Please ask for: Fiona Harbord Telephone: 01482 613154 Fax: 01482 614804 Email: [email protected] Text phone: 01482 300349 Date: Wednesday, 08 January 2020

Dear Councillor,

Finance and Value for Money Overview and Scrutiny Commission

The next meeting of the Finance and Value for Money Overview and Scrutiny Commission will be held at 13:00 on Friday, 17 January 2020 in Room 77 .

The Agenda for the meeting is attached and reports are enclosed where relevant.

Please Note: It is likely that the public, (including the Press) will be excluded from the meeting during discussions of exempt items since they involve the possible disclosure of exempt information as describe in Schedule 12A of the Local Government Act 1972.

Yours faithfully,

Scrutiny Officer for the Town Clerk

Town Clerk Services, Hull City Council, The Guildhall, Alfred Gelder Street, Hull, HU1 2AA www.hullcc.gov.uk Tel: 01482 300300 Page 1 of 142

Finance and VFM OSC

To: Membership: Councillors Abbott, Bell, Bridges (DC), Burton, Healand, Herrera-Richmond, Matthews, Nicola (C), Ross, Singh

Officers: David Bell, Director of Finance and Transformation Fiona Harbord, Scrutiny Officer (x5)

Portfolio Holders: Councillor Lunn, Portfolio Holder for Adult Services and Public Health Councillor Pantelakis, Portfolio Holder for Corporate Services Councillor Webster, Portfolio Holder for Finance and Transformation

For Information: Councillor Chaytor, Chair of Overview and Scrutiny Management Committee Reference Library (Public Set)

Page 2 of 142

Finance and Value for Money Overview and Scrutiny Commission

13:00 on Friday, 17 January 2020

Room 77

A G E N D A PROCEDURAL ITEMS

1 Apologies To receive apologies for those Members who are unable to attend the meeting.

2 Declarations of Interest To remind Members of the need to record the existence and nature of any Personal and Discloseable Pecuniary interest in items on the agenda, in accordance with the Member Code of Conduct.

(Members Code of Conduct - Part D1 of the Constitution)

3 Minutes of the Meeting Held 22 November 2019 5 - 20 To approve the minutes as a true record.

NON-EXEMPT ITEMS

4 Director of Finance & Transformation Presentation To update the Commission on any service, policy or strategy developments that fall within the remit of the Commission.

5 Revenue Budget Monitoring 2019-20 – Third Formal Report 21 - 46 To update Members on the revenue budget monitoring position as at Period 7, to report on the progress of savings for Service Areas and provide explanations for variations from the agreed savings.

6 2019/20 Capital Monitoring – Third Formal Report 47 - 76 To provide an updated overview of progress against budget and planned activity for the 2019/20 capital programme.

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7 Proposed Pre-payment of Employer Pension Fund 77 - 82 Contributions to the East Riding Pension Fund To consider a report seeking Cabinet Approval for prepayments of the estimated employer’s contributions payable by the Council to the East Riding Pension Fund for the period 1/4/2020 to 31/3/2023.

8 Highways Capital Programme 83 - 88 To provide a summary of delivery against the highway capital programme for years 2017/18, 2018/19 and 2019/20, and set out the high level proposal for 2020/21.

9 Consideration of a Revised Model for the Delivery of Social 89 - 142 Value To update the Commission on the procurement revised model for the delivery of social value.

EXEMPT ITEMS

Page 4 of 142

Finance and Value for Money Overview and Scrutiny Commission

9.30am – 11.40am, Friday, 22 November 2019, Room 77, The Guildhall, Alfred Gelder Street, Hull, HU1 2AA Present:

Councillors Abbott, Bell, Bridges, Burton, Healand, Herrera-Richmond, Matthews, Nicola (Chair) and Ross.

In attendance D. Bell (Director of Finance and Transformation) M. Armstrong (Accounting & Control Manager) Minute 56 P. Chadwick (Senior Project Manager, Property and Assets) Minutes 58 & 59 N. Daynes (Head of Adults Commissioning and Procurement) Minutes 60 & 61 F. Fitzpatrick (Assistant Director Safeguarding) Minute 62 N. Howbridge (Assistant Director Property and Assets) Minute 64 F. Harbord (Scrutiny Officer)

Apologies:

Apologies were received from Councillor Singh.

53 MARK ARMSTRONG

Page 5 of 142 The Chair of the Commission paid tribute to Mark Armstrong, the former Assistant City Treasurer, who had sadly passed away. She advised that Mark had attended the Finance and Value for Money Overview and Scrutiny Commission meetings on many occasions. Councillor Bell expressed her shock at his passing, commenting that he had been very supportive of the Liberal Democrat group in regard to financial matters and that he was a lovely man.

Condolences were sent to Mark’s family and friends.

Recommendations: Reasons for Recommendations:

N/A N/A

Minute Action to be Taken by Number

54 DECLARATIONS OF INTEREST

There were no declarations of personal interest made in regard to the following agenda items.

Recommendations: Reasons for Recommendations:

N/A N/A

Minute Action to be Taken by Number

Page 6 of 142

55 a) N/A MINUTES OF THE MEETING HELD 25 OCTOBER 2019

The Scrutiny Officer submitted the minutes from the meeting of Friday, 25 October, 2019 for consideration and approval.

Recommendations: Reasons for Recommendations:

a) That the minutes of the meeting of the Commission held a) N/A. on Friday, 25 October, 2019, having been printed and circulated, be taken as read and correctly recorded.

Minute Action to be Taken by Number

56 a) N/A DIRECTOR OF FINANCE AND TRANSFORMATION PRESENTATION

D. Bell (Director of Finance and Transformation) updated the Commission on any service, policy or strategy developments that fell within the remit of the Commission.

The Director advised that the majority of what would have been covered within his presentation would be discussed under the Medium Term Financial Plan item that was to follow.

He informed the Commission that: i. On a general level, there was an election looming, which was impacting on the planning of the authority’s budgets. ii. The Financial Statement that usually took place in December seemed unlikely to be until after Christmas. iii. The Chancellor’s spending round gave an indication of changes to Government funding.

Page 7 of 142 iv. Ordinarily a Budget would have taken place, leading in to a settlement, but this had not happened. v. There was nothing to plan with, whichever Government was in power, and it was presumed that following the election it would be too late to make major changes to what had been announced in the spending round. vi. There was a legal requirement to set the Council Tax by the 10 th March. vii. The authority was being encouraged to carry on as normal, but there was a heightened degree of uncertainty.

The Commission discussed whether anything more was known about the potential impact of Brexit on the City; that the Council had some funds for addressing the issues resulting from Brexit, but had the delays resulted in costs to the Council already.

The Director advised the Commission that the Council still had five to six hundred thousand pounds of the fund remaining, so the delays had not had an impact on Council funds; that the main impact was expected to be on the City’s economy and businesses; and, that preparations had been stood down in anticipation of the general election, but if Brexit did not occur in January then the preparations would be ramped up.

Recommendations: Reasons for Recommendations:

Agreed:

a) That the presentation is noted. a) N/A

Minute Action to be Taken by Number

57 a) N/A MEDIUM TERM FINANCIAL PLAN, HOUSING REVENUE b) David Bell ACCOUNT, AND CAPITAL PROGRAMME – UPDATE AND c) David Bell PROPOSALS FOR CONSULTATION

Page 8 of 142 D. Bell (Director of Finance and Transformation) attended the Commission to update Members on the latest expectations informing the Medium Term Financial Plan (MTFP), Housing Revenue Account (HRA), and the Capital Programme for the period 2020/21 to 2022/23.

The Director, referring to the table on page 25 of 206, advised of: i. The planned deficit at July 2019 of £7m. ii. The areas of overspend, including Children and Young Peoples Services and Pay Award, and the underspend expected within Public Health, and increased income from Fees & Charges. iii. The MRP Policy was to be brought in line with PFI and would result in a £5m reduction in spending. iv. It would be assumed that inflation would increase. v. There was a need to plan for a deficit, especially for the years following 2020/21.

The Commission discussed: i. The increased issue of not knowing how much CYPS would be given by Government; whether the £3.5m under “Further 19/20 Social Care demand pressures” would be received each year; and, that this sum would be carried across years. ii. That at some point Council needed to make decisions and revisit the budget of Adult Social Care so that the demand pressure was not continued. iii. Whether the Change in MRP Policy would definitely decrease payments by £5m. iv. The need for more detailed information to be supplied to Budget Scrutiny in regard to budgets and spending against them. v. With reference to point 6.1, the need for reassurance about the grant funding assumptions and more detail regarding the budget shortfall.

The Director advised that there would be more detail in the Budget papers; and, that Appendix 2 demonstrated the slow advance planning that would take place to review the MTFP up to 2023.

Recommendations: Reasons for Recommendations: Agreed: a) That the recommendations detailed at section 2 of the officer a) N/A report are supported.

b) To enable members to easily assess the budget figures and b) That the papers produced for the Budget Finance and Value make comparisons with the previous year to see changes to

Page 9 of 142 for Money Overview and Scrutiny Commission meeting will budgets and planned spending. include details of the budget envelope for each service area and a detailed breakdown of what is delivered from that

budget, and changes to the budget and delivery from the

previous year. c) To enable all members to consider in advance what will be c) That the detailed budget information be circulated to presented at the Budget meeting. members of the Commission for consideration prior to the Commission’s Budget meeting to be held on the 24 January 2020.

Minute Action to be Taken by Number

58 a) Cabinet TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY – MID YEAR REVIEW REPORT 2019/20

D. Bell (Director of Finance and Transformation) and M. Armstrong (Accounting & Control Manager) attended the Commission to provide Members with an update on Treasury Management activity and performance in the first half of the financial year 2019/20, as required by the Council’s Treasury Management Policy Statement.

The Director advised that the Council was not doing anything different; borrowing was still being minimised; there continued to be a small lending list; and, the Council held low levels of cash and low borrowing, which resulted in there being less chance of an impact if the banks went under.

A Member asked what would be the impact if the Council had any difficulties in borrowing from its usual lenders.

The Director responded that, due to the Government having increased the borrowing rate unilaterally by 1%, there was a possibility that

Page 10 of 142 things would have to change; this was done to rein in those authorities who were property developing, but had a detrimental impact on those authorities that were borrowing to fund the normal capital programme; and, the situation would need to be assessed should the Council need to increase its borrowing.

Recommendations: Reasons for Recommendations: Agreed:

a) That the recommendations detailed at section 3 of the officer a) N/A report are supported.

Minute Action to be Taken by Number

59 a) Paul Chadwick/ Deputy Leader CORPORATE OPERATIONAL BUILDING MAINTENANCE b) Paul Chadwick/ Deputy Leader CAPITAL PROGRAMME – HEPWORTH ARCADE ROOF c) Paul Chadwick OVERHAULS

P. Chadwick (Senior Project Manager, Property and Assets) presented to the Commission a report seeking authority to initiate a tender on a package of works to Hepworth Arcade and approve the commitment of an increased capital investment against the Council’s capital building maintenance budget.

The Commission raised concerns that, with reference to point 5.2 of the report, access to the roof costs had been missed; that the Council was bearing the cost for their advisers not fully seeing what was required; that in such a short period of time costs rose so much; and, where the additional funding required would be sourced.

The Commission was advised that:

Page 11 of 142 i. The additional funding would be sourced from the COBM budget. ii. On this occasion the advisers had not taken everything into account. iii. The main issue was the cost of scaffolding; that an assumption was made in regard to the number of windows needing replacing; that now it was agreed that the scheme did not want to patch and come back with additional costs in the future; and, this was a provisional sum and it was hoped that the number of windows needing replacing would be reduced, as would the costs. iv. A number of projects were more costly than the first estimate; and, this was indicative of under investment in Council-owned properties.

The Commission discussed: i. What the money would have been spent on had the costs of this project not increased; and, that schemes would have been prioritised and some may have moved down the list. ii. That NPS should have had a tick list to ensure that all aspects of the project were costed; whether NPS should have recognised the need for maintenance earlier as this may have reduced costs; and, these were reactive costs. iii. Whether the high maintenance costs were indicative that the Council should dispose of the building. iv. The need to assess past estimates and actual figures for projects under the COBM to see if such discrepancies were the norm, and to address them if so.

Recommendations: Reasons for Recommendations: Agreed:

a) The Commission supports the recommendations as detailed a) N/A at section 2 of the officer report.

b) The project cost had increased from an estimated £300k to b) The Commission expresses its concerns at the amount by £670k, and the members felt that NPS should have given a which the project costs had been underestimated. more accurate estimate, rather than the original estimate being increased by 123%. c) That a briefing be presented at the Commission meeting of the 17 January 2020 detailing the difference between the c) As a result of concerns about this estimate and its large estimated original budget and the actual expenditure on Key percentage increase members wished to know if this was a regular occurrence and wanted to assess the figures from the

Page 12 of 142 Decision projects over the previous two years, to include a previous two years. column showing the percentage increase of the cost of individual projects.

Minute Action to be Taken by Number

60 a) N/A CORPORATE OPERATIONAL BUILDING MAINTENANCE CAPITAL PROGRAMME – ST PAULS BOXING CLUB ROOF REPAIRS AND DISABLED PASSENGER LIFT

P. Chadwick (Senior Project Manager, Property and Assets) presented to the Commission a report seeking authority to initiate a tender on a package of works to St Pauls Boxing Club and approve the commitment of capital investment against the Council’s capital programme.

The Commission discussed the location of the boxing club; why it was the Council’s responsibility to carry out the re-roofing; and, that the budget was the same as that of Hepworth’s Arcade, that being the Corporate Operational Building Maintenance Capital Programme.

Recommendations: Reasons for Recommendations: Agreed:

a) The Commission supports the recommendations as detailed a) N/A at section 2 of the officer report.

Minute Action to be Taken by Number

Page 13 of 142 61 a) Neil Daynes HOUSING RELATED SUPPORT COMMISSIONING UPDATE b) Neil Daynes c) Louise Hawkins d) Neil Daynes N. Daynes (Head of Adults Commissioning and Procurement) presented a briefing to provide the Commission with an update of the Housing Related Support (HRS) Services currently commissioned by the Council and the future commissioning plans for HRS.

A member asked whether it was considered that the contracts as they currently stood were value for money in terms of individuals having their lives supported; and, how that was being measured.

The Head of Adults Commissioning and Procurement responded that; The contracts were offering value for money in terms of initial crisis and getting clients off the street and safe. A large piece of work was taking place with the single point of co-ordination team, which had been in place for a year; as all contacts were now coordinated each individual could be tracked and monitoring could take place of returns to the system; and, this would help test the effectiveness of current contracts and inform what would be required in future contracts. There was scope to make changes to the current services, and point 3.2.4 of the briefing detailed initiatives from the Housing Service. Currently the service was successful at getting people off the streets, but not so successful at providing long-term sustainable living conditions; and, it was hoped that the single point of co-ordination and the new initiatives would help improve this. The Commission discussed: With reference to point 3.2.7 of the briefing, it was suggested that the Council was happy to continue with the current contracts; what the decision making process was; whether it was considered prudent to extend the contracts, and when the retender date was; that two 12 month extensions of the current contracts were allowed, but that the 2nd extension was not going to take place; the single 12 month extension was to be used to review the way of delivery; and, it would allow a lead in to the mobilisation of the new way of working. Whether the agreement to extend the contracts would be made via a Decision Record, and would be a non-key decision; that there were concerns in regard to two of the current providers, but that those concerns were not great enough to prevent renewal for a 12 month period; that monitoring of the contracts was essential; and, if there was a decision to extend the contracts for a second 12 month period then that decision should be subject to pre-decision scrutiny. Whether it had been made clear to companies that were not meeting the criteria within the contracts; that the initial contract period was only for two years, and feedback received said that this was not long enough to meet some of the criteria, such as establishing hostels within small buildings or making structural changes to split accommodation within larger buildings; that contractors had no come back on the Council as the criteria were made clear and quarterly engagement meetings were held; and, that a different model was being looked at, with

Page 14 of 142 smaller units and fewer of them as the homeless clients moved into permanent accommodation. How it had been taken into account that Hull was a sub-regional capital for homelessness, with the homeless from Anlaby, Hessle and other areas coming into Hull; that this needed to be taken into account when looking at the hostel accommodation per head of Hull’s population; and, reassurance was needed that the management of hostels was in relation to the ratio of residents and needs and support given.

The Head of Adults Commissioning and Procurement advised that accommodation would not be reduced, but would be more aligned to demand for hostels and for other types of accommodation.

The Commission continued: Whilst the improved monitoring and progress with new ways of working was appreciated, some issues just kept coming back; whether this was the result of not having a variety of providers and lack of choice; that this was a possibility, and the issue was recognised; that the monitoring was now across Council; that the last time the contracts were procured for two years, and so were unlikely to attract new providers to the City; that the market had changed over those two years and the next time the contracts were procured they would for a longer period which should attract new possible providers; there would also be different types of provision; and, a report asking for permission to go out to tender would be taken to Committees in Common in Spring 2020. That the Council was not getting value for money and clients were not getting value of service; people were not being worked with in a way that enabled them to move on; that when Housing Related Support moved from Housing to Adult Social Care it seemed that ASC had a different set of priorities to what was needed for the client group; and, that more thought was needed as to why monitoring was carried out and what it needed to be looking at. Whether the monitoring looked at the full round of measures; whether care plans and the evidence attached to care plans were considered; whether residents of hostels were spoken with; whether the residents were still shoplifting, using or reliant on alcohol; whether the co-relation between police activity around clients in hostels was monitored; and, whether monitoring took place of the use of emergency services generally. That the same ground was constantly being gone over; that, as hostels were in the majority of the areas of the City, an elected member working group should be set up to audit the monitoring taking place and enable Member feed in; although a difference was already being made there needed to be more work done and more input from Members and organisations such as the Citizens Advice Bureau and others that supported the homeless; that a Task and Finish Group should be set up to carry out the audit; that hostels were not good for some homeless people, such as veterans with Post Traumatic Stress Disorder who did not feel safe; that clients were not engaged with to find out whether they still had the same issues and needs; and, that it was not value for money to keep giving funding to providers with no apparent difference made. It did not seem realistic that consideration and delivery of a new model could be carried out in the next 12 months; that there had been work carried out already to replace the traditional hostel; all of the points within point 3.2.4 were already being delivered in some part; and, there

Page 15 of 142 would not be an immediate fix, but there would be tangible changes over a period of time. Issues in relation to large hostels, and the impact on those residing in the locality; expectations of the management of them; and, that the longer lead in period to the contracts would enable the addressing of community issues. Whether the proposed new contracts could include as part of the criteria that providers would get the homeless out of the cycle of dependency; and, the contracts would include, where possible, that the providers would support clients into stable lives.

The Head of Adults Commissioning and Procurement advised that work was currently taking place with officers from a number of service areas, and with service providers, and Housing was to work with clients. As a result an audit Task and Finish would be welcome, and it could make recommendations for future commissioning.

Recommendations: Reasons for Recommendations: Agreed:

a) That should the option to extend the contract for a second a) To ensure that the contractors that have contracts renewed are period of 12 months be taken, as referred to in point 2.2 of delivering value for money and an appropriate service to the officer report, the decision be brought back to this clients. Commission for pre-decision scrutiny.

b) That, when planning for accommodation for Hull's homeless it b) Numbers needing support may be underestimated. be taken into consideration that Hull is a sub-regional capital for homelessness and attracts the homeless from surrounding areas, such as Anlaby and Hessle, and as such levels of homelessness across the region need to be considered.

c) That a referral be made to the Overview and Scrutiny c) To ensure that the most appropriate services for clients and for Management Committee that a Task and Finish Panel be the Council are commissioned. held to carry out a review of existing homeless services and the monitoring of their delivery to inform future commissioning. d) Where possible commissioned hostels need to be managed in d) That when procuring homeless accommodation, especially a way that would not cause issues for residents in their locality.

Page 16 of 142 larger hostels, emphasis should be placed on the management of the hostels in order to prevent a negative impact in the areas where they are situated.

Minute Action to be Taken by Number

62 a) Sharon Hofman UPDATE ON THE COMMISSIONING OF SUPPORTED LIVING SERVICES

N. Daynes (Head of Adults Commissioning and Procurement) presented a briefing to provide the Commission with an update on the commissioning of Supported Living Services.

The officer advised that the Quality Standards Framework would go live the week following the meeting for providers to apply to be accepted on the Dynamic Purchasing System; care packages would be procured through the new DPS from January 2020; that the Supported Accommodation Review Team’s Supported Housing Provider Charter alongside the QSF were attached as appendices to the briefing and were intended to offer reassurance on the monitoring being carried out from the off-set; and, monitoring would be rolled out in partnership with the CCG and the Probation Service, and Housing Related Support, so 20/20 monitoring would be delivered.

Recommendations: Reasons for Recommendations: Agreed - a) That the briefing is noted, and the Commission will receive to a) As the Framework had only recently gone live a future update its April 2020 meeting an update on the progress of the had been requested at the October meeting, for delivery at the Quality Standards Framework. April meeting.

Minute Action to be Taken by

Page 17 of 142 Number

63 a) N/A CHILDREN, YOUNG PEOPLE AND FAMILY SERVICES – UPDATE

F. Fitzpatrick (Assistant Director Safeguarding) presented a briefing to update the Commission on the financial position for Children Young People and Family Services, demand levels and the service actions to control demand and mitigate overspending while improving quality.

The Commission discussed: i. The increase in Looked After Children numbers since October 2019, that this was in part due to increased safeguarding following the Ofsted inspection; and, that some risk was being seen that had not been seen previously. ii. That it was good to see an increase in the number of foster carers. iii. That the information within the briefing was very top level and hard to see how the extra spend had been apportioned; and, £1.2m had been apportioned to address the increases. iv. Where the High Needs Block sat, and whether reassurance could be given on the value for money the young people were getting; that Hull was to receive an increase of £4.7m from government; this would help balance the overspend and invest for the future; the detail would be brought back as part of the Council’s Budget; historically the Safeguarding and schools agenda were seen separately when they perhaps should not have been; who was linking the two and how was it being audited; and, responsibility for SEND, including academies, lay with the local authority and monitoring was through SEND Boards. v. The need to see where the funding was going to; and, the Budget papers would include a new section on where the money was going to.

Recommendations: Reasons for Recommendations: Agreed - a) That the briefing is noted. a) N/A

Page 18 of 142 Minute Action to be Taken by Number

64 a) N/A EXCLUSION OF THE PRESS AND PUBLIC

To consider the exclusion of the press and public for the item listed as exempt:

Acquisition And Subsequent Disposal Of Land And Property Assets at, and Adjacent to KCOM Stadium, Craven Park, Preston Road, Hull. Recommendations: Reasons for Recommendations: Agreed:

a) That the Commission agreed to the exclusion of the press a) N/A and public due to the report containing information relating to the financial or business affairs of any particular person (including the authority holding that information).

Minute Action to be Taken by Number

65 a) N/A ACQUISITION AND SUBSEQUENT DISPOSAL OF LAND AND b) Fiona Harbord PROPERTY ASSETS AT, AND ADJACENT TO KCOM STADIUM, CRAVEN PARK, PRESTON ROAD, HULL

N. Howbridge (Assistant Director Property and Assets) presented a report seeking to obtain expeditious approval to the acquisition of the freehold interest with vacant possession of the former McBride plc factory complex on Stockholm Road, Sutton Fields Industrial Estate.

The report was fully considered by the Commission and recommendations were made based on that consideration.

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Recommendations: Reasons for Recommendations: Agreed:

a) That the recommendations at section 2 of the officer report a) N/A are supported. b) That by supporting the purchase and sale detailed within the b) That enquiries are made to establish how the Council can be report the Council will in effect ensure that Hull KR has a represented on the Hull KR Community Trust to enable the presence in the City, and as result the Council should be Council to have some input on how the community would offered representation on the Hull KR Community Trust on a benefit from and be engaged with the Trust. quid pro co basis.

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Report to the Wards All Finance and Value for Money Overview & Scrutiny Commission – 17 January 2020 Cabinet – 27 January 2020

Revenue Budget Monitoring 2019-20 – Third Formal Report

Report of the Director of Finance and Transformation (Section 151 Officer)

This item is not exempt Therefore exempt reasons are not applicable This is a Non-Key Decision

1. Purpose of the Report and Summary

1.1 To update Members on the revenue budget monitoring position as at Period 7, to report on the progress of savings for Service Areas and provide explanations for variations from the agreed savings.

1.2 This is the third formal report for the financial year 2019-20 which explains the current position, gives reasons for the most significant variances, and sets out the management actions being taken where appropriate.

1.3 The report sets out the General Fund revenue budget monitoring position and also those for the Dedicated Schools Grant (DSG) and the Housing Revenue Account (HRA).

1.4 The General Fund revenue projections highlight the expected pressures with both Adults and Children’s Services alongside a reduction in School income across the Council. Mitigations have been identified within the Corporate Budgets. It is anticipated that the net year end variance of £ 1.134m will be mitigated by use of the Re-organisation budget, such that there will not be an unplanned call on the Council’s general reserves. Projections for Social Services are based on current volumes, however if recent trends should continue, the position would deteriorate before the end of the Financial Year. A contingency for Social Care has been created for the value of £0.500m to mitigate potential additional pressures in the area. The pressures within the care services will inevitably create increased pressures in future years and the implications will be reflected in the MTFP report to be considered by Cabinet as a separate item on the Agenda. The service positions and the mitigating factors will be monitored closely with the final position reported in May 2020 as part of the Provisional Outturn. 1 Page 21 of 142

1.5 The Council’s position is reliant on the delivery of the MTFP savings. Appendix A shows that of the £9.303m relating to 2019/20, £1.507m are at risk of not being fully delivered, but only £0.800m are reflected in the overall projected position. The rest is expected to be mitigated across the Service Area Budgets.

1.6 The ongoing review work (to bring ongoing spending into line with the underlying level of available funding) relating to the DSG is important, and needs to come to a successful conclusion, as there is a forecast in year deficit of £1.300m for the High Needs block. The Department for Education announced additional funding for schools and high needs in October 2019. Hull is to receive £4.7 million additional High Needs grant for 2020-2021, this along with the ongoing review work, will enable the deficit to be repaid over the next three years, fund increased demand and identified priorities for pupils with special educational needs and disabilities.

1.7 The HRA forecast is for an in-year surplus of £1.000m at Year End, mainly the result of dwelling rent income higher than anticipated.

2. Recommendations

2.1 That members note the overspend relating to the Children’s Safeguarding and Adults Social Care budget and the reduction in School Income (paragraph 8.9), alongside the associated mitigations and the use of the reorganisation budget.

2.2 That members note the forecast in year deficit of £1.300m for the High Needs block of the DSG, and actions/funding required to bring the position into balance in the medium term.

2.3 That members note the forecast of an in-year surplus of £1.000m for the HRA.

3. Reasons for Recommendation

3.1 The Council needs to ensure that it is managing its resources effectively while ensuring that the public receive the benefits from the functions that it provides itself or commissions from other service providers.

4. Background

4.1 The third formal revenue budget monitoring round for 2019/20 has been undertaken by Head of Services, Assistant Directors and Directors and results in projected outturn positions of the General Fund, the Housing Revenue Account (HRA) and the Dedicated Schools Grant (DSG).

2 Page 22 of 142 4.2 In addition to providing projected outturn figures, managers have commented on significant variances from the profiled budgets to actual spend and income received for the corresponding period.

4.3 Managers have completed a progress statement on the savings within each individual service area (including Transformation savings where relevant). This savings view is consolidated in Appendix A. These have then been Red / Amber / Green (RAG) rated with explanations provided for any expected shortfall in the savings to be achieved from the amount relied upon in the budget.

5. Position to date –Actuals vs Profiled Budget for the General Fund

5.1 Table 1 below shows the summary position as at the end of period seven (October) for service areas. It shows that at that point there was an unfavourable variance to date of £6.987m which is consistent with the current year end projection. Table 1 – Adjusted Actual Spend Against Budget as at 31 October 2019

A B C Sum (C-B) Full Profiled *Adjusted Variance Percentage Year budget to Actual to to date variance of Service Budget date date profiled budget £’000 £’000 £’000 £’000 % Adults Social Care 69,868 41,948 46,987 5,039 12 Health & Wellbeing 21,038 12,506 12,412 -94 -1 Total Public Health & Adults Services 90,906 54,454 59,399 4,945 Children Safeguarding 43,902 27,094 28,600 1,506 6 Learning and Skills 3,696 1,040 1,224 184 18 City Safe & Early Intervention 6,899 4,595 4,734 139 3 Total Children’s Services 54,497 32,729 34,558 1,829 Streetscene 28,605 15,300 15,146 -154 -1 Sub - Total 174,008 102,483 109,103 6,620 Town Clerk 5,685 3,397 3,589 192 6 Leisure Commissioning 6,395 5,223 5,428 205 4 Economic Development and 3,446 2,192 2,271 79 4 Regeneration Customer Services 1,873 1,602 1,401 -201 -13 Property & Assets 6,020 5,772 5,702 -70 -1 Human Resources 2,391 1,300 1,461 161 12 Finance & Transformation 8,492 7,139 7,090 -49 -1 Digital and ICT 4,480 2,494 2,405 -89 -4 Neighbourhoods & Housing 2,770 -29 -106 -77 266 Chief Executive 942 549 610 61 11 Major Projects and Infrastructure 5,065 4,067 4,222 155 4 Sub - Total 47,559 33,706 34,073 367

Total of all Service Areas 221,567 136,189 143,176 6,987 3 Page 23 of 142

*Actual figures have been adjusted for timing differences and re-profiling issues

Assistant Directors’ comments on significant variances to date

5.2 City Adults Social Care The £5.039m variance to date reflects the impact of additional placement costs, mainly in the categories of Residential over 65, Agency Home care and Supported Living. These pressures are reflected in the projections for the Service Area.

