NOTTINGHAM CITY HOMES LIMITED GOVERNING BOARD MEETING Date: THURSDAY 23 FEBRUARY 2017 Time: 5.30 PM Place: SHEILA ROPER CENTRE, OFF BASLOW DRIVE, LENTON ABBEY, NOTTINGHAM, NG9 2SU Directors of the Board are requested to attend the above meeting on the date and at the time and place stated to transact the following business: George Pashley Company Secretary AGENDA Page Time No. Welcome to the refurbished Sheila Roper Centre from Angie Stanton, Centre Caretaker 5.30 1 INTRODUCTORY ITEMS 1.1 WELCOME 5.40 1.2 APOLOGIES FOR ABSENCE 1.3 DECLARATION OF INTERESTS 1.4 ITEMS FROM THE CHAIR 1.5 MINUTES OF THE MEETING HELD ON 26 JANUARY 2017 Attached 3 - 9 5.40 1.6 MATTERS ARISING 2 ITEMS FOR DISCUSSION AND DECISION 2.1 HOUSEMARK CORE BENCHMARKING REPORT 2015/16 Attached 10 - 64 5.40 Presentation from Rachael Collings (Housemark) 3 ITEMS TO NOTE 3.1 QUARTER THREE PERFORMANCE SUMMARY 2016/17 Attached 65 - 69 6.40 Report Of The Performance Manager, Business Transformation 3.2 2016/17 FINANCE REPORT – PERIOD 9 (DECEMBER 2016) Attached 70 - 79 6.55 Report of the Assistant Director of Finance and Procurement 1 3.3 ‘FIXING OUR BROKEN HOUSING MARKET’ THE Attached 80 - 97 7.10 GOVERNMENT’S HOUSING WHITE PAPER, PUBLISHED IN FEBRUARY 2017 Report of the Director of Investment and Business Services 3.4 COMPANY SECRETARY’S REPORT Attached 98 - 106 7.25 Report of the Company Secretary 3.5 FEEDBACK FROM BUILD A BETTER NOTTINGHAM Attached 107- 110 7.35 STEERING GROUP ON 2 FEBRUARY 2017 Report of the Chief Executive 4 CLOSING ITEMS 4.1 ANY OTHER BUSINESS - 4.2 DATE OF NEXT MEETING – 30 MARCH 2017 - 2 ITEM: 1.5 THE BOARD 23 FEBRUARY 2017 NOTTINGHAM CITY HOMES LIMITED THE BOARD MINUTES of the PUBLIC MEETING held on 26 JANUARY 2017 at the St Ann’s Valley Centre, 2 Livingstone Road, St Ann’s, Nottingham, NG3 3GG. Board Members Dave Bennett-Bull Bill Blincoe Scott Campbell Anne Dean Patience Ifediora Julian Owen Sarita-Marie Rehman-Wall Michael Savage Malcolm Sharp, MBE (Chair) Sam Webster Also in Attendance: Chris Culleton Director of Repairs and Maintenance Cathy Dobb (Minute taker) Head of Governance Elizabeth Ekaeteh (Observer) Board Development Attendee Dan Lucas (for Item 9) Strategy and Research Manager Tom Moulsdale (Observer) Governance Officer Gill Moy Director of Housing and Customer Services Nick Murphy Chief Executive George Pashley Company Secretary Darren Phillips (for Item 7) Assistant Director of Finance and Procurement Jonathan Shaw Director of Investment and Business Services 1 WELCOME, INTRODUCTIONS & CHAIR’S ANNOUNCEMENTS The Chair opened the meeting and welcomed Board Members including Sam Webster, the new Council Board Member. The Chair also welcomed Elizabeth Ekaeteh to the meeting. Attendance as an observer at Board Meetings forms part of her Board Member training. 2 APOLOGIES FOR ABSENCE Apologies have been received from Glenn Harris, MBE and Steve Young. 3 DECLARATIONS OF INTEREST 3 None declared. 4 ITEMS FROM THE CHAIR 4.1 The Chair presented to Richard Whittaker the Building Excellence Award for the best new social housing in the country for the Palmer Court development. The Chair thanked everyone who was involved in the project. 4.2 The Chair was pleased to inform the Board that Nottingham City Homes (NCH) had jumped 71 places in the last year to achieve 89th place nationally in Stonewall’s prestigious Top 100 Employers. Congratulations to NCH and to the Board who have continually supported this LGBT initiative. 5 CONFIRMATION OF MINUTES OF THE MEETING HELD ON 24 NOVEMBER 2016 These were agreed as a true record. The Chair signed the minutes. 6 MATTERS ARISING None. 7 2017/18 BUDGET SETTING 7.1 The Chief Executive introduced the report presenting the proposed NCH budget for 2017/18. This follows the discussion after the last Board meeting, which called for a clear message to be taken back to Nottingham City Council (NCC) regarding the increased return that NCC were requesting. The Chair and the Chief Executive presented the Board’s concerns to the Partnership Forum. NCC asked for a further meeting and stated that they will reconsider the extra £125k requested, and NCH are awaiting their decision. 7.2 The Chief Executive informed the Board of the external factors that would impact on the Housing Revenue Account (HRA), which included welfare reforms, the 1% rent reduction and the Right To Buy (RTB). There are also additional staffing pressures to be dealt with including the requirement to pay a 1% staff pay award and any relevant incremental pay points and higher employer pensions contributions. However, rather than shrink its business, NCH is looking to grow and increase its scope, so the overall budget next year is planned to increase from £63m to £68m. This requires commercial growth including the successful delivery of the in-sourcing agenda. 