Agenda pack
North Lanarkshire Council · 16 November 2022
Back to Housing Committee — 16 November 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our Ref: Your Ref: Contact: Tel: Fax: E-Mail: Date: Lesley Dysart 01698302219 dysartl@northlan.gov.uk 7 Nov 2022 Members of the Housing Committee Chief Executive’s Office Archie Aitken Head of Legal & Democratic Solutions Civic Centre, Windmillhill Street Motherwell ML1 1AB DX 571701, Motherwell 2 www.northlanarkshire.gov.uk Notice is given that a Meeting of the HOUSING COMMITTEE is to be held within the Council Chamber, Civic Centre, Motherwell on Wednesday, 16 November 2022 at 10am which you are requested to attend. The agenda of business is attached. Head of Legal and Democratic Solutions Members : Councillors: H Brannan-McVey, G Brennan, B Burgess, T Carragher, M Coyle, D Crichton, P Di Mascio, K Duffy, H Dunbar, T Fisher; F Fotheringham, W Goldie, M Hughes, J Jones, J Keltie, J Leckie, G Lennon; J Logue, F MacGregor, M McBride, B McCluskey, B McCulloch, M McCulloch, P McDade, F McKay, R McKendrick, C McManus, F McNally, M McPake; J McPhilemy, A McVey, L Nolan, J Reddin, G Robinson, A Smith, A Stubbs, R Sullivan, A Thomas, J Toner, and G Woods. Page 1 of 193
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AGENDA (1) Declarations of Interest in terms of the Ethical Standards in Public Life Etc. (Scotland) Act 2000 OPERATIONAL (2) PO14 Tower Strategy Update (page 7 - 12) Submit report by the Head of Housing Property and Projects regarding the current progress relating to the Tower Strategy Programme of Work (PO14) and key achievements in the last reporting period (copy herewith) (3) Scottish Housing Regulator 2021-22 Landlord Report (page 13 - 20) Submit report by the Head of Housing Solutions regarding the Landlord Report published by the Scottish Regulator (SHR) which shows Scotland's social landlords' performance for both the Local Authorities and Registered Social Landlords (RSL's) against the Scottish Social Housing Charter (SSHC) (copy herewith) (4) Cost of Living (Tenant Protection) (Scotland) Act 2022 (page 21 - 28) Submit report by the Head of Housing Solutions outlining the details of the measures contained within the Act and potential implications across the wider housing sector (copy herewith) (5) Licensing of Short-Term Lets (page 29 - 84) Submit report by the Head of Regulatory Services and Waste Solutions seeking approval of the Short-Term Lets Policy (copy herewith) (6) New Supply Community Benefits - Summary Report (page 85 - 94) Submit report by the Head of Planning and Regeneration updating Members regarding Community Benefits related to the new build housing programme (copy herewith) (7) New Supply Programme - Update on Progress Programme of Work PO13(1) (page 95 - 108) Submit report by the Head of Planning and Regeneration (1) updating Members on progress against the annual targets previously set; (2) outlining some of the current challenges the programme faces, and (3) seeking approval for revised targets (copy herewith) (8) New Housing Supply Programme - Procurement Report (page 109 - 120) Submit report by the Head of Planning and Regeneration (1) updating Members on the current procurement activity relating to the new build housing programme, and (2) seeking approval to progress procurement arrangements as outlined in the report (copy herewith) (9) Future Approaches to Heating within New Build Homes (page 121 - 128) Submit report by the Head of Planning and Regeneration seeking approval to consider and agree to a new approach to providing space and water heating to new-build homes, which complies with the Scottish Government's Heat in Buildings Strategy, published October 2021 (copy herewith) Page 3 of 193
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2 MONITORING (10) Revenue Budget Monitoring Reports (a) HRA Revenue Monitoring Report (page 129 - 134) Submit report by the Head of Housing Solutions providing a summary of the Housing Revenue Account financial performance for the period from 1 April to 16 September 22 (Period 6) (copy herewith) (b) Enterprise and Communities - Revenue Monitoring Report (page 135 - 146) Submit report by the Deputy Chief Executive providing a summary of the financial performance of the Enterprise and Communities Service for the period 1 April to 16 September 22 (Period 6) (copy herewith) (11) Captial Programme Monitoring Reports (a) HRA Capital Monitoring Report - 1 April to 16 September 22 (page 147 - 154) Submit report by the Head of Housing Property and Projects reviewing progress towards agreed spending plans within the 2022/23 HRA Capital Programmes (copy herewith) (b) Enterprise and Communities - Capital Monitoring (page 155 - 160) Submit report by the Deputy Chief Executive highlighting the financial performance of 22/23 Enterprise and Communities Capital Programme for the period up to 16 September 22 (Period 6) (copy herewith) Contract for Approval (12) Central Heating Servicing and Maintenance Contract Modification (page 161 - 166) Submit report by the Head of Housing Property and Projects seeking approval to modify the existing contract for Central Heating Servicing and Maintenance provided by Saltire Facilities Manangement Ltd (copy herewith) Contracts for Noting (13) Negotiated Tender Procedure (a) Ukrainian Resettlement Programme (page 167 - 176) Submit report by the Head of Housing Property and Projects advising of action taken by the Deputy Chief Executive, under delegated authority in awarding a Negotiated Tender to Mears LLP for the Ukrainian Resettlement Works to recommission the previously decommissioned properties at Birkshaw Tower, Wishaw and High Coats, Coatbridge (copy herewith) (b) Low Rise Fire Door Programme (page 177 - 186) Submit report by the Head of Housing Property and Projects advising of action taken by the Deputy Chief Executive, under delegated authority in awarding a Negotiated Tender to Mears LLP for the installation of fires doors to low rise properties and fire stopping to supported and linked sheltered housing complexes across North Lanarkshire to (copy herewith) Page 4 of 193
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3 (14) Contracts awarded Below Committee Approval Threshold (page 187 - 193) Submit report by the Head of Asset and Procurement advising of contracts awarded between 1 July to 30 September 22 (copy herewith) Page 5 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref: CB/JS Date 16/11/22 P014 Tower Strategy Update From Brian Lafferty, Head of Housing Property & Projects Email stevensonjam@northlan.gov.uk Telephone 07583097785 Executive Summary The purpose of this report is to update committee on current progress relating to the Tower Strategy Programme of Work (PO14) and key achievements in the last reporting period. Recommendations It is recommended that Committee: (i) Note the progress of the tower demolition programme (Ambition) (ii) Note the progress of the sprinkler installation & fire safety programme (iii) Note the progress of major refurbishment projects The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth AGENDA ITEM 2 Page 7 of 193
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1. Background 1.1 Committee will be aware that in 2017 as part of the HRA budget motion, the council announced its intention to commence consultation with stakeholders regarding the potential re-provisioning of its tower estate over the next 25 years, with phase 1 of the re-provisioning programme granted committee approval in May 2018. Significant progress has been made to date with several high/low-rise blocks now demolished. 1.2 Committee will also recall that in February 2018, the council approved proposals to develop and deliver a programme to introduce enhanced fire safety measures within high-rise towers that included retrofitting of sprinkler systems, improved fire compartmentation, emergency lighting and installation of fire doors to properties. 1.3 Following committee approval in 2016 to undertake condition surveys including external cladding assessment, internal fabric condition and structural integrity, the findings have now been assessed with a strategic approach to remedial action in line with government legislation developed. 2. Report 2.1 Demolition/Ambition 2.1.1 The programme is progressing on schedule with 1212 from 1750 properties identified within phase 1 now vacant. Following extensive negotiation with private owners, only one now remains in-situ with the council exploring all options for purchase. Detailed breakdown of the phase one programme as of October 2022 is provided in table 1: Table 1 Tower Vacant Properties Status Northburn Low-Rise, Airdrie 27 (100%) Complete Holehills, Airdrie 138 (100%) Complete Burnside Court, Coatbridge 44 (100%) Complete Gowkthrapple Low-Rise 303 (99%) Tender Period Shawhead Low-Rise 176 (100%) On Site Coursington High-Rise 308 (100%) On Site Jackson High-Rise 181 (94%) Tender Period Allershaw High-rise 35 (50%) Design High Coats / Dunbeth High-rise Re-programmed Birkshaw High-rise Re-programmed 2.1.2 The contract awarded to demolish 8 low-rise blocks to the south-west of the Gowkthrapple site (phase 1) has recently been terminated by NLC due to the winning contractor requesting a significant price uplift from the original tender. The council are now undertaking a revised procurement exercise comprising all 19 blocks on the site including the vacant community centre building and surrounding structures. One private owner remains with negotiations ongoing to conclude purchase of the property however it is the intention that the contract will proceed with this block excluded from the contract. Page 8 of 193
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2.1.3 The contract to demolish 11no low-rise blocks at Shawhead, Coatbridge is underway with site establishment complete and works progressing well. Proposals are being considered to create a new haulage road to alleviate congestion to the surrounding residential areas. The contract is due for completion in summer 2023. 2.1.4 Demolition of the three high-rise tower blocks at Coursington, Motherwell has commenced with site establishment complete and soft strip of internal materials underway. A series of meetings have been held with nearby residents, informing of the proposed deconstruction process, timescales and contact details should further information be required throughout the project. 2.1.5 Phase 2 of the demolition programme is being evaluated with findings of the structural investigations, demand analysis and available housing for re-provisioning being considered. A report will be brought to a future Committee for consideration. 2.1.6 High Coats and Birkshaw Tower remain part of the phase 1 demolition programme with proposed dates for demolition to be confirmed in due course. Details of repurposing of these towers noted under section 2.3.3. 2.2 Sprinkler / Fire Safety Programme 2.2.1 Phase 1 of the sprinkler installation programme at Burnside, Lodge & Doonside Tower, Motherwell has now reached practical completion with snagging works ongoing. 2.2.2 Phase 2 of the sprinkler installation programme comprising of towers at Glassford, Woodside, Glen, Coltswood & Redbridge are currently in progress. Tenant consultation continues outlining the impact of the works and access requirements. 2.2.3 The fire safety programme which includes installation of emergency lighting, fire-doors to properties and improved compartmentation/fire-stopping is now complete. In line with recent change in legislation, interlinked smoke detection has also been installed within properties. To date, a relatively small amount of non-access properties remain on the smoke detection programme (circa 23) which are now being progressed as a matter of urgency via the forced access process. 2.2.4 A contract to remove all spandrel panels to stairwells in 13 towers (recommendation following the Grenfell report) is also in progress with completion scheduled for the current financial year. 2.3 Major Refurbishment Projects 2.3.1 Refurbishment of the tower blocks at Blairgrove/Merryston (Lot 1) and Glen/Millbrae (Lot 2) is nearing completion with external works such as scooter stores, charging canopies and parking bays progressing. 2.3.2 Feasibility work is ongoing for the recladding and internal refurbishment of Whifflet and Calder towers, Coatbridge. A tender exercise to procure specialist consultants to assist with the design is also underway. 2.3.3 In order to support displaced citizens affected by the war in Ukraine, North Lanarkshire Council have committed to reinstate circa 200 properties on a temporary basis. The properties, located within tower blocks in Coatbridge (High Coats) and Wishaw (Gowkthrapple) are scheduled to be released on a phased basis over the course of the refurbishment programme. Page 9 of 193
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Birkshaw Tower is now complete with 57no properties reinstated to a high standard, utilising enhanced fire safety works previously carried out including fire-doors, fire- stopping, and sprinklers. Properties have also been fully fitted out with furniture and white goods. High Coats Tower (North & South) is progressing well and due for completion in December 2022. 3. Measures of success 3.1 The plans contained within this report will help to improve housing conditions and housing choice for our residents which contributes to addressing inequality. 4. Other supporting Documents 4.1 There are no supporting documents with this report. Brian Lafferty Head of Housing Property & Projects Page 10 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Any financial impact of the measures implemented will be contained within the HRA Capital Investment budget and will be drawn down via borrowing/CFCR as required and reported to committee. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Statutory compliance with Building Standards and recent fire safety legislation. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Page 11 of 193
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Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Upgrading of external building fabric to current energy standards. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ ☐ No ☐ If Yes, please provide a brief summary of the impact? Reprovisioning of towers and low-rise blocks must be included in regular corporate communications. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risks are considered, frequently reviewed and recorded on project-specific risk registers. Risks with an inherently high score are escalated to project board/service level. Page 12 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref SL/LS Date 16/11/22 Scottish Housing Regulator: 2021/22 Landlord Report From Stephen Llewellyn, Head of Housing Solutions E-mail llewellyns@northlan.gov.uk Telephone 01698 274192 1. Background 1.1 The SHR and the SSHC were enacted by the Housing (Scotland) Act 2010, which required Ministers to set standards and outcomes that social landlords should be achieving for tenants and other customers through their housing activities. The Act also established the SHR as an independent Regulator directly accountable to the Scottish Parliament. Scottish social housing landlords significantly vary in stock size from 3 to 42,658 properties. 1.2 The SHR requires social landlords to collect and provide key information on their performance in achieving the SSHC outcomes and standards in an Annual Return on Executive Summary This report is to advise committee of the Landlord Report published by the Scottish Housing Regulator (SHR) which shows Scotland’s social landlords’ performance for both Local Authorities and Registered Social Landlords (RSL’s) against the Scottish Social Housing Charter (SSHC). Recommendations It is recommended that committee: (i) Acknowledge the content of this report and the link to the Landlord Report provided by the SHR in section 4 which identifies North Lanarkshire Council’s performance in relation to the SSHC. (ii) Acknowledge that a separate report has been provided to committee on 31 August 2022 on the Annual Assurance Statement. (iii) Acknowledge the progress being made in the production of our annual report to tenants. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth AGENDA ITEM 3 Page 13 of 193