5.3 City Children Safeguarding The £1.506m variance to date reflects higher than budget spend on placements for Looked after Children and Agency staff, as reflected in the projections.

6. Summary of Savings

6.1 Appendix A details the savings items included within the 2019-20 General Fund budget, and shows the manager’s forecast of how much will be achieved and their explanatory narrative to support that view. Of the total savings value of £9.303m, £1.507m is currently viewed at risk.

Table 2 – Directorate Summary of Expected Achievement of Savings 2019-20

2019/20 Period 7 Summary of Savings by Directorate

Public Health Children Legal Finance and Cross Directorate and and Family Services and Regeneration Total Transformation Cuttings Adult Services Partnerships Services £000 £000 £000 £000 £000 £000 Total Savings Target -7,065 -530 -120 -450 -538 -600 -9,303 Savings expected -6,565 -230 -100 0 -301 -600 -7,796 Variance 500 300 20 450 237 0 1,507 Variance RAG Status Red 500 300 0 0 0 0 800 Amber 0 0 20 450 237 0 707 Total 500 300 20 450 237 0 1,507

6.2 Out of the £1.507m variance, £0.800m is being reflected in the projections at 1.5 as likely to be undelivered.

7. Working with CCG / Benefits of Joint Commissioning

4 Page 24 of 142 7.1 The MTFP approved in February 2019 detailed expected financial benefits of joint working with the CCG of £5m in 2019/20 which are reflected in the s75 Agreement between the two organisations and are expected to be delivered during the year.

8 Comments of Directors – Summarised in the Table at Section 9

Director of Legal Services and Partnerships

8.1 I am content my Directorate will deliver within its overall budget based upon the actions separately described (where appropriate) by my Assistant Directors. Pressures arising in Human Resources, mainly as a result of loss of School Income, will be mitigated by pay savings in Customer Services.

Director of Children’s Services

8.2 The Directorate will not deliver within its overall budget primarily due to significant pressures within the Safeguarding Budget which have continued to rise since the last formal report.

8.3 At the beginning of November, the number of looked after children had risen to 821. Within this the need for residential, foster agency and 16+ placements is considerably above the level assumed within the budget. The placement sufficiency strategy is progressing well including:

• opening two new children’s homes this year • a marketing strategy for foster carer recruitment and significant improvement in the timelines for carer recruitment reducing from 49 to 17 weeks • expanding the Councils own supported shared tenancy scheme, now supporting 40 young people

8.4 However there still remains the need to purchase placements from the provider led market. Appendix B provides information on the placement costs budget and forecast, and how the metrics support current projections.

8.5 The main areas of pressure elsewhere within the Directorate remain Hull Training Income, Home to School Transport costs and the DSG High Needs Block. Within the High Needs Services reviews are ongoing to reshape services to sustainably meet rising levels of demand and increasing levels of need.

Director of Public Health and Adult Services

8.6 As has been reported consistently throughout the year, my Directorate will not deliver within its overall budget. Whilst the City Health and Wellbeing service will manage within their budget envelope, the City Adults Social Care service is not expected to achieve this in 2019-20.

National Picture

I will reiterate the important messages around the national picture on funding for Adult Social Care in the current and subsequent years and how this is being presented in the press and on the news. 5 Page 25 of 142

The recent 2019 ADASS survey highlights the following key messages for ASC:

• There needs to be a long-term, sustainable solution for funding adult social care. • Adequate funding is required to meet an increasing number of people’s needs in effective ways. • ASC and the NHS are interdependent. Without a settlement for social care the NHS will not be able to deliver on the commitments of their Long Term Plan. • Councils and providers must be able to recruit and retain a caring, skilled and valued workforce. • Councils through Central Government funding need to be able to fund a vibrant care market that gives people choice and control over their lives. • The Government has provided some additional funds for both Adults and Children's social care in 2019-20 which have been built into the budget, but unfortunately in the case of ASC these are being outweighed by the demand pressures on the service which are being reported both locally and nationally. This financial support to date has been ad-hoc and one-off pending the publication of the Green Paper on ASC.

Consultation on the revised funding settlements for Councils for 2020-21 was announced recently and offers similar one off funding. This is through two streams. Firstly additional funding from Central Government (£1bn for the country as a whole) for Social Care which includes both children’s and adults social care. Secondly a further £0.5bn by allowing Councils to raise Council Tax by way of an Adult Social Care precept, the inequity on how much each Council can raise through the precept which is based on property values and not need has partly been addressed in the consultation, which is good news for Hull and its residents who rely on our support.

The Local Picture.

The overall position for ASC is a forecast £4.7m overspend in 2019-20.

As stated previously, information provided to Cabinet in March and confirmed in May, showed increasing demand in the later part of the last financial year which has created a “spill-over” budgetary pressure in the current financial year. The full year effect of this overhang is circa £3m.

This is being compounded by the service seeing the levels of acuity with which people are presenting are increasing. To date, this has been seen to be impacting mainly on homecare, where in recent years the number of people receiving the service has fallen but the average hours per package has increased. But is now also beginning to manifest itself through an increase in average costs in residential care where a higher proportion of clients appear to be requiring higher cost packages as a consequence of increasing average care needs.

6 Page 26 of 142 The commonly held assumption underpinning this is that acuity is increasing as people live longer with multiple chronic needs. This phenomenon, with regard to its impact on both home care and residential care, is almost certainly being exacerbated by the successful efforts of the service through its transformation programme to keep people living independently longer so that when they do eventually require formal care it is at a higher level.

Again as noted in previous periods, there is also a great deal of focus nationally on demographics and the pressure that they are having on ACS budgets now and in the future. Whilst this is certainly true for Hull, the less discussed pressure is from the “window of need”. It is not so much how long people live but at what age do they start needing a service for ASC, and how long they will require such services for. While residents of other Councils may have a longer life expectancy, that also results in them being well and able- bodied for longer. In Hull we are seeing that some people with health issues are presenting earlier and for longer so the “window of need” is longer than the average which other Councils are seeing. This has been picked up nationally and a recent report by the charity Independent Age show that the healthy life expectancy for men in Hull is ranked at 149 out of 150, and while slightly better, the average healthy life expectancy for women is 147 out of 150.

Whilst there continues to be good performance on the "upstream" activity in ASC, such as reduced contacts, good conversion rates, impressive increases in active recovery activity rates et al , we are nevertheless continuing to see significant – and increasing -pressures manifesting themselves in the budget.

The activities in these key areas are:

Target Actual Variance Contacts (year to date) 6,436 6,269 167 positive Conversion Rates 13% 16.9% 3.9% Active Recovery – people fully No target 70% re-abled (40% Oct’18)

Activity on the key areas of care in 2019-20 is: Target Actual Variance Residential >65 admissions 157 238 81 (1) Residential >65 exits Expected 184 196 12 Homecare 923 1,029 106 (2)

Note 1) Of the 81 admissions over the target, 20 of these are either self-funders who have depleted their funds or where clients have had their health funding withdrawn. Note 2) although over target year to date, October saw a net reduction of eighteen people receiving homecare.

The forecast variance reported of £4.7m is as highlighted above. As noted, this is in part due to the impact of the increased numbers of people in care towards the end of 2018-19 (Circa £3m), but the impact of increases of people receiving care in the current year and the upward pressures on the average cost of residential placements which is now becoming apparent, in addition to increased home care packages, has necessitated an upward revision of in- year pressures to circa £1.7m.

7 Page 27 of 142 Although at a total of eighty-one residential placements over target, twenty are due to self-funders exhausting their assets or health funding being withdrawn.

The other issue is around homecare, the service is seeing continued levels of provision above expectations. Further analysis is ongoing to explore the reasons for this, especially around the level of under ten hours care where a recent report has indicated that generally this should be no more than ten per cent of Homecare, in Hull it is significantly higher

Whist the increase in the reported pressure reflects the increasingly difficult situation being faced by ASC, the service is continuing with all efforts to deliver the savings expected and is actively looking at all other options for savings and cost reductions to minimize the extent of any overspend in the year as far as possible. Some of the initiatives being actioned currently include:

- The High Needs team which was set up earlier in the year is managing and reviewing the needs of the top 10% of clients by complexity. Their aim is to ensure these people have appropriate care with the aim of enabling them to live as independently as possible. The fortuitous benefit of this is that their package costs could reduce over time

- The creation of a framework for the supported living service. The need for these services has grown in recent years so the framework will bring new providers to the market and a rigour to quality and cost of placements. The framework will go live in January 2020

- Moving the financial assessment to the "front door", this has enabled people to understand what their contribution to their care is likely to be before they start to receive a service. We are already seeing people using the facility who then do not approach the Council for formal care.

- Reviewing of the operation of the Extra Care facilities. While the three sites provide excellent support for the clients, the service is looking to see if people with more complex needs can be accommodated here rather than high cost placement in other settings.

- Looking at the prevalence of low level support in homecare and direct payments to ensure these are being prescribed appropriately and that there are no other options people can be signposted to.

- Introduction of the "247 Grid" for people with complex needs; this is a tool that allows the person and their carers to record what support is needed at what point. It pictorially shows where people’s needs are highest and what support they receive, not just formal paid care but other support from the third sector, friends and other support networks.

- a review is currently looking at the Resource Allocation Systems (The RAS) which produces indicative budgets for people receiving care. The ASC "offer" has changed since the RAS was introduced in 2010; with the offer of "help to help yourself" (through Connect Well and Connect to support), the intervention of formal services from ASC should happen later in a person journey, this needs to be reflected in peoples indicative budget which informs the support plan for a person’s unmet needs. 8 Page 28 of 142

- a review of residential placements to ascertain more clearly what changes are taking place with regard to the source of residential admissions, and the perceived levels of need of new clients coming in to the residential care system.

All of the above are expected to deliver some efficiencies in the service, the value and timing though remains uncertain.

Director of Regeneration

8.7 I will not be able to deliver within my overall budget as it will not be possible to offset the following pressures within year:

Value Pressure description 350,000 Under recovery of income on schools meals as result of the number of schools continuing to leave the Council service given that the 3 year contract agreed in 2015/16 has expired and the schools have freedom to choose. Forecast under achievement based on discussions with finance business partner but subject to variance if further schools leave the service or take up of meals reduces in the remainder of the academic year.

In addition, there is still a further requirement for corrective actions, as detailed in the table below:

Value Additional Corrective Action 450,000 Work-smart savings target that sits in the budget (Total target £750,000). Whilst it is likely that delivery of the revenue savings associated with disposing of buildings will be delayed it is hoped that a level of in year disposals will offset the saving requirement in this year.

Director of Finance and Transformation

8.8 Although I am optimistic I will be able to deliver within my overall budget there is a particular risk relating to the pressure arising from the under recovery of School Income £0.100m in Payroll and Insurance Services as reported. It is envisaged that any pressure in the Revenue and Benefits area will be mitigated within the Directorate.

8.9 Loss of School Income

As noted within the Director’s comments above, and in the previous report, there is a common issue emerging regarding falling income from schools as more of the Academies move away from utilising Council services. Whilst it should be possible to reduce direct costs as service provision shrinks, services may not be able to fully offset the loss of income as a level of the income is designed to meet part of the Council’s overhead costs which are not linked to direct service volumes.

9 Page 29 of 142 The picture will become clearer as the council is undergoing an exercise on the impact of the reduction in School Income across the different Service Areas.

The impact in 2019/20 is currently estimated to be c£0.5M, as per split below and as reflected in Table 3:

Property & Assets - School catering £ 0.350m pressure Human Resources £ 0.050m pressure Finance & Transformation - Payroll/Insurances £ 0.100m pressure.

Corporate Budgets

8.10 The following position is anticipated for corporate budgets:

• Corporate expenditure is forecast to have a favourable variation of £7.454m mainly the result of a MRP adjustment, pension adjustment and Capital Financing:

MRP adjustment - £5.000m, this is the result of the proposed change to the Minimum Revenue Provision Policy and subsequent re-profile of the annual charge for PFI assets

Pensions - £ 0.850m Latest projections suggest a beneficial outturn position against target derived from prepayment arrangement with ERPF.

Capital Financing - £ 1.600m An additional underspend of capital financing costs is forecast due to the continued optimisation of historically low borrowing rates coupled with the continued extension to the temporary borrowing policy.

• A Contingency reserve of £0.500m has been created to mitigate potential additional pressure in Social Care

• Council tax/Business Rates are forecast to exceed the budget by £0.728m because of a better than forecast Year End position at 31/03/2019.

9 Finance Summary of the Service Year End Position

9.1 Table 3 below summarizes the forecasted outturn position referred to by Directors in section 8 above - Appendix B provides additional information on budget and forecast for Children Safeguarding, Adults Social Care, and Streetscene, and how the metrics support the current projections.

10 Page 30 of 142

Table 3 – Projected Financial Outturn Position up to 31 March 2020 for the General Fund

A B B-A Full Year Year End Projected Projected Variation Budget Forecast Variance Variance at Between Service Second Periods Formal Report £’000 £’000 £’000 £’000 £’000 Adults Social Care 69,868 74,571 4,703 4,000 703 Health & Wellbeing 21,038 21,038 0 0 0 Total Public Health & Adults Services 90,906 95,609 4,703 4,000 703

Children Safeguarding 43,902 47,236 3,334 2,724 610 Learning and Skills 3,696 3,973 277 277 0 City Safe & Early Intervention 6,899 6,964 65 65 0 Total Childrens Services 54,497 58,173 3,676 3,066 610

Streetscene 28,605 28,605 0 0 0

Sub - Total 174,008 182,387 8,379 7,066 1,313

Town Clerk 5,685 5,685 0 0 0 Leisure Commissioning 6,395 6,395 0 0 0 Economic Development and Regeneration 3,446 3,486 40 40 0 Customer Services 1,873 1,691 -182 -134 -48 Property & Assets 6,020 6,370 350 350 0 Human Resources 2,391 2,491 100 80 20 Finance & Transformation 8,492 8,592 100 100 0 Digital and ICT 4,480 4,480 0 0 0 Neighbourhoods & Housing 2,770 2,764 -6 0 -6 Chief Executive 942 942 0 0 0 Major Projects and Infrastructure 5,065 5,100 35 35 0

Sub - Total 47,559 47,996 437 471 -34

Cross Cutting Savings 0 0 0 134 -134

Total of all Service Areas 221,567 230,383 8,816 7,671 1,145

Corporate/Strategic Expenditure Corporate Expenditure 22,527 15,073 -7,454 -5,822 -1,632 Social Care Contingency 0 500 500 0 500 Other Contingencies 643 643 0 0 0 Grants -71,343 -71,343 0 0 0 Reserves 2,971 2,971 0 0 0 Council Tax/Business Rates -176,365 -177,093 -728 -728 0 Total Corporate Items -221,567 -229,249 -7,682 -6,550 -1,132

General Fund Total 0 1,134 1,134 1,121 13

Mitigation Use of Reorganisation Budget -1,134

11 Page 31 of 142

10. DSG

10.1 Summary Service Position

DSG A B C Sum (C-B) Full Profiled *Adjusted Variance to Percentage Year budget Actual to date variance of Service Budget to date date profiled budget £’000 £’000 £’000 £’000 % Schools 7,696 7,696 7,696 0 0.00 Central Schools Services Block 4,305 3,126 3,126 0 0.00 High Needs Block 24,053 16,861 17,820 959 5.69 Early Years Block 17,559 10,156 10,156 0 0.00

TOTAL EXPENDITURE 53,613 37,839 38,798 959

Government Grants -53,613 -31,274 -31,274 0 0.00

TOTAL INCOME -53,613 -31,274 -31,274 0

NET EXPENDITURE 0 6,565 7,524 959

*Actual figures have been adjusted for timing differences and re-profiling issues

Directors’ comments on significant variances to date High Needs Block - Over spend is due to increased numbers with plans both pre and post 16.

10.2 Projected Year End Position

2019/20 P7 A B B-A Full Year Year Projected Projected Variation Budget End Variance Variance at Between Dedicated Schools Grant Forecast Second Formal Periods Report £’000 £’000 £’000 £’000 £’000 Schools and Academies 7,696 7,771 75 70 5 Central Schools Services Block 4,305 4,111 -194 -194 0 High Needs Block 24,053 25,353 1,300 1,100 200 Early Years 17,559 17,507 -52 -52 0 Total Expenditure 53,613 54,742 1,129 924 205

Less Government Grants -53,613 -53,613 0 0 0 12 Page 32 of 142

Net Expenditure 0 1,129 1,129 924 205

Deficit Brought Forward from 2018/19 1,791 1,791 0

Projected Deficit at the end of 2019/20 2,920 2,715 205

10.3 Director Comments

I will not be able to deliver my Services within my available budget and will need to take further corrective actions.

Value £000 Assumptions / corrective action / comments / reasons for variance £75 Schools: Currently expecting a deficit position in year, due to a school requiring a staffing restructure which will mean the school will end up in a deficit position.

-£19 4 Central Schools Services Block (CSSB) - Expected to end 2019 -2020 with an in year surplus of £194k. This surplus will help mitigate the overall DSG deficit.

£1, 300 High Needs Block - The predicted in -year deficit is increased to £1.3m from £1.1m estimate in the previous report. The current level of spend is not sustainable and all expenditure is under review. However numbers of pupils and levels of need are increasing and the increase in the estimated deficit is due to these factors for both mainstream and special provision for all age groups. -£52 Early Years Block - It is predicted the Early Years block will have an in year surplus of £52k, as per last report. This is due to the updated pupil numbers which the DfE use to provide a funding update in July. Increased numbers from the January 2019 census have led to a funding increase of £265k and also a positive backdated pupil number adjustment of £153k. As agreed at the last Schools Forum funding rates will be increased to all providers. £1,129 Total in year deficit - This is predicted to increase during 2019 -2020 due to the increased demands on High Needs expenditure. A deficit of £1,791k was brought forward from 2018-2019. This is 1.2% of total DSG and therefore the Authority would be required to submit a report to the DfE explaining the plan to return to a balanced position.

The Dedicated School Grant is ring-fenced and deficits/surpluses are carried forward each year end.

13 Page 33 of 142 11 Housing Revenue Account

11.1 Adjusted Summary Service Position

Housing Revenue Account A B C Sum (C-B) Full Profiled *Adjusted Variance Percentage Year budget Actual to to date variance of Service Budget to date date profiled budget £’000 £’000 £’000 £’000 % Housing Repairs & Maintenance 22,416 9,828 9,871 43 0 Supervision & Management 17,140 7,826 7,978 152 2 Special Services 4,996 2,628 2,653 25 1 Rent & Rates 608 302 304 2 1 Provision for Doubtful debts 1,193 0 0 0 0 Capital Financing 45,430 4,038 4,038 0 0 CDC Contribution 305 0 0 0 0

TOTAL EXPENDITURE 92,088 24,622 24,844 222 0

Dwelling Rent Income -86,931 -51,815 -52,545 -730 -1 Charges for Services & Facilities -2,905 -1,678 -1,729 -51 -3 Non Dwelling rents -1,224 -720 -734 -14 -2 Leaseholders charges for services -279 -163 -309 -146 -90 Other Fees & charges -456 -78 -74 4 0 Interest on balances -264 0 0 0 0 General Fund Transfer -819 0 0 0 0

TOTAL INCOME -92,878 -54,454 -55,391 -937 0

NET (SURPLUS )/ DEFICIT -790 -29,832 -30,547 -715 0

*Actual figures have been adjusted for timing differences and re-profiling issues.

Assistant Director’s comments on significant variances to date

Dwelling Rent Income £0.730m - The profiled variance is due to the numbers of occupied property dwellings, void rates and average rents achieved exceeding the original budget targets. This has been considered in final rent forecasts for the year.

14 Page 34 of 142 11.2 Projected Year End Position

2019/20 P7 Full Year Year End Projected Projected Variation Budget Forecast Variance Variance at Between Housing Revenue Account Second Periods Formal Report

£’000 £’000 £’000 £’000 £’000

Housing Repairs & Maintenance 22,416 23,102 686 0 686 Supervision & Management 17,140 16,246 -894 -299 -595 Special Services 4,996 4,949 -47 28 -75 Ren & Rates 608 566 -42 -20 -22 Provision for Doubtful debts 1,193 1,100 -93 0 -93 Capital Financing 45,430 45,969 539 0 539 CDC Contribution 305 310 5 0 5

TOTAL EXPENDITURE 92,088 92,242 154 -291 445

Dwelling Rent Income -86,931 -87,963 -1,032 -946 -86 Charges for Services & Facilities -2,905 -2,906 -1 -44 43 Non Dwelling rents -1,224 -1,244 -20 -42 22 Leaseholders charges for services -279 -389 -110 0 -110 Other Fees & charges -456 -447 9 -8 17 Interest on balances -264 -264 0 0 0 General Fund Transfer -819 -819 0 0 0

TOTAL INCOME -92,878 -94,032 -1,154 -1,040 -114

NET (SURPLUS )/ DEFICIT -790 -1,790 -1,000 -1,331 331

Assistant Director Comments

11.3 Housing Repairs & Maintenance expenditure forecasts show a projected £686k overspend at P7. This is due to a number of factors but namely the main contractors’ costs been higher than originally budgeted as result of additional work required on average in each void (£500k). To note price per property/price per void pricing with the principal contractor is due to start in January 2020 and this could result in a change in projections, however this is unknown at current. Other external factors could also effect this budget.

11.4 In relation to supervision and management expenditure forecasts show a projected -£894k underspend. -£782k of the forecasted underspend relates to the Housing Management System (HMIS) project. The tender for which has been won by the existing provider of software NPS Northgate but with a cloud based solution. The detailed implementation plan is being developed at present and this will, in particular, have an impact on the £1.152m original budget for this year, which was based upon the worst case scenario / an 15 Page 35 of 142 alternative provider / an earlier start date / on premise solution. £206k relates to vacancy management targets that are not expected to be met in full in the area teams. -£117k relates to an underspend expected in regards the restructure been delayed from June 2019 to early 2020 and the vacancies thereon. -£105k forecast relates to projected staff underspends due to vacancies across the service. -£108k relates to an expected underspend on provisions and £12k is in relation to a variety of other budget lines.

11.5 Special services forecasts show a projected -£47k underspend. -£100k relates to an expected underspend in regards recharges provision. £52k is in relation to variety of other budget lines. Rent & Rates is expected to underspend by - £42k due to projected reduced council tax charges as void numbers are down in 2019-20.

11.6 Regular monitoring is taking place on the Provision for Doubtful Debt due to the rise in debt in response to Universal Credit. Currently, our forecasting is indicating that a slightly lower level of debt provision will be required during 2019-20 than the initial budget hence a current forecasted underspend of - £93k, the view is to continue to monitor closely and review monthly.

11.7 After a review of capital financing costs, we are now forecasting a £540k overspend. Capital financing costs are dependent on a number of factors including the outturn of the capital programme and there has also been a 1% increase in the PWLB loan rate. Capital financing costs will be monitored closely and reviewed thereon until closedown.

11.8 In relation to dwelling rent income the forecast of £87,963k is based upon an expected average of 23,423 properties to be occupied throughout 2019-20 at an expected average rent of £74.848p/week for 50 weeks plus an income accrual of £497k minus £277k expected year-end adjustments plus £85k shared tenancies service charges. This is £1,032k more than the expected £86,931k in the original budget which is based upon 23,251 occupied properties at £74.67p/week for 50 weeks, plus £109k shared tenancies service charges and £14k other rents. Shared tenancies service charges have been included as dwelling rents in the monitoring as this is where they sat in the original approved 2019/20 budget. £121k additional income is forecasted in regards Charges for services and facilities, Non-dwelling rents, Leaseholders charges for services and other fees and charges.

11.9 Based upon the figures at Period 7, the HRA is expected to have a surplus of £1.0m at the year-end compared to the original budget.

12. Risks

12.1 At this stage of the year the main risk is that in the remaining months there are unforeseen variations in the level of demand, and hence net expenditure, falling on the Council, resulting in the forecast position proving to be an understatement of what actually arises. This is particularly the case regarding social care, where ongoing pressures on volumes and significant unit costs can mean that a relatively low number of additional cases may add substantial new spending requirements.

16 Page 36 of 142 12.2 Additional to that, Universal Credit “full service” which started to be rolled out in Hull from December 2018 for all new claims. The full effect of the new Scheme will be experienced during 2019/20. Universal Credit has the potential to impact (adversely) across all Council services, not just area housing teams.

12.3 Future Revenue Budget Monitoring Reports will identify and address any issues arising from the above risks. Reports relating to the Council’s MTFP and 2020/21 Budget will need to reflect the 2019/20 forecast outturn position.

13. Comments of the Town Clerk (Monitoring Officer)

13.1 The further financial pressures in relation to Children’s and Adults Services are noted. While these are able to be managed in year following the maintenance of reserves, longer term these pressures will need to be resolved to ensure that the Council can continue to balance its budget.

14. Comments of the Section 151 Officer

14.1 The Section 151 Officer is the author of this report

15. Comments of the HR Assistant Director and compliance with the Equality Duty

15.1 There are no staffing or equality issues arising from the update.

16. Comments of Overview and Scrutiny

16.1 This report will be considered by the Finance and Value for Money Overview and Scrutiny Commission at its meeting of Friday, 17 January, 2020. Any comments or recommendations made by the Commission will need to be sourced by the report author for inclusion in the report presented at Cabinet. (Ref. Sc5688)

17 Comments of the Portfolio Holder for Strategic Finance – Councillor Webster

17.1 The report highlights ongoing problems with Children’s and Adults service areas and will need constant monitoring but remain ‘manageable’ in year but the rest remains on target.

17 Page 37 of 142 18 Conclusions of the Section 151 Officer and Implications on the Medium Term Financial Plan

18.1 The third formal revenue monitoring cycle has been a valuable process and the outcome from it is available at an early stage of the financial year in order to aid the assessment of the Council’s financial position.

18.2 Currently, this shows for the General Fund that there may be a net year end variance of £ 1.134m which will need to be offset by use of the reorganisation budget. Significant cost pressures have been identified within the care services which have implications for the Council’s MTFP, which is subject to a report elsewhere on the agenda. In addition, if recent trends should continue, the position would deteriorate further before the end of the Financial Year. A contingency for Social Care has been created to mitigate potential additional pressures in the area.

18.3 The Council’s position is reliant on the delivery of savings, and there is assurance that the bulk of the £9.303m savings for 2019/20 are likely to be delivered. There remains the need for focused attention and the necessary actions from the relevant managers and staff to ensure that this is indeed the case in practice. The full and on-going impact needs to be achieved as soon as is practicable so the position in future years remains in line with MTFP assumptions.

18.4 The review work relating to the DSG is important, and needs to come to a successful conclusion, as while balances may be carried forward, this cannot extend indefinitely into the future. The Department for Education announcement of £4.7m additional funding for schools and high needs in Hull for 2020-2021, along with the ongoing review work, will enable the deficit to be repaid over the next three years, fund increased demand and identified priorities for pupils with special educational needs and disabilities.

18.5 The HRA is projecting an in year surplus of £1.000m at Year End.

David Bell Director of Finance and Transformation (Section 151 Officer)

Contact Officer: Brice McDermid Telephone No.: (01482) 615010 Officer Interests: None Background Documents: - None

18 Page 38 of 142

Implications Matrix

I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a Yes decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report

The report is approved by the relevant Assistant Yes Director I have included any procurement/commercial n/a issues/implications within the report

I have considered the potential media interest in Yes this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity There are no equalities and diversity implications within the report and where implications within the report. necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are included n/a within the report Any human rights implications are included There are no human rights implications within the report within the report. I have included any community safety n/a implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor n/a and any environmental and climate change issues/sustainability implications are included within the report I have included information about how this report n/a contributes to the City Plan/ Area priorities within the report I have considered the impact on air quality, Yes carried out an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report.

19 Page 39 of 142

Page 40 of 142 Appendix A 2019/20 Savings Schedule Assistant Directors Analysis of Savings Status as at Period 7

Ref Service Programme/Project RAG (Red / Amber Explanation for variance Savings Area/Directorate Savings / Green) Rating of Savings Target Expected to be Variance current risk achieved position 2019/20 2019/20 2019/20 £000's £000's £000's 1 Adult Social Care Adult Social Care iMPOWER In line with Placement costs projected overspend 5,979 5,479 -500 RED Transformation - Operating Model 1 Total Adult Social Care Adult Social Care iMPOWER Transformation - Total 5,979 5,479 -500

2 Public Health Public Health Spending Reductions 1,086 1,086 0 GREEN and Realignment Total Director of Public Health and Adult 7,065 6,565 -500 Services

22 Property & Assets Work Smart

Currrently unable to accommodate the service requirements for workspace within the current 450 0 -450 AMBER portfolio of offices. Hoping to review position and dispose of some office space later on in the year

Director of Regeneration 450 0 -450 9 Customer Services Development and review of the commercial plan for Bereavement 100 100 0 GREEN Services 14 Town Clerk Reduction in Legal Services Head of Legal Services reduced his working week to Management staffing. 3 days delivering the savings. However, the cost of 20 0 -20 AMBER the Officer that takes on the responsibility for the two days remaining, has been charged to this budget.

