitt gjort klart for forsamlingen at den ikke hadde vært formelt på tidspunktet for innlevering godkjent av fylkeskommunen Ytterligere detaljerte diskusjoner må finne sted med WAG, avhengig av hvilket valg som er valgt av Rådet. Dersom rådet bestemmer seg for å fortsette til en overføring av aksjer, vil det være nødvendig å sikre godkjenning av WAG for overføring og ledsager økonomisk støtte Skulle rådet foretrekke å fortsette med en retensjonsstrategi som benytter forsiktighetslån, vil levedyktigheten og leveringsstrategien avhenge av en grad på WAGs vilje til å forhandle om økonomiske forhold.4 7 Formål - Formell råds godkjenning for å fortsette til levering av foretrukket alternativ.4 7 1 Landstinget blir bedt om å godkjenne at ytterligere arbeid utføres for å utvikle en strategi for gjennomføringen nasjonalisering av det foretrukne alternativet, underlagt tilfredsstillende gjennomføring av videre diskusjoner med WAG.4. 8 Mål - Endring av lokalplanstrategi, operasjonsplan og boligbeholdningsplan i lys av det foretrukne alternativet.4 8 1 Strategien for lokal boligbygging , Bostedsplan og støtteplaner vil gjenspeile rådets beslutning.5 DETALJERT EVALUERING AV KORTLISTE OPER.5.5 Hovedhensynene og konsekvensene for hvert alternativ er oppsummert under og i matrisen i sammendraget til denne rapporten.5 2 OPTION 1 - Behold boligbeholdningen, undersøke om nødvendig muligheter for forsiktig opptak hvor dette ikke fører til for høye leieforhøyelser.5 2 1 Den opprinnelige økonomiske modelleringen avsluttet i september 2004 som en del av opsjonssifteringen bekreftet at det ikke ville være mulig å oppnå Carmarthenshire Homes Standard og WHQS innen 2012 gjennom eksisterende og forventede ordinære finansieringsordninger innen 30 år b planlagt tidsramme foreslått av WAG.5 2 2 Det antydet imidlertid at det kan være mulig å samle en retensjonsstrategi gjennom en modell basert på en tidsramme lengre enn den vanlige WAG 30-års forretningsplanperioden, og som måtte utforske muligheter for å øke finansieringen som er tilgjengelig for forbedring, arbeides gjennom forsiktig låning. Derfor ble en finansiell modell utviklet over en tidsramme på opptil 50 år ved å benytte basismodellen fra WAG, men endret for å dekke en lengre periode. I utgangspunktet samlet rådets rådgivere en rekke financial scenarios reflecting variations in the inputs for the model More recently the modelling work has been developed by the Council s own Finance Division and further scenarios have been prepared.5 2 3 This modelling exercise concludes that a retention strategy can be implemented subject to the following terms. Prudential borrowing amounting to up to approximately 74 3 million in total will be required between Year 2 and Year 10 to fund capital works. Borrowing and existing debt is projected to be fully repaid by Year 29.Savings in management and operational costs at a rate of 2 in each of years 2, 3 and 4 will need to be delivered. The minimum HRA working balance is reduced from 150 per property to 100, increasing by inflation after year 17.Capital receipts from the sale of housing portfolio land surplus to operational requirements are used from years 2 to 11 at the allowed rate of 50 of sale value. In years 11 to 15 additional voluntary use of capital receipts is made This assists in reducing the payback period for borrowing. Rent levels are retained within WAG guidelines.5 2 4 The model relies upon a number of input measures which themselves depend upon a number of assumptions The following are the most significant. Major Repairs Allowance MRA continues throughout the life of the model, based upon a figure of 6 2 million for 2005 2006 as confirmed by the housing determination for that year equivalent of 600 per property , adjusted for subsequent years according to stock numbers and assuming inflation increase at RPI to maintain real terms value, including the period after the standard has been achieved Guidance has been sought from WAG on this assumption and a written response has been received which advises It is impossible to forecast so far ahead but for business planning we would suggest that you assume the same real terms value. Set aside rules for capital receipts from right to buy sales of dwellings continue at a 75 25 split throughout the life of the model, to conform with housing subsidy calculation rules. Right to buy disposals follow a diminishing trend, continuing at a comparatively high level based upon recent numbers for the early years and then reducing quite considerably in the latter years as demand is expected to fall. There will be no additional government funding, beyond the HRA and MRA, to support a retention strategy.5 2 5 Any change in the assumptions will have a direct impact upon the outputs forecast by the model, principally upon the overall affordability of the plan, and the timeframe for the repayment of borrowing If the Council chooses to implement a retention strategy it must do so under a clear understanding that forecasting over a period of up to thirty years or beyond carries with it a significant degree of risk Furthermore, a number of the critical risk factors are outside the direct control of the Council.5 2 6 It should be noted that the model as constructed assumes the base year, Year 1, as the financial year 2005 2006 and that additional investment in the stock will commence in Year 2 2006 2007 It is expected in practice, however, that it is likely to require some time to assemble a robust prudential borrowing programme and so it is possible, therefore, that implementation may commence later than is suggested for modelling purposes It will also be necessary to confirm that providers have the capacity to deliver the significant ly increased workload The dates presented are, consequently, indicative at this time and will be finalised once all the arrangements for defining an agreed prudential borrowing programme have been completed.5 2 7 The financial prudential borrowing model predicts that it is likely to take up to the year 2014 2015 to raise sufficient funding to allow the achievement of the Carmarthenshire Homes Standard, compared to the target date of 2012 set by WAG It is considered that there may not be sufficient time in the period up to 2012 to create and implement effective structured improvement programmes which exploit fully the potential for increased investment in housing to support broader regeneration objectives, e g in labour market development, local supply chain development, etc, in a