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the Charter (ARC). Returns are required by 31 May each year. Landlords also have a duty to publish a performance report, which requires to be made available to all tenants. 1.3 In addition, all landlords have a legal requirement to submit a signed Annual Assurance Statement to the Regulator by 31 October each year. A separate report on this was presented to Committee on 31 August 2022. 1.4 Following submission of each local authority and RSL’s ARC, the SHR publish a landlord profile of all social landlords, which allows tenants to compare landlord’s performance across Scotland. In addition, a Landlord Report is produced by the SHR which reports on indicators within five main categories: • Homes and Rents • Tenant Satisfaction • Quality and Maintenance of Homes • Neighbourhoods • Value for Money These areas for reporting were agreed by the SHR through significant consultation with tenants. These indicators require to be set in context as detailed in this report. 1.5 SHR publishes individual Engagement Plans in April each year for all social landlords highlighting any areas of service they will focus on to work with the local authority concerned. There are no current areas of concern however our Engagement Plan highlights those service areas which the Regulator monitors across organisations. 2. Report 2.1 On 31 August 2022, the SHR published its ninth Landlord Report reflecting the performance reported in each authority's completed ARC. At the time of writing this report, the Landlord Report has not been published as a separate document, but instead shows on the SHR’s webpage, therefore a link to the report for North Lanarkshire is included in section 4 of this report. 2.1.1 A comparison of the available data shows that North Lanarkshire Council has 13 Indicators in the top quartile and is consequently sitting 2nd across Scotland in the context of having the highest number of Indicators where performance is in the top 25%. 2.2 Landlord report categories A summary of the performance figures from the five main areas detailed within the Landlord Report is shown below. Homes and rents 2.2.1 This report indicates that the council are performing above the Scottish average in several areas reported. Average weekly rents are well below the Scottish average. The average rent for all North Lanarkshire properties reported in the ARC return for 2021/22 was £74.58 per week. When compared to others using the dataset available, this compares extremely favourably with the reported Scottish average for all landlords of £85.36. Page 14 of 193
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Tenant satisfaction 2.2.2 Our last tenant satisfaction survey was completed in August 2021 via telephone as opposed to the face-to-face interviews we have used previously. This change was necessitated by Covid restrictions which were still in place. Our performance continues to be strong despite the impact on services from Covid and for the majority of our satisfaction indicators we are above the Scottish average. 2.2.3 Overall satisfaction in the 2021 survey was 81.2% which was a 9.8% decrease on our previous survey in 2018 and 6.5% lower than the national average of 87.7%. It is likely that overall satisfaction decreased as a consequence of general disruption to all council services being halted or impacted by Covid restrictions rather than a decrease in satisfaction solely with Housing and Property services. The majority of local authorities who changed from face to face to a telephone or online survey have experienced a decrease in satisfaction. 2.2.4 There is a distinct difference in the baseline of those councils who saw an increase in satisfaction against those who saw the decrease in satisfaction: • Local authorities reporting an increase had much lower satisfaction levels prior to the new survey of between 73.81% and 86.92%. • Local authorities reporting a decrease had higher satisfaction levels prior to the new survey at between 81.64% to 94.77%, the largest drop in satisfaction was 20.33%, going from 83% to 62.67%. 2.2.5 The satisfaction level with opportunities to participate in the landlord’s decision-making process increased to 96.8% from 92.5% and is over 10% higher than the Scottish average of 86.6%. Our performance in keeping tenants informed remains strong at 92.6% (92.5% in 2018), against a Scottish average of 91.1%. Quality of the home decreased to 87.13% from 92% but remains above the Scottish average of 85.4%. Value for money of the rent charge decreased from 85.5% in 2018 to 78% in the 2021 survey. The Scottish average is 82.5%. 2.2.6 To continually improve satisfaction with our services, performance is monitored and reviewed within our service areas and with our contractors and partners. Internal performance reviews are carried out to ensure a consistent approach is being taken and procedures are being followed appropriately. Quality and maintenance of homes 2.2.7 The percentage of homes meeting the Scottish Housing Quality Standard was 70% compared to the Scottish average of 74.5% and Local Authority average of 69.6%. Most landlords saw a drop in compliance due to changes in the requirements. 98.5% of reactive repairs were completed “right first time” compared to the Scottish average of 88.3% and 94.8% of tenants who had repairs carried out were satisfied with the service they received, compared to the Scottish average of 88%. 2.2.8 Our time taken to complete emergency repairs was 3.18 hours on average compared to a Scottish average of 4.2 hours. This demonstrates a year-on-year improvement. 2.2.9 Our time taken to complete non-emergency repairs was 6.19 days compared to the Scottish average of 8.9 days. This reflects an element of focussed activity in this area to further enhance right first-time outcomes and service providers consistently exceeding target timescales. Page 15 of 193
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Neighbourhoods 2.2.10 For cases of anti-social behaviour reported in the last year, 99.1% were resolved at the year end and within the targets agreed locally, compared to the Scottish average of 94.7%. The remaining 0.9% of cases were carried forward to the following year and resolved within locally agreed targets in 2022/23. We therefore performed at 100% compliance for the targets agreed for the service. 2.2.11 A new satisfaction indicator was included in our 2021 tenant survey asking tenants if they were satisfied with their landlord’s contribution to the management of their neighbourhood. 88.4% of our tenants were satisfied which compares favourably to the national average of 85.1% and is considerably better than the local authority average of 81.2%. Value for money 2.2.12 Our rent collection levels for 2021/22 were 97.8% which is consistent with our 2020/21 performance. Our housing Central Rents team continue to secure more direct Universal Credit payments and pursue other non-Universal Credit tenant debt which has had a positive impact on the overall arrears levels. We continue to utilise the Universal Credit Assistance Fund for our tenants as approved by Committee in 2019. 2.2.13 Our average days to re-let homes increased to 31.81 days during the year mainly due impact of the pandemic, however we performed well when compared to the Scottish average of 51.6 days. Our housing and repairs teams are working together and liaising closely with our contractors to continually improve these timescales with a view to bringing our performance back to pre-pandemic levels. 2.2.14 Our void rent loss figure of 1% also compares favourably to the Scottish average of 1.4%. Monitoring rent loss continues to be a priority. Annual performance report 2.3 In line with the SHR requirements placed on the council to provide a report to tenants advising of performance against the SSHC, a group of tenant representatives has been working to review the performance data and to agree content and format for the annual performance report. The timescale for publishing the report is 31 October each year. A link to the annual performance report will be made available to all Members on publication. 3. Measures of success 3.1 All indicators reported on through the SSHC and ARC are included as a standard agenda item on each of the Housing Improvement Team meetings and Property Progress Team meetings that operate across all disciplines within both Housing Solutions and Housing Property and Projects respectively. These teams continue to review practices, procedures, and customer feedback to ensure that high standards of service delivery are achieved in all areas. Page 16 of 193
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4. Supporting documentation 4.1 There are no supporting documents, however, the full Landlord Report data is provided on the following link to the Regulators website. Stephen Llewellyn Head of Housing Solutions Page 17 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 18 of 193
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g., Corporate or Service or Project Risk Registers), and how they are managed? The completion of both the annual ARC and Annual Assurance Statement are statutory requirements and failure to submit on time is a risk and as such these are incorporated into the services overall risk register. Page 19 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref SL/ MK Date 16/11/22 Cost of Living (Tenant Protection) (Scotland) Act 2022 From Stephen Llewellyn, Head of Housing Solutions E-mail llewellyns@northlan.gov.uk Telephone 01698 274192 Executive Summary As part of the 2022-23 Programme for Government, the Scottish Government announced its intention to introduce a temporary rent freeze and moratorium on evictions which would be applicable to both private and social sector tenancies. This is being implemented through the Cost of Living (Tenant Protection) (Scotland) Act 2022, which came into force on 27 October 2022. The provisions of the Act will remain in force initially until 31 March 2023. However, the provisions can be extended by regulations to 30 September 2023 and, thereafter to 31 March 2024. The Scottish Government will confirm by 14 January whether the provisions will continue beyond 31 March 2023. This report outlines the details of the measures contained within the Act and potential implications across the wider housing sector. Recommendations It is recommended that Committee: (1) Note that the Cost of Living (Tenant Protection) (Scotland) Bill 2022 was passed on 6 October 2022, received Royal Assent and became an Act on 27 October 2022. (2) Note the requirements set out in the Act will be in place until the end of March 2023, although they can be extended beyond this period for up to a year, and that, the Scottish Government will confirm by 14 January 2023 whether these provisions will continue beyond 31 March 2023. (3) Note the potential implications arising for the council and wider housing sector in North Lanarkshire. (4) Note that any future extension of measures contained within the Act if enacted beyond 31 March 2023 to be reported to a future Committee. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (11) Increase economic opportunities for adults by understanding, identifying, and addressing the causes of poverty and deprivation and barriers to financial inclusion AGENDA ITEM 4 Page 21 of 193
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1. Background 1.1 On 6 September 2022, the Scottish Government published “A Stronger and More Resilient Scotland: the Programme for Government 2022 to 2023”. The 2022-23 Programme for Government was published in the context of one of the most severe cost of living crises in recent history and sets out several short and long-term measures to help those impacted by the crisis. 1.2 The Cost of Living (Tenant Protection) (Scotland) Bill 2022 was introduced as part of the Scottish Government’s overall response to the cost-of-living crisis and aimed to help mitigate the impact for those renting their home. 1.3 The Bill was passed on 6 October 2022, received Royal Assent and became an Act on 27 October 2022. 2. Report 2.1 The Cost of Living (Tenant Protection) (Scotland) Act 2022 introduces temporary measures which are intended to: • Protect tenants by stabilising their housing costs. • Reduce any negative impact on health and wellbeing where tenants are evicted or made homeless when they are already struggling because of the cost-of- living crisis. • Avoid tenants being evicted by a landlord seeking to raise rents during the temporary measures. 2.2 The Act introduces three key measures: • A temporary cap on rent increases. • A temporary moratorium on evictions (a pause on enforcement of an eviction order or decree, similar to what was in place in response to the Covid-19 pandemic), except in a limited number of circumstances. • An increase to the damages which can be awarded in cases where a landlord carries out unlawful eviction. 2.3 The measures will be in place until at least 31 March 2023. Scottish Ministers will be expected to review the measures regularly during this time (every 3 months) to ensure they are still necessary and proportionate. The Act also includes the power to extend the measures for two further six-month periods beyond the end of March 2023, however this would require agreement from the Scottish Parliament. No agreement has been made about use of the measures after 31 March 2023. The Scottish Government will confirm by 14 January 2023 whether the measures will continue beyond 31 March 2023. Rent Cap 2.4 A rent cap has been introduced which sets the maximum permitted rate that rents can increase. The cap is set at 0%, meaning landlords are not allowed to increase their rent during this period. The cap is expected to remain at 0% until 31 March 2023, however Scottish Ministers will have the power to vary the cap in line with wider economic circumstances. Should the cap change, landlords will be allowed to increase their rent up to this amount. Page 22 of 193
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2.5 The cap is applicable to both social and private tenancies, with the exception of some assured tenancies, regulated tenancies under the Rent (Scotland) Act 1984, common law tenancies, and any new tenancies. 2.6 The cap applies to any rent increase proposed on or after 6 September 2022. It does not apply to any rent increase notice issued before this date. 2.7 Since most social sector rents are set from 1 April each year, the cap will have no immediate effect on the rent currently set by Local Authorities or Registered Social Landlords. The Scottish Government will discuss any approach to be taken beyond 31 March 2023. 2.8 In recognition of the impact these measures may have on private sector landlords, landlords will be allowed to apply to Rent Service Scotland to increase the rent for a property, provided they are able to show an increase in certain prescribed costs associated with letting the property. These costs are related to the interest payable on the mortgage or standard security, insurance premiums connected to offering the property for rent, and service charges recoverable from the tenant as part of their tenancy agreement. The landlord must notify the tenant of any application to Rent Service Scotland to increase rent. Moratorium on Evictions 2.9 The moratorium on evictions prevents the enforcement of an eviction order or decree for a maximum of six months (except in limited circumstances). The moratorium applies to both private and social tenancies. 2.10 Similar to the rules in place during the pandemic, the Act does not prevent landlords serving a notice to leave or notice of proceedings. Landlords are still allowed to apply to the Tribunal or Sheriff Court, and the Tribunal or Court will still make a decision. However, there will be a delay (of up to six months) in the Sheriff Officers enforcing the eviction order or decree. 2.11 There are limited circumstances in which evictions will be allowed to take place, including in cases of anti-social behaviour, criminality, abandonment, where there are substantial rent arrears, or in cases where landlords find themselves in financial hardship and are required to move into or sell the let property (this will be assessed by the Tribunal). 2.12 The moratorium will not apply to cases where an eviction order or decree was granted prior to the legislation coming into force. Increased Damages for Unlawful Eviction 2.13 Due to concerns that the measures may lead to an increase in unlawful evictions, changes have been made to the way in which damages can be awarded. 2.14 The Housing (Scotland) Act 1988 has been temporarily amended to: • Change the way in which damages are assessed so that they are based on a calculation of monthly rent. • Set the minimum and maximum level of damages that can be awarded to a minimum of 3 times the monthly rent and a maximum of 36 times the monthly rent. Page 23 of 193