Total Director of Legal Services and 120 100 -20 Partnerships

16 Children and Non-Pay Review In line with projected overspend 300 0 -300 RED Family Services 17 Children and CYPS - Partner contributions 200 200 0 GREEN Family Services 18 Children and Residential Review Phase 2 Family Services (including Disability Short Breaks 30 30 0 GREEN Review ) Total Director of Children Services 530 230 -300

8 Finance HB Administration Grant Reduction The grant is linked to the Housing Benefit caseload and is falling. The service is provided by Civica, so the only way to achieve the saving required is to 110 60 -50 AMBER renegotiate and reduce the contract. There are discussions going on about the contract at the moment but unlikely they will agree to a cost reduction 3 Culture and HCAL £241k has been deducted from the Mgt Fee. It is Leisure 428 241 -187 AMBER anticipated that the remainder £187k will be Commissioning recovered from surplus T&H income.

Page 41 of 142 Appendix A 2019/20 Savings Schedule Assistant Directors Analysis of Savings Status as at Period 7

Ref Service Programme/Project RAG (Red / Amber Explanation for variance Savings Area/Directorate Savings / Green) Rating of Savings Target Expected to be Variance current risk achieved position 2019/20 2019/20 2019/20 £000's £000's £000's Total Director of Finance and 538 301 -237 Transformation 20 Corporate Transport Review 150 150 0 GREEN 21 Corporate Customer Enablement and 450 450 0 GREEN Empowerment Total Corporate 600 600 0 Savings

Total Savings 9,303 7,796 -1,507

Page 42 of 142 Appendix B 1 2019-20 Adult Social Services placement cost forecast 5 6 Budget Period 5 reported Position Period 7 reported Position AverageVariance between P7 and P5 Average Average Average No of Average Change No of No of Average No of Average people in cost between people in Average cost Period 5 people in cost based Period 5 Period 7 people in cost based Period 7 service variance periods 7 Placement Category Budget service based on forecast service on variance forecast service on variance variance based on and 5 £m £ per week £m £ per week £m £m £ per week £m £ per £m Residential over 65 25.331 993 491 22.553 1,006 491 26.783 1,018 506 12 15.00 Volume variance £'m (1) 0.332 0.658 Unit cost variance £'m (2) - 0.794 Short stay / respite budget 1.400 Total Variance £m 0.332 1.110 0.778

Residential under 65 14.928 307 935.00 13.836 307 940 14.928 311 960 4 20.00 Volume variance £'m - 0.200 Unit cost variance £'m 0.080 0.304 Total Variance £m 0.080 0.385 0.306

Nursing all ages 1.627 55 569.00 2.500 54 569 1.627 56 569 2 0.00 Volume variance £'m - 0.030 0.030 Unit cost variance £'m - Total Variance £m -0.030 0.023 0.052

Agency Day Care 2.918 263 213.00 2.021 260 213 2.918 266 213 6 0.00 Volume variance £'m - 0.033 0.033 Unit cost variance £'m - Total Variance £m -0.033 0.025 0.059

Agency Home Care 10.877 955 219.00 7.915 1,006 219 10.877 1,007 219 1 0.00 Volume variance £'m 0.581 0.592 Unit cost variance £'m - Total Variance £m 0.581 0.453 -0.128

Supported Living 5.476 95 1,108.50 3.960 99 1140 5.476 100 1140 1 0.00 Volume variance £'m 0.237 0.296 Unit cost variance £'m 0.162 0.164 Total Variance £m 0.399 0.352 -0.047

Shared Lives 0.722 42 327.00 0.544 41 327 0.722 41 327 0 0.00 Volume variance £'m - 0.017 - 0.017 Unit cost variance £'m - Total Variance £m -0.017 -0.013 0.004

Direct Payments 9.901 620 307.00 7.427 630 307 9.901 615 307 -15 0.00 Volume variance £'m 0.160 - 0.080 Unit cost variance £'m - Total Variance £m 0.160 -0.061 -0.221

Total Variance £'m 1.472 2.274 0.803

Notes 1) Volume variance, having different numbers of people receiving a service varies the costs 2) Unit Cost Variance: Paying different amounts per person per week than was assumed in the budget build varies the costs 3) The budgeted average number of people in the service is the average expected across the year and is not people at any one time 4) For the average actual number of people is the average to date and the expectation that the expected number leave the service between now and the end of the year.

Other factors affecting the forecast Expected Underspend on pay and supplies and services -0.100 Total Service variance 0.703

Page 43 of 142 Appendix B 2 2019-20 Childrens' Safeguarding placement cost forecast BUDGET 19 - 20 P5 Forecast Position P7 Forecast Position Variance between P7 and P5 Average Average Average Change No of Average No of Average No of Average No of Average between children cost based *P5 children cost based P5 *P7 children cost based P7 children cost periods 7 Placement Category *Budget based on on forecast based on on variance *Budget forecast based on on variance variance variance and 5 £m £m £m £m £m £m £m £m £m £m LAC Placements Residential Agency 5.604 25 0.2241 6.588 30 0.2196 0.907 5.681 6.592 30 0.2197 0.911 0 0.0001 0.004 Foster Agency 3.467 86 0.0403 4.921 108 0.0456 1.454 3.467 5.080 113 0.0450 1.613 5 -0.0006 0.158 Secure Accommodation 0.629 2 0.3143 0.000 0 0.3140 -0.629 0.629 0.158 0.5 0.3170 -0.470 0.5 0.0030 0.158 Supported Tenancies / Lodgings 1.663 23 0.0723 1.861 29 0.0642 0.446 1.415 1.903 29 0.0656 0.487 0 0.0014 0.041 Fostering HCC 3.752 308 0.0122 4.023 312 0.0129 0.160 3.862 3.944 317 0.0124 0.081 5 -0.0005 -0.079 Family & Friends 1.917 186 0.0103 2.134 188 0.0113 0.157 1.977 2.113 199 0.0106 0.136 11 -0.0007 -0.021 Parent & Baby 0.163 0.178 0.015 0.163 0.178 0.015 0 0.0000 0.000

Non LAC Third Party Payments Permanency Orders (not LAC) 2.780 423 0.0066 2.972 424 0.0070 0.115 2.857 3.133 447 0.0070 0.276 23 0.0000 0.161 Adoption Allowances 1.346 228 0.0059 1.345 -0.069 1.414 1.327 -0.087 -0.019 Therapy & Counselling 0.135 0.135 0.000 0.135 0.135 0.000 0.000 Others 2.191 2.338 -0.107 2.446 2.544 0.098 0.205

Total Placements 23.646 26.495 2.450 24.045 27.105 3.060 0.610

Service Total 23.646 26.495 2.450 24.045 27.105 3.060 0.610

Notes: The forecast is based on the current level of placements and Budget allocation No additional forecast for future placements *Budget and forecast to 3 decimal places disallows accurate calculation of No of Children x Average cost

Page 44 of 142 Appendix B 3 2019-20 Streetscene forecast BUDGET 19-20 Period 5 Reported Position Period 7 Reported Position Change between P7 and P5 Period 5 Period 7 Average Average Average Change in Average Cost / Average Period 5 Cost / Average Period 7 Change in Change in Change in Waste Budget Cost / Cost / Cost / Cost / Tonnage Income Tonnage variance Income Tonnage variance Forecast Tonnage Variance Income Income Income Income Forecast Forecast £m Per Annum £ Per tonne £m Per Annum £ Per tonne £m £m Per Annum £ Per tonne £m £m Per Annum £ Per tonne £m Waste Disposal 10.134 120,235 84.29 10.198 119,403 85.41 0.064 10.060 118,845 84.65 -0.074 -0.138 -558 -1 -0.138 Income from recycling -0.724 18,968 -38.17 -0.845 19,461 -43.42 -0.121 -0.924 19,234 -48.04 -0.200 -0.079 -227 -5 -0.079

Total £'m 9.410 9.353 -0.057 9.136 -0.274 -0.217 -0.217

BUDGET 19-20 Period 5 Reported Position Period 7 Reported Position Change between P7 and P5

Average No Change in Period 5 Average No Period 7 Average No Change in Income of Ticket Average Average Period 5 Average Period 7 Change in No. of Change in Parking Related Income Income of Tickets / Income of Tickets / Average Budget Purchases / Income Income variance Income variance Forecast Tickets / Variance Forecast Notices Forecast Notices Income Notices Notices

£m Per week £ per week £m Per wk £ per week £m £m Per wk £ per week £m £m Per wk £ per week £m Off Street Parking Tickets Purchased -1.153 8,995 -22,115 -1.100 9,141 -19,902 0.053 -1.028 8,676 -19,551 0.125 0.072 -465 351 0.072 On Street Parking Tickets Purchased -1.290 14,826 -24,741 -1.120 10,582 -20,887 0.170 -1.113 10,807 -21,322 0.177 0.007 225 -435 0.007 Penalty Charge Notices (PCN) Issued -1.450 823 -27,810 -1.423 670 -24,935 0.027 -1.447 903 -26,676 0.003 -0.024 233 -1,741 -0.024

Total £'m -3.893 -3.643 0.250 -3.588 0.305 0.055 0.055

Key to £ variances -ve = favourable +ve - unfavourable

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Report to the: Finance and Value for Money Overview and Scrutiny Commission 17 January 2020 Cabinet 27 January 2020 Wards: All

2019/20 Capital Monitoring – Third Formal Report

Report of the Director of Finance and Transformation (s151 Officer)

This item is not exempt Therefore exempt reasons are not applicable

This is a Non-Key Decision

1. Purpose of the Report and Summary

1.1. To provide Members with an updated overview of progress against budget and planned activity for the 2019/20 capital programme.

2. Executive Summary

2.1. The report provides detail of both expenditure against budget and progress against delivery of outputs/milestones. The following appendices are included which incorporate the following:

• Appendix A – Capital Programme 2019/20 to 2021/22 reconciliation of programme changes; • Appendix B – Forecast outturn for 2019/20 and a summary of outputs/milestones information (separated by Portfolio Holder responsibilities); • Appendix C – Revised capital programme 2019/20 to 2021/22 incorporating known changes since the last report to Cabinet on 28 October 2019.

2.2. Actual spend as at the 30 November 2019 is £44.5 million against a revised budget of £119.2 million. Project managers have provided revised forecasts which suggest a forecast outturn of £100.2 million, as shown at Appendix B. This revised figure is based on more realistic spend profiles.

2.3. Appendix A provides an analysis of resource amendments to the programme arising from additional grant income and the development of previously approved schemes.

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2.4. An analysis of capital spending patterns, and forecast outturn positions (budgets) is provided graphically below:

2.5. A final outturn report will be presented to Members in May 2020.

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3. Recommendations

It is recommended that:

3.1. Members note the monitoring information provided at Section 8 and Appendix B.

3.2. Members approve the amendments to the programme detailed at Appendix A, summarised below as:

£m £m Current Approved Programme for 201 9/20 to 20 21/22 355.487 (Cabinet 28/10/19)

Amendments to resources: - Additional External Grant funding 2.534 - Strategic Property Purchases (West Carr Lane – Former 3.087 McBride Factory) - Revenue Contribution to Capital 0.035

5. 65 6

Proposed Revised Programme 36 1.143 3.3. M

3.4. Members note the forecast outturn as detailed at Appendix B and approve the revised capital programme for 2019/20 to 2021/22, incorporating the proposed amendments, as detailed at Appendix C.

4. Reasons for Recommendations

4.1. The recommendations are to approve the changes to the capital programme following the announcement and/or confirmation of additional external grant allocations to support specific programmes.

4.2. Enables Members to consider the progress and delivery of the approved Capital Programme within the approved funding envelope.

5. Impact on other Executive Committees (including Area Committees)

5.1. The provision of reliable financial information supports the Council’s decision making processes and therefore impacts on all Council priorities.

6. Background

6.1. The capital programme for 2019/20 to 2021/22 was approved by Council on 28 February 2019, based on the latest funding assumptions and the financial implications are appropriately reflected within the revenue budget projections contained within the reports relating to Medium Term Financial Plan (MTFP) and Housing Revenue Account (HRA).

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6.2. A revised capital programme for 2019/20 to 2021/22 was subsequently approved by Cabinet in May 2018, reflecting the reprofiling adjustments in relation to project commitments in light of 2018/19 outturn.

6.3. As part the 2019/20 capital programme monitoring cycle, a revised programme was approved by Cabinet on 22nd July 2019 (first formal report monitoring update), and by Cabinet on 28 th October 2019 (second formal monitoring update).

6.4. Appendix A provides an analysis of the programme movements.

6.5. This report provides members with a third reported position for 2019/20.

7. Issues for Consideration

7.1. This is the third monitoring report of 2019/20 and provides Members with an updated overview of progress against budget and planned activity for the 2019/20 capital programme. The following sections provide the overview in more detail.

8. Programme Exception Reporting

8.1. This report is focussed around programme exceptions, following on from the returns submitted by individual Programme Managers, and are detailed in the table below.

8.2. Whilst the intention is to understand and address the reasons why spend against profile variances arise, it is apparent based on the explanations provided by Programme Managers in this monitoring round, that some exceptions are in this case unforeseen, unavoidable or outside the control and influence of the Programme Manager.

8.3. The tables below summarises the variations in programme profiles and deliverables:

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Significant Programme variations arising from delays in programme spend and/or milestone/project delivery

Forecast Budget Outturn Variance Programme £’000 £’000 £’000 Reasons for Programme Variations Programme Variations Albert Avenue Baths 800 200 (600) To refurbish the existing facility to bring the existing Lido back into use as well addressing backlog maintenance

Current progress activity: • Design progressing to determine scope of works • Surveys undertaken to identify backlog maintenance • Production of tender documents commenced

Programme delivery for Albert Avenue and Beverley Road Baths are being staggered, therefore updated spend profile reflects this.

Housing HRA – 18,817 15,943 (2,874) Following completion of the decent homes programme in 2010-11, the Council has Planned Capital Works an on-going duty to maintain the Council housing stock to the government’s decent homes standard. A planned programme of works is developed each year underpinned by the business plan to assess long term affordability of the HRA. This identifies the main elements of work (i.e. kitchens, heating, rewire, roofing, window and door replacement) required to specific addresses to ensure the decent homes standard is maintained.

A provision of £1.7m was included within the planned works budget for a replacement lightning conductor programme to low rise flat blocks. This was noted as a risk at period 1, pending procurement, and will not now progress in the current financial year. The scheme will be subject to a cabinet report to tie the work in with other proposed fire protection works which will be undertaken over the medium term. As a result, this sum requires slipping into 2020-21 in addition to some specialist works relating to communal LED lighting upgrades and high rise soil stack replacement works which will both now be delivered over a two year period.

Further variances have arisen due to fewer reactive kitchen, bathroom and rewire elemental installations being required compared to the numbers originally forecast, and will result in a saving against the budget. 5 Page 51 of 142

Housing HRA – Solid 2,667 1,552 (1,115) The original approved 2019-20 budget included £10.44m to progress a third phase Wall of solid wall insulation to 493 “Caspon” properties in the Bransholme area and Insulation/Cladding £1.32m for cladding works to “5M” type properties at Orchard Park and was substantially re-profiled into 2020-21 at period 1.

Commencement of work on phase 3 was delayed to allow legal issues to be completed to novate the contract originally awarded to Fortem Energy Services.

Following a period of mobilisation, pilot works at the Bransholme Caspon scheme is expected to commence in February 2020. The main programme of works is scheduled to start following review of the pilot scheme. Subject to the pilot being successful, and favourable weather conditions over the winter period, forecast expenditure for the year is £705k, and assumes slippage due a slightly later than anticipated start.

Priority 1,900 1,196 (704) In July 2018 Cabinet agreed a programme of external solid wall insulation and Neighbourhoods - frontage improvement works to the value of £4.1m to privately owned Victorian Frontages properties in the following areas:-

This programme of works is supported through existing uncommitted private housing budget provisions from 2018-19 and ECO/Redressing the Balance funding drawn down from the council’s energy/utility partner following previous energy efficiency programmes.

Resident consultation events have been undertaken in March and October 2019. As agreed by Cabinet, procurement of the contract is via the rotational method and this was planned to be launched during June 2019, with an estimated start on site in Conway Close in Autumn 2019. Unfortunately there have been delays to the procurement process, however, a start on site is planned for January 2020 for Conway and March 2020 for Folkestone. The forecast outturn has been further adjusted to reflect the latest expected delivery of the programme over a two year period. The slippage identified at Q3 is to be carried over into 2020-21.

Schools Maintenance 8,297 7,391 (906) The Schools Capital Programme 2019/20 includes schemes to address basic need and Improvement for primary and secondary mainstream and also Special Educational Needs and Programme Disabilities (SEND) places, together with condition schemes.

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Despite the need for additional secondary places in the West of the City, works to expand Boulevard Academy Free School had to be aborted due to failing to secure the support of the Department for Education to expand the school capacity because of the school’s Ofsted report of Requiring Improvement. An alternative solution to identify where the additional places could be provided is currently being investigated.

Site Surveys are currently being arranged at the existing Broadacre Primary School in preparation to engage a contractor to rebuild and demolish the existing school for completion September 2021.

The reporting and monitoring of defects and the negotiation of Final accounts for other schemes undertaken during the school holidays are currently underway.

The outturn projection has been updated and reflects a more realistic spend profile.

Cemeteries – Priory 1,750 100 (1,650) Planning application submitted in August 2019 has paused due to a risk of great Woods crested newts present within the site and adjacent field. Work has been undertaken with the Ecologist to look at options, awaiting his report to submit as part of the planning application.

Drainage works therefore delayed resulting in limited spend on the project in this financial year.

Travellers Sites 1,403 56 (1,347) There is a requirement in the Local Plan for Traveller pitch provision and for a transit site/tolerated stopping place.

Feasibility studies are currently ongoing incorporating site investigations and ground surveys. Once these are complete the preferred site can be brought forward with the view of commencement on site next financial year.

Bridges – Scott Street 1,000 100 (900) Preparation of scheme for the planned removal of Scott Street Bridge in accordance with planning consent, including consultancy fees for preparation of the contract pre-tender. Followed by onsite works to remove the bridge as per the planning consent. Ongoing preparation of documentation pre-tender. Award of contract expected December 2019, Possible start on site February 2020. The outturn projection has been updated and reflects a more realistic spend profile.

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Highways Projects 10,440 8,038 (2,402) Good progress continues to be made on delivering carriageway maintenance schemes with a further seven schemes completed and three preparing to start on site in January 2020.The footway programme is also progressing well with ten schemes completed and six schemes preparing to start on site in January 2020.

Early works on cycle improvements have continued on the Stoneferry corridor. Extended contract negotiations have completed and the detailed design of the civils elements has begun, however, this has delayed the scheme and therefore funding will be required to be carried over into 2020/21.

Priory Way 1,800 450 (1,350) The Priory Way scheme has been re-programmed to the New Year following a request from Department for Transport to keep all routes to the port clear on the previously proposed Brexit date 31st October.

Beverley Road THI 700 200 (500) The five-year TH Scheme includes; a grants programme for identified properties; public realm works, including boundary treatments at specifically targeted properties; and, a programme of educational & outreach activities.

A re-profiled allocation of grants has increased the budget of targeted properties to assist in the delivery of their frontage improvements.

The tender period for the boundary treatments scheme has closed. The submitted tenders are now being evaluated before the contract is awarded.

The spend profile now reflects the current forecast delivery of aspects of the scheme subject to grant funding approval.

City Centre Public 1,629 815 (814) A city centre public realm capital investment programme to ensure key visitor Realm (Phase 3) destination elements of the Council’s City Plan are met which will play an important role in our preparation for hosting ‘UK City of Culture 2017’.

Improve key pedestrian routes and open spaces and to increase footfall, therefore boosting Hull’s status as a visitor destination. The works are aimed at major refurbishment of the key streets and public areas with high quality natural stone paving materials, additional tree planting and integrated public art throughout.

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Re Phase 3 works: • Contract awarded to deliver the Phase 3 works • Site establishment completed • Delivery programme being finalised

The outturn projection has been updated and reflects a more realistic spend profile. Heritage Action Zone 734 90 (644) The programme continues to reposition the Old Town economy to make full use of its heritage assets and tourist attractions

Proposals are being developed and being made ready for submission to Historic England.

The outturn projection has been updated and reflects a more realistic spend profile.

Investment in Museums 3,000 2,200 (800) The project encompasses the redevelopment of 5 historic assets across Hull: the transformation of the Grade 2* listed Maritime Museum with a new architectural and exhibition scheme; the creation of a collections store at the Dock Office Chambers; the conservation of two historic vessels – the Arctic Corsair and the Spurn Lightship, and the creation of a visitor orientation centre at the derelict North End Shipyard, the proposed new permanent berth of the Arctic Corsair.

The project focuses on the promotion and preservation of Hull's maritime history, architecture and collections, and offers opportunities for skills development, employment, and volunteering.

Current project activity:

• The construction and engineering designs are nearing completion and specifications and contract documents are being prepared in order to tender works packages as soon as permission to start is given. • Documentation and assessment of the reserve collection continues, with detailed audits. • The detailed activity plan working with the communities, schools, colleges with other institutions and partners are being prepared.

The outturn projection has been updated and reflects a more realistic spend profile. Total 54,937 38, 331 (1 6,606 ) 9 Page 55 of 142

Significant accelerations in Programme delivery and profile resulting in a forecast increased in year spend.

Forecast Budget Outturn Variance Programme £’000 £’000 £’000 Reasons for Programme Variations Corporate Buildings 2,721 3,350 629 The criteria used for prioritising the projects are:- Maintenance • Payment of retention monies for projects undertaken in previous years, where the defects liability period is due. • Health and safety maintenance with have a legal and statutory requirement • Priorities identified as essential to maintain the delivery of essential Council services and protection of revenue income streams those services generate. • Repairs identified as supporting lettings of the Council’s portfolio of shops, offices and factory units and which would generate income and also revenue savings.

The projected accelerated spend is due to the general budget pressures in the capital programme to ensure that the corporate estate is compliant in both health and safety and statutory compliance and that the service areas continue to function. In addition additional pressures are forecast following recently completed major schemes that have an appropriate amount of warranty coverage and maintenance inspections going forward.

Leisure Facilities 1,410 2,155 745 The total budget for maintenance of the Council’s Leisure Facilities is £1.4 million Maintenance for 2019/20. Working collaboratively with the service provider to ensure continuation of service whilst a comprehensive maintenance programme be delivered to rectify backlog maintenance issues across the portfolio

The proposed scheme at Ennerdale Leisure Centre involves a major upgrade of mechanical and electrical service, ventilation systems, fire alarm, upgrade of the building management system, refurbishment of the reception area and creation of additional disabled changing facilities at a pre-tender cost estimate including of £1.90m. Ennerdale Leisure Centre is over 30 years old and accordingly the plant and services are in a poor condition and operate inefficiently leading to unforeseen failure and additional revenue costs.

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The proposed scheme of works is currently within its delivery period on site and due to be handed by over to HCC early 2020 with an opening mid-January. Financial projection is shown to be £2.15m, and is largely due to significant issues in the condition of the roof, ground floor toilets, aging hidden pipework and defective installations whereby failure of remedial action would potentially impact on the health and safety of the users of the site and interruptions to service delivery.

Pearson Park Heritage 1,632 2,152 520 Following the conclusion of the bid evaluation process, the National Lottery has Investment granted the Council a £3m grant to restore Pearson Park under the HLF Parks for People scheme.

The restoration works will allow for the comprehensive physical restoration of the site’s historic landscape, buildings and structures in addition to a five year activity and learning plan.

The scheme is progressing well is forecast to be ahead of profile.

Total 5,763 7,657 1,894

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9. Capital Programme Reprofiling

9.1. Actual capital expenditure to 31 December 2019 for the full capital programme amounts to £44.5 million against a revised budget of £119.2 million for 2019/20. Whilst historic trends suggest spend levels do increase significantly in the later months of the year, Programme Managers have reviewed the forecast outturn positions (Appendix B), and they remain confident of delivering the approved programme for 2019/20, although variations have been identified and are reported within Section 8 and Appendix B. Any reprofiling of budgets into future years will not be undertaken at this stage but confirmed as part of the Outturn process and will be incorporated into the Financial Outturn report due to be considered by Members in May 2020.

10. Options and Risk Assessment

10.1. This report is to provide Members with an overview of the current progress of delivery of the approved Capital Programme, and to approve variations to the Programme based on additional and/or revised funding streams.

11. Risk Assessment

11.1. Given spending of £44.5 million has been achieved to 30 November 2019, a significant acceleration in the rate of spending over the remaining months of the year is required if the revised forecast outturn of £100.2 million is to be delivered.

12. Consultation

12.1. Consultation will be undertaken for specific programmes or individual schemes where appropriate.

13. Comments of the Town Clerk (Monitoring Officer)

13.1. The amendments to the Capital Programme fall within the framework agreed by Council in February 2019. The purchase of the former McBride site is a spend to save scheme, and the external capital funding received does not impact on the Council’s borrowing requirement.

14. Comments of the S151 Officer

14.1. The Director of Finance and Transformation (S151 Officer) is the author of the report.

15. Comments of the HR City Manager and Compliance with the Equality Duty

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15.1. There are no staffing or equality issues arising from the update.

16. Comments of Overview and Scrutiny

16.1. This report will be considered by the Finance and Value for Money Overview and Scrutiny Commission at its meeting of Friday, 17 January, 2020. Any comments or recommendations made by the Commission will need to be sourced by the report author for inclusion in the report presented at Cabinet. (Ref. Sc5689)

17. Comments of the Portfolio Holder for Strategic Finance

17.1. I fully support the amended changes, and the reasons given re slippage can be wide and varied, that said the spend is broadly in line with previous years.

David Bell Director of Finance and Transformation (s151 Officer)

Contact Officers: Mike Armstrong Telephone No. : 613282

Officer Interests: None

Background Documents: • 2019/20 Capital Strategy Incorporating 2019/20 Capital Programme • 2019/20 Capital Monitoring Reports • 2018/19 Capital Outturn Report

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Implications Matrix

I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a Yes decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report

The report is approved by the relevant City Yes Manager I have included any procurement/commercial n/a issues/implications within the report

I have considered the potential media interest in Yes this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity Yes – see comments from the HR City implications within the report and where Manager. Other equality and diversity necessary I have completed an Equalities implications are considered within Impact Assessment and the outcomes are individual programmes where included within the report appropriate. Any Health and Safety implications are included n/a within the report Any human rights implications are included There are no human rights implications within the report in this report. I have included any community safety n/a implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor n/a and any environmental and climate change issues/sustainability implications are included within the report I have included information about how this n/a report contributes to the City Plan/ Area priorities within the report

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Appendix A

Capital Programme 2019/20 to 2021/22 reconciliation of budget changes

£m £m Original Programme ( Feb 201 9 Council) 328.978

Adjustments re 2018-19 Outturn Position: - Accelerated funding (2.731) - Contractual commitments reprofiling 14.570 - Non-contractual reprofiling 10.796 - External Funding - updated allocations 4.232 26.867

Revised Programme ( May 201 9 Cabinet) 355.845

Adjustments re 2019/20 First Reporting Period - Additional External Grant Funding 0.387 - Strategic Property Purchase (Waverley Street) 3.500 - HRA/Private Housing Programme realignment (5.059) (1.172)

Revised Programme (July 201 9 Cabinet) 35 4.673

Adjustments re 2019/20 Second Reporting Period - Additional External Grant Funding 0.314 - Capital Receipts Flexibility (Service 0.500 0.814 Transformation)

Revised Programme (October 2019 Cabinet) 355.487

Adjustments re 2019/20 Third Reporting Period - Additional External Grant Funding 2.534 - Strategic Property Purchase (West Carr Lane) 3.087 - Revenue Contribution to Capital 0.035 5.656

Revised Programme (January 2020 Cabinet) 36 1.14 3

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Appendix A

Details of Resourcing Changes as at Third Reported Period 2019/20

Amendments to Resources £m £m

Current 201 9/20 Cap ital Programme Budget 115.212

External Grant Funding: - Investment in Schools 0.043 - City Centre Public Realm 0.495 - Heritage Action Zone 0.153 - Future High Street Challenge Fund 0.150 0.841

Revenue Contribution to Capital - Customer Enablement Programme 0.035

Strategic Property Purchase 3.087

Total In crease in Capital Programme 3. 96 3

Revised 201 9/20 Capital Programme Budget 11 9.17 5

• Investment in Schools – various private contributions received to support additional works. • City Centre Public Realm – reflects additional private contributions to support Phase 3 works. • Heritage Action Zone – Future High Street Funds grant confirmation. • Future High Street Challenge Fund – Award of £150k from the MHCLG to develop a full capital investment business case for the regeneration of Whitefriargate, which if successful could attract funding of up to £22m. • Customer Enablement – revenue contribution to support additional works at the Wilson Centre. • Strategic Property Purchase – the strategic acquisition of land and property at West Carr Lane, the former McBride Ltd factory site. The acquisition provides an opportunity for the Council to expend its otherwise landlocked depot site with the potential for creating a business park to encourage investment.