truly sustainable way It is proposed that the target date of around 2014 2015 would be more beneficial for the long-term regeneration of the County This, however, will need to be negotiated with WAG to secure their agreement to move beyond the present national target for delivering the WHQS by 2012.5 2 8 A retention strategy will have the following implications. i Implications for the Council. Ownership of all stock will be retained by the Council The Council will continue with its role as landlord and housing provider. Significant and challenging improvements in organisational efficiency will be required in order to release savings to fund the prudential borrowing programme. The Council will need to explore the potential for new partnerships with other local authorities and private sector providers to improve efficiency in procurement and delivery. ii Implications for Elected Members. Role of elected members unchanged, subject to Council policy and democratic processes. Elected members will need to support the delivery of organisational efficiency gains. iii Implications for Council Staff. There would be no enforced change for Council staff but the requirement to secure significant efficiency gains could have implications for organisational arrangements and staff numbers These matters will need to be evaluated fully. iv Implications for Tenants. There will be no change to the fundamental position of tenants. Right to Buy continues, in line with statute and Council policy. Rents will be set by the Council with reference to guideline rents set by WAG. Tenant Participation Compact will remain, subject to negotiation between Council and tenants. Sensitivity Analysis and Risk Assessment.5 2 9 A range of scenarios have been modelled to evaluate the effects of significant change in the assumed inputs for the model.5 2 10 The major risks are. The Government changing its policies for social housing, especially funding, particularly the Major Repairs Allowance. Achieving the targeted efficiency gains in management and operational costs. The sufficiency of the Council s data on stock condition and estimates for the cost of improvement works. Cost inflation, interest rate changes, etc.5 2 11 By far the most critical assumption within the model is that the MRA will continue throughout the life of the plan, even after th e standard has been achieved, adjusted in real terms and in line with stock numbers.5 2 12 The sensitivity analysis predicts that any significant change in government policy on the provision of the MRA renders the prudential borrowing plan unviable Having borrowed to achieve the standard the Council would, if the MRA was removed or reduced to any significant degree, be unable to service the debt from within the HRA within the projected 30 year timeframe.5 2 13 The above assumes that the current MRA rules continue In Wales currently MRA funding cannot be used to service debt, as is the case in England However, if WAG relaxed this condition and continued to allocate MRA the financial scenario could be improved Also, the figures presented above paragraph 5 2 3 represent in effect the worst case scenario and if WAG is prepared to review current financial rules it is possible that the funding scenario could be significantly improved with the risk associated with prudential borrowing reduced and the timeframe for debt repayment shortened In discussions held to date the WAG has asked the Council to indicate how it could potentially assist the position of the Council in meeting its obligations for the WHQS and through the modelling exercise the Council is now able to clearly demonstrate to WAG the conditions that would facilitate an improvement strategy supported by prudential borrowing Further discussions will need to be undertaken with WAG to agree the scope for amending the financial framework prior to a commitment being made to prudential borrowing.5 2 14 Critically, future provision of the MRA is a significant risk factor which is entirely outside the control of the Council, being a matter of government policy As indicated earlier guidance has been sought from WAG on this matter and the Council has been advised to plan on the basis that MRA will continue in real terms value Discussion with WAG on the possible modification of financial rules to allow MRA to be used to s ervice debt are continuing WAG has indicated that it may be prepared to reconsider its policy in this area but only after the national picture across Wales becomes clear, following the submission of housing business plans by all Welsh authorities by the end of March 2005.5 2 15 Another area of significant risk is the Council s ability to achieve the level of efficiency gains embedded in the model The Council s Advisors have produced an initial Value for Money report, which evaluates the Council s present management and operational arrangements and performance This suggests that there is sufficient scope for efficiency gains This initial report provides a useful basis for undertaking a more detailed assessment to identify precisely the nature of efficiency targets and to allocate ownership and responsibility for their delivery This should be carried out employing robust process management techniques, which could include using the now well-established best value review processes used acr oss the Council.5 2 16 The risks associated with efficiency challenges lie completely within the control of the Council.5 2 17 The Council will wish to note that the prudential borrowing model originally constructed by the Council s advisers from the standard WAG model has been independently scrutinised and verified by IPF Consultants, the commercial arm of the Chartered Institute of Public Finance and Accountancy CIPFA which is the professional organisation that produced the Prudential Code on behalf of the Government The CIPFA Prudential Code is part of the statutory framework for the prudential system for capital investment and is incorporated within the WAG s non-statutory Guide to the Prudential Framework for Capital Finance for Local Authorities in Wales.5 2 18 IPF was asked to assess the model and comment on the affordability of borrowing Their main conclusions are. The functionality of the model is sound and it will enable the Council to make an informed affordability judgement. The assumptions behind the model are adequate and provide a sound basis for assessing the affordability of the retention proposal. Limited sensitivity testing has been undertaken