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• Place a new requirement on the Tribunal or Sheriff Court to inform relevant authorities of any unlawful eviction (relevant authorities include the Local Authority, Police or Scottish Housing Regulator (in the case of social sector landlords)). Additional Points 2.15 The Act includes provisions to temporarily change the current rent adjudication process so that rents are not increased disproportionately after the temporary measures have ceased. 2.16 The Act does not apply to homes with pitch agreements. Potential Implications 2.17 Whilst it is recognised that these are unprecedented financially challenging times, which require an extraordinary response to mitigate against the damaging impacts of the current cost-of-living crisis, it is also recognised that these measures may present other unintended consequences, which would increase pressure across both the social and private housing sector and create potential adverse impacts for tenants. 2.18 From a local authority perspective, the Housing Revenue Account (HRA) makes a significant contribution towards delivery of several of the council’s ambitions. These include the: • Delivery of 5,000 new council homes by 2035 • Expansion of the Open Market Purchase Scheme • Investment and progression of the ongoing Tower Re-provisioning programme • Continued investment in improving and maintaining council homes through the capital programme, a 5-year programme, delivering £306m of investment in council homes over the 2021/22 – 2025/26 period, including £138m which is targeted at achieving our climate change and net zero goals, through energy improvement and efficiency measures 2.19 In setting the HRA budget and rent levels the council agreed to a rent increase of 5% for 2018/19 and for the three years up to 2021/22. The rent setting strategy set out a potential rent increase of 3% for 2022/23, considering the impact and recovery from the Covid-19 pandemic. This is significantly below inflationary increases. 2.20 The council’s rental levels have remained consistently below the Scottish average for local authority landlords and are even lower when all social landlords are considered, with average council rents ranging from 12% to 17% lower (1 and 2 apartment properties respectively, with other property sizes falling within this range). 2.21 The impact of wider inflationary rises on the HRA is evident with increasing cost pressures projected over the 2022/23 period and beyond. These cost pressures include increasing costs associated with contractual costs for the delivery of housing repairs, improvement works, and new supply, in addition to rising employee costs, loan charges, linked to increases to the Bank of England base rate, and other inflationary pressures, which include energy price increases and other contractual rises. 2.22 Given the increasing cost pressures, a potential rent freeze, would impact on the delivery of the priorities outlined in section 2.18. In addition to this, it may also impact on other service provision areas, such as tenant involvement and participation, estate management, rent arrears prevention and allocation functions. Page 24 of 193
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2.23 Although the new measures are in place until 31 March 2023, if the council approves a rent rise later this year, consideration will need to be given to the potential deferral of a rent increase from 1 April 2023 if the measures are extended beyond 31 March 2023. Consultation on any potential rent increase, however, must go ahead as planned to ensure the council is in a ready position to implement any approved rent increase should the measures end on 31 March 2023. 2.24 It is also of significance to note that a sizable proportion of council tenants are in receipt of either Housing Benefit or Universal Credit where the impact of the new measures will not affect their income levels, providing any additional protection from the cost-of- living crisis. Around 65% of council tenants are in receipt of some form of support for their housing costs with 35% in receipt of full or partial housing benefit and 30% transitional onto Universal Credit. 2.25 Registered Social Landlords (RSLs) will potentially experience all if not most of the aforementioned impacts, with potentially more significant impacts in some respects due to the nature of funding and resourcing of some activities, and additional costs in relation to how RSLs operate. The Chartered Institute of Housing (CIH) and Scottish Federation of Housing Associations (SFHA) have highlighted these concerns, setting out the risk of unintended consequences which will potentially undermine the Scottish Government’s ambition for the housing sector as well as having a negative impact on tenants’ housing outcomes. 2.26 Private landlord representative organisations have also raised concerns in relation to potential impacts associated with increasing interest rates leading to private rental properties being sold, reducing the supply of private rented accommodation available to meet housing needs. Concerns have been voiced by the sector which highlight the potential exacerbation of this trend, further reducing supply and creating other challenges in relation to improving the quality standards in the sector. 3. Measures of success 3.1 Balanced approach to addressing the cost-of-living crisis whilst ensuring the continued delivery of high-quality housing services to meet housing and related support needs. 4. Supporting documentation 4.1 N/A Stephen Llewellyn Head of Housing Solutions Page 25 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The measures have significant impacts on Equality Duty and Fairer Scotland Duty. It is the responsibility of Scottish Government to complete and publish and EqIA outlining impact. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? The new measures present significant financial implications for the council. These implications are being fully considered by Financial Solutions and the Housing Service. Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? The Act brings about new legislative requirements for landlords in both sectors. These requirements and impacts have been discussed with Legal and Democratic Solutions. Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Page 26 of 193
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5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ Not at this stage, however introduction of the measures will have a potential impact on delivery of energy efficiency and improvement measures in council stock, which has a consequential impact on the council’s ability to meet its Net Zero targets. If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g., Corporate or Service or Project Risk Registers), and how they are managed? Key risks are outlined in the body of the report and will be considered further through the rent setting process and confirmation from Scottish Government on the 14 January 2023 of intentions in relation to extension of measures beyond 31 March 2023. Page 27 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref TJ/AM Date 16/11/22 Licensing of Short-Term Lets From Andrew McPherson, Head of Regulatory Services & Waste Solutions E-mail McPhersonA@northlan.gov.uk Telephone 07939 280467 Executive Summary The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 was approved by the Scottish Parliament on 19 January 2022 and came into force on 1 March 2022 under the statutory provisions of the Civic Government (Scotland) Act 1982 (‘the 1982 Act’). The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 (“the 2022 Order”) sets out a timetable for the incremental implementation of the licensing scheme and brings short term lets within the scope of licensable activities covered by the statutory provisions of the Order, whilst placing a duty upon Local Authorities to have a licencing scheme in place to regulate all short term lets in their area. Existing Hosts and Operators will be required to licence any existing short term lets by 1 April 2023, with all short term lets being fully licensable by 1 July 2024. The 2022 Order also places a statutory duty for all Local Authorities to deliver a Short-Term Let Policy and requires the licensing authority to publish, and keep under review, a statement of its policy. In conjunction with this, the Council must carry out a period of public consultation which will include information relating to fees, applications etc and published on the Council website. Recommendations It is recommended that the Housing Committee: 1. Approves the Short Term Lets Policy as detailed within Appendix 1. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (14) Ensure the highest standards of public protection AGENDA ITEM 5 Page 29 of 193
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1. Background 1.1. The commencement of a regulatory framework for short-term lets was introduced by the Scottish Government in April 2019 which led to extensive consultation to develop suitable guidance on the licensing of short-term lets in conjunction with local authorities, stakeholders and operators. The guidance was published in March 2022 and was divided into two parts: Part 1 is for hosts and operators and Part 2 for Scottish licensing authorities, letting agencies and platforms facilitating short-term lets in Scotland. 1.2. The Short Term Lets in Scotland Licensing Scheme, Part 2 Supplementary Guidance for Licensing Authorities, Letting Agencies and Platforms, and the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 have been considered in developing a licensing scheme for North Lanarkshire Council. 1.3. The above legislation refers to those properties that are rented for short periods of time - usually for a holiday or short beak. It does not relate to properties rented out for longer term periods as these are covered within legislation relevant to Landlord Registration. 1.4. It is estimated that approximately 150 to 200 properties would require to comply with the legislation in North Lanarkshire, with these numbers fluctuating depending on the time of year. Over the last few years there have been little to no complaints received by the Built Environment team regarding premises classified as short term lets. 1.5. The proposed Short Term Lets Policy for North Lanarkshire and accompanying licensing conditions are contained as Appendix 1 to this report. 2. Report 2.1. The 2022 Order brings short term lets within the scope of the 1982 Act and enables local authorities to implement a licensing scheme for short term lets to improve safety and mitigate any potential negative impact on communities. The licence lasts for a period of three years and includes mandatory safety requirements (fire safety, gas safety etc) that will cover every type of short term let to ensure a safe, quality experience for visitors. It also includes a ‘fit and proper’ test (similar to that in place for landlord registration) to assess whether the applicant is suitable to hold such a licence and the Council has the discretion to apply further appropriate conditions to address any local concerns. 2.2. As noted previously, the 2022 Order sets out a timetable for the implementation of the licensing scheme to give hosts and operators time to comply. • Existing Hosts and Operators will be required to licence any existing short term lets by 1 April 2023. • All short term lets being fully licensable by 1 July 2024. N.B. The legislation contains provisional requirements which allow existing operators to continue hosting guests whilst their application is considered and determined. 2.3. The 2022 Order places a statutory duty on local authorities to carry out a period of public consultation which will include information relating to fees, applications etc and be published on the Council website. This consultation period took place between 1 August 2022 and 1 September 2022 and the key purpose was to gather a broader understanding of community and business views in relation to what a short-term letting Page 30 of 193
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licensing policy may also include. The results of this consultation are included in Appendix I of the Short Term Lets Policy document. The results of this survey are indicative that members of the public in North Lanarkshire are supportive of our intentions with regard to our overall policy for short term lets. 2.4. There were no prescribed licensing fees proposed by either the 2022 Order or the accompanying guidance, and each local authority has therefore had to determine their own fee structure. The fee structure proposed for North Lanarkshire Council is contained below: Secondary Letting [The letting of property where the owner does not normally live, for example a second home that is let to guests] £300 (up to 4 guests) £450 (5+ guests) Home Letting [Where the owner uses all or part of their home for short-term lets whilst they are absent. An example of this could be whilst the owner is on holiday] £300 (up to 4 guests) £450 (5+ guests) Home Sharing [Where the owner uses all or part of their home for short-term lets whilst they are present] £300 (up to 4 guests) £450 (5+ guests) Home Letting and Home Sharing [Operating short-term lets from a home while the owner is living there and for periods when the owner is absent] £300 (up to 4 guests) £450 (5+ guests) This fee structure was contained within the consultation document and is based on the principle of full cost recovery for the administration of the scheme. This reflects the provision within the 2022 Order which allows Councils to recover the cost of providing a licensing scheme to meet expenses in exercising their functions. From the consultation exercise, 52% of participants disagreed with the Council’s proposals to set the fees at £300 for up to 4 guests and £450 for 5 of more guests (regardless of the type of short-term licence). However, 48% agreed that the fees where acceptable. When compared to the national position, the fees detailed above reflect a mid-range to lower fee scale. Setting fees to the lower to mid-range will allow for the development and growth of local businesses operating short-term lets and to ensure that licensing fees are not excessive. 2.5. Along with detailing the licensing fee, the policy will encompass the introduction of the mandatory licensing scheme and sets out the requirements for a public register where details of all short term lets for the local authority area will be listed. It will detail the application process, the standard conditions, inspection and intervention processes, enforcement and enforcement notices, objections, and exemptions. 2.6. Where there are any licensing concerns regarding either the property itself or the owner, public objections, or requests for exemptions, then these will be passed through the Council’s Regulatory Committee which deals with existing applications under the Page 31 of 193
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1982 Act. This approach will be similar in fashion to any representations made under the existing landlord registration legislation. 2.7. Regrettably there has been a lack of a national approach from the Scottish Government on the administration of the licensing scheme. Unlike Landlord Registration which has a national database, no similar scheme has been developed for short-term lets with the expectation that the 32 local authorities will produce their own licensing system. In line with the Scottish Government’s Digital First programme and North Lanarkshire Council’s DigitalNL transition, we will be working in partnership with Quality in Tourism to deliver a straightforward process for licensing. This partnership Pilot is supported by the Scottish Government and by Scotland’s Housing Network Group and consists of the development of an online digital system that allows applicants to input and upload all relevant criteria where information will be held in a digital register. (Please see Section 5.6 below) 2.8 Applicants in North Lanarkshire will be able to register as short-term let operators via the Quality in Tourism digital portal and there will also be an application pack and guidance detailed on the North Lanarkshire Council website. The application pack and licensing process will also be available for those applicants who wish paper copies. 3. Measures of success 3.1. Confidence that a level playing field will be applied to all short-term lets across the Council area. 3.2. Confidence that short-term letting customers are protected in the knowledge that the properties being offered as short-term accommodation in North Lanarkshire are compliant with the Mandatory Conditions. 4. Supporting documentation 4.1 Appendix 1 – Short Term Lets Policy for North Lanarkshire Andrew McPherson Head of Regulatory Services and Waste Solutions 5. Impacts ( http://connect/report-template-guidance ) Page 32 of 193