16 Page 62 of 142 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Portfolio: Adult Services and Public Health Adults Services 122 31 153 84 69 153 0 Karelia Court Adaptations - a programme Karelia Court Minor refurbishment costs to be covered by of minor adaptations and refurbishment DFG confirmed. has recently been undertaken at Karelia Court to create a permanent home for MG. An application for Disabilities Grant Funding has been successful which will cover the expected costs.

Park View Residential Care redecorations - a programme of redecoration and flooring is planned for Priory Park, the work is due to start early in the New Year.

220 Preston Road Residential Care – Nurse Call - a new Nurse Call System is being fitted to 220 Preston Road to provide extra security and safety to the establishment.

Sub Total 122 31 153 84 69 153 0

Portfolio: Corporate Services ACFS System Refresh 121 121 182 (61) 182 61 The implementation is coming to an end Budget reprofiled over 2020/21 and 2021/22 to support Project and all contracted modules are due to be future costs as part of the initial 5 year programme and in place 19/20. The core modules for covers costs for some modules that went live in year 2 Adults, Children’s, Early Help and and 3 of the 5 year programme. Finance where all implemented as part of phase 1 and are live. Phase 2 consists of the online portals that provides functionality for Clients, providers and professionals to access facilities and transact with Social Care Services online.

Agile Working/Work 1,149 1,149 843 306 1,149 0 • ICT device procurement and rollout (est. • Completion of final ICT Procurement • Final ICT Procurement Competition • Programme Board to determine priorities / timeline for Smart 800 devices remaining) Competition awarded and contracts signed property spend which will likely impact the planned • Tender for furniture contractor (design and • ICT deployment schedule to be extended • ICT team contracts extended and activity / outputs / forecast outturn for the 2019/20 supply) to end of 2019-20 financial year signed off until the end of rollout financial year • Warehouse 9 building refurbishment • Further ICT deployment to be undertaken programme • £1.6 million committed for 5th year spend on ICT device project (inc. design, procurement and on behalf of N&H to deploy to whole service • 3rd Floor Warehouse 9 re-design replacement budget installation of furniture) (N&H to journal costs to WS budget in Q4 completed • The allocation of the remaining Property Workstream • Kenworthy House building refurbishment once completed) • Replacement furniture and equipment budget will be determined according to need / project (inc. design, procurement and • 3rd Floor Warehouse 9 re-design to be purchased for Brunswick House meeting requirements of the property plan, which is a long-term installation of furniture) signed off and scheduled room and reception area strategy, meaning budget will likely need to be carried • Wilberforce Health Centre relocation forward to the next financial year to fund future projects project (inc. design, procurement and within the Programme installation of furniture). • WorkSmart project team staff (Transformation, Property and ICT) • Room Booking System solution (inc. procurement, installation and launch) • Space Utilisation Reporting solution (inc. procurement, installation and launch) • Feasibility studies

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Page 1 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Customer Enablement 1,370 35 1,405 532 873 1,267 (138) The new CRM first phase is now live most of - Work to progress further online services, Street lighting fault reporting went live Assisted Digital' started at North Point and the Orchard the remaining budget will be required in '19- particularly focussing on environmental Missed bins reporting online went live Centre, helping customers to self-serve online. Physical '20 with some expenditure slipping into '20- services and waste management Further enhancements to Revs and Bens changes to the Wilson Centre to provide a better '21. Most of the spend is contractually - 'Assisted Digital' to launch online services - including exemptions environment for self-service are now scheduled for the committed to our suppliers, with the and disregards new year. A volunteer programme to provide general remainder in staff costs, some posts online support is now in place across a number of currently in recruitment and others already venues in the city. occupied. Further services were added to the online offer, notably street lighting fault reporting in time for the darker nights, and missed bins online reporting.

Note that the Housing Management System replacement is now due to reach an appropriate phase of implementation in '20-'21, and so budget for integration between this and the Customer Relationship Management system has been moved to next year.

Digital Programme 178 178 20 158 44 (134) - Staff input to formulate the Digital Strategy - Complete revision of Digital Strategy - Digital Strategy revised This budget breaks down into costs for staff for the into a coherent programme of activities - Submit funding bids for projects in line with - A number of funding bids submitted, but programme generally, and a specific project budget for - Programme management including to the Digital Strategy with limited financial success to date (this the Data Warehouse leverage external input (e.g. attract grant - Determine new direction for Data activity continues, learning from feedback - Only one member of staff is currently in post. funding and/or partner contributions in kind) Warehouse project from initial bids) Recruitment is being staggered in line with when the bulk - Data Warehouse phase 1: discovery and - Data Warehouse expected direction is of the work is due to take place. design, Power BI skills investment now understood, but this project is unable -The Data Warehouse is being actively delayed (as - Data Warehouse phase 2: Power BI to recommence in earnest until '20-'21 opposed to just slipping). The initial proposal presented performance reporting across initial scope when detailed Microsoft direction is clear did not seem certain to offer best value, and so this has (mainly adult social care) been revisited. - Data Warehouse phase 3: extension of proof of concept across wider scope of services

ICT Infrastructure and 1,470 471 1,941 370 1,571 1,941 0 Existing committed projects to progress Obtain authorisation via CST and Cabinet to Authorisation received from CST and Refresh inline with agreed PAPA business cases. procedure with proposals and undertake cabinet to procedure with proposal and Budget currently not assigned to active procurement exercise for hardware start procurement exercise. Procurement projects to be reprofiled to support changes required. Ensure proposal supports the ICT exercise commenced and nearing to digital strategy, such as Windows 10 strategy and compliments wider capital completion. Prepared for delivery by deployment, including Office 365 and programme being undertaken by ICT. making required space in ICT stores. migration to cloud. This profile rework is Project plan in place, resources allocated expected to be understood by Q2. Budget to and aligned to worksmart programme. be reprofiled to support changes to digital strategy, such as Windows 10 deployment, including Office 365 and migration to cloud.

ICT Infrastructure 471 -471 0 0 0 0 0 - - - Refresh ICT Relocation 410 410 12 398 410 0 Feasibility study has shown that the Agreement of proposed site. Visuals produced by NPS to show Town Hall chambers is Property & Assets preferred site proposed site is not suitable for ICT's possible refurb of Town Hall Chambers. which is subject to negotiation with Unison regarding requirements, including capacity. Work to vacation to an alternative site. progress with Property and Assets to source an alternative suitable location. Service 3,500 3,500 449 3,051 3,500 0 In line with MTFP included within the Council In line with MTFP included within the Transformational approved Budget Report. Council approved Budget Report. Schemes - MTFP Sub Total 8,669 35 8,704 2,408 6,296 8,493 (211)

Portfolio: Culture, Leisure and Tourism Albert Avenue Baths 800 800 13 787 200 (600) Progress the design, procurement and Progress surveys, design and commence Surveys completed, design progressed Programme delivery for Beverley Road & Albert Avenue delivery of the scheme compilation of tender documents and tender document compilation Baths is being staggered. As such, in 19/20 the full commenced anticipated spend will not be realised and £600k to be reprofiled to 20/21.

Beverley Road Baths 400 400 12 388 400 0 Progress the design, procurement and Progress surveys, design and commence Surveys completed, design progressed Anticipated spend in line with budget allocation delivery of the scheme compilation of tender documents and tender document compilation commenced

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Page 2 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Ice Arena Gas 150 150 88 62 150 0 Essential works to keep the facility Planned works on site Planned works completed and site continues to be Refrigeration operational. monitored however there is a risk the reactive repairs will be required due to the age and condition of the arena

Library Equipment 389 389 296 93 389 0 £ 389,000 £ 226,917 £ 274,806 The budget shows an overspend against the profiled Resources budget which is due to subscription renewal of databases in this quarter. We continue to monitor the budget expenditure on a monthly basis and are confident of achieving the allocated budget by the end of the financial year. Mount Pleasant Library 94 94 5 89 94 0 The library facility is currently housed in a Final account to be agreed and retention to Final account agreed. Retention yet to be Relocation leased in commercial unit and the lease release. released. ended in May 18. The functions of the library will be relocated into a suitable property within the Council's property portfolio.

Parks 936 936 168 768 650 (286) Based on the playground condition East Park £100k Bransby £5K Rolling programme of playground refurbishment across assessments sites will be refurbished Pearson Park £70k Stonebridge £30k the city. Projects take time to consult on and lead to according to need. Falkland Rd £20k delays. Planned Activity projects finally have clearance to Massey St £30k go ahead and will be delivered in the New Year King George V £20k

Parks - East Park 1,000 1,000 15 985 1,000 0 Complete the delivery of the Pickering Park Issue tenders for the splashpool, splash Tenders for splashpool and splash boat Anticipated spend in line with budget allocation Splashpool, Pickering Aviary and commence the refurbishment of boat and develop scope of works for issued and returned. Pickering Park Park Aviary East Park splash boat and splash pad Pickering Park Aviary Aviary scope of works being developed

Sub Total 3,769 0 3,769 597 3,172 2,883 (886)

Portfolio: Economic Investment, Regeneration & Planning, Land & Property Boulevard UFE Phase 4 75 75 0 75 75 0 Proposals to demolish the former vacated Progress to detailed design stage. NPS instructed to produce tender ITEC building and develop a further phase documents for Contractor design project. of factory units as an extension to the popular Boulevard Unit Factory Estate. Buildings Optimisation 253 253 63 190 200 (53) Refurb of 79 Lowgate and completion of Progress the 79 Lowgate Project to PO issued for Contractor to progress a The preferred design for 79 Lowgate now addresses the Programme sundry related projects Contractors detailed costed design . costed design. Initially two alternative many challenges of developing this historic building to feasibility designs have been produced. modern standards. Contractor has been instructed to progress with our preferred design. City Hall Shops 50 50 0 50 50 0 Subdivide the 3 larger vacant units into separate smaller units to achieve lettings and increase revenue income. City Plan Regeneration 12 12 1 11 12 0 £ 12,000 Projects linked to the City Plan. Remaining funds to be Projects used for remodelling facilities. Corporate Buildings 2,721 2,721 2,948 (227) 3,350 629 Capital investments driven with a focus on Practical completion of planned backlog Capitalisation of revenue costs which are During the third quarter schemes such as city hall and Maintenance (inc. health and safety and statutory compliance maintenance schemes. Continuation of health & safety related. Remedial works central library roof have reached practical completion and Health & Safety) at a corporate building level. In addition a health & safety and statutory inspections following statutory inspections final accounts arranged. Statutory inspections programme of planned improvements led by programme and commission of remainder of programme is commissioned and due to programme is nearing completion for the programme of condition data pertaining to corporate inspections programme. be completed by the end of the financial remedial works to begin. Significant strain on the properties and the maintenance ensuring no year. Planned backlog maintenance associated revenue budget continues to be an issue loss of service. schemes completed and final accounts requiring substantial resource to ensure the property arranged portfolio is compliant and leading to a projected overspend of the budget Corporate Property 523 523 43 480 523 0 City wide energy saving investment Continue to work towards procurement and Spend to save analysis complete and Delivery of scope of works is feasible within the financial Energy Savings programme validation of spend to save analysis officer authorisation in progress for year. Projects contractor engagement in final quarter

EZ Regeneration Sites 222 222 63 159 222 0 An initial tranche of funding released to £75k allocated to a feasibility study associated with establish a revolving fund to promote the selected EZ sites. Matched against £50k Greenport. development, remediation, servicing and WPG appointed to undertake detailed feasibility study. assembly of individual sites primarily Revolving fund designed to develop EZ sites. focussed within the EZs, where the market is unable to deliver development, through the recycling of business rate uplift where the Council can seek a return on such investment both financially and through investment outcomes. Page 65 of 142

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Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Guildhall Roof 700 700 0 700 700 0 Delivery of phase 1 of the proposed Works on site and in progress Works on site and in progress working to guildhall roof works revised timescale due to delay in second quarter.

Guildhall Security Gates 224 224 0 224 224 0 Delivery and installation of the gates and Works on site and in progress Works on site and in progress working to security enhancements revised timescale due to delay in second quarter.

Hepworths Arcade 250 250 0 250 100 (150) Deliver scope of works for the internal Approval achieved and scheme tendered Approval achieved and scheme out to Works due to start on site early 2020, remainder of alterations and enhancements tender allocation to be profiled into 2020 for completion.

Holderness Drain Flood 1,000 1,000 0 1,000 1,000 0 Funding to support the significant drainage The scheme is moving at pace and the Works improvement investment scheme funded via invoice for our £1million contribution is due the Environment Agency in November/December 2019.

Key Buildings Energy 1,097 1,097 18 1,079 1,097 0 City wide energy saving investment Continue to work towards procurement and Spend to save analysis complete and Delivery of scope of works is feasible within the financial Efficiency Programme programme with a focus on 5 key buildings, validation of spend to save analysis officer authorisation in progress for year. all detailed schemes delivered contractor engagement in final quarter

Leisure Facilities 1,410 1,410 992 418 2,155 745 Delivery of Ennerdale Leisure Centre Ennerdale refurbishment in construction Ennerdale on site and on programme for Intrusive strip outs and investigations not possible whilst Maintenance refurbishment programme progress January 2020 completion the building was in operation revealing significant fabric Programme defects of a health and safety nature which require remedial works and additional investment which is having a financial impact on contractual budget but is contained within the approval limit

Multi Storey Car Parks 100 100 57 43 57 (43) Delivery the intermediate service area works planned for this financial period works planned for this financial period Secure fixing of Pryme Street's external concrete panels (Feasibility & needs and health and safety inspections complete complete. Planned works for 2020 in required and additional bracing to the entire façade. Refurbishment) progress for implementation next financial year Regeneration - Green 79 79 0 79 79 0 £ 79,000 Contractually committed for CCTV Works to Alexandra Port Hull Dock. NPS to confirm when this scheme is due to commence on site Stockholm Road 150 150 0 150 50 (100) Repairs and improvements to Stockholm Progress chase completion of feasibility Limited progress on feasibility studies It is anticipated that actual delivery / spend against the Security Road Depot security and facilities including studies; finalise Operational Action Plan & which impacts on Operational Action Plan Action Plan will begin in quarter 3 & increase across perimeter, ground work, lighting and commission work in line with plan. & commissioning of work. It is anticipated quarter 4. cameras. that actual delivery / spend will begin in quarter 4. Whilst the allocated budget is not expected to be spent in full 2019/20 the total £150k is anticipated to be required to complete the necessary repairs and improvements to Stockholm Rd and so underspends will require reprofiling to 2020/21.

Strategic Property 3,645 3,087 6,732 3,675 3,057 6,732 0 This property purchase fund was created to Purchase of land and property re the former Purchase of land and property re the Budget reflects the purchase of the Land and Property at Purchases enable the Council to purchase strategic McBride's Factory, West Carr Lane, Hull. former McBride's Factory, West Carr Waverley Street which is the preferred Highways assets. Lane, Hull. England compound site option in vicinity of the proposed A63/Castle Street Highway Improvement Scheme. Cabinet Report approved at the 25/06/18 meeting refers. Also the purchase of the former McBride's Factory on West Carr Lane. Walton Street Car Park 33 33 60 (27) 60 27 Mitigation of health and safety elements of Works complete Works complete Works complete however additional health and safety work (potholes and drainage) in preparation requirements have led to an overspend ensuing the site for hull fair and other planned events during was safe for general public during hull fair and was the 2019 period complaint for disability access to on site facilities Wilson Centre Air 50 50 0 50 50 0 Deliver a number of sustainable energy Delay due to resource allocation Resource reallocated and proposal ready Following the modelling of the Wilson centre and a Conditioning saving elements of work with a focus on for implementation review of sustainable solutions it is unlikely that the full sustainable approaches to energy use for budget will be required to provide air-conditioning. This heat reduction budget will be required in part to be reprofiled to prioritise energy saving on a spend to save basis with circa £75k focused on air-conditioning Sub Total 12,594 3,087 15,681 7,920 7,761 16,736 1,055

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Page 4 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Portfolio: Housing HRA: Council House 2,500 2,500 1,242 1,258 2,300 (200) Provision for an estimated 2,800 major and 1,260 1,361 As reported previously, work continues to clear the Adaptations minor adaptations to provide assistance to waiting list for surveys with interim measures now in tenants in council properties. place following Adult Social Care processing their backlog of assessments. Current analysis is indicating spend more in the region of £2.3m to be delivered in the current financial year. Slippage of £200k to 20/21.

High Rise Fire 730 730 167 563 380 (350) Medium term budget established following 0 0 Installation of enhanced fire doors to flat entrances Protection Works the Grenfell fire tragedy to enhance fire remains on hold due to fire test failures as previously safety measures throughout Hull CC stock reported. Survey works complete in respect of the of high rise blocks of flats - specific works to remodel of "Type 5" flats, options under consideration, to include over 1,200 fire safety doors, with progress 2020-21. No specific requirements for use of general provision to allow for any costs the general measures provision carried forward from arising from the outcome of review, 2018-19 which was re-profiled to future years at quarter 1 recommendation or guidance. apart from the retention of a small contingency to meet any unforeseen requirement arising over the remainder of the year. Slippage of £350k to 20/21.

Housing Regeneration 827 (100) 727 75 652 727 0 Provides for a HRA contribution to the No measureable outputs planned in the year - small provision for residual costs for Main spend being HRA contribution to renewal Schemes demolition and relocation of tenants within GTS scheme and agreed HRA contribution for renewals programme. programmes which is billed through journal at the year the Preston Road renewal area (£429k), end. Residual costs estimated at £80k to complete the with the remainder being the completion of GTS scheme with the remaining demolition budget make good and ancillary works at the Great earmarked for approx. 300 garage demolitions pending Thornton garage demolition site, along with procurement. general ad-hoc demolition provision.

New Build 3,372 3,372 2,274 1,098 3,392 20 Budget provides for the delivery of 61 18 18 Contracts awarded to 4 contractors for the delivery of up properties at Grange Road, and a number of to 39 new homes during 2020-21 through the small sites small sites across the city, being the first programme, with an anticipated commencement on site year of a planned five year programme to during March 2020. As part of the programme, HCC has build 600 new properties for rent. agreed the purchase of an additional 18 new homes from the existing site developer at Alexandra Gardens & Wawne View, Keepmoat Homes. Continuing to work with our development partners to establish a scheme for Preston Road main phase. Final planning application for the new homes is expected by January 2020. No starts are expected in the current financial year. A further 12 homes will be delivered through Keepmoat as part of a mixed tenure scheme at Grange Road. The first 3 new council homes are scheduled to be completed 2020-21. Following feasibility, no starts are expected at a further site at Dane Park in the year owing to the presence of significant ‘abnormals’ and very high build costs. We are currently exploring procurement options to bring forward this site which is identified in the HRA business plan.

Empty Properties 2,600 2,600 1,191 1,409 2,132 (468) On-going scheme for the acquisition and 8 4 Acquisition of a further 8 properties planned for future refurbishment of empty property to bring refurbishment, 19 previously acquired properties back into use as council housing. Numbers scheduled for refurbishment in the year in addition to dependent on funding availability through finalisation of works at Margaret Street multi property grant and receipts. scheme. Delivery of the above is not expected to utilise the full £2.6m budget, there could be further slippage if some of the planned acquisition is not achieved. Delivery of the above is not expected to utilise the full £2.6m budget, there could be further slippage if some of the planned acquisition is not achieved. Slippage of £468k to 20/21.

Planned Capital Works 18,717 100 18,817 8,503 10,314 15,943 (2,874) Provision for over 3,800 elements of work 2,030 2,037 As noted previously, the budget included £1.7m for a including planned and responsive kitchen, scheme to replace lightning conductors across high and bathroom, heating system replacement, low rise stock and was risked as potential slippage. This rewires, roofing and replacement doors. contract is still to be procured, and is now unlikely to Additional low cost outputs, e.g. periodic progress this year, therefore the full budget has now electrical inspection, smoke alarm been indicated to slip into 2020-21. Current forecasts inspection & replacement, along with indicate a reduced requirement against budget for specialist and communal works are also reactive kitchen, bathroom, heating and re-wire works in costed to this budget. the year. Slippage of £2.24m to 20/21.

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Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments RTB Grant 724 724 0 724 724 0 Use of surplus Right to Buy receipts that 13 13 Budget represents approved new build or renovation would otherwise have had to be returned to proposals from 2018-19 where initial bids were approved CLG to provide other social housing but payment not made by the close of the financial year providers build properties in the city - carry and is fully committed for release during 2019-20. The over provision from funding approved during budget and funding assumptions may need to be 2018-19. adjusted to reflect any further successful bids before the end of the financial year. Solid Wall 2,667 2,667 395 2,272 1,552 (1,115) The budget provides for the continuation of 35 25 On-going delays as mentioned previously for the Insulation/Cladding the cladding programme with a third phase Bransholme Caspon, this has resulted in a slight revision of works to 386 Caspon type properties at to the anticipated progress in the year. A pilot Bransholme (£10.7m) delayed from 2018- programme of works started November on 4 Caspon 19. In addition, provision of £1.3m has been properties and 4 5m properties and due to complete included for works to 5M type properties at February 2020. The main programme of work is to Orchard Park, which were formally removed commence following review of the pilot, with a revised from the programme in 2017-18, pending spend in the region of £700k forecast for the year. The further investigation to determine the residual mop up works from phases 1 and 2 at Orchard suitability of insulating this type of property. Park and Preston Road is now finished. Slippage of The remainder of the budget is residual mop £1.12m to 20/21. up works from phases 1 and 2 at Orchard Park and Preston Road pending access to complete the works.

Hull Neighbourhood Renewal Programme: Housing and 773 773 190 583 524 (249) Carry forward of successful bid funding to 30 30 Programme unlikely to spend full year budget allocation Technology for People promote independent living for people with in year. Update from NPS due in December. Slippage with Learning learning difficulties through the use of required of £250k into 20/21. Disabilities assistive technology. The funding will provide for 51 people to have more choice and independence. Ings Programme 586 586 219 367 586 0 Continuation of residual programme of Continued engagement with those remaining owners and residents affected in the final Overall programme on target, final property acquisition acquisition and demolition works at the Ings phase of acquisition and continued preparation for demolition. and demolition scheduled to substantially complete 2019- renewal area to deliver cleared land for 20. development.

Newington & St 585 585 348 237 585 0 Continuation of residual programme of Programme has reached its natural conclusion, no specific measurable outputs in year Scheme substantially complete, residual costs possible Andrews Programme acquisition and demolition works at the apart from works noted in comments. where properties have been acquired and the title to NaSA renewal area to deliver cleared land compensation remains unknown. The forecast provides for development. for a S106 highways contribution of £225k in the year to facilitate future development as previously reported. Additional costs identified at quarter 1 of £170k re demolition of Charleston Club previously marketed without success. The cleared site will be marketed in due course. Preston Road 167 167 374 (207) 166 (1) Continuation of residual programme of Engagement with those owners and residents affected in the remaining phases of Overall programme on target to available budget, final acquisition and demolition works at the acquisition and continued preparation for demolition. property acquisition and demolition scheduled to Preston Road renewal area to deliver complete 2020-21. The HRA approved programme cleared land for development. provides for a 2019-20 contribution to the scheme of £429k with the budget and forecast being shown net of this.

Priority Neighbourhoods 1,900 1,900 165 1,735 1,196 (704) Budget provides for a three year programme 0 0 Procurement being finalised through rotational method, Programme - Frontages of frontage and neighbourhood with planning been submitted and subsequently improvements to 352 privately owned approved. The tender finalisation is imminent and housing at Ruskin/Perry St, Conway Close, appointment is expected December/January. Site work Sculcoates Lane and Folkstone Street as expected to commence in January 2020. Further approved by Cabinet on 23rd July 2018, and slippage identified due to delays in procurement process. part supported through draw down of Slippage of £704k to 20/21. ECO/Redressing the Balance funding from previous energy efficiency programmes.

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Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Disabled Facilities Grant 3,000 (31) 2,969 1,515 1,454 2,600 (369) To provide for means tested grants to 181 The waiting list for DFG housing surveys following Adult provide adaptations to enable disabled Social Care clearing their backlog of assessments has private residents to live independently at now been reduced to surveys being undertaken within home. performance time targets. Discussions with Adult Social Care identified additional projects/work streams eligible for DFG funding within the year. A further workshop is scheduled with colleagues from Adult Social Care and the CCG in December 2019 to identify work streams for 2020-21 in addition to the statutory DFGs. The underspend is to be carried over into 2020-21. Private Sector Housing 650 650 489 161 650 0 Block provision to tackle category one 56 Spend progressing in line with available budget, no hazards and non decency through loan specific issues noted at this stage of the year. assistance to vulnerable private homeowners, improve energy efficiency, enforcement actions for empty properties/works in default, assist in the delivery of statutory housing/nuisance duties and poor conditions within the private sector, contribution to regeneration activity in renewal areas. Sub Total 39,798 (31) 39,767 17,147 22,620 33,457 (6,310)

Portfolio: Learning, Skills & Safeguarding Children Children's Homes 700 700 55 645 225 (475) Cabinet has approved replacing 1123 The re-phasing of the Hawthorn Avenue Ings Children's Home Contract completed Works on the two 4 bedroom homes has now completed. Reprovision/New Build Hessle Road Children’s Home with a new East programme required a decision from Ground works for the West Children's One of the homes in commissioned and a young person build children’s home. Keepmoat Homes Keepmoat who have now proposed a new home have commenced at risk to the has moved in, the second home is in the process of have progressed designs for a new home location on Hawthorn Avenue West and this developer. being registered with Ofsted prior to commissioning. The on Hawthorn Avenue and have prepared a has been accepted by CYPS, design work two six bedroom homes will be completed in the next cost plan. The re-phasing of the Hawthorn for the home at the new location is ongoing financial year. The West Hull children's home is slightly Avenue East programme requires a formal although works have started onsite at risk to behind schedule due to a change in the proposed decision from Keepmoat Homes. This is the developer. location but this scheme will complete in the 3rd Quarter being progressed as an urgent matter. of the next financial year. Spend on the Ings Children's The new build for the six bedroom children's Home will slip into next year but 30% of the spend will be home at Ings will commence in January in Q4 2019/20 2020 due to the length of time it has taken to enter into contract which has been concluded this week. The majority of the spend will be in Q1 of 2020/21.

Work on the two six bedroom homes is planned to be completed by end of Q3 2020/21.

Devolved Formula 244 244 42 202 244 0 Devolved Formula Capital grant can be used by the school for any capital purpose relating to schools buildings and assets, including ICT equipment. Any unspent grant funding arising from Capital 2018/19 has been carried forward into 2019/20, in line with the terms and conditions of the grant. The grant is fully devolved out to individual schools, and is therefore controlled and monitored at an individual school level.

Education for 2 Year 31 31 3 28 31 0 £31k To support any identified need to expand or During June/July 2019, an enhanced To support any identified need to expand or improve Olds improve provision for early education places provision at Lemon Tree/Bude Children‘s provision for early education places across the city across the city centre to support 2- 4 year old children with additional needs was created. This has provided an additional 8 full time equivalent places. The Provision is very popular and demand is growing

Hull Training Adult 59 59 10 49 59 0 Hull Training Adult Education is a successful Works progressing as planned Works progressing as planned Education training provider and part of the budget savings proposals is for an increase in income over the next 3 years. Additional capital investment is required to, facilitate the provision of additional training courses through investment in buildings and equipment. Investment in Schools 931 43 974 968 6 974 0 Complete all works and close down BSF Completion of summer works programme of Summer programme of works complete Anticipated spend currently in line with budget allocation. (BSF) financially rectification items There may be a need to reprofile funds at Q4 to allow for close out of BSF final accounts.

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Page 7 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Schools Maintenance 8,297 8,297 3,308 4,989 7,391 (906) The target is to create 850 secondary Procure a contractor to create 300 pupil Financial close was achieved allowing The Schools Capital Programme 2019/20 addresses the and Improvement school places and 40 additional primary places at Kelvin Hall and 300 at St Marys. building works to commence on site at most urgent condition, suitability and sufficiency needs Programme places to meet demand across the school Remodelling scheme at Cavendish Primary both Kelvin Hall and St Marys in order to within the school estate. The programme includes estate and to undertake works to address School to be completed. provide additional capacity to meet pupil remodelling schemes to address basic need for primary, urgent condition need. Final accounts for other schemes to be place demand. The remodelling scheme secondary and SEN places. negotiated and agreed. at Cavendish Primary School was Re-profile £0.9m in to 20/21 to reflect project spend completed. profiles. It had been intended to create additional secondary places at Boulevard Academy Free School, however the scheme had to be aborted due to the Department for Education not supporting the proposal and therefore an alternative solution is being sought to address the demand for places.