but key elements of the model would benefit from further assurance. The financial model provides a sound basis for assessing affordability. A fully costed risk analysis and appraisal should be developed, including further sensitivity testing. Detailed action plans that demonstrate how the Council will manage significant variations from base assumptions of key cost drivers must be produced. The financial model should be continuously reviewed and revised to reflect new data that challenges existing assumptions.5 2 19 It should be noted, however, that the above commentary was made ahead of the most recent modelling work that has been undertaken in-house Should the Council resolve to proceed with a retention strategy it will be important that a similar exercise is carried out as part of a full risk assessment to test t he assumptions made within the final working model.5 2 20 The financial model produced for the options appraisal provides the Council with an enduring tool that can be utilised to effectively manage housing investment programmes over the long-term, should a retention strategy be preferred Through the extensive modelling work that has been undertaken Council staff have developed the capacity to deploy the model as an effective management tool.5 2 21 The Council will need to implement effective risk management processes through the life of the strategy.5 2 22 A crucial element of risk management for the future will be to ensure the dynamic management of the delivery of the plan over its lifespan It will be essential that forecasts are reviewed and updated regularly based upon refreshed data that is contemporaneous and accurate.5 2 23 It is appropriate for the Council to have regard to the Prudential Code, which states that financial forecasts should be made on the basis of best informati on available at the time and making reasonable assumptions where there is a significant element of uncertainty.5 2 24 It must be emphasised that retention is certainly not a do nothing option In reality it can be considered more challenging than transfer in that all the risks associated with delivering improvements and management of the stock remain with the Council, although a number of the significant risk factors are outside the direct control of the Council For those risks which are within the control of the Council, e g significant efficiency gains in management and operational costs, determination and persistence will be required to realise the savings which will be critical for the viability of the borrowing programme.5 2 25 Should the Council determine to proceed with a retention strategy at this time it may still have open to it the option of reverting to a transfer, in whole or part, at some point in the future should circumstances change sufficiently to dictate such a course of action However, it is important to note that in the event of the Council having instigated a prudential borrowing programme but deciding at a later date to move to a transfer the Treasury rules as they stand provide that overhanging debt write off applies only to debt that can be subsidised by the HRA which does not at this time include debt arising out of prudential borrowing If this government policy continues any debt arising out of committed prudential borrowing would not be removed through the overhanging debt provision but would have to be met by the Council s general funds.5 3 OPTION 2 - A large-scale voluntary transfer of all the Council s housing stock, including examining the feasibility of a community mutual model.5 3 1 A Large Scale Voluntary Transfer LSVT would involve transferring the ownership of all the Council s dwellings to a completely separate organisation, a Registered Social Landlord RSL , which would then manage the housing as landlord, improve the condition of properties to the defined standard and maintain them for the future The new owner could be either an existing RSL, expanded to take on board the Council s stock, or a new organisation, created specifically to manage the present Council stock, but independently of the Authority.5 3 2 There are potential advantages for tenants in placing the present housing stock under the control of a RSL. RSLs are not subject to government restrictions on borrowing They are free to borrow funds from the private sector in order to invest in the stock. If the Welsh Assembly Government supports a transfer proposal the RSL will benefit from financial support to deal with any outstanding debt on the stock and any negative valuation arising out of poor condition. Tenants have the opportunity to play a more formal and direct role in the governance of social housing services with at least one third of the Board of the RSL company being tenants. RSL rents are regulated by the WAG through a benchmarking regime an d so the impact of transfer on rents would be negligible.5 3 3 Financial modelling predicts that a transfer proposal is financially viable from a lender s perspective and that borrowing required to achieve the housing standards could be paid back within 18 years.5 3 4 This assumes that the Welsh Assembly Government would support the transfer and apply Treasury policy which would be for government to contribute a sum estimated at 34 million to pay off overhanging debt and meet the costs of a negative valuation on the stock, estimated at 15 9 million.5 3 5 As for a retention strategy, the financial model predicts that sufficient funding can be brought forward to allow the achievement of the Carmarthenshire Homes Standard by 2012 but it is considered that a target date of around 2014 2015 would be more sensible and beneficial Proposals to move the delivery date beyond 2012 will need to be negotiated with the Assembly Government.5 3 6 A transfer of Council housing to a RSL is a permanent a rrangement, it cannot be reversed.5 3 7 A large scale stock transfer strategy will have the following implications. i Implications for the Council. There is a possibility that costs, post transfer, could increase for the Council though the loss of economies of scale and that the performance of residual functions could become less effective Any increase in costs in this regard would fall on the Council s General Fund with possible implications for Council tax or the level of service provision in other areas. iii Implications for Elected Members. The role of elected members would be affected as responsibility for the landlord function would be removed from the Council The Council, and it