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5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The licensing fees set within the Policy are based on full cost recovery to ensure no financial burden to the local authority. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? This report has been compiled to reflect the statutory obligations placed on the Council by the 2022 Order. In introducing a regulatory framework specific to the short term let licensing scheme and the Councils’ statutory duty to maintain the register of short term lets for North Lanarkshire, will be sufficient to mitigate any legal impacts. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☒ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Page 33 of 193
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Yes ☒ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? There is a need to develop a suitable digital platform to receive licence applications and for software that can progress applications by uploading documents, safety certificates and enabling the formulation of a public register in line with the Scottish Government Digital First programme and North Lanarkshire Council’s DigitalNL transition. Unfortunately, currently there are no in-house digital solutions available to this Service. As a result of the lack of a suitable IT option we will be working in partnership with Quality in Tourism to deliver a straightforward process for licensing. Quality in Tourism have developed a proven digital solution for their ongoing business interests nationally and have offered North Lanarkshire Council the opportunity to develop a “white label” digital portal for licensing all short-term lets in our area. This partnership Pilot is supported by the Scottish Government and by Scotland’s Housing Network Group and will provide a suitable digital journey for hosts and operators as the licensing scheme gathers pace. We are currently in the process of developing an online digital option that will allow short term let operators in North Lanarkshire to register, update and manage their licence details with minimum inconvenience. Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☒ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Colleagues within the Communication Team have been contacted and been involved in the consultation exercise and are now engaged in drafting a communication strategy as to how best to advertise the new licensing requirement. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The report has been compiled to reflect the regulatory enforcement work specific to the licensing of short term lets and the Councils’ statutory duty to implement the Page 34 of 193
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scheme and maintain a public register for North Lanarkshire. Failure to implement a suitable licensing scheme could leave the Council open to criticism for failing to comply with the statutory duty. Implementation of the process noted in the report will effectively mitigate against known risk and to act effectively to minimise those risks. Appendix 1 – Short Term Lets Policy for North Lanarkshire Page 35 of 193
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1 North Lanarkshire Council Short-Term Lets Policy The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 Page 36 of 193
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2 Contents Executive Summary Section 1: Introduction 1:1 Links to Local Outcomes 1.2 Aims and Objectives Section 2: Rationale of Short term Let Policy 2.1 STL Background 2.2 Consultation Section 3: Legal Framework 3.1 Civic Gov Scotland Act 1982 3.2 The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 3.3 Short Term Let Definition 3.4 Definition of Guest and Host 3.5 Excluded Accommodation Section 4: Short Term Let Policy/Process 4.1 Short Term Let Licence Types and Fees 4.2 Licence duration and renewal 4.3 Temporary exemptions 4.4 Temporary licences 4.5 Application Process 4.6 Neighbour Notification 4.7 Objections and Representations 4.8 Consideration of Late Objections 4.9 Determination of an Application 4.10 Grounds for Refusing a Short Term Let Licence 4.11 Material Change of Circumstances 4.12 Timescale for Determining Application 4.13 Restriction on Successive Applications 4.14 Refunds 4.15 Appeals Process 4.16 Planning and Building Standards Considerations Section 5: Licence Conditions 5.1 Mandatory Conditions 5.2 Additional conditions 5.3 Maximum Occupancy 5.4 Licence Numbers Page 37 of 193
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3 Section 6: Enforcement and Compliance 6.1 Complaints 6.2 Enforcement 6.3 Monitoring and Compliance Section 7: Variation/Suspension or Revocation of a Short Term Let Licence 7.1 Variation of Short Term Let Licence 7.2 Suspension and Revocation of Short Term Let Licence 7.3 Offences 7.4 Short Term Let Public Register 7.5 Short Term Let Review Policy Appendix 1: Short Term Let Survey Appendix 2: Offences Appendix 3: Mandatory and Additional Conditions Appendix 4: Maximum Occupancy: Definition of Space and Room Standard Page 38 of 193
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4 Executive Summary The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 was approved by the Scottish Parliament on 19 January 2022 and came into force on 1 March 2022 under the statutory provisions of the Civic Government (Scotland) Act 1982 (‘the 1982 Act’). The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 (“the 2022 Order”) sets out a timetable for the incremental implementation of the licensing scheme and brings short term lets within the scope of licensable activities covered by the statutory provisions of the Order, whilst placing a duty upon Local Authorities to have a licencing scheme in place to regulate all short term lets in their area by 1 October 2022. Existing Hosts and Operators will be required to licence any existing short term lets by 1 April 2023, with all short term lets being fully licensable by 1 July 2024. The 2022 Order also places a statutory duty for all Local Authorities to deliver a Short-Term Let Policy requiring the licensing authority to publish, and keep under review, a statement of its policy on or before 1 October 2022. In conjunction with this the Council must carry out a period of public consultation which will include information relating to fees, applications etc and be published on the Council website. This consultation survey was carried out for a period of 4 weeks commencing on August 1, 2022. The results of the survey can be viewed in Appendix 1. The Council must also maintain a public register of all short term lets in their area and provide statistical returns to the Scottish Government on a quarterly and annual basis. This draft framework and statement of licensing policy and accompanying licensing conditions was finalised during September 2022. The North Lanarkshire Short Term Lets Policy encompasses the introduction of a mandatory licensing scheme and set out the requirements for a public register, outlines the application process, stipulates the accompanying mandatory conditions, details the inspection and intervention process including any enforcement procedures. Typically, the licensing scheme allows for public objections to be made by neighbours or interested parties regarding any short term let. It also sets out those properties that are exempt from the licensing scheme and outlines where a licence can be suspended, revoked, or refused. The licensing scheme allows for the adoption of further discretionary powers where appropriate, these powers can include measures to reduce or prevent antisocial behaviour, waste and refuse accumulation issues, noise, illegal activity and common repair responsibilities, paragraph 5.2 below outlines the requirements for the use of discretionary powers. Section 1: Introduction 1.1 Links to Local Outcomes In terms of the Council’s priorities the introduction of a short term let licencing scheme will improve the health and wellbeing of our communities and satisfies the Council ambitions to: • Ensure a housing mix that supports social inclusion and economic growth • Ensure the highest standards of public protection; and • Ensure our digital transformation is responsive to all people’s needs and enable access to the services they need, through the delivery of an online digital solution. Page 39 of 193
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5 1.2 Aims & Objectives The aims and objectives of the Policy are to ensure that any licensable activity under the 2022 Order is carried out to safeguard hosts, operators and customers alike. Specific licensing and safety standards will be applied to all licence holders and applicants to ensure the safety of guests and neighbours. These aims will stipulate that the Policy for North Lanarkshire will be efficient, effective and proportionate. The Policy is adapted to consider local policies and takes into consideration the needs and circumstances of the local area. Section 2: Rationale of the Short Term Let Policy 2.1 Background The commencement of a regulatory framework for short-term lets was introduced by the Scottish Government in April 2019 which led to extensive consultation to develop suitable guidance on the licensing of short-term lets in Scotland in conjunction with local authorities, stakeholders and operators of short-term lets. The Short Term Lets in Scotland Licensing Scheme, Part 2 Supplementary Guidance for Licensing Authorities, Letting Agencies and Platforms (The Guidance) and was published in March 2022. This Guidance is designed to assist Council Officials to implement a licensing scheme in their area in line with the Scottish Government’s overall policy aims for the licensing of short-term lets. The Guidance also proposes that it is desirable for licensing authorities to work collaboratively with other licensing authorities to facilitate consistency in operational approach, where it is possible to do so; the aim being to tailor schemes to local needs, but to minimise unwarranted variation in the overall processes. 2.2. Consultation Following several desk-top surveys, undertaken over the previous year, it is estimated that there are approximately 150 to 250 short term lets in North Lanarkshire, with these numbers fluctuating, depending on the time of year. The consultation questionnaire and survey, contained in Appendix 1, were compiled to target hosts, operators, guests, neighbours and visitors to North Lanarkshire Council. The survey was intended to reflect the main parts of our short-term let policy and to allow members of the public and visitors to North Lanarkshire an opportunity to comment and contribute positively to the policy content. Section 3: Legal Framework 3.1 The Civic Government (Scotland) Act 1982 The Civic Government (Scotland) Act 1982 sets out the provisions for licensing of short-term lets and was given effect by the Civic Government (Scotland) Act 1982 (Licensing of Short- term Lets) Order 2022. 3.2 The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 The 2022 Order was approved by the Scottish Parliament on 19 January 2022 coming into force on 1 March 2022. The effect of the Order is that from 1 October 2022, the use of accommodation for a short-term let is an activity for which a licence is required under the Civic Government (Scotland) Act 1982. Page 40 of 193
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6 3.3 Short-Term Let Definition Short-term let means the use of residential accommodation provided by a host in the course of business to a guest, where all of the following criteria are met: • the guest does not use the accommodation as their only or principal home, • the short-term let is entered into for commercial consideration, • the guest is not: - an immediate family member of the host, - sharing the accommodation with the host for the principal purpose of advancing the guest’s education as part of an arrangement made or approved by a school, college, or further or higher educational institution, or - an owner or part-owner of the accommodation, • the accommodation is not provided for the principal purpose of facilitating the provision of work or services by the guest to the host or to another member of the host’s household, • the accommodation is not excluded accommodation • the short-term let does not constitute an excluded tenancy The activity referred to in paragraph 3.3 above is a short-term let on or after 1 October 2022 and any accommodation that is on a single premises requires only one short-term let licence. 3.4 Definition of Guest and Host • “Guest” means a person who occupies accommodation under a short-term let, • “Host” means a person who is the owner, tenant, or person who otherwise exercises control over occupation and use of the accommodation which is the subject of a short-term let. • “applicant” means the person making the application for the licence, normally the host or operator; and • “licence holder” means any one of the persons named on the licence application including, but not limited to, the host or operator. 3.5 Excluded Accommodation Excluded accommodation means accommodation which is, or is part of: • an aparthotel, • premises in respect of which a premises licence within the meaning of section 17 of the Licensing (Scotland) Act 2005 - a licence issued by a Licensing Board under section 26(1) or 47(2) authorising the sale of alcohol on the premises. • a hotel which has planning permission granted for use as a hotel, • a hostel, • residential accommodation where personal care is provided to residents, • a hospital or nursing home, • a residential school, college or training centre, • secure residential accommodation, • a refuge, • student accommodation, • accommodation which otherwise requires a licence for use for hire for overnight stays, Page 41 of 193
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7 • accommodation which is provided by the guest, • accommodation which is capable, without modification, of transporting guests to another location, • a bothy, or • accommodation owned by an employer and provided to an employee in terms of a contract of employment. Section 4: Short-Term Letting Policy Process 4.1 Short-Term Let Licence Types and Fees There are four types of licences available for short-term letting purposes, these being either; • Secondary letting - the letting of property where the host does not normally live, for example a second home that is let to guests • Home letting - using all or part of the hosts home for short-term lets, whilst the host is absent, an example of this could be whilst the host is on holiday • Home sharing - using all or part of the hosts home for short-term lets, whilst the host is present • Home letting and home sharing - operating short-term lets from the hosts home while they are living there and for periods when they are absent N.B. home sharing and home letting concern the use of the host or operator’s only or principal home whereas secondary letting makes use of a separate premises. Fees for Short-Term Let Licences are set out below: Secondary Letting £300 (up to 4 guests) £450 (5+ guests) Home Letting £300 (up to 4 guests) £450 (5+ guests) Home Sharing £300 (up to 4 guests) £450 (5+ guests) Home Letting and Home Sharing £300 (up to 4 guests) £450 (5+ guests) Page 42 of 193