Special Provision Fund 446 446 18 428 446 0 The target is to provide 35 new /additional Reporting and monitoring of defects arising Final accounts are continuing to be The schemes are being delivered as part of the Schools (SEN) places for children with SEND, build new from the schemes completed during the negotiated. Capital Programme and the SEN funding will be used to facilities or improve existing facilities to summer and for final accounts to be contribute towards the overall costs once all Final benefit pupils with EHC plans. negotiated and agreed. accounts have been agreed, so spend will be adjusted accordingly.

Sub Total 10,708 43 10,751 4,404 6,347 9,370 (1,381)

Portfolio: Neighbourhood, Communities & Environment Cemeteries - Priory 1,750 1,750 34 1,716 100 (1,650) To complete drainage works and commence Design phase completed Practical completion on site to end in October 2020. Woods landscape design and part completion Financial profile into 20/21 confirmed when design phase has been completed. Cremators Replacement 193 193 (10) 203 210 17 To complete final snag list Final works re site ventilation to complete. Close accounts by 31st March 2020 site ventilation relating to overheating still to be Programme Final accounts to be received from principal completed, final account withheld until all works contractor. undertaken. Green Space/Area 1,000 1,000 467 533 1,000 0 Ringfenced funding to support area and Projects agreed at Area Committees on Based Projects (S106) community based schemes as agreed an ongoing basis. through the Area Committee network Local Community 1,616 1,616 399 1,217 1,500 (116) Provides capital for each ward to support Projects agreed at Area Committees on Initiatives community based projects which improve an ongoing basis. local facilities, support Council priorities and improve the quality of life for local residents.

Traveller Sites 1,403 1,403 0 1,403 56 (1,347) £ 1,403 Feasibility study, site investigations and Once land is secured detailed design will commence but ground investigations to be carried out it is unlikely the full budget will be spent this financial year this financial year as site works will have not been completed by April 2020 and therefore remaining funds will be required to be carried forward in to 2020/21.

Sub Total 5,962 0 5,962 890 5,072 2,866 (3,096)

Portfolio: Operational Services Bridge Maintenance 250 250 3 247 70 (180) Preparation of Bridges and Structures Assessment of Beverley Rd, Holderness Rd Stoneferry Bridge Bearing fault It is anticipated that there will be a spend of approx. 50k Capital repair schemes, including & High Flags. Renewal of Ups Drive at investigation against this budget. Delay in process due to framework assessment and inspection works. Repairs Ennerdale Bridge. Bearing replacement at agreement arrangements. The remainder of the budget to timber structures on the River Hull Stoneferry. will need to be profiled into 2020/21. Lead in times for procurement and legal and issue this year

Bridge Repairs 200 200 0 200 10 (190) Feasibility and inspection works for Completion of assessment on Sculcoates Bridge assessment The remainder of this budget will need to be reprofiled (Feasibility) Sculcoates bridge, to prepare scheme for Bridge into 20120/21. Lead in times for procurement and legal refurbishment and /or strengthening. and issue this year

Bridges - Scott Street 1,000 1,000 0 1,000 100 (900) Preparation of scheme for the planned Possible start on site February 2020 Ongoing preparation of documentation It is anticipated that spend will start in Q4 when site removal of Scott Street Bridge in pre-tender. Award of contract expected works commence. However the majority of the budget will accordance with planning consent, including December 2019 be reprofiled into 2020/21 consultancy fees for preparation of the contract pre-tender. Followed by onside works to remove the bridge as per the planning consent. City Coach Park 20 20 0 20 0 (20) Identify a suitable city centre location for the None None No resource currently available. Reprofile into 20/21. coach park, begin land acquisition & outline design of alterations required to make suitable. Page 70 of 142

Page 8 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments CCTV Camera 100 100 28 72 100 0 CCTV Cameras & Columns To install three of five cameras planned in Three of five cameras planned in second Waiting for Smart City Platform to be procured, so Replacement second period and price for replacement of period have been installed and prices anything procured is compatible. three more. obtained for replacement of the three others. Electric Vehicle 70 70 1 69 70 0 The provision of Electric and Hybridge To facilitate the use of Electric vehicles by Council Charging Points Vehicle Charging Infrastructure in the city officers, and in due course, members of the public, in with an initial duration of 5 years, with place of diesel and petrol vehicles by the installation of provision for an extension of up to a further charge points at Stockholm Road and Pryme Street and 2 years. George Street car parks. Highways Projects 10,819 -379 10,440 3,282 7,158 8,038 (2,402) Highways capital programme to deliver Ongoing design, procurement and delivery Seven carriageway maintenance This budget line includes: (T16) £4.694m for Stoneferry improvements to carriageways, footways, of carriageway and footway maintenance schemes completed and three preparing against which spend is forecast at £955k, the remaining sustainable travel and road safety schemes. Start delivery of main civils works to start on site in January 2020. Ten £3.739m will need to be reprofiled to 2020/21 to ensure on Stoneferry Road corridor scheme footway schemes completed and six delivery; and (T2) £6.125m for highway schemes against schemes preparing to start on site in which £7.283m spend is forecast. The £7.283m includes January 2020. Stoneferry Road corridor an allocation of £319k for public realm which is to be scheme has been delayed by contract reallocated to R9064. negotiations.

Highways Scheme 350 350 65 285 283 (67) Design Guide and city wide corridor Completion of draft Road Safety Strategy Draft Road Safety strategy completed, Issues with development of Parkmap project means Development strategic development plan and identified development, draft documents for LCWIP initial output of LCWIP completed but some spend is delayed. Reprofile remaining funding options for prioritised pinch points and LTP, ongoing development of Calvert further detail and consultation to allocation into 2020/21 to enable continued development. Lane junction, progressing Parkmap undertake, LTP draft completed but development consultation to undertake. Calvert Lane progressing. Completion of funding bids for carriageway maintenance and bridges. Highways Smart Cities 148 148 17 131 148 0 Upgrades of existing ITS assets to enable Upgrade of three sites identified in second Upgrade of first three sites completed. No decision as to which assets will require upgrading first future Smart City communication. monitoring period. Costing for two other Costing for two other sites completed. has been made yet. sites being undertaken.

Park & Ride (Feasibility) 70 70 19 51 50 (20) To identify and confirm the locational and Commence viability and feasibility works Viability and feasibility works commenced. Some feasibility work could be delayed whilst the operational feasibility of northern P&R site. Additional origin/destination work to be origin/destination works are undertaken. Reprofile into commissioned ahead of completion of 2020/21 to enable ongoing development work subject to feasibility work outputs of feasibility study

Priory Way 1,800 1,800 0 1,800 450 (1,350) Delivery of highway improvements to Start on site with an expectation that the Utilities have been programmed Scheme delayed by Brexit on 31st October when the provide improved access/egress to Priory works would complete or be almost Council was requested to ensure strategic routes to ports Park complete by the end of Q3 were free of any works. The contractor has been unable to reschedule resource and the scheme has been delayed whilst an alternative contractor is procured. Budget to be re-profiled to 2020/21 to ensure continued delivery. Real Time Bus 500 500 0 500 150 (350) Replacement of the existing electronic bus Explore the cost of data transfer, Limited progress due to "links to / timeline It is anticipated that actual delivery / spend will accelerate Timetables timetable displays at Paragon Interchange replacement of existing hardware (upgrade) of" the city wide Smart City Project. It is across quarters 3 and 4. with a Real-Time system that will advise and new hardware to inform decision anticipated that actual delivery / spend customers of actual real time information making / recommendation to proceed; and will begin in quarter 4. Whilst the and will link to the Smart City Platform. secure necessary authority. allocated budget is not expected to be spent in full 2019/20 the total £500k is anticipated to be required to replace the existing electronic bus timetable displays with improved and enhanced journey planning and real time information and so underspends will require reprofiling to 2020/21.

Street Lighting 120 120 107 13 120 0 Completion of Spend to Save LED Ongoing delivery of outstanding works and Continued delivery of outstanding works Replacement programme complete on adopted highway lamp replacement and lamp replacement Programme network plus a range of other assets including car parks and other facilities where there is a need to reduce energy Streetscene (Bridges) 490 60 550 103 447 360 (190) To be used as part of Scott Street Bridge Repair works to Hull Marina Lock Gates, Bridge Inspections, Sutton Road Deck Remainder of this budget to be re-profiled into 2020/21, and the Hull Marina Lock Gate repairs. Bridge inspections, consultancy fees. Deck Repairs anticipated that this will finance further consultancy repairs- Sutton Road, bridge inspections.

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Page 9 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Water Pumps 250 250 93 157 160 (90) Specifications are being developed to To purchase three water pumps and welfare Purchase of three water pumps and a Welfare Vehicle purchased to aid in emergency ensure the pumps that are procured are vehicle to be used in emergency situations, welfare vehicle situations. £90k is forecast to be carried forward to able to deal with the varying conditions, i.e. flooding 2020/21 for additional emergency measures locations, and volumes of water that can be found within the City, such as the need to pump out flooded playing fields such as Oak Road to flooded residential areas where access is limited. Works on the specification will be completed in Q2 and procurement is anticipated Q3 2019/20. Wawne 200 200 187 13 187 (13) Commencement of the outline design Delivery of parking provision on Wawne reprofile remaining spend into 2020/21 for provision of View/Kingswood APP development process to deliver the Road. Completion of payment arrangements design/development/delivery of other AAP works. Infrastructure infrastructure identified in the AAP on Kingswood for first roundabout improvement

Sub Total 16,387 -319 16,068 3,905 12,163 10,296 (5,772)

Portfolio: Hull World Class Visitor Destination Programme 2017 Priority Programme: Beverley Road Heritage 700 700 70 630 200 (500) Progress the grants programme for Allocate grant funding to allow frontage Two properties have had funding Reprofile £500k from 19/20 to 20/21 Investment identified properties; public realm works, improvement works allocated to them and works have including boundary treatments at specifically commenced targeted properties; and, a programme of educational & outreach activities

Beverley Road 52a-54 300 300 11 289 150 (150) Complete demolition Produce tender documents Tender documents produced and with Reprofile £150k from 19/20 to 20/21 to reflect anticipated Brunswick Arcade legal and procurement for issue delivery programme

City Centre Public 815 814 1,629 179 1,450 815 (814) Progress phase 3 works and release Procure contractor to deliver phase 3 Public Ashcourt have been procured to deliver £319k transferred from highways budget to deal with in Realm (Phase 3) retention in relation to works completed Realm Works the Phase 3 Works year budget pressure. £113k miscoded and to be re- allocated to Albion Square. Dance Studio 50 50 0 50 0 (50) Progress feasibility study None None Scheme to be removed from capital programme (feasibility) District Heating 608 608 56 552 608 0 Procure a delivery partner Progress with procurement of delivery Procurement of delivery partner ongoing Anticipated spend in line with budget allocation (Feasibility) partner

Future High Street 0 150 150 21 129 150 0 Following a successful first stage Challenge Fund application, the Council is currently developing detailed plans for the Future High Street Fund scheme that will secure up to £22m of government investment in the city centre, focusing on Whitefriargate.

Guildhall Timeball 218 218 6 212 58 (160) Complete design, appoint contractor and Prepare tender documents for the Design and Build Consultants procured, Reprofile £160k from 19/20 into 20/21 commence works on site procurement for the Principal Contractor, tender documents for the procurement for External Evaluator and Interpretation the Principal Contractor, External Content. Procure Design & Build Evaluator and Interpretation Content Consultants. have been prepared.

Heart of the City 5,041 5,041 1,881 3,160 5,041 0 Procure delivery partner, complete design Continue asbestos strip to BHS / Co-op Asbestos strip continuing. Vinci Anticipated spend in line with budget allocation Regeneration and demolition works building. Procure a design partner to RIBA Construction UK procured to deliver (Albion/Bond Street) stage 2. Present development at planning stage 2 RIBA design. Planning pre-app pre-app. taken place.

Heritage Action Zone 581 153 734 82 652 90 (644) Continue to reposition the Old Town Develop proposals to secure additional Proposals being developed and being Latest budget allocation information shows 19/20 = economy to make full use of its heritage funding to bring unused upper floor space made ready for submission to Historic £734k & 20/21 = £179k. As such reprofile £530k; £150k assets and tourist attractions back into use on Whitefriargate. England into 20/21 & £380k into 21/22.

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Page 10 Capital Programme Monitoring 2019/20 - Third Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned 30/11/2019

Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Third Monitoring Period 2019/20 2019/20 2019/20 2019/20 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2019/20 Activity Outputs Comments Hull Venue 303 303 746 (443) 742 439 Pay second portion of retention and Purchase FFE in line with lease agreement Purchase of FFE ongoing The capital code is carrying the cost of the forward remainder of FFE invoices funded elements allocated in line with the 30 year revenue Business Case Modelling. New Theatre Retrofit 29 29 13 16 29 0 Complete final account negotiations and Progress with agreement of final account Final account agreed Anticipated spend in line with budget allocation close out remaining defects Pearson Park Heritage 1,632 1,632 1,046 586 2,152 520 Progress restoration of Pearson Park under Progress on site works in line with Birch (restoration contractor) & Lost Art Reprofile £520k from 20/21 into 19/20. NOTE: 79% of Investment the HLF Parks for People scheme programme (Entrance gateway) both on site and total project cost is recoverable from NHLF. £800k is progressing well coming from HCC and £3,000k from NLHF

Repurposing the Old 0 0 65 (65) 86 86 Allocate final grant funding and complete None None £56k budget pressure as a result of works outside the Town lighting works scope required by project sponsor e.g. flooring in the market hall. Further £30k additional expenditure on equipment to facilitate events in the market River Hull+ 2,794 2,794 972 1,822 2,794 0 Complete enabling works to north yard dry Works ongoing to the wharf near Tower On-going Anticipated spend in line with budget allocation docks Street and Environmental works to form fishing platforms.

Woodford Pool 124 124 6 118 124 0 Complete final account negotiations and Complete defects and negotiate final Defect monitoring and final account Anticipated spend in line with budget allocation Extension close out remaining defects account negotiations ongoing

2017 Legacy Programme: Feasibility & 0 0 -34 34 0 0 Complete enabling works to north yard dry Progress feasibility studies Feasibility studies ongoing Negative amount currently the actual spend position. Development Works docks £0.00 position to be forecast against this sum by the end of the financial year. Investment in Museums 3,000 3,000 1,659 1,341 2,200 (800) Complete final account negotiations and Progress construction and engineering Construction and engineering designs Reprofile £800k from 19/20 into 20/21. close out remaining defects designs nearing completion

Riverside Berth/Cruise 508 508 363 145 508 0 Procure a commercial partner to deliver the Progress with scheme development Development of scheme ongoing Anticipated spend in line with budget allocation Terminal scheme

Queens Gardens 500 500 2 498 200 (300) Refurbishment of the Queens Gardens Develop scope of works and progress with Ongoing Reprofile £300k from 19/20 into 20/21. covering linkages, access, facilities, design vegetation, boundaries and walls.

Sub Total 17,203 1,117 18,320 7,144 11,176 15,947 (2,373)

GRAND TOTAL 115,212 3,963 119,175 44,499 74,676 100,201 (18,974)

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Page 74 of 142 Capital Programme 2019/20 - 2021/22 APPENDIX C MEMO Total Assumed 2019/20 Future External Budget Budget Budget Budget to Commitment Funding 2019/20 2020/21 2021/22 2022/23+ 2021/22 2022/23+ Bids Total Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Adult Servies and Public Health Adult Services 153 0 0 0 153 0 0 153

Corporate Services ACFS System Refresh Project 121 110 229 0 460 0 0 460 Agile Working/Work Smart 1,149 2,100 0 0 3,249 0 0 3,249 Customer Enablement 1,405 337 0 0 1,742 0 0 1,742 Digital Programme 178 502 0 0 680 0 0 680 ICT Infrastructure and Refresh 1,941 2,100 1,000 0 5,041 0 0 5,041 ICT Relocation 410 0 0 0 410 0 0 410

Service Transformational Schemes (Note 2) 3,500 0 0 0 3,500 0 0 3,500

Culture, Leisure and Tourism Albert Avenue Baths 800 1,200 0 0 2,000 0 0 2,000 Beverley Road Baths 400 1,100 0 0 1,500 0 0 1,500 Ice Arena Gas Refrigeration 150 100 0 0 250 0 0 250 Library Equipment Resources 389 400 400 0 1,189 0 0 1,189 Mount Pleasant Library Relocation 94 0 0 0 94 0 0 94 Parks 936 200 200 0 1,336 0 0 1,336 Parks - East Park, Pickering Park, Aviary 1,000 500 0 0 1,500 0 0 1,500

Economic Investment, Regeneration & Planning, Land & Property Boulevard UFE Phase 4 75 1,150 75 0 1,300 0 0 1,300 Buildings Optimisation Programme 253 1,318 0 0 1,571 0 0 1,571 City Hall Shops 50 75 0 0 125 0 0 125 City Plan Regeneration Projects 12 0 0 0 12 0 0 12 Corporate Buildings Maintenance (inc Health & Safety) 2,721 1,150 1,000 0 4,871 0 0 4,871 Corporate Property Energy Savings Projects 523 0 0 0 523 0 0 523 EZ Regeneration Sites 222 0 0 0 222 0 0 222 Guildhall Roof 700 700 0 0 1,400 0 0 1,400 Guildhall Security Gates 224 0 0 0 224 0 0 224 Hepworths Arcade 250 0 0 0 250 0 0 250 Holderness Drain Flood Works 1,000 0 0 0 1,000 0 0 1,000 Key Buildings Energy Efficiency Programme 1,097 0 0 0 1,097 0 0 1,097 Leisure Facilities Maintenance Programme 1,410 0 0 0 1,410 0 0 1,410 Multi Storey Car Parks (Feasibility/Refurbishment) 100 308 60 0 468 0 0 468 Regeneration - Green Port Hull 79 0 0 0 79 0 0 79 Stockholm Road Security 150 0 0 0 150 0 0 150 Strategic Property Purchases 6,732 0 0 0 6,732 0 0 6,732 Walton Street Car Park 33 0 0 0 33 0 0 33 Wilson Centre Air Conditioning 50 200 0 0 250 0 0 250

Housing HRA: Council House Adaptations 2,500 3,184 2,720 0 8,404 0 0 8,404 High Rise Fire Protection Works 730 5,936 3,533 0 10,199 0 0 10,199 Housing Regeneration Schemes 827 218 231 0 1,276 0 0 1,276 New Build 3,372 23,084 12,336 0 38,792 0 0 38,792 Empty Properties 2,600 2,608 2,746 0 7,954 0 0 7,954 Planned Capital Works 18,717 20,881 19,956 0 59,554 0 0 59,554 RTB Grant 724 500 500 0 1,724 0 0 1,724 Solid Wall Insulation 2,667 19,051 9,809 0 31,527 0 0 31,527

Housing and Technology for People with Learning Disabilities 773 0 0 0 773 0 0 773

Hull Neighbourhood Renewal Programme: Ings Programme 586 505 0 0 1,091 0 0 1,091 Newington & St Andrews Programme 585 144 0 0 729 0 0 729 Preston Road 167 1,420 0 0 1,587 0 0 1,587 Priority Neighbourhoods Programme - Frontages 1,900 2,208 0 0 4,108 0 0 4,108

Disabled Facilities Grant (Note 1) 2,969 2,961 2,200 0 8,130 0 0 8,130 Private Sector Housing 650 800 500 0 1,950 0 0 1,950

Learning, Skills & Safeguarding Children Children's Homes Reprovision/New Build 700 439 0 0 1,139 0 0 1,139 Devolved Formula Capital (Note 1) 244 0 0 0 244 0 0 244 Education for 2 Year Olds 31 0 0 0 31 0 0 31 Hull Training Adult Education 59 0 0 0 59 0 0 59 Investment in Schools (BSF) 974 283 0 0 1,257 0 0 1,257 Schools Maintenance and Improvement Programme (Note 1) 8,297 8,202 4,000 0 20,499 0 0 20,499 Special Provision Fund (SEN) 446 288 0 0 734 0 0 734

Neighbourhood, Communities & Environment Cemeteries 1,750 0 0 0 1,750 0 0 1,750 Cremators Replacement Programme 193 0 0 0 193 0 0 193 Green Space/Area Based Projects (S106) 1,000 1,000 0 0 2,000 0 0 2,000 Local Community Initiatives 1,616 1,000 1,000 0 3,616 0 0 3,616 Traveller Sites 1,403 1,250 0 0 2,653 0 0 2,653

Operational Services Bridge Maintenance 250 250 0 0 500 0 0 500 Bridge Repairs (Feasibility) 200 0 0 0 200 0 0 200 Bridges - Scott Street/Wawne Bridges 1,000 0 0 0 1,000 0 0 1,000 City Coach Park 20 180 0 0 200 0 0 200 CCTV Camera Replacement 100 300 0 0 400 0 0 400 Electric Vehicle Charging Points 70 0 0 0 70 0 0 70 Highways Projects (Note 1) 10,440 8,551 3,500 0 22,491 0 0 22,491 Highways Scheme Development 350 350 0 0 700 0 0 700 Page 75 of 142 Page 1 Capital Programme 2019/20 - 2021/22 APPENDIX C MEMO Total Assumed 2019/20 Future External Budget Budget Budget Budget to Commitment Funding 2019/20 2020/21 2021/22 2022/23+ 2021/22 2022/23+ Bids Total Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Highways Smart Cities 148 0 0 0 148 0 0 148 Park & Ride (Feasibility) 70 230 0 0 300 0 0 300 Priory Way 1,800 0 0 0 1,800 0 0 1,800 Real Time Bus Timetables 500 0 0 0 500 0 0 500 Street Lighting Replacement Programme 120 0 0 0 120 0 0 120 Streetscene (Bridges) 550 0 0 0 550 0 0 550 Water Pumps 250 0 0 0 250 0 0 250 Wawne View/Kingswood APP Infrastructure 200 1,800 2,780 0 4,780 0 0 4,780

Sub Total 100,855 121,173 68,775 0 290,803 0 0 290,803

Hull World Class Visitor Destination Programme 2017 Priority Programme: Beverley Road Heritage Investment 700 1,000 0 0 1,700 0 0 1,700 Beverley Road 52a-54 Brunswick Arcade 300 622 0 0 922 0 0 922 City Centre Public Realm (Phase 3) 1,629 0 0 0 1,629 0 0 1,629 Dance Studio (feasibility) 50 50 0 0 100 0 0 100 District Heating (Feasibility) 608 0 17,000 0 17,608 0 0 17,608 Future High Street Challenge Fund 150 0 0 0 150 0 0 150 Guildhall Timeball 218 123 0 0 341 0 0 341 Heart of the City Regeneration (Albion/Bond Street) 5,041 602 0 0 5,643 0 0 5,643 Heritage Action Zone 734 1,592 0 0 2,326 0 0 2,326 New Theatre Retrofit 29 0 0 0 29 0 0 29 Pearson Park Heritage Investment 1,632 1,745 0 0 3,377 0 0 3,377 River Hull+ 2,794 0 0 0 2,794 0 0 2,794 Woodford Pool Extension 124 0 0 0 124 0 0 124 2017 Legacy Programme: Hull Venue 303 0 0 0 303 0 0 303 Investment in Museums 3,000 10,650 10,598 3,400 27,648 0 0 27,648 Riverside Berth/Cruise Terminal 508 200 638 0 1,346 7,700 35,000 44,046 Queens Gardens 500 3,800 0 0 4,300 0 0 4,300

Sub Total 18,320 20,384 28,236 3,400 70,340 7,700 35,000 113,040

PROGRAMME TOTAL 119,175 141,557 97,011 3,400 361,143 7,700 35,000 403,843

Note 1 Shaded Programme Line Budget indicates scheme linked to as yet unconfirmed grant awards. Note 2 Capitalisation of Revenue Transformational Schemes as per Flexible Use of Capital Receipts Strategy

Sources of Funding 2019/20 2020/21 2021/22 2022/23+ Total 2022/23+ Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Specific Grants (e.g. DFC) 12,981 20,452 4,698 0 38,131 0 35,000 73,131 Annual Grants (eg. Transport, Education) 20,870 13,893 7,500 0 42,263 0 0 42,263 Capital Receipts 10,399 4,962 2,780 0 18,141 0 0 18,141 Borrowing 37,541 23,788 19,564 0 80,893 7,700 0 88,593 Revenue Contributions 2,285 0 0 0 2,285 0 0 2,285 NNDR Uplift re Enterprise Zones 2,962 3,000 10,638 3,400 20,000 0 0 20,000 HRA (Grant, receipts, revenue, borrowing) 32,137 75,462 51,831 0 159,430 0 0 159,430

TOTAL 119,175 141,557 97,011 3,400 361,143 7,700 35,000 403,843

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Report to the: Finance and Value for Money Overview and Scrutiny Commission 16 January 2020 Cabinet 27 January 2020 Wards: All

Proposed Pre-payment of Employer Pension Fund Contributions to the East Riding Pension Fund

Report of the Director of Finance and Transformation (s151 Officer)

This item is not exempt Therefore exempt reasons are not applicable

This is a key decision and has been included on the Forward Plan

1. Purpose of the Report and Summary

1.1. To seek Cabinet Approval for prepayments of the estimated employer’s contributions payable by the Council to the East Riding Pension Fund for the period 1/4/2020 to 31/3/2023.

1.2. The East Riding Pension Fund and the Actuary, who is responsible for evaluating the assets and liabilities of the Pension Fund with a view of ensuring the Fund can meet the cost of its liabilities into future years, have indicated that a prepayment of employer’s contributions, normally paid monthly, in a lump sum will reduce the revenue costs pressures facing the Council over the next 3 years 2020/21 to 2022/23. As such, it is planned that on 1 April 2020 the estimated contribution relating to the 3 year period to March 2023 will be paid over to the Pension Fund as a lump sum payment.

2. Recommendations

2.1. It is recommended that Cabinet:

I. Approve, in principle, the prepayment of the employer’s contributions payable by the Council to the East Riding Pension Fund for the period 1/4/2020 to 31/3/2023. II. Delegate the final approval of the agreed value of payment to the portfolio holder in conjunction with the s151 Officer.

This is a key decision and has been included on the Forward Plan

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3. Reasons for Recommendations

3.1. The Council is facing a very significant financial challenge as the levels of Government funding are reduced and demand for services increasing in some areas. As such all options to reduce Council costs are being evaluated and considered.

3.2. The proposed pre-payment of employer contributions to the Pension Fund will produce a significant saving to the Council and will mitigate, to some extent, the impact on Council services of the ongoing reductions in Government Funding.

4. Impact on other Executive Committees (including Area Committees)

4.1. The proposal does not have any area specific implications

5. Background

5.1. The Council currently pays over to the East Riding Pension Fund (ERPF) the Council’s Employer Pension Contributions on a monthly basis.

5.2. For Non School Staff, employer contributions are made up of 2 elements:

• Ongoing Contributions to meet the costs of pension benefits for current employees. This is currently set at 14.8% of pay costs, but it is assumed this will continue for the next 3 years. The contributions are based on actual pay costs incurred in each month. • Deficit repair contributions which are designed to address the funding shortfall between historic contributions and pension benefits. This element of the employer contributions are paid monthly but at a fixed value i.e unrelated to monthly pay costs; • As at 31 March 2019 the funding shortfall for the Council was estimated to be £300 million TBC and the repair contributions have been set at a level designed to eliminate the deficit over a 20 year timeframe.

5.3 For School staff the arrangements are different. Teaching staff are included in the National Teacher’s Superannuation Scheme. For Non-teaching staff, who are eligible for the ERPF, the on-going contributions and deficit repair element are combined to provide for a contribution rate of 25.1%. This equates to 14.8% relating to ongoing costs and 10.3% relating to deficit repair contributions. The combined rate approach is used because of the funding arrangements for schools whereby the Council is required to passport Direct Schools Grant (DSG) funding to the schools. Given the DSG funding regime and the anticipation that at least some more schools will move to academy status over the next 3 years it is not appropriate to pre-pay the schools (non-teaching) contributions at this time.

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5.4 The Actuary has provided indicative analysis which suggests that gross savings of around £4.5 million would arise if both elements of the contributions, relating to non-schools staff, were pre-paid on or around the 1st April 2020. This saving represents the Actuary’s assessment of the benefit to the Pension Fund of receiving the cash early and being able to invest the funds for longer and consequently derive greater investment returns.

5.5 The table below details the estimated financial benefit of the prepayment. The pre- payment will be funded from cash balances that it is anticipated will be available, held on deposit at banks at 1 April 2020. Treasury planning will ensure the Council has the cash available on 1 st April to make the appropriate transfer to the ERPF. In order to calculate a true benefit to the Council the gross savings have been netted down by an estimate of the interest foregone.

Employer Contributions Basis Estimated Value Relating to: payable 2020/21 £ Millions On Going Benefit (All staff 14.8% of Salary 14.0 excluding Schools) Historic Deficit Lump Sum 10.1 Total Payable 2020/21 - 24.1 Total Cost over 3 years to Paid Monthly 76.4 31 March 2023 (after allowing for pay inflation) Total Cost over 3 Years to Paid 1 April 2020 71.9 2023 Gross Saving to Council - 4.5 Interest Foregone - -0.3 Net Saving to Council 4.2

5.6 The values reflected in the table above assume that the proposed employer rates remain in place for the next three years. Future rates payable are currently being re-assessed by the Actuary as part of the formal triennial valuation. The final results of the actuarial valuation will not be available until January 2020.