7.3 The proposed budget has a deficit of £80k and Board were informed that should NCC not agree to reduce the £125k return, this deficit would be covered by reducing the refurbishment costs of the Harvey Road accommodation move. 7.4 Board discussed whether there was a benefit of having a separate meeting dedicated to Budget Setting in future years, with more detailed presentations on the budget or whether it was more appropriate for Board to have the strategic overview of the budget and for managers to decide the more detailed resource allocation within this. 4 RESOLUTION: The Board agreed: 1. To approve the 2017/18 budget. 2. To approve the 2017/18 NCH Social Housing Rent Policy. 8 COMPANY SECRETARY’S REPORT 8.1 AMENDMENTS TO STANDING ORDERS 8.1.1 The Company Secretary introduced the report by stating that Standing Orders have been amended as follows: • To reflect changes to EMT delegated powers • To update Directors job titles • To require the granting of a tenancy agreement to a relative of a Nottingham City Councillor to be reported to Board • The inclusion of the authority for all payments to be made within NCH Ltd powers up to £150k by EMT and reported to Board • Changes to group and committee structures • The inclusion of the Board agreeing that the current Nottingham City Homes Enterprise Limited (NCHEL) Board will comprise of NCH EMT members. RESOLUTION: The Board agreed: 1. To note the update to Standing Orders. 8.2 REGISTERED PROVIDER BOARD MEMBERSHIP UPDATE 8.2.1 The Company Secretary stated that the internal Governing Board Members who will be sitting on the Registered Provider (RP) Board will be Scott Campbell, Julian Owen and Malcolm Sharp, MBE. Paul Moat, Ann McCarthy and Audra Wynter, who have expressed an interest in being Independent RP Board Members, have been invited to meet with the remainder of the RP Board Members to hear about the plans for NCH RP and what will be required from new Board members. This meeting will take place immediately after the Governing Board Meeting. RESOLUTION: The Board agreed: 1. To note the membership of the RP Board. 8.3 TENANT BOARD MEMBER VACANCY UPDATE 8.3.1 The Company Secretary stated to Board that an interview was held for the Tenant Board Member position on 21 December 2016. The post was not filled; however, the applicant, Elizabeth Ekaeteh, has been offered a support plan, including sitting in on Board Meetings, in order to develop her potential. It is hoped that with this additional support, Elizabeth will be able to apply for the Tenant Board Member 5 role in the future. In the meantime, the current vacant Tenant Board Member post will remain unfilled. RESOLUTION: The Board agreed: 1. To note the update to the Tenant Board Member vacancy. 8.4 BOARD TRAINING PLAN UPDATE 8.4.1 The Company Secretary informed Board that NCH is currently reviewing the way we deliver Board Training and are proposing to split this into three distinct areas – Induction, Mandatory and Bespoke learning. Board Members were invited to provide feedback outside of the meeting. RESOLUTION: The Board agreed: 1. To note the update on the Board Training Plan. 8.5 TASK AND FINISH GROUP UPDATE 8.5.1 The Company Secretary informed Board that a sickness absence Task and Finish Group has been created following the last meeting. The Group is made up of three Board Members; Dave Bennett-Bull, Bill Blincoe and Glenn Harris, MBE, who will support the Company Secretary and the Head of Organisational Development, as management deal with and understand, the key issues surrounding sickness absence and the proposals to reduce absence. 8.5.2 The Board were informed that sickness absence costs NCH between £700k and £1m per annum. The average number of sick days taken is currently 12.2 per employee per annum, with 70% of sickness absence made up of long term sickness, mainly muscular skeletal and stress. By comparison, local authorities have a rate of 8.5 days and 58% long term sickness absence. One issue is the current Record Management and Reporting system which is weak and not fit for purpose. 8.5.3 The Task and Finish Group made a number of recommendations to tighten up the process with managers and look to improve visibility on Oracle or to have a bespoke database. Occupational Health is under review and we are looking to use NCC in the first instance through a three year contract with break clauses. There is also a recommendation to employ a full time Sickness Absence Manager to raise the profile of this issue. The next Task and Finish Group will be in April. RESOLUTION: The Board agreed: 1. To note the update on the Task and Finish Group.