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8 4.2 Licence duration and renewal The Council may grant a licence for a period of 3 years, whereupon expiry, the licence must be renewed. The 2022 Order allows the Council to renew licences for such periods as they see fit but must set out the circumstances in which they would use the power to set a licence period in excess of three years. The Scottish Government recommend that local authorities renew licences for a period of three years, unless they have good reasons to do otherwise. Licence duration will therefore be for a period of 3 years In the event of the death of a holder of a licence the licence shall be deemed to have been granted to his executor and shall, unless previously revoked, suspended or surrendered, remain in force until the end of the period of 3 months beginning with the death and shall then expire. The Council may extend or further extend that period if satisfied that the extension is necessary for the purpose of winding up the deceased’s estate and that no other circumstances make it undesirable. 4.3 Temporary exemptions The Council may grant temporary exemptions to the requirement to have a licence, and this can be done for a specified single continuous period not exceeding 6 weeks in any period of 12 months. North Lanarkshire Council may issue temporary exemptions from the requirement to have a licence for certain occasions including where there is a large number of visitors over a short time period. The 6-week limit for a temporary exemption is a maximum, and not a default. The Council does not intend to have a policy on temporary exemptions and would not be supportive of such applications for the reasons that any property granted exemption from short-term letting licensing would not be subject to fit and proper checks nor would they be required to meet relevant safety standards. 4.4 Temporary licences Due to the level of assessment required, timeframes involved for processing and issuing temporary licences and the associated costs incurred for administering these types of licence, the Council do not intend to have a policy on temporary licences, nor does it intend to issue temporary licences. 4.5 Application Process All information relating to the application process will be held on a dedicated section on our website for the short-term let licensing scheme where hosts and operators can find all the information that they need to apply and comply with short-term licensing requirements. Information will include • links to Scottish Government guidance • fees for applications and renewals (and any other fees) • additional information and guidance about relevant policies, additional conditions or measures specific to the licensing authority area • the application form; and Page 43 of 193
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9 • how to make an appeal All applicants for the grant, variation and renewal of a short-term let licence, irrespective of the type of short-term licence being applied for (i.e. Secondary Letting, Home Letting, Home Sharing; or Home Letting and Home Sharing) must complete the licence application form and submit it to the Council for processing. In line with the Scottish Government Digital First programme and North Lanarkshire Council’s DigitalNL transition, we will be working in partnership with Quality in Tourism to deliver a straightforward process for licensing. This partnership Pilot is supported by the Scottish Government and by Scotland’s Housing Network Group and consists of the development of an online digital system that allows applicants to input and upload all relevant criteria where information will be held in a digital register. Residents and neighbours will be able to search the public register where they can find out whether a premises is licensed. Access to a public area of the website will be provided together with forms for online submissions, objections, appeals and complaints procedures. The Council will also have paper copies of the short-term let licensing application form, available upon request for people who cannot access the online portal. Support will be provided to these applicants and guidance provided on what documentation is required to be submitted to allow the application to be determined. Paper applications can be provided by contacting the Service details noted below: North Lanarkshire Council, Built Environment Team 2nd Floor, Civic Centre, Windmillhill Street Motherwell ML1 1AB Telephone: 01236 632377 Alternatively paper applications can be provided by sending requests by email to: PrivateSector@northlan.gov.uk 4.6 Neighbour Notification Applicants have responsibility for giving notice of an application for a new, or renewal of a short-term lets licence. Applicants are required to display a site notice at or near the premises so that it can be conveniently read by the public for a period of 21 days beginning with the date on which the application was submitted. A notice must state: • that an application has been made for a licence, • the main facts of the application • that objections and representations in relation to the application may be made to the Council, and Page 44 of 193
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10 • how to make objections or representations. Applicants are required to certify compliance that they have displayed the site notice as soon as possible after the 21 days has expired. This type of Notice will be provided by download on the Digital Portal or can be provided by means described in paragraph 4.5 above. 4.7 Objections and Representations Any objection received by the Council must specify the grounds for the objection. Any objection or representation relating to an application for the grant or renewal of a licence shall be considered by the Council if the objection or representation is: • in writing • specifies the grounds of the objection or the nature of the representation • specifies the name and address of the person making it • is signed by the person making the objection or on their behalf • was made within 28 days of whichever is the later 4.8 Consideration of Late Objections The Council may consider late objections if they are satisfied there is a sufficient reason as to why it was not made on time. Where the Council receives a late objection, they must satisfy themselves as to the sufficiency of the reason for lateness and explain why they have decided to consider the objection. 4.9 Determination of an Application Before making any determination regarding any application, Council officers will have due regard to Schedule 1 of the 1982 Act. The process is summarised below. Where the Council have accepted objections and representations by means of an electronic or written communication, an objection or representation is made and if it is sent: • to the authority by means of an electronic communication which complies with the determination, and • within the time specified as 28 days • The licensing authority shall send a copy of any relevant objection or representation to the applicant to whose application it relates. On receipt of any objection or representation, the council may make such reasonable inquiries as they think fit when considering the application and include the findings of these inquiries at any subsequent hearing. Where the Council intend to include the findings of any inquiries, they shall notify the applicant of that intention. The Council may, before reaching a final decision upon such an application, give the applicant and any person who has made a relevant objection or representation an opportunity to be heard and, shall, within such reasonable period (not being less than14 days) of the date of the hearing, notify the applicant and each such person of that date. Page 45 of 193
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11 The Council shall not reach a final decision upon such an application: • in relation to which a relevant objection or representation has been made to them or in relation to which they intend to take into account, and • in respect of which they have not given the applicant and any person who has made any such objection or representation an opportunity to be heard. The applicant may notify the Council in writing of his/her views on such objection or representation within such reasonable period (not being less than 7 days). The period referred to above shall begin with the date when the notification given by the Council is delivered to the person concerned and, when it is sent by post, it shall be treated as being delivered at the time when it might be expected to be delivered in the normal course of post. 4.10 Grounds for Refusing a Short-Term Let Licence The Council will refuse an application for a short-term let licence where it is not satisfied that the applicant is a fit and proper person. The Council may refuse an application for a short-term let licence if the property is shown to be unsafe, or, there are significant risks to safety and security. The Council shall refuse an application to grant or renew a licence if, in their opinion: • the applicant or, where the applicant is not a natural person, any director of it or partner in it or any other person responsible for its management, is either: - for the time being disqualified under section 7(6) of the 1982 Act, or - not a fit and proper person to be the holder of the licence • the activity would be managed by or carried on for the benefit of a person, other than the applicant, who would be refused the grant or renewal of such a licence if he/she made the application themselves. • where the licence applied for relates to an activity consisting of or including the use of premises and those premises are not suitable or convenient for the conduct of the activity having regard to: - the location, character or condition of the premises - the nature and extent of the proposed activity - the kind of persons likely to be in the premises - the possibility of undue public nuisance; or - public order or public safety; or • there is other good reason for refusing the application Where the Council have refused an application for the grant or renewal of a short-term let licence, they shall not, within one year of their refusal, entertain a subsequent application from the same applicant for the grant of the same kind of licence unless in their opinion there has been, since their refusal, a material change of circumstances. 4.11 Material Change in Circumstances Where there is a material change of circumstances affecting the holder of a short-term let licence, the holder of the licence shall, notify the Council of the change as soon as reasonably practicable after it has taken place. Page 46 of 193
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12 The holder of a short-term let licence shall not make or cause to be made, or permit there to be made, any material change in the premises without the prior consent of the Council. The Council, before considering whether or not to give their consent, shall be entitled to require the holder of the licence to furnish them with specifications, including plans, of the proposed changes. Before deciding whether or not to give their consent, the Council shall consult with the Chief Constable of Police Scotland and Scottish Fire and Rescue Service. 4.12 Timescale for Determining Applications Council officers will have 12 months to reach a decision on whether or not to grant a licence, following which, where no decision has been reached during that time period, the licence will be assumed to have been granted. The Council will consult with Building Standards, Planning, Police Scotland and Scottish Fire and Rescue Service when preparing and reviewing all applications. 4.13 Restriction on Successive Applications Where the Council have refused an application for the grant or renewal of a short-term let licence, they shall not, within one year of their refusal, entertain a subsequent application from the same applicant unless there has been, since their refusal, a material change of circumstances. 4.14 Refunds The Council will not refund any fees charged for processing the application or renewal if the application is refused. 4.15 Appeals Process The applicant and the person(s) making an objection/representation have a right of appeal to the Sheriff Court. However, they only have this right if they have taken every opportunity to state their case to the Council’s Regulatory Committee as has been made available. The Sheriff can uphold an appeal only if the Council has erred in law, based their determination on any incorrect material fact, acted contrary to natural justice or exercised their discretion in an unreasonable manner. Any appeal must be lodged by way of a summary application with the relevant Sheriff Clerk’s office within 28 days of the date of the decision appealed against. Parties should seek their own independent legal advice in relation to an appeal. 4.16 Planning and Building Standards Considerations. Planning permission is determined on a case-by-case basis. It is a mandatory condition of the licence that a host or operator has planning permission or has made an application for planning permission where their premises is in a designated short-term let control area, and that they are using the premises for secondary letting and which is a dwelling house. The Council does not propose to designate any Short-term Let Control areas at this time, but they may need further advice for any alterations being carried out or considered by the host or Page 47 of 193
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13 operator. Hosts and operators are, therefore, encouraged to engage with the Council’s planning department prior to submitting a licence application to confirm whether they require planning permission or a certificate of lawful use of development. Consultation with colleagues in Building Standards will be required to assess any Building Warrant applications or unverified works or conversions to property being used for the purpose of short-term letting. Section 5: Licence Conditions 5.1 Mandatory Conditions The 1982 Act and accompanying 2022 Order define a number of mandatory conditions that all short-term lets in Scotland must comply with. These conditions set out specific property condition standards and include related safety certification and documentation. A full list of these mandatory conditions can be viewed in Appendix II. 5.2 Additional conditions The Council may also impose other additional conditions. These additional conditions may include aspects related to antisocial behaviour, noise and nuisance, litter and refuse disposal, failure to maintain the property or contribute to the cost of any communal repairs or any unlawful activity. The Council have broad powers around which premises have additional conditions attached to them. Different additional conditions may be determined for different types of licence, for example a secondary let in a tenement flat. Any proposed additional conditions must be included on the licence documentation provided to the host or operator and published on the Council website outlining the criteria and the circumstances in which additional conditions will be applied. The Scottish Government have set out templates for local authorities who intend to adopt discretionary powers and conditions. Below is an example of how this would work in practice: Template additional condition 1. The licence holder must take reasonable steps to manage the premises in such a way as to seek to prevent and deal effectively with any antisocial behaviour by guests to anyone else in the short-term let and in the locality of the short-term let. 2. The licence holder must take reasonable steps to: • ensure that no disturbance or nuisance arises within or from the premises, for example by explaining the house rules to the guests • deal effectively with any disturbance or nuisance arising within or from the premises, as soon as reasonably practicable after the licence holder is made aware of it; and • ensure any vehicles belonging to guests are parked lawfully, for example explaining where any designated parking spaces are to be found and highlighting any local rules. The Council does not intend to include any other mandatory additional conditions as there is recourse to suitable legislation to allow the Council to deal with any local issues that arise as Page 48 of 193