members, would play no part in the management of social housing and the delivery of services to tenants Up to one third of the Board of a RSL is typically made up of council representatives and members fulfilling this role would play a part in the governance of the landlord function but the remaining members would be responsible only for the residual strategic housing function. iii Implications for Council Staff. Council staff involved in the landlord function will transfer to the new owner on the date of transfer under TUPE. The new landlord could continue to buy in services, such as central support, grounds maintenance, etc, for a period of up to three years from the date of transfer subject to negotiation as part of the transfer proposal and with the agreement of WAG Thereafter the RSL would be expected to demonstrate value for money in the procurement of these services The Council could bid for such work but should it not be successful the staff concerned would then transfer to the new provider s under TUPE at the appropriate date Alternatively, staff employed in these functions could be transferred through negotiation under TUPE as part of the transfer proposal. iv Implications for Tenants. Tenancy transfers to RSL. Tenancy becomes Assured rather than a Secured Tenancy Tenants retain all key rights and security of tenure Terms of Assured tenancy can only be changed with support of a majority of tenants. Preserved Right to Buy for transferring existing tenants - subject to statute Right to Acquire for new tenants post transfer.5 3 8 Before the Council could proceed to implement a LSVT it must arrange for all tenants to have the opportunity to vote on the proposal to transfer though a formal ballot A simple majority of tenants voting in the ballot must support the transfer for it to proceed If the transfer proposal does not secure the support of a majority of tenants voting it cannot go ahead Tenants, therefore, effectively have a veto on any transfer proposal.5 3 9 If the Council is minded to move towards a LSVT it is estimated that the cost of organising and conducting a ballot of tenants would be of the order of 360,000 If a majority of tenants participating in the ballot voted in favour of transfer the costs of the ballot could be set against the HRA but if the proposal to transfer was not supported by tenants only half of the costs could be set against the HRA, with the other half having to be met from the General Fund.5 3 10 Should tenants support a transfer proposal at ballot the estimated cost of developing and implementing the transfer proposal is approximately 1 96 million.5 3 11 Should the Council be minded to move towards a large scale voluntary transfer it is likely that the process of arranging a ballot and preparing a transfer proposal for implementation could take a period of up to two years. The Community Mutual Model.5 3 12 The Community Mutual Model is a particular type of organisation being developed in Wales for a stock transfer RSL, which increases the role of tenants and focuses on the local community.5 3 13 In a community mutual all tenants become members of the company with a nominal 1 share holding, thus the company is wholly owned by tenants The RSL is a not for profit company limited by guarantee, dedicated to serving the local community Tenants do not receive a dividend from the company Any surpluses are invested in improving conditions in the local community.5 3 14 Governance arrangements are similar to the usual RSL model with tenants making up at least one third of the Board, with local councillors making up no more than one third and independent persons no more than one third.5 3 15 To date there have been no community mutuals established in Wales.5 3 16 The community mutual model has attractions because it involves tenants more directly in the governance of social housing and introduces clear community objectives within the constitution of the RSL Such an arrangement has potential to support wider community and neighbourhood renewal objectives, placing housing at the centre of community renewal and community cohesion activity.5 5 17 It has not been possible within the timefram e of the options appraisal to undertake a detailed evaluation of the arrangements for and potential offered by a community mutual Should the Council resolve to move towards a large scale voluntary transfer then the potential of this model should be evaluated in full as part of the development of the transfer proposal.5 3 18 A LSVT would most likely see all the significant risk associated with the landlord function, currently resting with the Council, pass to the RSL, although It is possible that some degree of risk sharing may be agreed through the transfer negotiation process to accommodate special issues.5 3 19 For tenants, a LSVT proposal carries very limited risk The benchmarking scheme applied by WAG should ensure that a LSVT would be largely risk neutral for rents The risk that does exist rests around the performance of the new owner and developing a relationship with a new landlord There are potential attractions for tenants in a LSVT in that a RSL may be able to secure addition al funding to accelerate the improvement of dwellings and to maintain them at the defined standards for the future There are also potential governance advantages under a RSL, especially if a community mutual model were to be adopted.5 3 20 There are risks for the County Council under a LSVT, in that the transfer of staff to the new landlord and potentially service providers could lead to increased residual costs and possibly reduced performance in residual functions due to loss of economies of scale However, this risk should be evaluated alongside the Council s Advisers conclusions that there is considerable scope to reduce present management and operational costs.5 3 21 There would be risk associated with constituting a transfer RSL under the community mutual model as this has not been done before but it likely that with proper preparation that these risks could be minimised and effectively managed.5 4 OPTION 3 - A hybrid solution, which might include a partial transfer.5 4 1 The Coun cil s Advisers have considered the option of a hybrid solution, under which the Council would retain part of the stock with part being transferred to an RSL They have concluded that, at this time, there does not appear to any benefit to be accrued through a partial transfer This is due in summary to there being housing demand across all