5.7 The East Riding Pension Fund has indicated that they will need confirmation by the February 2020 of the Council’s intention to prepay employer contributions. Given the ongoing valuation, the precise value of the contributions payable is not known precisely at this time, As such, Members are requested to approve in principle the pre-payment of contributions with the final value and timing to be delegated to the Portfolio Holder Finance in conjunction with the Director of Finance and Transformation subject to final agreement with ERPF.

3 Page 79 of 142

6. Issues for Consideration

6.1. The Pension Fund and the Actuary have indicated that the pre-payment of the monthly contributions, may generate significant revenue savings to the Council. The indicative analysis suggests that gross savings of £4.5 million are possible against the costs that otherwise would be incurred by continuing to pay monthly. This estimate is based on the current level of employer contributions. The estimated net saving of £4.2 million are reflected in the medium term financial strategy (MTFS) budget papers

6.2. Deriving significant savings from the pre-payment of contributions is not dependent upon the results of the current on-going triennial valuation. However, the precise value of the required pre-payment, and the associated savings, will be dependent upon the valuation results.

7. Options and Risk Assessment

7.1. Option 1: Pre Pay Employer contributions of c£72 Million

Risks: That the value of the prepayment calculated by the Actuary is more/less than would have been payable if payments were made on monthly basis adjusted for actual salary costs.

Mitigation – It is proposed that a review will be undertaken at 31 March 2021 and 31 March 2022 to verify the adequacy of the prepayment made on 01/04/2020 in the light of actual pay cost incurred in the preceding year.

Should the assessment suggest the pre-payment was lower than required then additional contributions will be payable. These costs will be reflected in the Council’s budget and will impact on the level of saving achieved.

If analysis suggests that the value of pre-payment exceeded that due, in the light of actual pay costs, no action will be taken but this will have a beneficial impact at the time of the next triennial valuation with regard to the calculation of future employer contribution rates.

This is the recommended option

7.2. Option 2: Continue to pay employer contributions on a monthly basis.

Risk – The Council would forego a potential saving in cost which would require alternative savings to be made through further service delivery reductions.

This is not a recommended option.

4 Page 80 of 142

8. Consultation

8.1. The proposal does not impact on service users so no consultation has been undertaken.

9. Comments of the Town Clerk

9.1. Pre-payment of the arising revenue contributions from available funds is a prudent measure to ensure that the Council’s pension contributions are minimised to assist the delivery of a balanced budget.

10. Comments of Director of Finance and Transformation

10.1 The option to make prepayment represents value for money for the Council and will mean less enforced savings targets in Council Services across the three year Medium Term Financial Strategy 2020/21 to 2022/23.

11. Comments of HR City Manager

11.1 The pre-payment of the pension fund does not have any impact on our employees or equalities.

12. Comments of VFM Overview and Scrutiny and Commission

12.1 This report will be considered by the Finance and Value for Money Overview and Scrutiny Commission at its meeting of Friday, 17 January, 2020. Any comments or recommendations agreed at the meeting will need to be sourced by the report author for inclusion in the report prior to Cabinet. (Ref. Sc5700)

13. Comments of the Portfolio Holder for Finance

13.1 This is a very advantageous opportunity for the council which we took 3 years ago and has the potential of savings circa £4.2m, I fully support this recommendation.

David Bell Director of Finance and Transformation (s151 Officer)

Contact Officers: Mike Armstrong Telephone No. : 613282

Officer Interests: None

Background Documents:

5 Page 81 of 142

Implications Matrix

I have informed and sought advice from HR, Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been accounted for within the report

The report is approved by the relevant City Manager I have included any procurement/commercial issues/implications within the report

I have considered the potential media interest in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are included within the report Any human rights implications are included within the report I have included any community safety implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor and any environmental and climate change issues/sustainability implications are included within the report I have included information about how this report contributes to the City Plan/ Area priorities within the report

6 Page 82 of 142

Briefing Paper to the Finance and Value for Money Overview Wards : All and Scrutiny Commission

17 th January 2020

Highways Capital Programme

Briefing Paper of the Corporate Director for Regeneration

1. Purpose of the Paper and Summary

1.1 As requested this paper provides Members of the Finance and Value for Money Overview and Scrutiny Commission with a summary of delivery against the highway capital programme for years 2017/18, 2018/19 and 2019/20. The report also sets out the high level proposal for 2020/21. .

2. Background

2.1 Until September 2017 the Highways capital programme has been issued on an annual basis. A three year programme was presented to Cabinet in September 2017 setting out proposed schemes and allocations of funding. A three year programme allows greater flexibility in delivering the programme and also allows for larger schemes to be delivered across financial years. Over-programming is used in the capital programme to allow reserve schemes to be developed and delivered if other schemes are delayed due to unforeseen circumstances. It also affords greater certainty of delivery than a single year programme as future schemes can start to be designed ahead of the start of the new financial year.

2.2 A three year programme affords greater certainty of securing resources, in that schemes to be designed are known at an earlier stage and could be tendered at an earlier stage, securing the external resources required ahead of other potential commitments.

2.3 Funding allocations are provided from Department of Transport based on a formula for Integrated transport and maintenance and the Council provides additional funding from its capital resources.

2.4 Alterations to the way the Highways team is managed and delivers schemes has taken some time to develop. The Highways team has gradually begun to

Author: Status: Date: 08/01/2020 Page 1 of 4 Page 83 of 142 commission more work externally, primarily through the YORCivils framework and has developed its work programming to enable early design and delivery within the year of larger schemes, resulting in greater likelihood of full spend against budget. It is expected that schemes for early delivery in 2020/21 will be designed in late 2019/20 enabling early start on site in the new financial year.

2.5 Recruitment into Highway Technician and Engineer positions has proved challenging. To mitigate some of the difficulty and provide some succession planning, three trainee positions have been created within the team. Recruitment for three Engineer positions is currently underway. The team currently employs six agency staff to ensure that the capital programme and wider development programme can be delivered, however maintaining full staffing capacity within the team with agency staff is not sustainable long term and if a final round of recruitment is not successful in filling vacancies an alternative approach to filling vacancies will need to be considered.

2.6 Due to a lack of capacity within the Highways team, larger highway schemes e.g. £1m and above are delivered through the Major Projects delivery team.

3. Issues for Consideration

3.1 The table contained in appendix 1 sets out the actual spend in 2017/18 and 2018/19, the spend to the end of October 2019/20 and planned spend for 2020/21 (as reported to Cabinet in March 2019) against broad categories. It is not the intention of this report to provide detail of schemes delivered.

3.2 The infrastructure design and asset management of Highways transferred to Major Projects and Infrastructure in August 2017. There was a settling in period and an element of understanding existing work practices before changes to financial procedures were made. Consequently the level of detail regarding spend across the different areas in appendix 1 is less clear for 2017/18 than following years due to fewer cost codes providing less segregation of spend.

3.3 The Department for Transport provides approximately £4.4m in highways funding each year however this is not enough to address all maintenance and development concerns. The Council has a significant maintenance backlog and has been prioritising carriageway maintenance in order to address identified issues and complaints. Whilst there is still a carriageway maintenance backlog the funding allocations for sustainable modes are gradually being increased.

3.4 Additional funding has been allocated for highway maintenance, development of the cycle network, major highway schemes (Kingswood, Stoneferry Road Corridor and Priory Way), and the street lighting LED replacement programme. Proposed increases in budget allocations for 2020/21 are not included in the table below as they are still to be considered through the budget process and reported to Scrutiny, Cabinet and Full Council.

Author: Status: Date: 08/01/2020 Page 2 of 4 Page 84 of 142

2017/18 2018/19 2019/20 2020/21 (£m) (£m) (£m) (£m) maintenance 1 0.5 0.5 Potholes/ 1.25 1.25 verges/cycling* Stoneferry 3 2.5 2 corridor LEP Stoneferry HCC 0.5 Priory Way 1.8 Park & Ride 0.15 0.15 Scheme 0.15 0.55 development Kingswood 0.2 1.8 Infrastructure LED 2.765 3.069 0.12 replacement programme Bridges 1.55 0.25 *includes £1m of DfT pothole grant

3.5 All planned carriageway schemes and 45 to 60 percent of footway schemes are contracted out. Footway schemes are contracted out to ensure that the budget is spent as the Highway Operations team does not have sufficient capacity to deliver the full budget allocation.

3.5 Good progress has been made against the 2019/20 capital programme. The team started the design process for 2019/20 schemes at the end of 2018/19 meaning that schemes could be procured and delivered earlier in the year. Development of larger maintenance schemes has been prioritised enabling a larger percentage of the capital programme to be delivered prior to winter.

3.6 Major Highway schemes make up a large percentage of the budget. Any delay in the scheme(s) creates significant potential underspend within the financial year. The Department for Transport requested no works to be undertaken on any trunk roads leading to ports in the run up to 31 st October. Consequently the Priory Way scheme has been re-programmed for early 2020 but will need to be re-procured as the original contractor has been lost due to the delay incurred. Prolonged contract negotiations on the Stoneferry Road corridor have delayed the start of the scheme. Detailed design is in progress and a start on the civils work is anticipated in January.

4. Next steps

4.1 That the Committee note the contents of the report.

Corporate Director for Regeneration Author: Status: Date: 08/01/2020 Page 3 of 4 Page 85 of 142

Contact Officer : Ruth Stephenson Telephone No. : 01482 612561

Officer Interests: None

Background Documents: -

Cabinet February 2019 - Report to obtain approval for the proposed Highways Capital Maintenance programme 2019/20 to 2021/22 (minute 104)

Author: Status: Date: 08/01/2020 Page 4 of 4 Page 86 of 142 Finance and Value for Money OSC January 2020 Appendix 1 Estimated spend to year Actual spend Actual spend Spend to end October end Estimated planned spend category 2017/18 2018/19 2019/20 2019/20 2020/21***

Carriageway schemes £ 2,312,307.00 £ 2,476,769.00 £ 1,774,050.00 £ 2,900,000.00 £ 2,200,000.00

Footway schemes £ 737,236.00 £ 965,247.00 £ 163,463.00 £ 1,100,000.00 £ 800,000.00

Street lighting £ 2,859,599.00 £ 3,175,200.00 £ 109,705.00 £ 200,000.00 £ 90,000.00

Sustainable Transport (incl safety) £ 37,297.00 £ 126,628.00 £ 209,839.00 £ 680,000.00 £ 700,000.00

Public Realm £ 2,632,000.00 £ 2,192,000.00 £ 153,012.00 £ 1,200,000.00 £ 440,000.00

Scheme development £ - £ - £ 14,502.00 £ 350,000.00 £ 580,000.00

Highways Major schemes £ 40,575.00 £ 547,905.00 £ 104,524.00 £ 1,405,000.00 £ 8,889,000.00

Reactive maintenance* £ 1,284,163.00 £ 1,428,274.00 £ 517,542.00 £ 1,600,000.00 £ 1,650,000.00

Bridges and signals ** £ 615,574.00 £ 317,576.00 £ 83,133.00 £ 650,000.00 £ 770,000.00

Other £ 8,026.00 £ 41,189.00 £ 24,128.00 £ 445,000.00

Totals £10,526,777.00 £11,270,788.00 £ 3,153,898.00 £10,530,000.00 £ 16,119,000.00

Total spend includes c.£600k revenue p.a. of which approximately £400k p.a. is spent on footways and is included in the footways row. HRA highways spend is not included. This delivery area is the managed and delivered by Streetscene. Additional revenue is available to support these areas. This delivery area is the managed and delivered by Streetscene. Additional revenue is available to support these areas. Includes current projected carry forward but does not include additional HCC highways budget allocations expected to be confirmed as part of the budget setting for 2020/21.

Page 87 of 142

Page 88 of 142

Briefing to the Finance and Value for Money Scrutiny Wards : All 17 January 2020

Consideration of a revised Model for the delivery of Social Value

Briefing of the Director of Legal Services and Partnerships

This item is not exempt Therefore exempt reasons are not applicable

1. Purpose of the Report and Summary

1.1 This briefing paper has been prepared pursuant to a request from Cabinet Working Group for a review of the Council’s approach to ensuring the delivery of Social Value in its contracting processes.

2. Background

2.1 On 22 September 2014 Cabinet agreed to approve the Social Value Policy Statement attached at Appendix 1 as the basis for the policy basis for the assessment of Social Value when tendering contracts. :

2.2 The Procurement Service developed a Social Value workbook attached at Appendix 2 to inform the specification of the requirement for the delivery of Social Value by contractors tendering for contracts. Contractors tendering for contracts were required to articulate how they proposed to deliver the Social Value identified in their offer prepared in response to the Council’s invitation to tender.

2.3 On this basis in all procurement processes, with a value in excess of £50,000, consideration has been given to the inclusion of Social Value as a deliverable.

2.4 Issues have been raised in relation to:

(a) the visibility of the evaluation of social value and its impact on the outcome of tenders; (b) the potential to develop a city wide approach to the delivery of Social Value (c) the forms of Social Value being delivered, and whether opportunities to require contractors to visibly demonstrate their commitment to the city and its community were being missed,

Page 1 of 3 PagePage 89 1 of 14253 and (d) whether the potential to apply Social Value as a driver of better employment practice in the city was being realised.

2.5 Consequently members requested that officers consider whether there was an opportunity to improve the approach to Social Value delivery.

2.6 Informed by that challenge the development of Social Value since 2014 has been reviewed to identify opportunities to address what Cabinet were seeking.

2.7 Since 2014 a number of initiatives have been developed. A standardised methodology for the assessment of Social Value using the anagram TOMs (Themes, Outcome, and Measures) 1 has achieved widespread acceptance.

2.8 Business has sought to develop its own standardised approach to the assessment of Corporate Social Responsibility with organisations such as the London Benchmarking Group 2 creating a forum for (predominantly) large businesses to learn, develop and apply best practice in community investment and social impact and provide a recognised framework to measure the impact of Corporate Social Responsible practice upon the communities within which they undertake business.

2.9 Consistent with this approach some local authorities have gone beyond the adoption of a Social Value policy to developing a Charter for good business practice and provide a framework for returning value to businesses that sign up to that Charter, and including the same in the requirements within their contracts as a vehicle for the delivery of social value.

2.10 A good example of this approach can be found in Birmingham. The City Council has established a website for companies operating in the city which evidence adherence to principles set out in a charter. Signing up to the principles of the charter and demonstrating that commitment through identified social value deliverables is captured in contracts. However, beyond this suppliers who deliver services in the city are required to use suppliers who adhere to the charter as sub- contractors within their supply chain.

2.11 Through this approach good and fair business practice is promoted together with investment in the community, in a manner that delivers value to the businesses concerned, as through their fair business practice they are able benefit from contract opportunities.

1 http://socialvalueportal.com/national-toms/ 2 www.lbg-online.net

Page 2 of 3 PagePage 90 2 of 14253 2.12 The website through which the Charter is managed takes a data feed from the tendering website and news websites managed by the Council. The website also hosts the details of businesses that adhere to the charter.

2.13 The concept of a Charter provides a framework for promotion of ethical fair business practice consistent with the values that Members are keen to promote. An example of the form of document that could become the Charter is attached at Appendix 3. This document is based on the Themes, Outcomes and Measures approach.

2.14 However, to assess an organisation as meeting charter standards and provide for the removal of an organisation which is found to be failing to meet those standards necessitates a resource to manage this.

2.15 In considering options in relation to such an approach consideration could be given to the potential for Hull BID to play a role in this. This could build on the Business Directory hosted by Hull BID, enhancing its value, but also affording the opportunity for Hull BID to drive the commitment to the city and Social Responsibility.

2.16 At this stage, this briefing is presented to Members on a consultative basis to gain their advice upon whether this sort or approach would be supported.

Ian Anderson, Director of Legal Services and Partnerships

Contact Officer: Ian Anderson Telephone No: 613500

Officer Interests: None

Background Documents: - A list of background documents must be included. These documents are then available (if not exempt) for public inspection.

Social Value Policy Statement (22 September 2014) Social Value Workbook Draft Charter for Social Responsibility

Page 3 of 3 PagePage 91 3 of 14253 Appendix 1 Hull City Council - Social Value Policy Statement 22 September 2014

1 Purpose and Background

1.1 This document sets out the Hull City Council’s approach to the delivery of Social and Environmental Value. A complementary document the “Social Value Toolkit” provides advice to officers upon the preparation of tender documents that take into account Social and Environmental Value. 1.2 The Council is required to consider, before commencing the procurement process, how the economic, social and environmental well-being of the city may be improved through the procurement of its services (Public Services (Social Value) Act 2012). The intent is to ensure that the opportunity is taken to enhance the commissioning process through ensuring the delivery of wider strategic objectives for the community that are integral to contracts that the Council lets. 1.3 The aim of this policy is to identify the priority areas for the Council for delivering social value through its commissioning and procurement activities and to identify the framework and mechanisms for monitoring the achievement of social value.

2 Definition

2.1 Social value has been defined as: “ a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment”. 2.2 In practice social value seeks to enhance and place a tangible value upon the social benefits that can be delivered through procurement, by explicitly identifying, valuing and monitoring those additional benefits within the procurement process and monitoring their delivery thereafter. This in turn helps reduce the overall cost of public service provision by reducing demand for the delivery of public services. 2.3 It is essential that “social value” is not seen as an add on to the procurement process, but rather a core component of contracts that are let to support delivery of the wider benefits that the Council is seeking to realise.

3 Our Social Value Outcomes

PagePage 92 4 of 14253 3.1 The Council has developed a set of outcomes that will allow it to consider the economic, social and environmental well-being of the city and its residents when commissioning and procuring goods and services. These outcomes are based on the vision, values and priorities contained in the City Plan. 3.2 The City Plan provides a broad based series of themes toward an over-arching strategic objective of creating “7,500 jobs in the city and see the majority of those jobs go to those on benefits”. 3.3 The Plan has five key themes, all of which touch upon the delivery of Social and Environmental Value and provide a common thread to be considered within procurement activity. These are set out in the table at Appendix 1.

4. Management of this policy

4.1 The Consideration of social value will be built into all the stages of the Council’s commissioning cycle – when reviewing service provision; conducting a needs analysis; consulting stakeholders and/or the marketplace through meet the buyer events; and through specifying the services to be procured. 4.2 Approaches to the procurement process that support the engagement of small and medium enterprises in the contracting process will be promoted, for example: • Publicising procurement in advance of procurement processes • Meet the buyer events related to tender processes • Using a core standard Pre-Qualification Questionnaire • Reducing the tender workload by retaining core information for re-use • Breaking larger contracts into lots to enable small and medium enterprises to bid. 4.3 Where social value forms part of the subject matter of the contract it can be taken into account when evaluating a bidder’s suitability to provide a service and be reflected at all stages of the procurement process. However, it is essential that social value performance can be verified and monitored. Unverifiable requirements are unlawful and ineffective 4.3 Accordingly where appropriate in its procurement activities, the council will specify social value outcomes that are proportionate and relevant to the specification of the service required and will evaluate tenders in accordance with those social value outcomes and the specification, and subsequently monitor performance of delivery of the identified social outcomes. 4.4 The Council has identified a set of indicators that can be used to measure and track the social value delivered through contracting arrangements. When commissioning goods and services, commissioners and procurement leads must consider the indicators for inclusion into the award criteria or as a performance obligation, where appropriate. These indicators are not an exhaustive list, and commissioners and procurement leads may wish to consider additional indicators.

PagePage 93 5 of 14253 4.5 The Council will use its existing governance arrangements, through both its democratic governance, as set out in the Council’s Constitution, in order to ensure scrutiny and control of procurement decisions so that the Council achieves social value, where appropriate. 4.6 Monitoring information that is produced will be used to contribute to the Joint Strategic Needs Assessment for the City and will therefore be captured and monitored through the procurement process. 4.7 Council wide information management systems will be used to provide a single monitoring arrangement.

PagePage 94 6 of 14253 City Plan Health & Wellbeing Possible Areas for Potential areas for Social Value Outcomes Objective /Community Social Value criteria KPIs Safety/Environmental strategic context Overarching 2011 benchmark • Investment • % Spend/investment in the city Increased objective: 28.5% of children • % employees from Hull CC employment and 7,500 jobs in the living in households • Job postcode prosperity city and see the where there is no Creation/retention • Number of permanent jobs Improved Health majority of those working adult present, created in the city and Well being jobs go to those compared with 15.9% • Number of permanent jobs on benefits in England • Training secured in the city CSP Strategic Aim: • Provision/completion of More people in apprenticeship places training, paid or unpaid • Apprentices/staff gaining work. qualifications • Percentage of employees benefiting from learning and development opportunities • Measures to support skills development among sub- contract supply chain SME (“Small and Medium Enterprise”) • Support for • Commitment to pay fair price to development of new SMEs businesses • Prompt payment arrangements for SME supply chain companies • Support to supply chain of Small and Medium Enterprises through advice on business

PagePage 95 7 of 14253 planning and employment • Underwriting investment risk for SMEs when acting as sub- contractor • Support for meet the buyer events • Contribution to the • Contribution to city regeneration needs regeneration boards/forums of the city

Harness all Hull’s • increased flood • Increased • Investment and Jobs created Increased assets to become risks to Urban employment • Reduced carbon footprint employment in the the leading UK Building infra- • Incentivising travel • Measures of travel to energy sector, Energy City structure; to work/school on work/school on foot/by cycle/by Improved public • Increased energy foot/by cycle/by public transport transport; demand for cooling public transport • Use of energy from renewable community heating and potential for • Reductions in public sources through district overheating; transport carbon • % waste to landfill heating schemes, • Combating Flood footprint • Training opportunities (see reduced fuel and coastal erosion • Education in how to above) poverty, energy risk use energy efficiently • Buildings which minimize use efficient homes, to minimise energy of non-renewable resources healthier lifestyles, use pleasant tree lined • Delivery miles (eg food miles) • Tree planting • environment. Measures to minimize /neutralize energy use of business • Recycling of materials • Minimize waste through Packaging etc • % of waste generated through contract recycled

PagePage 96 8 of 14253 • % of contractor drivers undertaken “green driver” training • % of sub-contractor drivers undertaken “green driver” training

Making Hull a • Quicker, cheaper • Events made possible • Sponsorship/promotion/advertising Increased world-class visitor shipping routes link • increases to visitor • Volunteer hours employment in the destination the city with key numbers • Volunteer workshops recreation and global markets • Volunteer leisure industries; • Ensuring wide attractive range of high environment to quality events and bring up families; activities is high quality available for entertainment and Children and social life; rich Young People of all cultural life; greater ages and abilities prosperity. and their families

Help Residents to • 2010 Benchmark • Community growing of • Adoption of the living wage Reduced energy make their money indicates that nutritious food • reduction of children in poverty; use, • go further 32.9% of children informing and • publication of key materials (eg healthier families in Hull were living supporting safety information) in different communities to in poverty languages/audio format compared to the establish community • market place to loan reduction in levels of obesity England average of to one another time • reduction in smoking 15.9% and money; • long term unemployed into • Warmer • Voluntary time and employment; temperatures sponsorship of • creating opportunities for provide suitable community activities

PagePage 97 9 of 14253 climatic conditions employment for care leavers, for new crops in the people with disabilities etc UK; • employees taking up health • Agricultural land checks, education of staff in more prone to good health; creating Flooding; sustainable supply chain • Fish and shellfish opportunities for small and projected to medium employers in the city move northwards; Prevention and • 26.1% of children • access to support and • reductions in health inequalities Safer city: Improved Early intervention entering reception reduction in anti-social • reduced levels of substance attendance; class at school are behaviour and crime misuse; Increased overweight and by • Community Safety: • reductions in domestic violence employment, year 6 36.8% are reduction in re- • reductions in children in care Reductions in overweight offending • reduced re-offending rates; obesity, heart • Hull life expectancy • Potential Measures: • reduced absence rates due to ill conditions and below national reduced levels of health; cancer; reduced average (3 years substance misuse; • reductions in level of smoking; male; 2.49 years conflict. reduced re-offending • percentage of workforce health female, with 10 year rates; reduced checks; variances between absence rates due to • Lead contractor providing support wards) ill health; reductions in to SMEs for health checks • HWB Strategic Aim: level of smoking;

People know that percentage of

there are lifestyle workforce undertaking changes that they health checks can make which will • Relevant Outcomes: reduce their chances Safer city: Improved of getting and dying attendance; Increased from cancer or heart employment, disease. Reductions in obesity, • HWB Strategic Aim: heart conditions and People understand cancer; reduced how to reduce the conflict.

PagePage 98 10 of of 142 53 risk of cancer and • Volunteer time in heart disease schools • CSP: Reductions in people involved in Anti-social behaviour • CSP: Improved outcomes in substance misuse and mental health • Milder winters are projected to result in a major reduction in the risk of cold-related death and illness; Safeguarding the • Young people are • Apprenticeships targeted at • Reductions in most vulnerable confident and are hard to reach groups (long term dependency able to deal with the unemployed/care leavers) problems they might • reduction in health inequalities face • • increased independent living Provision of a safe • and efficient Equality profile of service users transport system that contributes to the social, environmental and economic well being of the City and provides equal opportunities for everyone to access key services using, where possible, ‘green’ alternatives to the private car’

PagePage 99 11 of of 142 53 • CS Strategy: Providing an Environment in which unacceptable behavior is challenged

PagePage 100 12 of 14253

This workbook provides guidance on practical application for inclusion of social value outputs, based on current good practice and potential procurement legislation changes, in order to move HCC more towards its goal of ensuring that ‘how a service is delivered is taken into account along with what is delivered so that the outcome of a procurement process improves economic, social or environmental well-being.’

Hull City Council – Social Benefit Workbook

May 2014 v6

PagePage 101 13 of 53142

Hull City Council – Social Benefit Workbook

Table of Contents Introduction and Background Overview ...... 2 1) Pre-procurement and Authorisation to proceed ...... 3 a) Social benefit checklist & options appraisal ...... 3 b) Authorisation to proceed ...... 7 2) Contract notice and Tender documentation ...... 7 a) Contract Notices ...... 7 b) Pre-qualification questionnaire ...... 8 c) Specification - Narrative...... 9 d) Specification – Benchmark Tables ...... 11 e) Supplier Contract Information & Response ...... 14 Social Benefit Contract Requirements (Benchmark Schedule) ...... 14 Social Benefit Delivery Method Statement ...... 16 f) Evaluation & Scoring of Supplier Response ...... 17 Social Benefit Evaluation Matrix...... 19 3) Post contract monitoring and KPI’s ...... 20 Appendix A ...... 22 Acknowledgements ...... 25

May 2014 v6 1 PagePage 102 14 of 53142

Hull City Council – Social Benefit Workbook

Introduction & background overview

This document builds on the current Hull City Council (HCC) Social Value Toolkit version 3 (Nov 2013) and amends the existing toolkit from Section 4 Process onwards.

The text and any references contained therein should be read in conjunction with this workbook.

The following text provides guidance on practical application on inclusion of social benefit outputs, based on current good practice and potential procurement legislation changes, in order to move HCC more towards its goal of ensuring that ‘how a service is delivered is taken into account along with what is delivered so that the outcome of a procurement process improves economic, social or environmental well-being.’ Thus the following text and tables provides assistance on the procurement criteria and delivery methodology that is needed to reflect this.

HCC Social Value policy statement (January 2014) sets out the Hull City Council’s approach to the delivery of Social and Environmental Value.

“The Council is required to consider, before commencing the procurement process, how the economic, social and environmental well-being of the city may be improved through the procurement of its services (Public Services (Social Value) Act 2012)”

This links to the Cabinet Office in its guidance on the Social Value Act, which stated its understanding as follows:

“In these tight economic times it is particularly important that maximum value in public spending is achieved. However currently some commissioners miss opportunities to secure both the best price and meet the wider social, economic and environmental needs of the community. Commissioners and procurers should be taking a value for money approach – not lowest cost – to assessing contracts and the Act complements that approach.” (‘Procurement policy note: Public Services (Social Value) Act 2012’, first published 20 December 2012 and updated 7 January 2013 (“the Procurement Policy Note”))

The Council has developed a set of outcomes that will allow it to consider the economic, social and environmental well-being of the city and its residents when commissioning and procuring goods and services. These outcomes are based on the vision, values and priorities contained in the City Plan.

The City Plan provides a broad based series of themes toward an over-arching strategic objective of creating “7,500 jobs in the city and see the majority of those jobs go to those on benefits”.

The Plan has five key themes, all of which touch upon the delivery of Social and Environmental Value and provide a common thread to be considered within procurement activity.