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14 a result of a short-term let premises. However, this Policy will be subject to an ongoing review and should the need to adopt specific additional conditions be required, a full review of those circumstances will be undertaken. 5.3 Maximum Occupancy The mandatory licence condition specified in the 2022 Order states that the licence holder must ensure that the number of guests residing on the premises does not exceed the number specified in the licence. This information must be made clear on adverts, listings or booking terms and conditions. It is for the Council to stipulate the number of guests on the licence and several factors will be considered when calculating the maximum occupancy of a short-term let. These factors will include the number of guests specified, the number of rooms available and any layout plan of the property that has been requested. Where there are any discrepancies raised in relation to the maximum capacity of a property the Council will refer to the space standard and the room standard as set out under Section 135 of the Housing (Scotland) Act 1987, and this can be viewed in Appendix III. As part of the licensing process the Council and Scottish Fire and Rescue Service will undertake an assessment of the maximum number of guests that can be accommodated safely. The Scottish Government have advised that it is desirable for licensing authorities to ask applicants to submit (as part of their application) floor plan(s) for their premises indicating room sizes, fire escape routes and accommodation intended for guests with mobility impairment, indicating the location of any steps, stairs, elevators or lifts in the premises, as well as the extent and boundary of the building, if relevant. The Council will consider any licence application by means of a risk-based approach thus identifying those areas of non-compliance at the application stage. This will incorporate a checklist compiled by Scottish Fire and Rescue for the applicant to complete via NLC’s short- term letting portal/website and will include a examination of each application consisting of a documentation review. Any discrepancies or concerns noted at this stage will be escalated for further assessment/investigation and the applicant may be required to provide floor plans and any other details that may be requested to satisfy the Council. 5.4 Licence Numbers Applicants who have operated a short-term let prior to 1 October 2022 will be given a provisional licence number on submission of a licence application before 1 April 2023. This is to enable those hosts to continue to operate their short-term let while their application is being considered. Once the application has been determined the provisional number will cease to have effect and a unique licence number will be allocated. N.B. licensing authorities have until 31 March 2024 to complete this. Provisional licence numbers will not be issued to new hosts from 1 October 2022, or anyone applying after 1 April 2023, as they cannot operate whilst their application is being determined. The licence number will comprise of 8 characters, three of which are alphabetical (capital letters) and 5 of which are digits (D): For example: A1A2-DDDDD-A3 The leading two characters (A1A2) will identify the Council; North Lanarkshire Council will use NL. Page 49 of 193
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15 The 5 digits will be issued by each Council. The final character (A3) will denote the type of "licence" to be issued: P - Provisional licence number issued on receipt of a licence application F - First (full) licence R - Renewed licence For example: NL -00001 - P This number provided in the above example relates to a provisional licence (P) The format of the licence number alongside information contained in the public register, will allow anybody to identify the licensing authority who issued the licence, the type of short-term let to which the licence relates and the type of licence. Section 6: Enforcement and Compliance 6.1 Complaints Complaints are most likely to be received from neighbours and guests about the way that hosts and operators are managing their short-term lets. Complaints from neighbours may be about an actual, or suspected, short-term let. Where the Council receives a complaint, we will seek to try to resolve a complaint through engagement with the host or operator in the first instance. Complaints will be able to be received either online through the public portal or in writing to the Built Environment team (noted address below). Complaints may originate from a staying guest (during or after their stay), or neighbours for a variety of reasons, but each complaint will be handled in line with our current complaints policy. Whilst the Council recognises that some will be justified, some may be spurious or malicious. Malicious or spurious complaints will not be investigated. Inevitably the Council may need to direct some complaints to other internal Council Services, letting agencies, platforms, VisitScotland, Police Scotland or other bodies for further investigation, specifically matters relating to noise, antisocial behaviour or criminal activity. Complaints will be acknowledged within five working days and complainants will be kept up to date with the progress of their complaint; sometimes this may simply be advising them of the outcome. This response time will be factored into our complaints procedure but due to the complexity of some complaints this will not always be possible. A system of complaint coding will enable complaints to be directed via the online portal and via North Lanarkshire Council website which will enable relatively straightforward analysis of the types of complaints being generated, their location and their frequency. Complaints regarding any unlicensed short-term let will be recorded on the Council database and reported to Police Scotland for investigation. It is a criminal offence to carry on an activity for which a licence is required without having a licence and without reasonable excuse. Please be aware that the Council will not consider complaints in relation to the quality of a guest’s stay or any predetermined agreements between the guest and the host/operator as this is outside the scope of the licensing scheme. Page 50 of 193
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16 6.2 Enforcement The Council have the power to serve enforcement notices. Where complaints, visits to premises, or other information, suggest that any licence condition has been breached, we can require a licence holder to take appropriate action to deal with the contravention. This may be done by serving an enforcement notice. Such notices will set out the matters constituting a breach or a likely breach, the action required to rectify or prevent the breach and the date by which the action must be taken. Enforcement notices can also be served if a licence condition is considered likely to be breached, for example, a host or operator is advertising property with a maximum capacity of ten guests in breach of a licence condition specifying no more than eight. This would be evidenced in a listing or advertisement. Should satisfactory action not be taken by the required date(s) to address the issues set out in the notice, the Council have powers to vary, suspend or revoke a licence. 6.3 Monitoring and Compliance In considering matters of compliance, the Council will adopt a risk-based approach to ensuring licence holders adhere to the conditions of the licensing scheme. Any enforcement action will be considered on a case-by-case basis and will be approached in an informal capacity in the fist instance. There will be no fee for any routine visits undertaken to any short term let property, however any subsequent visits that are required due to non-compliance may incur a standard fee. Section 7: Variation, Suspension or Revocation of a Short Term Let Licence 7.1 Variation The Council may vary the terms of a licence on any grounds they think fit. They can do this at any time and can do this following an application made to them by the licence holder or of their own initiative. The Council may vary any short-term let licence without serving an enforcement notice if the seriousness of the breach justifies urgent action. Hosts and operators can appeal against being served with a notice of variation, suspension or revocation. Hosts and operators can take bookings and provide accommodation whilst they appeal a revocation or suspension, and they have 28 days in which to lodge an appeal with the Council. 7.2 Suspension or revocation Licensing authorities may order the suspension or revocation of a licence if the licence holder is no longer a fit and proper person to hold the licence. Suspension or revocation may also be instigated where the licence holder is managing the property on behalf of someone who would have been refused the grant or renewal of the licence or where the short-term let is causing or is likely to cause undue public nuisance or a threat to public order or public safety. Where the Council revokes a licence, no further application can be made by that host or operator in respect of that premises within one year of the date of revocation. Page 51 of 193
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17 7.3 Offences Associated with Short Term Lets There are a number of offences in relation to short-term letting. These offences are listed in Appendix IV. 7.4 Short Term Let Public Register Data sharing with the Scottish Government will be on a regular basis and will include the contents of the public register. This information will be sent to the Scottish Government on a quarterly basis and will include: • Date application determined • Licence expiry date • UPRN • Application outcome This information will allow for monitoring of application processing times, average length of time a licence is granted for, and common reasons for applications being refused in order to monitor and evaluate the policy. 7.5 Short Term Let Review Policy In the first instance the Council will set a period of continuous review of their Short Term Let Policy for a period of six months of the publishing date and then on an annual basis thereafter. Page 52 of 193
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Appendix I: North Lanarkshire Council Short-Term Let Survey: Summary Report (Survey period from 1 August 2022 to 1 September 2022) Q1 Which of the following apply to you? Answer choices: • Short-term let operator • Short-term let customer • Short-term let neighbour • Live in North Lanarkshire • Work in North Lanarkshire • Visitor to North Lanarkshire • Other (please specify) Page 53 of 193
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Q2 Below are the licence costs for a short-term let licence in North Lanarkshire. The licence will be renewable after 3 years Secondary Letting £300 (up to 4 guests) £450 (5+ guests) (The letting of property where you do not normally live, for example a second home that is let to guests) Home Letting £300 (up to 4 guests) £450 (5+ guests) (Using all or part of your own home for short-term letting purposes while you are absent from your home, for example whilst you are away on holiday) Home Sharing £300 (up to 4 guests) £450 (5+ guests) (Using all or part of your own home for short-term letting purposes while you are living there) Home Letting and Home Sharing £300 (up to 4 guests) £450 (5+ guests) (Using your property for short-term letting purposes while you are living there and when you are absent) Q2. Are these definitions clear and understandable? Answered: 72 Skipped: 2 11.11% 88.89% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% No Yes Question 2 Responses Page 54 of 193
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Q3. Do you agree with the proposed licence cost? Answered: 73 Skipped: 1 Q4. The Council has the power to set additional conditions for short term let properties. All short term lets which are granted a licence will be required to comply with a set of mandatory licence conditions which apply across Scotland. Licence conditions set out a number of rules which the licence holder must comply with during the period in which the licence has effect. For example, conditions can be used to set out the maximum occupancy used as a short term let. Should the Council adopt additional conditions? Answered: 72 Skipped: 2 52.05% 47.95% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% No Yes Question 2 Responses 15.28% 84.72% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% No Yes Question 4 Responses Page 55 of 193
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Q5 Which issues should the conditions cover? Answered: 72 Skipped: 2 13.89% 69.44% 75.00% 80.56% 81.94% 86.11% 90.28% 93.06% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Other (please specify) Damage or alteration to property Maximum occupancy Failure to maintain property Waste management Unlawful activity Noise Antisocial behaviour Question 5 Responses Page 56 of 193
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Q6 Temporary Licences: The Council can issue temporary short term let licences. A temporary licence may be granted for a continuous period of up to 6 weeks, or longer if a host or operator has also made an application for a full licence. Should temporary licences be introduced? Answered: 73 Skipped: 1 Q7 Should there be additional conditions for temporary licences (if they are introduced?) Answered: 70 Skipped: 4 58.90% 41.10% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% No Yes Question 6 Responses 30.00% 70.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% No Yes Question 7 Responses Page 57 of 193
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Q8 What additional conditions should be included? Answered: 56 Skipped: 18 16.07% 69.64% 71.43% 78.57% 78.57% 87.50% 89.29% 89.29% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Other (please specify) Damage or alteration to property Maximum occupancy Failure to maintain property Waste management Noise Unlawful activity Antisocial behaviour Question 8 Responses Page 58 of 193
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Q9 Temporary Exemptions: The Council can also issue temporary exemptions from the requirement to have a licence. The Council require to adopt a policy as to whether these will be allowed. A temporary exemption could be issued for a property for certain occasions where there is a large number of visitors to North Lanarkshire over a short period e.g., to support events or festivals. A Temporary Exemption would last for a single continuous period of up to six weeks in any period of 12 months. Should Temporary Exemptions be introduced? Answered: 70 Skipped: 4 Q10 Should similar conditions be attached to Temporary Exemptions? (If they are introduced) Answered: 68 Skipped: 6 61.43% 38.57% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% No Yes Question 9 Responses 23.53% 76.47% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% No Yes Question 10 Response Page 59 of 193
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Q11 What additional conditions should be attached? Answered: 55 Skipped: 19 Summary of Results: From the above results it can be seen that the majority of respondents to the short-term let survey reside in the North Lanarkshire area (87%), with the next highest group of participants working in North Lanarkshire (28%). Only a small minority of respondents (5%) were short- term let operators, with a further (7%) being short-term let neighbours. N.B. It should be noted that this question was set out as multiple choice and more than one answer was available for participants to choose, e.g., some participants may be living and working in NLC or may also be short-term operators and or neighbours. Questions 2 and 3 enquired as to whether or not the definitions of the different types of short- term lets where clear and understandable and whether or not they agreed with the proposed licencing fees. The majority of participants (89%) stated that the definitions were clear. With 12.73% 70.91% 74.55% 78.18% 80.00% 89.09% 89.09% 94.55% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Other (please specify) Damage or alteration to property Maximum occupancy Failure to maintain property Waste management Unlawful activity Noise Antisocial behaviour Question 11 Responses Page 60 of 193