areas of the County with investment needs also being spread evenly across the stock A partial transfer at this time would probably lead to a disadvantageous loss of economies of scale whereas whole stock solutions appear to be more viable.5 5 TENANT CONSULTATION AND FEEDBACK.5 5 1 From very early in the options appraisal process May 2004 the Council facilitated the appointment of an Independent Tenants Adviser ITA to work with tenants, supporting them to play an active part in the process TACT DOME were selected by tenants through a competitive selection process.5 5 2 The appointment of an ITA at an early stage in an options appraisal is acknowledged as good practice.5 5 3 The ITA has led a comprehensive and structured programme of consultation and engagement with tenants, leading to the production of a formal report on behalf of tenants, which expresses their views on the appraisal and their tenants preferred way forward A copy of this report is included at Appendix 3.5 5 4 The principal conclusion drawn from the consultation process is that tenants are overwhelmingly in favour 92 of those participating in the Insight Group decision making session of the Council retaining the housing stock and delivering improvements to the Carmarthenshire Homes Standard incorporating the WHQS.5 5 5 In reaching this conclusion tenants expressed the following aspirations for the future. Tenants wish to be drawn more closely and effectively into the governance of housing services, including the management of performance and delivery. Tenants are eager for early progress in the delivery of improvements to dwellings.5 5 6 In addition to the work being und ertaken by the ITA the Council commissioned Research and Marketing Limited to undertake during January 2005 a telephone survey of a sample of tenants to assess views on the options appraisal and the way forward.5 5 7 Of the tenants contacted who were aware of the options appraisal process and felt sufficiently informed to express an opinion 163 number 91 declared their preference to stay with the Council This result is consistent with that generated through the work of the ITA.5 6 HOUSING SCRUTINY COMMITTEE.5 6 1 The Housing Scrutiny Committee considered the draft options appraisal report on the 18 th March 2005 and debated the matter in depth A copy of the minutes of that meeting is included at Appendix 4.5 6 2 The Housing Scrutiny Committee resolved to recommend to the Council that on the basis of the best information available at the present time that Council adopts Option 1 as its preferred option, subject to the further supporting recommendations made for that option.5 7 RECOMMEND ATIONS.5 7 1 Recommendation 1.County Council considers the information presented in the report and selects, from the following, its preferred option for meeting the objectives detailed in the Welsh Housing Quality Standard and the Carmarthenshire Homes Standard. Option 1 - Retaining the housing stock, utilising prudential borrowing to secure the additional investment required. Option 2 - Embarking upon a large scale voluntary transfer of all its housing to a Registered Social Landlord. A comprehensive implementation strategy will need to be developed to take forward the Council s selected option, to reflect further discussions with the Welsh Assembly Government, which will need to be satisfactorily completed It is estimated that this work could take up to two years to complete fully. a If the Council selects Option 1 the following recommendations are made. i Detailed discussions on the prudential borrowing model and its assumptions should be held with the Welsh Assembly Government in order to clarify in so far as is possible present and proposed government policy for social housing funding, in order to minimise risks wherever practicable. ii County Council approves the draft Housing Stock Business Plan included at Appendix 3 as the basis of these negotiations and as the basis of its preferred way forward. iii The financial model produced for the options appraisal should be used to frequently update financial projections and to inform the management of funding and improvement programmes The Council should dedicate sufficient resources to ensure that this work is done fully and on time. iv A fully costed sensitivity analysis and risk assessment should be completed prior to any prudential borrowing programme being enacted. v A detailed evaluation of prospective efficiency gains should be completed during 2005 2006, utilising robust process management techniques and best value processes, to identify optimum service management and delivery arrangements for the medium and long terms and to quantify the levels of efficiency gains realistically achievable. vi A comprehensive Retention Strategy should be compiled to incorporate all aspects of the delivery of housing stock improvements and its potential to contribute to wider regeneration objectives, such as labour skill development, health improvement, environmental improvement, etc, within an integrated programme The Council should commit appropriate capacity to this work, which could take up to two years to complete. b If the Council selects Option 2 the following recommendations are made. i A detailed transfer proposal be developed in consultation with the Welsh Assembly Government, to include a detailed examination of the potential offered by the community mutual model. ii Arrangements be made for a formal ballot of tenants on the transfer proposal at an appropriate time. iii A detailed corporate impact assessment be completed to identify and quantify the resource implications finance, staff, administrative buildings, operational depots, etc for the County Council post transfer. iv Corporate capacity should be committed to manage the stock transfer process It is estimated that this could take up to two years to complete.6 KEY LESSONS LEARNED FROM THE OPTIONS APPRAISAL PROCESS LEADING TO ADDITIONAL RECOMMENDATIONS FOR IMPROVEMENT.6 1 The options appraisal process has been a valuable exercise, not only in completing the analysis of the feasibility for improving homes to higher standards, but also in helping to identify key areas where attention is required to support a programme of continuous improvement in the provision of housing services whilst integrating action for improved social housing with other broader strategic objectives, e g deprivation e g through affordable warmth programmes , health improvement e g through eliminating dampness in