• Harnessing all Hull’s assets to become the leading UK Energy City • Making Hull a World Class Visitor Destination • Helping residents’ to make their money go further • Prevention and Early Intervention • Safeguarding the most vulnerable residents

May 2014 v6 2 PagePage 103 15 of 53142

Further information, guidance and data that underpin the key themes can be found using the following links. The information that they provide can be used to support the inclusion of specific social benefit outputs within the contract:

i. Joint Strategic Needs Assessment (JSNA) - http://www.hullcc.gov.uk/portal/page?_pageid=221,52208&_dad=portal&_schema=PORTAL# and http://www.hullpublichealth.org/assets/HullJSNA2012.pdf (April 2013)

ii. Skills and Economic Forecast information - http://www.humberlep.org/skills/skills-2 iii. Humber Data Observatory - http://www.humberdataobservatory.org.uk/

The best way to achieve and deliver social benefit is to ensure that they are woven consistently through each stage of procurement. That means thinking about them right at the outset and this workbook provides the necessary guidance notes and text in the following key stages in the procurement process:

1. Pre-procurement & authorisation to proceed 2. Contract Notice and tender documentation 3. Tender evaluation and award 4. Post tender monitoring and key performance indicators

The following is aimed at contracts valued in excess of £50,000 (Fifty Thousand Pounds) as this is deemed to be a suitable sustainable procurement threshold and in line with current Standing Orders.

However, it can be applied to contacts below this by agreement with XXXXXXXXXXXXXX.

Further support in the application of this workbook can be obtained from XXXXXXXXXXX .

Note: New EU Procurement Directive – Feb 2014

As the EU seeks “a better integration of social and environmental consideration in the procurement procedures”, meaning procurers “should be allowed to use award criteria or contract performance conditions relating to the works, supplies or services, in all aspects and at any stage of their life cycle, even where such factors do not form part of their material substance”; this workbook will require further update following a review related to the new EU Procurement Rules which should come into force in the UK by February 2016. In particular the effect on the category identified as “Social Services”, SME’s (Small Medium Enterprises) and Concessions (Concessions are partnerships between the public sector and mostly private companies, where the latter exclusively operate, maintain and carry out the development of infrastructure (ports, water distribution, parking garages, toll roads) or provide services of general economic interest (energy, water distribution and waste disposal for example).

We need to consider inclusion of a procurement category management chart here and possible links to support for particular areas.

What about a link to Hull Training, Humber EBP, Hull CC departments that have social benefit delivery arms, including social health & well-being.

Statement on data collection, Data Protection Act needed.

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1) Pre-procurement and authorisation to proceed.

a) Pre-procurement social benefit checklist & options appraisal

Ensuring social benefit requirements relate to the subject matter of the contract is a crucial element. Without doing this the Authority will not be able to assess those requirements as part of the tender evaluation. All requirements must be capable of measurement and verification as well.

There are limits on what types of requirement may be considered to have a close enough relationship to the contract’s subject matter in order to be valid part of the evaluation criteria. This is the case for supplies contracts which may struggle to argue that social benefit award criteria have anything to do with the contract’s subject matter.

When the social benefit is not a core requirement (i.e. relevant to the subject matter of the contract) it can still be included within the contractual terms of the contract. However it would not form part of the tender evaluation award criteria. This is particularly relevant to the measurement/recording of additional social benefit outputs such as health checks etc. (See post tender monitoring and KPI’s – section 4).

Set out below are the questions that a procuring officer or team should be asking when considering including social benefits as contractual requirements on a particular contract. This initial checklist ensures that a consistent approach to the pre-procurement stage across all procurement category areas is followed and will withstand scrutiny. It is recommended that this checklist is attached to the procurement file.

Procurement Category and Reference:

Scheme Title:

Client:

Procurement Officer:

Date:

Hull CC has the necessary legal powers to include Social benefits within (1) contracts.

a) Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (“the Consolidated Directive”) b) Public Contracts Regulations 2006 SI 2006/05 (“the Regulations”) c) Public Services (Social Value) Act 2012

Hull CC ha s the necessa ry policy and strategy in place to support social (2) benefits within contracts.

d) HCC Social Value policy statement (January 2014) sets out the Hull City Council’s approach to the delivery of Social and Environmental Value e) Any others

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Social Benefit Outputs options appraisal.

In order to determine if the social benefit outputs to be specified to the supplier are proportionate to the contract the flowing table, outlining all of the target specific social benefit outputs required by HCC, will assist. The table ensures that a uniform selection process is followed in order identify the specific outputs applicable for each contract. This will in turn enable the Procurement Team to provide a justification to any scrutiny of this aspect of the contract. Please note this table is used to determine only those outputs where targets are to be set under the contract. The outputs that are purely measurement/recording only will be considered in a later section.

Pre -procurement checklist

Output (A) Ability of (B) Ability (C) Ability (D) Ability of (E) Does the Total Score (See Guidance Note Benchmark Reasons for grading and comments on result. Type specification of length of to achieve output be in market place below) Multiplier to support contract to value for proportion to have the (Must be completed for each output) (A)+(B)+(C) Total score (Please output support money in total ability to divided by 9 or 15 output relation to manpower comply with (Total score must be greater refer to the (See Guidance the output on the requirements? than 3 to be considered) Glossary of Note below) contract Or terms in (See Guidance (See Note below) Total score Appendix Guidance (A)+(B)+(C)+(D)+(E) A) Note below) (Total score must be greater Grade 1-3 Grade 1-3 Grade 1-3 Grade 1-3 Grade 1-3 than 5 to be considered) New entrants – Skills development

School /college /university visits

School /college /university workshops

Voluntary Organisation activity support Work experience <18yrs old

Work experience >18yrs old

Apprentices – project initiated

Project Initiated Higher Level Skills

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Existing workforce - Skills development

Apprentices – existing

National Vocational Qualifications

Short Courses/CPD

Investors in people status or equivalent New Entrants - Employment

Safeguarding employment

Progression into employment

Gradings: No ability =1, Minor ability =2, Maximum ability =3

Guidance on Total Score The total score for each item is used as a way of determining the overall suitability of each output that can be placed into the contract. The threshold for inclusion is a total score of greater than 3 (non – ‘service’ type procurements) or greater that 5 (‘Service” type procurements). These thresholds reflect the fact that a score of 3 or 5 means that the contract does not have the ability to support social benefits in terms of inclusion specific measured outputs that are evaluated as part of the tender. Where the score is 4 or 6, respectively, or above then these outputs will be included as part of the specification in section 2.

Guidance on Benchmark Multiplier This multiplier is to be used to adjust the level of outputs in the benchmark tables in section 2 d) so that they reflect the ability levels determined in the checklist above. To determine the multiplier the total score, for each output, is divided by 9 (non – ‘service’ type procurements) or 15 (‘Service” type procurements). To apply the multiplier, simply, multiply the appropriate benchmark number for the output (using the correct table and duration) by the multiplier to achieve the benchmark that will be inserted in the ‘Social Benefit Contract Requirements (Benchmark Schedule)’.

Guidance on Grading’s in (D) & (E) are only required when the procurement activity has related aspects placed in the PQQ. The grading’s here are particularly related to ‘service’ type procurements where the provision of labour is the main resource being procured and it is more difficult to determine a link to the contracts’ subject matter.

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b) Authorisation to Proceed.

In order to make the requirement for social benefit transparent it needs to form part of the award criteria for the contract. Reports seeking approval to go to market should (and must in the case of contracts for services) contain a section explaining the social benefit criteria you intend to include within the award criteria for the contract, and how you will monitor the delivery of social benefit within the award contract. In preparing the report the options appraisal table on the previous pages is to be used to form the basis of the decision for inclusion of particular social benefit outputs to be taken into account. This will then be followed by award criteria (tender documentation and specification) and monitoring covered in section 2 & 3 of this workbook.

2) Contract Notice and tender documentation.

a) Contract notices. As per the Toolkit we need to ensure that the contract notice and tender documentation makes clear to suppliers how you intend to monitor the delivery of social benefit as the contract proceeds, so that they are clear upon this. Where the procurement falls within the scope of the Public Contracts Regulations, an OJEU notice must be published. If the evaluation criteria are to incorporate social benefits this must be set out in the OJEU notice.

Example wording for an OJEU notice:

It is intended that this contract acts as a catalyst for [broadly describe the social benefits, e.g. regeneration of the area]. Accordingly, the Supplier will be required to actively participate in achieving these objectives and contract performance conditions may relate to social, economic and environmental considerations. The supplier’s technical capability to meet these requirements may also be assessed at the pre-qualification stage and criteria which assess the manner in which the Supplier will meet these requirements may also be included within the contract award criteria.

Where a contract falls outside the Public Contract Regulations, a notice will be published via YORtender. Similar wording should be used to ensure potential bidders are fully aware of the procurement’s social objectives. Wording such as the example below will suffice:

Under this contract the Supplier will be required to actively contribute to the achievement of social objectives. These include: skills development; employment and training opportunities within the locality of where the contract will be delivered; and other added value initiatives throughout the supply chain to support community programmes promoted by the council.

Accordingly contract performance conditions may relate in particular to secondary considerations

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b) Pre-qualification questionnaire.

This is not always required, however, it is easy to dismiss this as a procedural exercise but the elements in the ‘PQQ’ can be key to defining how important social benefits are to Hull CC. In the short term it focuses the attention of the bidders and the immediate market, in the long term it heightens awareness and builds the Supplier skill base.

The PQQ questions can help to provide support the pre-procurement checklist/social benefit outputs options appraisal.

There are core standard questions in the PQQ that HCC include and for social benefits the ones below will need to be included in the Technical and Professional Ability section (ND to confirm location/section number etc.).

Social Benefits Prequalification Statement

i. In relation to your organisation’s ability to provide the services to be delivered under this contract, please provide details of your organisation’s staffing arrangements, including the number of staff employed by your organisation, detailing management, supervisory and operational personnel broken down into disciplines where relevant, and details of your staff's educational and professional qualifications, including Trade or Professional Bodies that your firm or key staff are members of.

ii. Please provide details of your own employee skills and training programmes; identify your firm's approach to developing apprenticeships and provide details of the number of apprentices enrolled each year by your organisation and in which skill areas; evidence your experience of delivering employment opportunities to the long term unemployed; and identify any activities that you are currently involved in on a community or voluntary basis.

iii. How do you support and integrate the practices in ii) within your supply chain?

iv. Explain how, through delivery of this contract, your organisation will maximise opportunities for employment and economic gain within the local economy.

v. Explain how, through delivery of this contract, your organisation could maximise additional opportunities for local SME’s and voluntary groups.

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c) Specification - Narrative

“A key characteristic of social/community benefit requirements is that they are innovative: they extend the contract requirements beyond what has been procured conventionally. This implies a need to develop new text for the specification that:

• will achieve the social/community benefits, including local targeting;

• is measurable, or at least capable of comparative evaluation;

• will not disadvantage non-local bidders through their lack of local knowledge.

A common response to this is tender requirements that ask contractors how they will address the social/community aspirations of the purchaser. This assumes that bidders have knowledge of what will work best, which may not be the case and can result in responses that are long on positive rhetoric but short on measurable commitments” - Tackling Poverty Through Public Procurement April 2014 – Joseph Rowntree Foundation

Thus, for a tenderer to be able to accurately bid for a HCC contract, it must be clear in the tender documentation (by which we mean everything from the contract notice (OJEU or other) or other advert through to the invitation to tender and draft contract, precisely what the tenderer is being asked to bid for. This means that any contract conditions relating to social benefits (or for that matter any other element of the contract) need to be explained from the outset. This will then lead to ensuring that the social benefit outputs can form part of the evaluation criteria, which, can be seen to be ‘linked to the subject matter of the contract’ and therefore, the conditions of the contract must include the social benefit requirements.

Below are a set of requirements which must be included within the specification documents along with the glossary of terms in Appendix A page XXXXXX

Social Benefits Specification

1. Delivery of outputs

The supplier shall actively participate in the potential for economic and social regeneration which results

from this contract and shall deliver the requirements set out in the supplier’s Social Benefit Delivery Method Statement and the associated outputs in the Social Benefit Contract Requirements (Benchmark Schedule)

2. Modification of output levels

The Social Benefit Delivery Method Statement, including the outputs and or their levels, may be modified at any time by mutual agreement between the parties, unless otherwise stated in the Social Benefit Contract Requirements (Benchmark Schedule).

3. Recruitment

Every vacancy in relation to this contract, including those with sub-suppliers, is to be notified to client and

candidates identified by them are to have an equality of opportunity in the selection process.

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Social Benefits Specification (cont.)

4. Remuneration

All trainees shall be paid in accordance with industry / sector norms and shall have terms and conditions of employment that are at least equivalent to those provided to staff and employees that have equivalent skills and experience.

The supplier is encouraged to increase the remuneration of trainees in line with their experience and productivity in accordance with the practices applied to all other employees of the supplier.

5. Performance monitoring and verification of Information – Social Benefit Contract Requirements (Benchmark Schedule)

As part of the Council’s contract monitoring process, the projected contract outputs will be reviewed against delivered outputs by the contract manager. Suppliers will be required to include details of how these outputs have been met, providing supporting evidence where appropriate and identifying measures for improvement where targets have not been met.

Every 3 months (or at another time interval agreed with the client) the Supplier will be required to provide an update of the Social Benefit Monitoring Document, showing the achievements against each of the agreed Social Benefit areas. It will also include a qualitative notes/report providing details of the various Social Benefit activities in the period. The levels of supporting data are outlined in glossary of terms, however typical common evidence includes: • The levels of outputs achieved in that period and cumulatively for the contract period. • The number of vacancies notified to the client. • The postcodes (just the first 3 or 4 digits), the skill area and start date of all people participating in or who have gained from the social benefit activities. • The school, college or other leaning provider who are involved in activities. • The sub-supplier details that are involved in the activities.

6. Social Benefit (Measured Only) Outputs

As part of the Council’s wider Social Value policy statement (Jan 14), the supplier must report against other

social benefit outputs identified on the monitoring document in part B. No specific targets will be set for these outputs.

7. Supplier and sub-supplier compliance

It is the Supplier’s responsibility to develop a working method that will deliver the Social Benefit requirements and related monitoring and verification data, and obtain the full cooperation of any sub- suppliers in delivering these requirements.

8. Support

The inclusion of recruitment and training requirements does not comprise or imply any promise on the part of the client or their agents to provide suitable trainees or labour. Any action taken by these bodies or their agents to broker relationships between the Supplier and local individuals / firms / agencies does not imply that they or their agents consider the individual / firm / agency as suitable for engagement by the Supplier. All recruitment, supervision and discipline responsibilities rest with the Supplier and its sub-suppliers. Within this context the client will work with local agencies to help facilitate the achievement of the recruitment and training requirements.

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d) Specification – Benchmark Tables

Having included the specification for social benefit outputs, these need to be expressed in specific and measurable terms. The tables (A) to (C) below indicate output levels in each of the procurement category areas. Inclusion & level adjustment of any of the outputs is linked back to section b) Social Benefit Outputs options appraisal. Hence these generic benchmarks form a minimum standard that are adapted according appraisal scores.

Benchmarks Table (A) - Adults & Public Health & Children and Communities – Category Areas

Output Type Contract Duration 0-6 6-12 12-24 24-36 36-48 48 (Please refer to the Glossary of terms in months months months months months months+ Appendix A on page XXX ).

New entrants – Skills development School/college/university visits (no. of visits) 1 2 4 6 8 10 School/college/university workshops (no. of 1 2 3 4 workshops)

Voluntary Organisation activity support (no. 1 2 3 4 of activities)

Work experience <18yrs old (no. of people)

Work experience <18yrs old (no. of people) 1 2 4 4 Apprentices – project initiated (no. of people) 1 2 4 Project Initiated Higher Level Skills (no. of 1 2 2 people)

Existing workforce - Skills development Apprentices – existing (no. of people) 1 1 2 2 4 4

National Vocational Qualifications (no. of 1 2 4 6 8 10 people starting NVQ)

Short Courses/CPD (no. of people completing 1 2 4 4 short course)

Investors in people status or equivalent Progression Secure Maintain Maintain

Employment Safeguarding employment (no. of people) 2 4 6 8

Progression into employment 1 3 6 10 (no. of people)

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Benchmarks Table (B) - Urban Design & Facilities Management, Transport and Highways – Category Areas

Output Type Contract Duration 0-6 6-12 12-24 24-36 36-48 48 (Please refer to the Glossary of terms in months months months months months months+ Appendix A on page XXX ).

New entrants – Skills development School/college/university visits (no. of visits) 1 2 4 6 8 10 School/college/university workshops (no. of 1 2 4 8 workshops)

Voluntary Organisation activity support (no. 1 2 3 4 of activities)

Work experience <18yrs old (no. of people) 1 2 4 4 Work experience <18yrs old (no. of people) 1 2 4 4 Apprentices – project initiated (no. of people) 1 2 4 Project Initiated Higher Level Skills (no. of 1 2 2 people)

Existing workforce - Skills development Apprentices – existing (no. of people) 1 2 4 6 8 10 National Vocational Qualifications (no. of 1 2 4 6 8 10 people starting NVQ)

Short Courses/CPD (no. of people completing 1 2 4 4 short course)

Investors in people status or equivalent Progression Secure Maintain

Employment Safeguarding employment (no. of people) 2 4 6 8

Progression into employment 1 3 6 10 (no. of people)

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Benchmarks Table (C) - People & Business Services, ICT, Utilities and Schools – Category Areas

Output Type Contract Duration 0-6 6-12 12-24 24-36 36-48 48 (Please refer to the Glossary of terms in months months months months months months+ Appendix A on page XXX ).

New entrants – Skills development School/college/university visits (no. of visits) 1 2 4 6 8 10 School/college/university workshops (no. of 1 1 1 2 4 8 workshops)

Voluntary Organisation activity support (no. of activities)

Work experience <18yrs old (no. of people) 1 2 3 4 Work experience <18yrs old (no. of people) 1 2 3 4 Apprentices – project initiated (no. of people) 1 2 4 Project Initiated Higher Level Skills (no. of 1 2 people)

Existing workforce - Skills development Apprentices – existing (no. of people) 1 2 3 4 4 National Vocational Qualifications (no. of 1 2 3 4 4 people starting NVQ)

Short Courses/CPD (no. of people completing 1 2 4 4 short course)

Investors in people status or equivalent Progression Secure Maintain

Employment Safeguarding employment (no. of people) 2 4 6 8

Progression into employment 1 3 6 10 (no. of people)

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e) Supplier Contract Information & Response

Once the specific appropriate social benefit outputs have been determined from the benchmark tables in section d) above they will need to be inserted into your contract documentation.

Remember the benchmark values are adjusted by first determining contract duration band and then applying the benchmark multiplier which was determined in the options appraisal.

For example:

If you were looking at benchmarks from Table (A) (extract below):

Output Type Contract Duration 0-6 6-12 12-24 24-36 36-48 48 (Please refer to the Glossary of terms in months months months months months months+ Appendix A on page XXX ).

New entrants – Skills development School/college/university visits (no. of visits) 1 2 4 6 8 10

If your contract duration was 15 months it would be in the band 12 -24 months, thus the initial value for this output is 4.

However, from the options appraisal in section 1a) (extract below)the benchmark multiplier determined was:

Pre -procurement checklist

Output (A) Ability of (B) (C) (D) Ability (E) Does the Total Score (See Benchmark specification Ability Ability of output market place Guidance Note Multiplier Type to support of to be in have the below) Total score output length achieve proportion ability to (Please (A)+(B)+(C) divided by 9 of value to total comply with or 15 (See refer to contract for manpower requirements? (Total score must Guidance the to money on the be greater than 3 (See Guidance to be considered) Note below) Glossary support in contract Note below) of terms output relation (See Or to the Guidance Total score in output Appendix Note (A)+(B)+(C)+(D)+(E) below) A) (Total score must Grade Grade be greater than 5 Grade 1-3 Grade 1-3 Grade 1-3 1-3 1-3 to be considered) New entrants – Skills development

School 2 2 3 N/A N/A 7 7 divided /college by 9 = /university 0.78 visits

Therefore the revised benchmark that will be inserted in the contract requirements is:

4 multiplied by 0.78 = 3.12 or 3

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The table below will be inserted into the tender documentation (need to look at Hull CC standard form to identify location) to state the council’s required outputs shown as the benchmark (based on the guidance) and then asks the Supplier for their response. The time period for achieving the outputs should be specified (in the area shown) and linked to the contract term. (e.g. if the contract term is for 3mths or one year etc., then 3mths or one year is stated. If it is a term contract then annually may be appropriate)

Social Benefit Contract Requirements (Benchmark Schedule)

Outputs are to be delivered over the Benchmark Client Notes Suppliers following time period (insert time period) Response

New entrants – Skills development 1. School/college/university visits (no. of visits)

2. School/college/university workshops (no. of

workshops)

3. Voluntary Organisation activity support (no. of

activities)

4. Work experience <18yrs old (no. of people)

5. Work experience <18yrs old (no. of people)

6. Apprentices – project initiated (no. of people)

7. Project Initiated Higher Level Skills (no. of people)

Existing workforce - Skills development 8. Apprentices – existing (no. of people)

9. National Vocational Qualifications (no. of people

starting NVQ)

10. Short Courses/CPD (no. of people completing short

course)

11. Investors in people status or equivalent

Employment 12. Safeguarding employment (no. of people)

13. Progression into employment (no. of people)

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In order to effectively evaluate the supplier’s proposal, the figures provided by them in the tender response need to be checked and substantiated; this is done through provision of a social benefit delivery method statement . This method statement is a detailed response provided by the supplier which will provided specific information, related to the project, in order to explain and evidence how they can deliver on their projected outputs as part of the successful delivery of the overall contract. This is not a generic marketing or Corporate Social Responsibility (CSR) document it needs to be targeted and linked to the project.

Below is the suggested wording which can be inserted into the tender documents requiring suppliers to provide a method statement and gives an outline of the type of information that should be provided, and how this and the suppliers response will be evaluated. This is to be inserted in XXXXXXXX

Social Benefit Delivery Method Statement

Suppliers are required to complete the table headed ‘Social Benefit Contract Requirements (Benchmark Schedule)’, populating the column headed ‘Supplier’s Response’ with projected output figures for the duration of the contract. To support and validate the projected outputs, suppliers are asked to submit a Social Benefit method statement. This should clearly set out the approach they will take for delivering Social

Benefit requirements. Specifically, it should include the following areas:

1) Who in the organisation will be responsible for managing the delivery of the Social Benefit outputs; 2) Focusing on specifics and set out against each output: • How the target outputs, detailed by the supplier, will be delivered. • How the supplier will maximise the engagement of individuals in the locality of the project and Hull CC boundaries. This should demonstrate (but not be limited to) how publicity would be targeted at a representative demographic profile of the local area and outreach activities that would engage under- represented groups to promote diversity within the workforce; • How the supplier will engage with local sub-suppliers (where appropriate) and what actions will be taken to ensure compliance by any sub-suppliers working on the project; • Describe the steps that you organisation will undertake to ensure that individuals in the locality of the project will be recruited to the project / engaged with the project.

• Provide a forecast timeframe for the activities relative to the project time frame on the monitoring document.

• How the supplier would engage with local training providers, organisations and networks. • How the supplier will engage with local sub-suppliers (where appropriate) • Where appropriate describe any bespoke training or initiative promoted as part of the supplier’s delivery of works and services, how this would be financed and any tailored recruitment approach;

The length of the method statement needs to be appropriate to the level of outputs to be delivered and should be no more than 4 sides of A4 in length.

The Social Benefit Contract Requirements (Benchmark Schedule) and the Social Benefit Delivery Method Statement together will be referred to as the ‘Social Benefit Delivery Plan’ and form part of the overall contract.

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f) Evaluation & scoring of Supplier response – to include criteria/scoring matrix

Having set out the required social benefit outputs, you must explain clearly too potential Suppliers how their proposals will be evaluated as with any other qualitative criteria that are being assessed.

Below is an extract which can be inserted into your tender documents to explain to Suppliers how their Supplier Response and Method Statement will be evaluated.

“The Social Benefit Delivery Plan will be evaluated to reflect the Supplier’s ability to deliver it. Each output will be awarded a score by reference to the Supplier’s response against the benchmark and their method statement. Any tenderer whose output response equals or exceeds the benchmark from the table and provides a wholly satisfactory method statement, will be awarded a maximum score of 1 for that output. The sum of the output scores will be averaged to a maximum score of 10 which will stand as the score for that element of the overall quality evaluation. This will then have the criteria weighting applied as set out in the evaluation model”

• Evaluation scoring guidance for officers

The Social Benefit Delivery Plan will be scored in accordance with the evaluation matrix on page XXXXX. The scoring of the Social Benefit Delivery Plan will reflect the Supplier’s ability to deliver the social benefits outputs relative to the benchmarks shown in Social Benefit Contract Requirements (Benchmark Schedule) and in column (C) of the evaluation matrix.

Scores will be calculated as follows:

1. Tenderers responses for each relevant output are compared with the benchmark figures in the table. Any tenderer whose response equals or exceeds the benchmark from the table will be awarded a maximum score of 1 for that output. If the response is less than the client benchmark the score is adjusted proportionally. i.e. if benchmark = 4, supplier response = 3, score is then 3 ÷ 4 × 1 = 0.75.

2. The evaluation panel will consider if a tenderer’s response for each output is realistic and achievable. This will also take into consideration the Social Benefit Delivery Method Statement, specifically against each output: • How the target outputs as set out in the Social Benefit Delivery Plan will be delivered; • What actions will be taken to ensure compliance by the sub-suppliers working on the project, if applicable; • How links will be made to existing local provider/partnerships and the voluntary and community sector. and separately;

• Who in the organisation will be responsible for managing the training scheme; how health and safety issues will be managed; • Any other organisation specific aspects; such as existing levels of compliance in Investors in People etc.

Delivery Confidence Factor scorings

Delivery Confidence Factor scorings (in column C) will be given by the evaluation panel and evaluate how realistic and achievable the information in the delivery method statement is, to validate the Supplier’s response figures.

Key to scorings: 1 = No reservations on delivery of output (maximum score) 0.75 = Very minor reservations on delivery of the output 0.5 = Minor reservations on delivery of the output 0.25 = Major reservations on delivery of the output 0 = Information clearly shows the tenderer cannot satisfy the requirements of the output

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Evaluation example:

If a Supplier’s response figure (column A) is less than the benchmark figure (column B) then figure A is divided by figure B, and then multiplied by the satisfaction factor (column C). The score is then entered into the Total Score box (column D). This is shown simply as: A / B * C = D

A B C D

Outputs Supplier ’s Benchmark Delivery Total Response Confidence Factor score

School/college / university 4 6 0.75 0.5 visits (no. of visits)

Therefore the total score is achieved by: 4 ÷ 6 = 0.67 X 0.75 = 0.5

However, if a Supplier’s response figure (column A) is greater than the council’s benchmark figure (column B), the overall score still cannot be greater than a score of 1. In this case the evaluator would give a delivery confidence factor score (column C) and no further calculations are carried out. The evaluator simply carries across the score entered into column C in to column D also, as the total score.

A B C D

Outputs Supplier ’s Benchmark Delivery Total Response Confidence Factor score

School/college / university 8 6 0.75 0. 75 visits (no. of visits)

Therefore the total score is achieved by: 8 ÷ 6 = 1.33 (but can only be max 1) thus = 1 X 0.75 = 0.75

A total score should be entered into column D for each output to be delivered as part of the contract.

Overall Social Benefit Delivery Plan evaluation score

The next step is to add up all the scores in column D, divide them by the total number of outputs and multiply by 10.

This gives an overall Social Benefit Delivery Plan evaluation score out of a maximum 10 points. This is then transferred into the overall evaluation matrix to be weighted accordingly.

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Social Benefit Evaluation Matrix A B C D

Output type Supplier’s Benchmark Delivery Total score Notes Response Confidence (Please refer to the Glossary of terms in Appendix A on page XXX ). Factor

New entrants – Skills development School/college/university visits (no. of visits) School/college/university workshops (no. of workshops) Voluntary Organisation activity support (no. of activities) Work experience <18yrs old (no. of people) Work experience >18yrs old (no. of people) Apprentices – project initiated (no. of people) Existing workforce - Skills development Apprentices – existing (no. of people) National Vocational Qualifications (no. of people starting NVQ) Short Courses/CPD (no. of people completing short course) Investors in people status or equivalent Employment Safeguarding employment (no. of people)

Progression into employment (New) (no. of people)

Sub total (sum of column D) No. of outputs Overall Score (subtotal / no. of outputs)

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3) Post Contract monitoring and KPI’s

It is important that the tender specification and contract conditions set out what monitoring information is required, and at what intervals. This has been included in the specification at point 5, however, to be useful the client needs to have the means to assess and respond to the information, to ensure that suppliers address any underachievement.

A key issue here is resources. Monitoring and reporting are important, but they are expensive for both the client and the supplier, hence the need to report on a quarterly basis unless there are other circumstances that require more frequent monitoring.

How well the data is verified will depend on the contract management team. The specification sets out minimum standards in terms of verification data and the monitoring document has the ability to capture this so there should be no reason why it is not followed through.

It is the intension of HCC to have an online monitoring tool linked to the E-Procurement Portal, however, this is not possible at the time of writing this workbook and so it is planned to adopt the standard monitoring document in Appendix B, that covers a range of potential social benefit requirements, and to have this as an on line document for suppliers to submit and update during the course of the contract.

The document contains both Social Benefit Contract Requirements (Benchmark Schedule) and along with Social Benefit (Measured Only) Outputs. Unlike the specified outputs the measured outputs have no targets set in the contract but still require the supplier to collect the data, as detailed in the specification at 6.