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regard to the proposed costs of a short-term let licence, 52% of participants disagreed with the Councils proposals to set the fees at £300 for up to 4 guests and £450 for 5 of more guests (regardless of the type of short-term licence), with 48% agreeing that the fees where acceptable. The Council has the power to set additional conditions for short term let properties. All short term lets which are granted a licence will be required to comply with a set of mandatory licence conditions which apply across Scotland. Licence conditions set out a number of rules which the licence holder must comply with during the period in which the licence has effect. For example, conditions can be used to set out additional conditions regarding noise and/or antisocial behaviour etc. Participants were asked if additional conditions should be included to short-term let licences in North Lanarkshire. Results show that 85% of responses were in favour of including additional conditions to any short-term let licence. Further analysis indicated that of the multiple-choice options antisocial behaviour and noise were the most important categories to be included as additional conditions. The Council has the power to issue temporary short term let licences, should it decide to adopt this option into the licensing scheme. A temporary licence may be granted for a continuous period of up to 6 weeks, or longer if a host or operator has also made an application for a full licence. Due to the number of checks required and costs that will be incurred the Council do not intend to issue temporary licences. From the survey, 59% agreed that temporary licences should not be introduced. However, should the decision be taken to include temporary licences in our short-term let policy, participants were asked if there should be additional conditions applicable to these types of licence. Many of the participants (70%) agreed that additional conditions should be applied to any temporary licences should they be adopted by the council. Further analysis indicated that of the multiple-choice options, antisocial behaviour and noise were the most important categories to be included as additional conditions. With regard to the question of temporary exemptions, the Council require to implement a policy as to whether these exemptions will be adopted into the licensing scheme. A temporary exemption could be issued for a property for certain occasions where there is a large number of visitors to North Lanarkshire over a short period e.g., to support events or festivals. A Temporary Exemption would last for a single continuous period of up to six weeks in any period of 12 months. Most participants (61%) responded that temporary exemptions should not be introduced. However, should the decision be taken to include temporary exemptions in our short-term let policy, participants were asked if there should be additional conditions applicable to these types of licence. The majority of participants (76%) again agreed that additional conditions should be applied to any temporary exemptions. Further analysis indicated that of the multiple- choice options, antisocial behaviour and noise were the most important categories to be included as additional conditions. N.B. The Council does not intend to have a policy on temporary exemptions and would not be supportive of such applications for the reasons that any property granted exemption from short-term letting licensing would not be subject to fit and proper checks nor would they be required to meet relevant safety standards. In summary, the results of this survey are indicative that members of the public are supportive of our intentions with regard to our overall policy for short term lets. The only deviation from this was in relation to the licensing fees, with a small majority, 52%, stating that licensing fees were too expensive and should be reduced. Page 61 of 193
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Appendix II North Lanarkshire Council Mandatory Short Term Let Licence Conditions. 1. Agents. Only those named as a holder of the licence can carry out the day-to-day management of the short- term let of the premises. 2. Type of licence. The holder of the licence may only offer the type of short-term let for which the licence has been granted. 3. Fire Safety. The holder of the licence must ensure the premises has satisfactory equipment installed for detecting, and for giving warning of (a) fire or suspected fire, and (b) the presence of carbon monoxide in a concentration that is hazardous to health. The holder of the licence must keep records showing that all upholstered furnishings and mattresses within the parts of the premises which are for guest use, or to which the guests are otherwise permitted to have access, comply with the Furniture and Furnishings (Fire Safety) Regulations 1988. 4. Gas safety. Where the premises has a gas supply (a) the holder of the licence must arrange for an annual gas safety inspection of all gas pipes, flues and appliances in the premises, (b) if, after an annual inspection, any appliance does not meet the required safety standard, the holder of the licence must not allow a short-term let of the premises until the works necessary to bring the appliance to the required safety standard have been carried out. 5. Electrical safety. Where there are electrical fittings or items within the parts of the premises which are for guest use, or to which the guests are permitted to have access, the holder of the licence must (a) ensure that any electrical fittings and items are in (i) a reasonable state of repair, and (ii) proper and safe working order, (b) arrange for an electrical safety inspection to be carried out by a competent person at least every five years or more frequently if directed by the competent person, (c) ensure that, following an electrical safety inspection, the competent person produces an Electrical Installation Condition Report on any fixed installations, (d) arrange for a competent person to (i) produce a Portable Appliance Testing Report on moveable appliances to which a guest has access, and (ii) date label and sign all moveable appliances which have been inspected. In determining who is competent, the holder of the licence must have regard to guidance issued by the Scottish Ministers under section 19B(4) of the Housing (Scotland) Act 2006. 6. Water safety: private water supplies. Where the premises are served by a private water supply, the licence holder must comply with the requirements on the owners of private dwellings set out in the Water Intended for Human Consumption (Private Supplies) (Scotland) Regulations 2017. 7. Water safety: legionella. The holder of the licence must assess the risk from exposure to legionella within the premises, whether or not the premises are served by a private water supply. 8. Safety & repair standards. 1) The holder of the licence must take all reasonable steps to ensure the premises are safe for residential use. 2) Where the premises are subject to the requirements of Chapter 4 of Part 1 of the Housing (Scotland) Act 2006, the holder of the licence must ensure that the premises meet the repairing standard. 9. Maximum occupancy. The licence holder must ensure that the number of guests residing on the premises does not exceed the number specified in the licence. Page 62 of 193
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10. Information to be displayed. The holder of the licence must make the following information available within the premises in a place where it is accessible to all guests (a) a certified copy of the licence and the licence conditions, (b) fire, gas and electrical safety information, (c) details of how to summon the assistance of emergency services, (d) a copy of the gas safety report, (e) a copy of the Electrical Installation Condition Report, and (f) a copy of the Portable Appliance Testing Report. 11. Planning permission. Where the premises is in a short-term let control area for the purposes of section 26B of the Town and Country Planning (Scotland) Act 1997 (“the 1997 Act”), the holder of the licence must, where the use of the premises for a short-term let requires planning permission under the 1997 Act, ensure that either (a) an application has been made for planning permission under the 1997 Act and has not yet been determined, or (b) planning permission under the 1997 Act is in force. 12. Listings 1) The holder of the licence must ensure that any listing or advert (whether electronic or otherwise) for the short-term let of the premises includes (a) the licence number, and (b) a valid Energy Performance Certificate rating if an Energy Performance Certificate is required for the premises, in accordance with the Energy Performance of Buildings (Scotland) Regulations 2008. 2) The holder of the licence must ensure that any listing or advert (whether electronic or otherwise) for the short-term let of the premises is consistent with the terms of the short-term let licence. 13. Insurance The holder of the licence must ensure that there is in place for the premises (a) valid buildings insurance for the duration of the licence, and (b) valid public liability insurance for the duration of each short-term let agreement. 14. Payment of fees The holder of the licence must pay any fees due to the licensing authority in respect of the licence on demand. 15. False or misleading information The holder of the licence must not provide any false or misleading information to the licensing authority. 16. Interpretation In this schedule— “Electrical Installation Condition Report” means a report containing the following information (a) the date on which the inspection was carried out, (b) the address of the premises inspected, (c) the name, address and relevant qualifications of the person who carried out the inspection, (d) a description, and the location, of each installation, fixture, fitting and appliance inspected, (e) any defect identified, (f) any action taken to remedy a defect, “Energy Performance Certificate” means a certificate which complies with regulation 6 of the Energy Performance of Buildings (Scotland) Regulations 2008, “gas safety report” means a report containing the following information (a) the date on which the appliance or flue was checked, (b) the address of the premises at which the appliance or flue is installed, (c) a description of and the location of each appliance or flue checked, (d) any safety defect identified, (e) any remedial action taken, Page 63 of 193
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(f) confirmation that the check undertaken complies with the requirements of an examination of (i) the effectiveness of any flue, (ii) the supply of combustion air, (iii) subject to head (iv) its operating pressure or heat input or, where necessary, both, (v) if it is not reasonably practicable to examine its operating pressure or heat input (or, where necessary, both), its combustion performance, (vi) its operation so as to ensure its safe functioning, (g) the name and signature of the individual carrying out the check, and (h) the registration number with which that individual, or that individual’s employer, is registered with a body approved by the Health and Safety Executive for the purposes of regulation 3(3) of the Gas Safety (Installation and Use) Regulations 1998, “holder of the licence” means any person to whom a short-term let licence has been granted or jointly granted, “home letting” means a short-term let consisting of the entering into of an agreement for the use, while the host is absent, of accommodation which is, or is part of, the host’s only or principal home, “home sharing” means a short-term let consisting of the entering into of an agreement for the use, while the host is present, of accommodation which is, or is part of, the host’s only or principal home, “premises” means the accommodation which is the subject of an application for a short-term licence or the subject of a short-term licence, “repairing standard” means the steps which the holder of the licence is required to take to comply with the obligations placed on the holder by Chapter 4 of Part 1 of the Housing (Scotland) Act 2006, “secondary letting” means a short-term let consisting of the entering into of an agreement for the use of accommodation which is not, or is not part of, the licence holder’s only or principal home, “short-term let” has the same meaning as in article 3 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022, “short-term let licence” means a licence for a short-term let, and “type of short-term let” means one of the following purposes (a) secondary letting, (b) home letting, (c) home sharing, or (d) home letting and home sharing. Page 64 of 193
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1 Appendix III: The Room and Space Standard Maximum Occupancy as defined under the Housing (Scotland) Act 1987 Section 135: Definition of overcrowding. A house is overcrowded for the purposes of this Part when the number of persons sleeping in the house is such as to contravene: (a) the standard specified in section 136 (the room standard), or (b) the standard specified in section 137 (the space standard) Section 136: The room standard. (1) The room standard is contravened when the number of persons sleeping in a house and the number of rooms available as sleeping accommodation is such that two persons of opposite sexes who are not living together as husband and wife must sleep in the same room. (2) For this purpose— (a) children under the age of 10 shall be left out of account, and (b) a room is available as sleeping accommodation if it is of a type normally used in the locality either as a bedroom or as a living room. Section 137: The space standard. (1) The space standard is contravened when the number of persons sleeping in a house is in excess of the permitted number, having regard to the number and floor area of the rooms of the house available as sleeping accommodation. (2 )For this purpose— (a) no account shall be taken of a child under the age of one and a child aged one or over but under 10 shall be reckoned as one-half of a unit, and (b) a room is available as sleeping accommodation if it is of a type normally used in the locality either as a living room or as a bedroom. (3) The permitted number of persons in relation to a house is whichever is the less of— (a) the number specified in Table I in relation to the number of rooms in the house available as sleeping accommodation, and (b) the aggregate for all such rooms in the house of the numbers specified in column 2 of Table II in relation to each room of the floor area specified in column 1. No account shall be taken for the purposes of either Table of a room having a floor area of less than 50 square feet. Page 65 of 193
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2 Table I Number of rooms Number of persons 1 2 2 3 3 5 4 7½ 5 or more 2 for each room Table II Floor area of room Number of persons 110 sq. ft. or more 2 90 sq. ft. or more but less than 110 sq. ft. 1½ 70 sq. ft. or more but less than 90 sq. ft. 1 50 sq. ft. or more but less than 70 sq. ft. ½ (4) The Secretary of State may prescribe the manner in which the floor area of a room is to be ascertained for the purposes of this section; and the regulations may provide for the exclusion from computation, or the bringing into computation at a reduced figure, of floor space in a part of the room which is of less than a specified height. (5) Regulations under subsection (4) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (6) A certificate of the local authority stating the number and floor areas of the rooms in a house, and that the floor areas have been ascertained in the prescribed manner, is evidence for the purposes of legal proceedings of the facts stated in it. Section 140 Exception: children attaining age of 1 or 10. (1) Where a house which would not otherwise be overcrowded becomes overcrowded by reason of a child attaining the age of one or 10, the occupier does not commit an offence under section 139(1) (occupier causing or permitting overcrowding), so long as the condition in subsection (2) is met and the occupier does not fail to accept an offer of suitable alternative accommodation or to secure the removal of any person living in the house who is not a member of his family and whose removal is reasonably practicable. (2) The condition is that all the persons sleeping in the house are persons who were living there when the child attained that age and thereafter continuously live there, or children born after that date of any of those persons. Page 66 of 193