dwellings , climate change through improving energy efficiency , neighbourhood renewal, etc.6 2 The following key issues have been identified during the options appraisal, which if addressed can support the wider objecti ves of the Council and its strategic partners.6 3 Stock Condition Information.6 3 1 The options appraisal process has reinforced the crucial importance of robust stock condition data for business and improvement planning Whilst considerable work has been undertaken in the past in Carmarthenshire to gather comprehensive information on stock condition the appraisal process revealed that the large amount of data held was not initially structured in a form for reliable financial forecasting to the level of sophistication sought for the effective planning of improvement works over a long period of time The maintenance of data sets so that information is current and accurate is an immediate, ongoing and vital need For the Council to be able to have confidence that improvement plans are soundly based and reliable strengthened focus needs to be applied to stock condition intelligence gathering and management. Recommendation 2.The stock condition survey should be updated as a matter of priority This is essential whichever option the Council chooses Should the Council choose the retention option sufficient resources should be committed to the future management of stock condition data on a permanent basis, through a comprehensive and suitably structured housing database, which is consistent with the corporate Asset Management Plan, to ensure that the information held is current and accurate and is in a format that will support efficient resource management, and improvement planning and delivery.6 4 Tenant Engagement.6 4 1 The options appraisal process has confirmed the value of an effective relationship with tenants and the need for developing capacity for tenants to play an effective part in service governance, planning and monitoring Carmarthenshire County Council has over recent years invested considerably in tenant engagement, securing recognition for its commitment and success in fostering relationships in this crucial area.6 4 2 Tenant representatives have been included o n the Project Team throughout the options appraisal process The ITA has ensured that tenants have been able to articulate a collective contribution to the options appraisal process.6 4 3 The Council has recently reviewed its arrangements for tenant engagement and a new process will be enacted from the 1 st April 2005, based around the Community Networks framework.6 4 4 Furthermore, the Executive Board has recently completed a review of the nature and number of Advisory Panels serving the Council, its partners and stakeholders It has resolved to constitute a new Housing Services Advisory Panel to replace the former Housing Management Board.6 4 5 In expressing their views on the options appraisal through the structured consultation processes facilitated by the ITA tenants have clearly expressed their desire to be included more closely within the governance of housing services Tenants have described at the Project Team their preference to remain with the Council as a leap on faith on thei r part, declaring that they are prepared at this time to place their trust in the Council and that the Council should be given a chance to prove itself Should the Council decide to proceed with a retention solution it will clearly be in its interests to heed this feedback from tenants and to respond to their eagerness to play a closer role in service direction and performance The Council should continue to review arrangements for engaging tenants in service governance with a view to fostering stronger relationships, which will be essential for the effective delivery of the challenging improvement programmes. Recommendation 3.Should the Council select the retention option the new tenant engagement arrangements, including the Tenant Participation Compact, Housing Services Advisory Panel, etc, should be kept under review with the objective of continuously improving governance and the direct involvement of tenants in housing services, in a manner which integrates with and supports the Counc il s wider citizen engagement objectives and programmes The Council should design and implement programmes to increase the capacity of tenants so that they may effectively engage in housing services governance.6 5 Neighbourhood Renewal and Sustainable Communities.6 5 1 Good quality housing is widely recognised as a fundamental need that is central to people s quality of life The condition of the environment in which dwellings are located, the proximity of local services, such as shops, schools, healthcare facilities, access to employment, etc, and the quality and effectiveness of local infrastructure are central to community functionality The improvement of the standard of social housing offers considerable potential to stimulate community and economic regeneration, for example, by improving the liveability of estates and by supporting the reinvigoration of the local construction industry through the redevelopment of the traditional building trades. Corporate capacity should be dedicate d to develop and implement programmes for sustainable community renewal, embracing the opportunity provided by social housing improvements, as a long-term commitment. Summary of Member Engagement and Reports. Executive Board - 29 th September 2003.Executive Board receives and endorses the Project Initiation Document and project formally launched. Housing and Public Protection Scrutiny Committee - 24 th October 2003.Scrutiny Committee receives Project Initiation Document. Housing Management Board. Between September 2003 and May 2004 the Housing Management Board received regular monthly reports on progress with the housing stock options appraisal project The Housing Management Board was not constituted following the local government election in June 2004.Council Seminar - 11 th March 2004.A seminar was held for all members of the Council to describe the position concerning housing strategy and options appraisal in Wales and Carmarthenshire The seminar received presentations from a housing pol icy officer from WLGA, the Council s head of Housing and Director Strategic Projects The Executive Board Member for Housing and Public Protection facilitated a question and answer and discussion session. Housing and Public Protection Scrutiny Committee - 23 rd March 2004.Scrutiny Committee receives