The use of the monitoring document must be in line with the outputs identified as part of the contract and should be modified to ‘hatch out’ these outputs not specified so as not to lead to an overload of requirements.

More needed to detail how to complete but awaiting discussion

Comments form Ian:

We will only be measuring what the Council do -

• In terms of ‘within the City’ will there be postcode limits? - For consistency I would rely on those used by Neil’s team. Neil will confirm.

• Will jobs or contracts be of a minimum duration ? I think you can use the same approach as for YORbuild

• Will local contracts have a minimum value? I think overall value of contracts let to city companies will be more useful.

• Will a contract given to a national company that has a local office in the city be classed as local? This is more difficult, however, we go on where we pay, so if they have a local office it is caught

• How will we capture none HCC projects if this is needed (including ERYC projects such as Hessle Library etc., Police & Fire Authorities)? This is not needed

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Key Performance Indicators (KPIs)

There are 3 KPIs to be measured as part of the overall determination of social benefit delivery.

The full definitions and calculations for all of the KPIs are detailed below and in all cases are reported at the end of the contract (Unless stated otherwise in the contract documents).

KPI 1 : Percentage of social benefit output delivery

This KPI is taken direct from the final monitoring document. The actual percentage of outputs delivered against contracted target. The actual percentage is to be is to be divided by 10 in order to give a score out of 10. e.g. 87% : 87/10 = 8.7

The maximum KPI 1 score is 10.

KPI 2 : Actual social benefit delivery profile

This KPI assesses the % of output categories delivered against contracted target. e.g. if there are 5 categories to be delivered and the supplier delivers against 2 the KPI is:

2 divided by 5 = 0.4 and this is multiplied by 10 = 4.

The maximum KPI 1 score is 10

KPI 3 : Provision of data records and supporting evidence

This KPI assesses the supplier’s compliance against provision of data to the contract manager.

The contract manager, at the end of the contract, determines the level of KPI against the following criteria:

10 = all data and supporting evidence provided on time

5 = data provided sporadically

0 = no data provided.

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Appendix A - Glossary of Terms

Note: this is to be included in the specification / contract definitions

PART A - Social Benefit Contract Requirements

Apprenticeship - General

A form of vocational training whereby the apprentice follows sector skills council approved framework to develop skills and knowledge and then demonstrates and evidences the application of these in a work setting. In order to complete an apprenticeship, the apprentice must have been employed during the apprenticeship, have evidenced competence in the specified range of vocational skills and have an employed status at the time of completion. Apprenticeships are available at intermediate, advanced and higher (degree) level, covering more than 170 industries and 1500 roles from advertising to nuclear decommissioning. Approved Framework apprenticeships available are listed on the National Apprenticeships Service at www.apprenticeships.org.uk or http://www.apprenticeships.org.uk/types-of-apprenticeships.aspx

Apprenticeship – Project initiated

The project initiated apprenticeships are new apprenticeship places, which would not have been otherwise created / provided via any other funding or project/contract.

Monitoring: Quarterly outputs – number of people.

Apprenticeship – Existing

Individuals who are employed by the Supplier on a relevant sector approved apprenticeship programme. The apprentice may be part way through their apprenticeship qualification and the contracted works are supporting the apprentice to gain the necessary work based evidence with the delivery partners’ organisation. The apprentice may already be an employee of the Supplier or their supply chain company, which is active on the contracted works. The employment of any displaced apprentices (through agreement) will also count towards this target.

Monitoring: Quarterly outputs – number of people .

Employment

New

Individuals (local where possible) who are currently unemployed or who have been offered training / employment opportunities as part of a Job Centre Plus pre-employment initiative.

Agency staff – As of April 2011 the supplier can use agency staff towards this output area. The number counted is to be agreed.

Monitoring: Quarterly outputs – number of people

Safeguarded

As a result of securing this contract, existing staff engaged in delivering it are retained by the successful organisation (whether the incumbent supplier or not).

Where the TUPE Regulations 2006 are applied, this output will automatically be achieved for the number of staff transferring

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Monitoring: Quarterly outputs – number of people.

New Entrants – Skills development

School / College / University site visits – visits by students to the suppliers’ site/offices/ other location to support their learning.

Monitoring: Quarterly outputs – number of visits/number of students.

School / College / University workshops – educational workshop activities that are delivered by the Suppliers or their supply chain within the school or college, or on site.

Monitoring: Quarterly outputs – number of workshops/number of students.

Voluntary Organisation activity support – activities that would provide additional support to local Voluntary Organisations. Types of activity included volunteering time, expertise etc.

Monitoring: Quarterly outputs – number of activities.

Work experience (under 18 years) – work experience placements with the Supplier (direct) or sub supplier (indirect). This can include block placements of one week or more or one / two days per week.

Monitoring: Quarterly outputs – number of people.

Work experience (18+ years) (details as for under 18 years) Duration is intended to be as flexible as possible to meet employer and individuals’ needs.

Monitoring: Quarterly outputs – number of people.

Project initiated higher level skills - It will be expected that suppliers will recruit professional staff specifically to work on these projects or will provide training to existing staff in order for them to operate at a higher level (level 3 upwards).

Monitoring: Quarterly outputs – number of people.

CSCS cards or similar

Sector specific skills cards that demonstrate that the holder is competent in their respective role. Staff will need to have for example the appropriate NVQ or equivalent qualification and have passed the appropriate Health & Safety Test.

Monitoring: Quarterly outputs – number of people gaining a new card or card renewal.

Investors in people status or equivalent

Hull City Council is keen to see more companies, especially small firms, commit to the Investors in People (IiP) standard or equivalent. Eligible companies wishing to develop their Training Plans, or similar structured approaches to training, can get advice and assistance from their Sector Skills Council contacts.

Monitoring: Quarterly outputs – current status

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Existing workforce – Skills development

National Vocational Qualifications and other vocational qualifications – Workers undertaking on site assessments to achieve a National Vocational Qualification level 2 – 5.

Monitoring: Quarterly outputs – number of people starting NVQ.

Short courses – Short courses in a wide range of topics that provide knowledge and skills to meet the needs of different work environments, for example, health and safety training.

Monitoring: Quarterly outputs – number of people completing a short course.

PART B - Social Benefit (Measured Only) Outputs – Need definitions

% Employees on scheme taking up work place health checks

% of sub-supplier employees on scheme taking up work place health checks

% of Employees on scheme classified as overweight

% of sub-supplier employees on scheme classified as overweight

% sickness rates among staff on scheme

% Employees on scheme who give up smoking

% Employees being provided with guidance upon alcohol consumption

% of Employees travelling to workplace by public transport, by bike or on foot

No of overnight stays in Hull generated through scheme

% spend on sub-suppliers which employ in excess of 75% of employees registered to vote at HU…. postcodes

% payment of sub-supplier invoices within 28 calendar days

% spend within project on energy from renewable sources

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Acknowledgements

The following is acknowledged as being a reference source used in the writing of this workbook:

1) West Midlands Procurement Framework for Jobs and Skills 2) Social Value and Public Procurement “A Legal Guide” January 2014 – Anthony Collins Solicitors 3) Procuring the Future - New EU Procurement Directives 12 March 2014– Walker Morris Solicitors 4) Tackling Poverty Through Public Procurement April 2014 – Joseph Rowntree Foundation

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PagePage 127 39 of 53142 Hull Responsible Contractor Charter – Delivering Social Value in Hull

The Hull Responsible Contractor Charter (HRCC) contains appropriate Themes, Outcomes and Measures 1 to help contractors delivering services in the city deliver social value in Hull that contributes to the delivery of the City Plan outcomes.

Commissioning and contracting decisions will take account of the themes of the HRCC which forms part of the terms of Hull Council (HCC) contracts and Conditions of Grant Aid (COGA).

1. HRCC Objectives

The HRCC has 2 main objectives

(i) Promote good practice . The HRCC is a set of guiding themes which the Council adheres to and invites all organisations to adopt as a mechanism for managing how they deliver social value. These may not be measured but will reflect the ethos and standard of best practice of an organisation which we would expect from a supplier to the public sector. This is particularly the case of the Good Employer and Ethical Procurement themes, for which further information and links to good practice are set out in the accompanying guidance notes.

(ii) Seek relevant and proportionate commitments related to the subject matter of the contract . Regulation 70 (Procurement Regulations 2015) allows for inclusion of special conditions, which may include environmental, social or employment related considerations. These commitments form the basis of a Social Value Action Plan that covers the life of the contract and is managed throughout the contract period.

1 http://socialvalueportal.com/national-toms/

PagePage 128 40 of 14253 2. The Themes

Contractors signing the Charter are required to deliver upon the contracts that they enter into in accordance with the principles articulated through 7 themes:

Theme 1: Creating Social Value through Contracting (Buy Charter Contractor)

HRCC signatories will take account of the social, environmental and economic impacts of buying when commissioning and contracting, in particular the impact of spending decisions upon reducing unemployment and raising the skill level of the local workforce.

• Where possible, commit to purchasing from businesses, social enterprises and small businesses that have signed up to the Charter [build Find it in Hull website pulling together: Hull News/YORtender/Hull News/the Bid Business Directory 2 (needs refreshing see Birmingham 3)?] • Encourage suppliers to endorse the principle of “Buy Charter Contractor” throughout their supply chains • Use [ Find it in Hull /Hull Bid Business Directory ] as the primary method of sourcing suppliers for contracts increasing the accessibility of opportunities to charter contractors throughout the supply chain

2 https://www.hullbid.co.uk/businesses 3 https://www.finditinbirmingham.com

PagePage 129 41 of 14253 Theme 2: Promoting Skills and Employment HRCC signatories will create employment and training opportunities for local people especially in target areas. • Commit to create employment and training opportunities for local residents, targeting areas of high unemployment and groups facing disadvantage, including current and formerly ‘looked after’ young people and people with disabilities and through activities such as work experience placements, apprenticeships, internship and mentoring • Advertise employment opportunities through [ Green Port Hull? ] to ensure that those opportunities are targeted at those furthest from the jobs market. • Seek opportunities to deliver support for workshops, site visits and work experience with schools and colleges to help to ensure that the local young people are equipped with the right skills to match the requirements of the labour market.

Theme 3 – Good Employer The promotion of fair, healthy and safe work places HRCC signatories will support staff development and welfare within their own organisation and within their supply chain. • Ensure that employees are given a fair reward for their labours and help foster a loyal and motivated workforce by adhering to the [Council's Living Wage Policy] • Recognise employees' rights of freedom of association and collective bargaining, including not using blacklists in recruitment processes. • Contractors and their supply chains should provide a safe and hygienic working environment and where appropriate work collaboratively with the appropriate trade unions to identify and implement reasonable real-world initiatives related to safety in the workplace. • Shows a clear intent and positive commitment to the health and wellbeing of employees, which encourages healthy lifestyle choices that assist with addressing health issues through the adoption of policies such as the [Workplace Wellbeing Charter]. • Promote diversity and inclusiveness, not discriminate in respect of recruitment, compensation, access to training, promotion, termination of employment or retirement based upon race, caste, national origin, religion, age, disability (including learning disability), mental health issues, gender, marital status, sexual orientation, union membership or political affiliation. • Not operate exploitative zero hour contracts which seek to prevent an employee from working for another employer. • Have and comply with a whistle blowing policy, safeguard against harassment or intimidation

Theme 4: The promotion of ethical practices through the adoption of Ethical Standards in business HRCC signatories will commit to the highest ethical standards in their own operations and those within their supply chain. • Work to the highest standards of business integrity and ethical conduct.

PagePage 130 42 of 14253 • Pay their fair share of taxes. • Ensure the well-being and protection of work forces in the supply chain, which must be supported by robust systems and procedures. • Uphold the principles of the Universal Declaration of Human Rights and the Fundamental International Labour Organisation Conventions; including the use of child and forced labour. • Adopt best practice when procuring goods and services, e.g. procure low energy products, buy Fairtrade and avoid the use of rainforest timber from unmanaged sources. • Pay suppliers no later than the terms stated in the primary contract if contracted to the Council, otherwise adopt a similar policy such as the Prompt Payment Code. • Contractors and their supply chains within the construction industry should work collaboratively to provide responsible industry-wide solutions aimed at supporting and sustaining the construction industry for the benefit of the local economy and communities. • Contractors and their supply chains should promote and encourage the recognition of the right of all construction workers to be employed under and to be protected by the appropriate national industry collective agreement applicable to the construction industry. • Contractors and their supply chains should support the banning of single-use plastics in their place of work and in the goods and services they provide.

PagePage 131 43 of 14253 Theme 5: Promoting Resilient Communities HRCC signatories will play an active role in the local community and support organisations, especially in those areas and communities with the greatest need: • Build capacity by supporting community organisations with resources and expertise in areas with the greatest need, for example mentoring and working with youth organisations and services. • Make a local impact by improving local facilities and areas, for example staff volunteering schemes. • Provide support to third sector organisations and work with third sector organisations to deliver services and contracts, particularly those organisations working for the prevention of homelessness. • Have a shared sense of responsibility; consider good citizenship and safeguarding issues relating to children and vulnerable adults. • Work with schools and colleges, offering work experience and business awareness to students, especially those from disadvantaged areas or communities. • Make accessible all sub-contracting opportunities to a diverse supply base including the third sector and local suppliers and provide mentoring and support to assist these organisations to tender for and deliver these supply opportunities where necessary. • Help to support the health and wellbeing of communities in which the business operates by for example linking with local schools and colleges, other local businesses and residents' groups to help run or sponsor activities / events, which will directly benefit those living there.

Theme 6: Protecting and Improving the Environment HRCC signatories will commit to protecting the environment, minimising waste and energy consumption, using resources efficiently. These commitments will also apply to their supply chain. • Reduce Carbon footprint – be aware of main impacts on carbon emissions including the indirect carbon used in manufacturing processes and the direct impact of operations and logistics. • Measure carbon emissions and ensure a plan to reduce emissions, where possible, is being implemented using carbon measurement tools. Specific targets to be included in major contracts • Eliminate unnecessary waste by adopting the "reduce, reuse, recycle" philosophy. • Be a good neighbour, minimise negative local impacts (noise, air quality), and improve green areas (e.g. biodiversity, visual attractiveness). • Protect the environment and minimise adverse impacts and instil this approach throughout the supply chain.

PagePage 132 44 of 14253 Theme 7: Promoting Social Innovation HRCC signatories will commit to working together with the Public Sector to identify innovative approaches to long standing problems. 3. Incorporation into Public Sector Contract Terms:

Suppliers to the Public Sector in Hull will be expected to sign up to the Charter and complete an Action Plan which becomes a contract document setting out how they will deliver on the Charter. Performance standards then determine the sanction to be applied in the event of failure to adhere to the standards. Contracts will incorporate the following terms: “Agreement 1.1 The Provider agrees to sign up to the Hull Responsible Contractor Charter (HRCC) as set out in Part XX of the XXXXX Schedule. The Service Provider agrees to meet the standards as required by the Charter throughout the duration of this agreement. Action Plan 2.1 In fulfilling its obligations under the HRCC, the Provider shall develop and implement an action plan approved by the Public sector organisation. The Provider’s Action Plan shall include sufficient detail as to how the principles of the Charter shall be implemented during the duration of this Agreement. The Provider shall maintain the Action Plan throughout the duration of this Agreement, recording completed actions and those yet to be implemented. The Action Plan shall form part of the contract reviews to be undertaken by the Public sector organisation. Annual Statement The Provider shall provide to the Public sector organisation on each anniversary date, beginning from the Commencement Date, an annual statement confirming how the principles of the Charter have been implemented or are yet to be implemented. ] Social Value Delivery Performance Standards: Social Value was defined and set out by the Public sector organisation in the tender documentation. The contractor committed to delivery of a programme of SV targets during the contract and is required to adhere to this programme. Monitoring against performance will be reviewed at Quarterly meetings with the contractor. In preparation for these meetings the contractor is required to provide details of SV commitments d and evidence that they have been delivered.

PagePage 133 45 of 14253 Performance points: [XX] points for a failure to deliver on any SV target in any Monitoring Period with a 10-calendar day rectification period. KPIs may be general effective gauges of performance, informing the continuing delivery and contract management and need not only be linked to assessment against commitments and consequent price adjustments.”

4. Implementation:

The Charter will be applied proportionately according to the table below:

Tier 1 Tier 2 Tier 3 Charter does not apply?? Light touch application Fully consider Social Value tailored by contract or grant and all action plan type measures Contracts for Goods Contracts for Services Contracts for execution of Works Grants To threshold in Article 4(a) Above threshold in Article Directive 2014/24/EU 4 4(a) Directive 2014/24/EU

Where the contract is a mixed contract e.g. a contract for the supply of goods and services, then the contract type that characterises the main subject matter of the contract in question will apply. Where the Charter does not apply, tenderers and grant applicants must still assess their tender against the Council's Living Wage Policy and comply where appropriate.

4 For current EU thresholds refer to www.ojeu.eu/thresholds.aspx

PagePage 134 46 of 14253 Where a framework agreement is established by the Council that covers an area wider than Hull, participating Contracting Authorities are able to achieve social value outcomes for their relevant areas when calling off. What is meant by "Local" under the Local Employment and Buy Local principles is context dependent, however, as guidance, 30 miles from the point of service delivery is reasonable. Tenderers will respond to the Social Value outcomes in the Council's commissioning and procurement activities and describe how they can improve the economic, social and environmental well-being in Hull.

Monitoring The action plan commitments to be delivered by the successful tenderers will be relevant, proportionate, specific and measurable and cover the contracted period. These achievements will be recognised through Charter accreditation. The contractor will then maintain the action plan and liaise with the Contract Manager throughout the contract period. [Visit the Council’s web pages for further guidance and the action plan template]

PagePage 135 47 of 14253 5. Themes, Outcomes and Measures (TOMS) 5

The following table sets out the Themes, Social Value Outcomes and Measures that (i) align with the City Plan priorities (ii) align with national “SV measures (iii) demonstrate the fiscal benefit to the public sector [by including a financial proxy] for most interventions.

These outcomes will form the basis the Social Value requirements in all tenders where the HRCC applies

Themes Social Value National Themes, Measures Units Financial Proxies Outcomes Outcomes, Measures, TOMS Creating Social Value through Contracting Promoting Skills and Employment Good Employer The promotion of fair, healthy and safe work places The promotion of NT23 ethical practices through the adoption of Ethical Standards in business Promoting Resilient Communities Protecting and

5 http://socialvalueportal.com/national-toms/

PagePage 136 48 of 14253 Improving the Environment Promoting Innovation

PagePage 137 49 of 14253 Birmingham Business Charter for Social Responsibility

Birmingham Business Charter for Social Responsibility Guidance for Completing Action Plan The information in blue on the specific Commitments tab are only examples This revised version of the action plan now includes additional functionality to enable social value to be addressed more specifically, particularly taking into account the level of deprivation in wards and the level of impact of interventions. In completing an action plan please pay attention to the ward weightings (red-3, amber-2 and green-1) and financial proxies as both enable the social value to be quantified and evaluated. When you are completing the Charter Action Plan template you must complete the company information tab including the Contract Ref, Title, Value, Start and end date and who the contract manager is as well as completing the specific commitments tab:

Column A - select the relevant charter theme from the dropdown Column B - select 1 of the outcomes that relates to your selected theme from the drop down (you MUST select a theme before selecting an outcome) Column C - select 1 of the measures that relates to your selected outcome from the drop down (you MUST select an outcome before selecting a measure) Column D - select 1 of the units that relates to your selected measure Column E - this will be calculated, just select the value and enter into the cell Column F - insert the number of units to be delivered by the target date Column G - this is automatically calculated as the column is completed, where financial value is zero (as there is no financial proxy attached), the measure is to be recorded only Column H - insert target date for when the measure is to be achieved Column I - briefly describe what and how the measure will be achieved Column J - briefly describe what evidence you will provide to show your achievement Column K - select from drop down. Select "All" where no specific Ward is the focus OR a specific Ward OR a group of wards according to deprivation - Group A is Most deprived, Group B is deprived, Group C is least deprived Column L - measures targetting the most deprived wards and vulnerable people will be allocated the highest multiplier value for tender evaluation purposes. Column M - total value including local multiplier effect, this is automatically calculated as the column is completed Column N - insert number of units achieved as compared to those committed at tender stage Column O - insert ward location where measure was delivered "All" where no specific Ward OR a specific Ward OR a group of wards - A,B,C. (Try where possible to include the ward.) Column P - Financial Proxy value achieved (NOT INCLUDING MULTIPLIER EFFECT) as compared to value for tendering purposes, is automatically calculated as column is completed Column Q - date that the measure is achieved. If not fully achieved, then the final review date Column R - achieved? Yes/No as agreed with Contract Manager

If you are responding to a current tender/grant opportunity you MUST return your Action Plan with your tender/grant submission, including the contract/grant reference number, title, value, start & end date and who the BCC contact person is. Please note your Action Plan commitments should be relevant to the contract period (excluding extension periods). If you wish to become a voluntary signatory your action plan is valid for 2 years - please send your submission to: [email protected]

d21f4f5f-76d9-40f3-a764-cb559aa9abfcPagePage 138 50 of 14253 Birmingham Business Charter for Social Responsibility Contact Information Version 13: 27/09/2018

SECTION A Please complete every question on this section Contact Information Organisation name: Organisation address: Organisation Postcode: Contact name at organisation: Contact email: Contact telephone number: Website address: Is your organisation Public, Private or 3rd Sector? Number of Employees in UK:

Contact details of Jobs and Training officer : Name: Contact telephone no: contact email:

Are you currently a charter signatory? Y/N If yes, what is your Charter certificate number? Note: The Real Living Wage is not the same as the National Commitment to paying the Birmingham Living Wage: Living Wage. Please visit www.livingwage.org.uk for the Please indicate the number of employees who will be uplifted current rate. to the Living Wage who were not previously paid it (if all staff are already being paid the LW please state zero). Please confirm that you permit your contact details to be shared with 3rd parties.

Is this Action Plan being completed in relation to a contract/grant? Y/N If yes, please complete further information below and submit this Action Plan as directed in the Instructions to Quote/Tender/grant application. If not, please submit this Action Plan by email to [email protected]

Is your contract/grant consrution related? If 'yes' - please confirm that you have read the 'Construction YES Charter' by ticking the box. Section B Please provide details of the current contract opportunity or grant you are applying for with Birmingham City Council, to which this Action Plan relates:

Tender / Quotation / Grant Reference number Contract/Grant title Name of BCC Contact

Section C To be completed by the Procurement Manager Contract/Grant start date: Contract/Grant end date (excluding extension period): Option to extend, please provide end date:

Contract/Grant value:

Name of Contract Manager:

PagePage 139 51 of 14253 ACTION PLAN ANNUAL REPORT Ward Details of how measure will be Units location Charter_Theme Outcomes Measures Unit of measure Financial Proxy Committed Units Financial Proxy Target_Date delivered Demonstrated by(Evidence) Ward_Location Local Multiplier Total Financial Proxy Achieved delivered Value Achieved Date Achieved Achieved

Select from drop Insert ward down. Select "All" location where no specific where Ward is the focus OR measure was a specific Ward OR a delivered group of wards "All" where Date that the according to Measures targeting Insert no specific measure is Select from drop down one of Insert target deprivation - Group A the most deprived number of Ward OR a achieved. If not Yes/No as the outcomes that relates to Select from drop down one of the date for is Most deprived, wards and vulnerable units specific Ward Financial Proxy value fully achieved, agreed the selected theme (select a measures that relates to the selected Insert number of Target financial measure to be Briefly describe what and how Briefly describe what evidence you will Group B is deprived, people will be achieved as OR a group achieved as compared to then the final with theme before selecting an outcome (select an outcome before Financial proxy value units to be delivered value multiplied by achieved. measures will be achieved (max provide to show achievement (max 255 Group C is least allocated the highest Total value including local compared of wards - target (NOT INCLUDING review date Contract Select theme from drop down outcome) selecting a measure) How measured of measure by target date target units dd/mm/yyyy 255 characters) characters) deprived multiplier multiplier effect to target A,B,C MULTIPLIER EFFECT) (dd/mm/yyyy) Manager

£0.00 £0.00 £0.00 £0.00 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0 £0.00 £0.00 0

PagePage 140 52 of 14253 Index of Multiple Deprivation Table The table below shows the list of all Birmingham wards starting with the most deprived wards down to the least deprived. The table also shows the multiplier value with the most deprived wards being allocated the highest. (The Multiplier will increase the financial proxy value of a Measure for tender evaluation purposes.) The data is based on the Index of Multiple Deprivation managed by MHCLG. However ward boundaries were changed in May 2018 and the methodology for assigning our '2011 SOA IMD2015 scores' to '2018 Wards IMD2015 scores' is based on the national guidance issued by NHS Digital

Deprivation in Birmingham - National Ranking out of 7,511 wards Deprivation in Birmingham - National Ranking out of 7,511 wards Overall Deprivation Overall Deprivation National Rank in IMD 2015 National National Rank in IMD 2015 National Ward Name Rank B'Ham Multiplier Docile Ward Name Rank B'Ham Multiplier Docile Newtown 33 1 3 D1 : Most Deprived Erdington 598 36 3 D1 : Most Deprived Sparkbrook & Balsall Heath East 40 2 3 D1 : Most Deprived Billesley 614 37 3 D1 : Most Deprived Lozells 55 3 3 D1 : Most Deprived North Edgbaston 616 38 3 D1 : Most Deprived Bordesley Green 56 4 3 D1 : Most Deprived Pype Hayes 639 39 3 D1 : Most Deprived Alum Rock 61 5 3 D1 : Most Deprived Rubery & Rednal 715 40 3 D1 : Most Deprived Balsall Heath West 79 6 3 D1 : Most Deprived Weoley & Selly Oak 722 41 3 D1 : Most Deprived Birchfield 90 7 3 D1 : Most Deprived Longbridge & West Heath 873 42 2 D2 : Deprived Nechells 103 8 3 D1 : Most Deprived Yardley East 914 43 2 D2 : Deprived Heartlands 123 9 3 D1 : Most Deprived Moseley 957 44 2 D2 : Deprived Gravelly Hill 126 10 3 D1 : Most Deprived South Yardley 975 45 2 D2 : Deprived Aston 132 11 3 D1 : Most Deprived King's Norton North 1143 46 2 D2 : Deprived Shard End 139 12 3 D1 : Most Deprived Highter's Heath 1234 47 2 D2 : Deprived King's Norton South 140 13 3 D1 : Most Deprived Handsworth Wood 1268 48 2 D2 : Deprived Garretts Green 141 14 3 D1 : Most Deprived Hall Green North 1271 49 2 D2 : Deprived Bordesley & Highgate 147 15 3 D1 : Most Deprived Stirchley 1366 50 2 D2 : Deprived Kingstanding 158 16 3 D1 : Most Deprived Quinton 1371 51 2 D2 : Deprived Glebe Farm & Tile Cross 160 17 3 D1 : Most Deprived Sheldon 1389 52 2 D2 : Deprived Castle Vale 170 18 3 D1 : Most Deprived Oscott 1423 53 2 D2 : Deprived Small Heath 175 19 3 D1 : Most Deprived Brandwood & King's Heath 1490 54 2 D2 : Deprived Handsworth 178 20 3 D1 : Most Deprived Harborne 1633 55 2 D3 : Deprived Ward End 189 21 3 D1 : Most Deprived Bournville & Cotteridge 1859 56 2 D3 : Deprived Tyseley & Hay Mills 200 22 3 D1 : Most Deprived Northfield 1887 57 2 D3 : Deprived Holyhead 202 23 3 D1 : Most Deprived Perry Barr 1996 58 2 D3 : Deprived Frankley Great Park 266 24 3 D1 : Most Deprived Edgbaston 2028 59 2 D3 : Deprived Soho & Jewellery Quarter 285 25 3 D1 : Most Deprived Sutton Reddicap 2235 60 2 D3 : Deprived Yardley West & Stechford 302 26 3 D1 : Most Deprived Bournbrook & Selly Park 2378 61 2 D4 : Deprived Druids Heath & Monyhull 360 27 3 D1 : Most Deprived Hall Green South 3865 62 1 D6 : Least Deprived Stockland Green 398 28 3 D1 : Most Deprived Sutton Trinity 4141 63 1 D6 : Least Deprived Perry Common 417 29 3 D1 : Most Deprived Sutton Walmley & Minworth 4649 64 1 D7 :Least Deprived Sparkhill 427 30 3 D1 : Most Deprived Sutton Vesey 4860 65 1 D7 :Least Deprived Bartley Green 505 31 3 D1 : Most Deprived Sutton Mere Green 5183 66 1 D7 :Least Deprived Ladywood 527 32 3 D1 : Most Deprived Sutton Four Oaks 5838 67 1 D8 : Least Deprived Bromford & Hodge Hill 531 33 3 D1 : Most Deprived Sutton Wylde Green 5979 68 1 D8 : Least Deprived Acocks Green 542 34 3 D1 : Most Deprived Sutton Roughley 6733 69 1 D9 : Least Deprived Allens Cross 575 35 3 D1 : Most Deprived

PagePage 141 53 of 14253

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