a progress report on the options appraisal project. Executive Board - 5 th April 2004.Executive Board received a progress report on the options appraisal project. Local Government Elections - 10 th June 2004.11th August 2004.Letter from Director Strategic Projects to all members of the County Council providing information on the progress of the options appraisal. Council Seminar - 15 th September 2004.Members of Council receive information on the range of strategic options potentially available for housing stock improvements and recommendations for developing a shortlist of three practical options The Executive Board Member for Housing and Public Protection chaired an energetic debate on the opt ions and their broad implications. Executive Board - 18 th October 2004.Executive Board receives report on strategic options and approves shortlist of three options for detailed evaluation. Opposition Spokespersons Group - 4 th November 2004.The Group received the strategic options report and questioned officers on its contents and progress in the appraisal process. Independent Group - 7 th February 2005.Labour Group - 8 th February 2005.Plaid Cymru Group - 9 th February 2005.Political groups given briefing on draft options appraisal report and offer feedback. Preliminary Executive Board - 7 th March 2005.Executive Board informally receives the draft final options appraisal report. Housing Scrutiny Committee - 18 th March 2005.Housing Scrutiny Committee considers draft options appraisal report and records response. Executive Board - 3 rd May 2005.Executive Board receives final options appraisal report and approves submission to County Council for decision. All councils were supposed to carry out a Stock Options Appraisal and report back to the ODPM before July 2005 However the Housing Minister admitted in December 2007 that thirteen councils still did not have a viable strategy for meeting the government s Decent Homes target It is likely that a number of others who had their option signed off by the regional government office will in practice run short of resources. Many councils who have completed an options appraisal are coming back for a second go This includes councils where tenants have democratically rejected stock transfer in a ballot and a number of authorities that set up ALMOs - promising tenants this was not two-stage privatisation - are now talking about stock transfer. However hard Ministers, consultants, elected councillors and senior council officials try and pretend that somehow your authority is the exception and everyone else is getting on with meeting Decent Homes, this is clearly not the case The government won t achieve its manifesto commitment By 2010 we will ensure that all social tenants benefit from a decent, warm home with modern facilities unless it makes additional resources available to fund the gap. Some councils genuinely try and conduct a fair and balanced process but many carefully select a small group of compliant tenants who get cuddled, flattered, wined and dined, bussed around the country, put up in hotels and prompted to come up with recommendation the council or officers want. The fact that senior officers stand to get a big pay rise - and some brownie points on their CV - if they get a transfer or ALMO through can t but influence their motives Similarly don t be conned by the industry of so-called Independent Tenants Friends and Independent Tenants Advisors They are consultants who make a living out of the growing consultation industry Most won t talk about the fourth option You ll get plenty of speakers and visits promoting transfer, PFI or ALMOs but little of the argument against They loyally promote the ODPM s age nda and closely liaise with the ODPM Commmunity Housing Task Force who were setup to promote the stock transfer product. If you are going through a stock options appraisal get in touch with DCH Make sure you get speakers invited in who will put the case against privatisation so people hear both sides of the argument Here are some suggestions of questions to ask. How to approach Stock Option Appraisals.1 Democracy Is the options process democratic Should be a fair and balanced debate with equal resources for both sides to put arguments followed by a ballot of all tenants - whatever personal views of people in group Is the options group itself democratic We get messages from people all over the place moaning that the options groups take place during the day therefore only accessible to non-working people - unelected tenants chosen by officers or self-selection - no democratic accountability.2 The council will try to muddle up the financial and the political arguments Its important that the group try to separate the assessment of the options themselves from the there is no money arguments imagine themselves on level playing field in order to make objective assessment of benefits risks of stock transfer, PFI and ALMO, especially in regard to tenant involvement It is important to be honest - if some tenants are politically keen on transfer they should say so and if they re only choosing it because there is no alternative they shouldn t allow the council to badge this as support.3 Examine council s financial case critically see below If the council can meet the DHS out of its own resources that should put an end to the process If there is a genuine gap then.4 Understand the financial case for Fourth Option nationally.5 Examine the 4th option politically - consider evidence that govt policy could change - make your own political judgment about it.6 Consider how the council could make a case for the 4th option locally, to feed into national picture - ask them to press the go vernment for that to be made a reality Tenants who are not convinced politically there is benefit in transfer and or tenants who are convinced that we can achieve the 4th option politically will obviously expect this to be a long process - but all tenants ought to be able to make a case for the council at least trying to put pressure on the govt - it won t stop them picking one of 3 options later if there is no success. Examine the Council s financial case. a start with evidence for need, level of own resources Keith Hill said 100 councils can meet the DHS out of their own resources Is yours one of them. b If not, how big is the gap, and, what proportion is the gap compared to work that can be done out of own resources Its also worth asking the question - how long after 2010 would we meet the DHS if we didn t get any extra money. c Look at use of capital receipts - if the council isn t spending all its usable receipts on council housing then it should - some councils could meet the DHS out of own resources if they just used all the capital money available to them. d Prudential borrowing Woking just announced that it is able to meet the DHS by the use of prudential borrowing What is it and how does it work in general - ask your council to calculate how much the gap could be narrowed through use of it. e M M changes If your council s options appraisal was done before Oct last yr it won t have taken into account increased management maintenance allowance - this included overall increase to of 6 plus weighted more towards north - Londoners lose out but others will gain. f daylight robbery - how much is being ripped off by the govt from your council every year - eg rents minus M M and MRA - if you could keep all the rents to spend on homes would it solve problem or at least make things better. g Debt write-off How much is overhanging debt How much will govt pay to write off to enable transfer - how much would that amount contribute to meeting DHS if govt gave it to council direc t. h How much is TMV tenanted market value of stock - total and per property so you can see at what knock-down prices your homes are being given away to private sector Total - if negative that s more public money to fill gap - what effect would it have if that was added to debt write-off and given to council direct. Will there be a fair and balanced debate before any decision is made and does this include equal resources for both sides to put the arguments for and against the proposal. Will tenants be given a vote in a formal ballot over stock transfer, PFI and ALMOs. Will tenants be offered an unbiased clear option of remaining as council tenants, using existing resources, investigating prudential borrowing and continuing to campaign to win the fourth option This should not be described as Stay as you are but Using existing resources and continuing to seek additional resources. THE COUNCIL S FINANCES. Have tenants seen the details of the stock conditions survey , do the results tally with t enants own experience of estates work they are familiar with or has the council exaggerated the problems in order to justify selling homes, PFI or ALMO. How much is the total cost to meet the Decent Homes Standard, how much of that can the council meet out of its own resources, what s the gap if any. If the council believes that existing resources won t be enough to meet the Decent Homes Standard by 2010 how much longer would it take to reach the standard. If existing resources are insufficient what work would not be completed and how important is this work to tenants. If the calculations regarding the Decent Homes Standard were done some time ago, has the council modelled the effect of the changes in the Management and Maintenance Allowance introduced over the last year one increase Sep 03, one Nov 04 , and how much extra resources does that give them. What money does the council receive each year from right to buy sales and is 100 of the money that it retains reinvested in council housing. What are the council s debts and if the government wrote off overhanging debt for all councils - not just those who transfer - what improvement would this make to the council s financial position and its ability to use prudential borrowing. Has the council investigated the potential of prudential borrowing to raise money to meet the Decent Homes Standard. How important to local tenants are the specific targets set out in the Decent Homes Standard and are tenants being given the opportunity to weigh up the benefits of meeting Decent Homes against the disadvantages of stock transfer, PFI or ALMOs. How much of the Basic Credit Approvals the council receives from government does it use towards improving its housing stock each year. What is the Tenanted Market Valuation of the stock and does giving the homes away at knock down prices represent good value for money. How much does the council estimate the set-up costs of transfer to be. How much will the council actually gain as a lump sum through the transfer, after set-up costs and debt are taken into account if anything and what do they plan to spend this on. How many stars does the council have for its housing services and can the ALMO realistically hope to achieve the two stars necessary to gain investment. How much will the costs of consulting on and setting up the ALMO to be. PRIVATE FINANCE INITIATIVE PFI. Impact on affordability what will be the cost to tenants of paying the ongoing maintenance over thirty years to the PFI contractor. What is the council s past record of policing private contractors, do they have experience of policing anything comparable to a PFI contract and how do they think they will be able to enforce a complicated PFI contract with a major consortium when many major government departments have singularly failed. If a private consortium takes over the management of an estate s street s how will tenants be able to hold the management to account. Capping of leaseholder contributions how much will tenants h ave to pay to subsidise the work done to the benefit of leaseholders on the PFI estate s. FOURTH OPTION FOR COUNCIL HOUSING. Have councillors and tenants been told about the discussions taking place with Ministers to secure a fourth option for council housing - direct investment as an alternative to the three options of transfer, PFI and ALMOs. What has the council done to support this proposal. What have local MPs done to support the fourth option and have they signed the early day motion in Parliament. Are tenants aware that whilst the government may be making negative statements it keeps changing all the time they have already given ground on Daylight Robbery , prudential borrowing and considerable progress was made between John Prescott and various representatives during talks in September Many people expect these talks to resume. Are tenants and councillors aware that the fourth option is backed by tenants around the country, all the main trade unions and the TUC, the Local Government Association and many local authorities and growing numbers of MPs. Latest stock options for England Jan 2008.Spreadsheet showing council stock options policy last updated Jan 2007.Spreadsheet who balloting when always subject to change by councils.
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