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Appendix IV: Offences Operating without a licence It is an offence, without reasonable excuse, to carry on an activity for which a licence is required without having such a licence. Depending on the activity, different punishments apply. The default is a fine not exceeding level 4 on the standard scale. Failing to comply with a licence condition It is an offence to fail to comply with a licence condition, though it is a defence to have used all due diligence to prevent the offence. The default is a fine not exceeding level 3 on the standard scale. Note that some mandatory conditions are also enforceable through other legislation. Hosts and operators must include an EPC rating in their listing where they are required to have a valid EPC certificate for the premises under building standards legislation. A host or operator who fails to hold a valid EPC certificate, where required to have one under building standards legislation, can be fined as follows as a minimum: • £500 for failing to hold a valid EPC certificate; and • £500 for failing to display a rating on any property listing. Failing to notify a change etc. It is an offence for a licence holder, without reasonable excuse, to: • fail to notify the licensing authority of a material change of circumstances (level 3 on the standard scale), • make or cause or permit to be made any material change in the premises (level 3 on the standard scale), • fail to deliver the licence to the licensing authority (level 1 on the standard scale). Making a false statement It is an offence to make a false statement in an application (level 4 on the standard scale). Level on the scale Maximum fine 1 £ 200 2 £ 500 3 £1,000 4 £2,500 5 £5,000 Page 67 of 193
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North Lanarkshire Council Short Term Let Application Form Civic Government (Scotland) Act 1982 (Short Term Let Licensing) Order 2022 Page 69 of 193
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Part 1 Introduction A licence for a Short-Term Let Licence (STL) is required for accommodation where the use of residential accommodation provided by a host in the course of business to a guest, or guests. A guest is treated as not using the accommodation as their only or principal home. Before lodging your application for a licence for a Short-Term Let please ensure that you have read the following guidance notes. 1.1 The application form cannot be accepted unless all sections are fully and accurately completed. 1.2 Where the applicant is an individual, the whole of question 3.1 must be completed. 1.3 Where the applicant is a corporate entity e.g. company, partnership, trust, or charity, the whole of question 3.2 must be completed. 1.4 The fee for a licence is £300 for up to 4 guests and £4501 for 5 or more guests. Licences are valid for a period of three years. 1.5 In certain circumstances, applicants may be required to submit floor plans of their premises to the local authority. This may be requested where certain fire safety aspects of the licensing conditions are not met, or where there are concerns regarding overcrowding or disabled access. Please be mindful that this list is not exhaustive. 1.6 Where alterations are required to the layout of the premises, it may be necessary to apply for a Building Warrant. For further information on building warrants, telephone Building Standards on 01236 812440 or e-mail buildingstandards@northlan.gov.uk 1.7 Planning Permission will only be required where a short term let is situated in a Short Term Let Control Area. North Lanarkshire Council Planning Department do not intend to designate any Short Term Let Control Areas at this time. For further information on planning applications and certificates of lawful use, telephone Planning on 01236 632500 or e-mail ESPlanning@northlan.gov.uk 1.8 The public notice ‘Notice for Displaying at Living Accommodation’ (contained in the Application Pack) requires to be completed and displayed at or near the premises where it can be conveniently read by the public from the public footpath, for a period of 21 days, starting on the day the application is lodged. 1.9 The ‘Certificate of Compliance’ (contained in the Application Pack) requires to be completed and returned to the Built Environment Section (address noted below) after the 21-day notice period is over. 1.10 Whilst processing the application, the following will be consulted: • North Lanarkshire Council Building Standards • North Lanarkshire Council Planning Department • Police Scotland • Scottish Fire & Rescue Service 1.11 A copy of the most recent gas safety certificate should be provided with the application. 1.12 A copy of the most recent certification in respect of oil, solid fuel or LPG installations or appliances should be provided with this application. 1.13 A copy of the most recent electrical safety certificates covering the installed system should be provided with the application. 1.14 A copy of the most recent PAT (Portable Appliance Test) report covering the inspection of portable electrical appliances should be provided with the application. Page 70 of 193
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N.B Please see STL Guidance Notes (contained in the Application Pack) for full details of the Application Process. 1 Please note that licence fees may be subject to change. 1.15 Proof of buildings insurance should be provided with the application. 1.16 Proof of public liability insurance should be provided with the application. 1.17 To lodge a licence application, the completed form, fee, and accompanying plans (where applicable) and documents listed under ‘Important Notes’ at the end of this application form should be sent to: Private Sector Enforcement Manager Built Environment, Civic Centre, Ground Floor Windmillhill Street, Motherwell ML1 1AB Page 71 of 193
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Part 2. Short Term Let Application Form. FEE’s For office use only. Up to Four (4) Guests ☐ £300 Date Rec’d Click or tap to enter a date. Five or more(5) Guests ☐ £450 Rec’d by Receipt No. Date Fee paid Click or tap to enter a date. 2.1 Application type. First Application ☐ New application (Where property has been used as licensed STL previously) ☐ Renewal ☐ First application* (existing operator) ☐ Change to existing licence ☐ *This option is only available for applications made on or before 1 April 2023 by existing operators (i.e., those operating the premises in which a licence is being applied for as a short-term let on or before 1 October 2023). NOTE: If you are applying to renew or alter your licence, please complete the following fields. If submitting a new application where the property has never been used as a licensed short-term let, please proceed to question 2: If you are submitting a new application where the property has been used as a licensed short-term let in the past, please complete the following fields. Previous existing Licence No.* Expiry date. 2.2 Licence type. Secondary Letting (The letting of property where you do not normally live, for example a second home that is let to guests) ☐ Home Letting (Using all or part of your own home for short-term letting purposes while you are absent from your home, for example whilst you are away on holiday) ☐ Home Sharing (Using all or part of your own home for short-term letting purposes while you are living there) ☐ Home Letting and Home Sharing (Using your property for short-term letting purposes while you are living there and when you are absent) ☐ 2.3 Permission from Owners If you do not own the property which is the subject of this licence application, do you have proof of permission from the owner(s): Yes No ☐ ☐ If you are applying for a change to your existing licence, please indicate the reason for your request in the box below: (e.g. a change of agent/day to day manager, changes to the property – e.g. an extension or any works that may require a building warranty to increase maximum occupancy). Page 72 of 193
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Part 3. Applicant Details. Are you applying as an individual or corporate entity? Individual ☐ Corporate Entity (Please go to Section 3.2.) ☐ 3.1. Individual To be completed if an individual. (Include ALL joint owners applying for the licence. [Continue on a separate sheet if necessary]. Principal Applicant Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Joint Applicant 1. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc)) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Joint Applicant 2. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Joint Applicant 3. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Page 73 of 193
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3.2. Corporate Entity (e.g. company, partnership, trust or charity) To be completed if NOT an individual. (e.g. Company, Partnership, Trust or Charity). Principal or registered office and contact details of the body and state the full name, private address and dates of birth of each of the directors, partners or other persons concerned in the management of the body. Principal person. Full Name of company or body. Address of principle or registered office (Incl. Postcode) Email Address Tel. No. Directors’/Partner/Trustee information 1. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Directors’/Partner/Trustee information 2. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Directors’/Partner/Trustee information 3. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Page 74 of 193
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3.3. Agents and Day to Day Managers. Applicants MUST declare any agent or day to day manager. The agents/day to day managers name will be recorded on the Short Term Let Licence and public register. Will an agent/day to day manager act for the applicant in relation to the short term let accommodation? Yes ☐ No ☐ If Yes complete Section 3.4 if an individual or 3.5 if a corporate entity below. 3.4 Agent/Day to Day Manager Details. Where the agent/day to day manager is an individual state the name, address, date of birth and contact details of the agent/individual. Principal Applicant Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. 3.5 Agent details for a Corporate Entity (e.g. company, partnership, trustee, charity etc). To be completed where Agent is NOT an individual. (e.g. a Company, Partnership, Trustee, Charity etc). Where the agent is not an individual person state the full name, address of principle or registered office and contact details of the body and the full name, private address and dates of birth of each of the directors, partners, trustees or other persons concerned in the management of the body. Use a separate sheet if required. Principal Applicant Full Name of company or body. Address of principle or registered office (Incl. Postcode) Email Address Office Tel. No. Directors’ /Partner/Trustee information 1. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Page 75 of 193
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Directors’/Partner/Trustee information 2. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Directors’/Partner/Trustee information 3. Full Name (Incl. Title Mr/ Mrs/Ms/ Mx. etc) Date of Birth (dd/mm/yyyy) Place of Birth Home Address (Incl. Postcode) Email Address Home Tel. No. Mobile No. Page 76 of 193
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Part 4. Premises information. To be completed by ALL categories of applicant. a) Address of premises to be used as a Short Term Let. (Incl. Postcode). b) Unique property reference number (If known). c) Description of accommodation. Flat ☐ Semi-Detached House ☐ Detached House ☐ Terraced House ☐ Unconventional Accommodation ☐ (e.g. Pod, Yurt, Static Caravan etc) d) No. of Bedrooms. (If home sharing) e) No. of Rooms/ Units. (If unconventional accommodation) f) No. of persons occupying the property at the date of this application? g) Proposed maximum No of occupants for which licence is being sought for the premises? h) EPC rating (If applicable). NOTE Not required for home sharing or unconventional accommodation. You may be required to submit a floor plan in order to verify the maximum number of occupants of your property (please see Section 1, note 1.5 of the Introduction) i) From the following options, please select the description that best describes your short term let. Self-catering. ☐ B & B. ☐ Guest House. ☐ Home Letting. ☐ Other form of home sharing ☐ (please describe below) Page 77 of 193
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Part 5. Criminal Convictions Information. To be completed by ALL categories of applicant. PLEASE ANSWER YES OR NO. Has anybody named on the application been convicted of any offence? Please include details of any unspent convictions in the table below: (An unspent conviction is a criminal conviction that is still within the constraints of the rehabilitation period. In other words, not enough time has elapsed for the offence to be considered spent). Yes. ☐ No. ☐ Name Date Court Offence Sentence PLEASE ANSWER YES OR NO. Have you ever applied for and been refused a Licence for the same or similar type of activity? Yes. ☐ If Yes when were you refused? Click or tap to enter a date. For which type of activity were you refused? No. ☐ Which authority refused you a licence/ activity? Page 78 of 193
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Part 6. Application Checklist. To be completed by ALL categories of applicant. NOTE. This checklist must be FULLY completed in order to submit your application. I have enclosed the following. (Please tick to confirm or enter N/A if not applicable). Correct application fee. ☐ Completed Fire Risk Assessment. (Please see separate SFRS Risk Assessment Information) ☐ Annual gas safety certificate (for premises with a gas supply). ☐ Enter date Valid to: Click or tap to enter a date. Electrical Installation Condition Report. ☐ Enter date Valid to: Click or tap to enter a date. Portable Appliance Testing Reports. ☐ Enter date Valid to: Click or tap to enter a date. Legionella Risk Assessment. (Please see separate Legionella Self-Assessment information) ☐ Planning permission. (Only for premises within a short term let control area or were requested by the licensing authority) ☐ Planning application reference number. Floor plan. (See part 1, note 5 of the introductory notes) ☐ EPC Certificate. (for premises which are dwellinghouses). ☐ Enter date Valid to: Click or tap to enter a date. Buildings Insurance. ☐ Enter date Valid to: Click or tap to enter a date. Public Liability Insurance. ☐ Enter date Valid to: Click or tap to enter a date. Proof of consent from owner (if applicable). ☐ Evidence of operation as a short-term let on or before 1 October 2023. (for existing hosts applying during the transitional period. Evidence may include a previous booking confirmation). ☐ Page 79 of 193
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I have: Identified the owners and those involved in the day-to-day management of my premises. ☐ Ensured that to the best of my knowledge all those named on my application are fit and proper persons. ☐ Prepared information that will be available to guests at the premises including: ☐ (a) a certified copy of the licence and the licence conditions. (b) fire, gas and electrical safety information. (c) details of how to summon the assistance of emergency services. (d) a copy of the gas safety report. (e) a copy of the Electrical Installation Condition Report. (f) a copy of the Portable Appliance Testing Report. Applied for planning permission (if required). ☐ Proof that furniture and furnishings/the furniture and furnishings guests have access to comply with fire safety regulations ☐ Read and understood the mandatory conditions that will apply to my licence ☐ Read and understood the additional conditions that will apply to my licence ☐ My premises: (Please tick to confirm) Meets current statutory guidance for provision of fire, smoke and heat detection ☐ Meets statutory guidance for carbon monoxide alarms ☐ Meets the required regulations for private water supplies (for premises with a private water supply i.e not provided by Scottish Water) ☐ Meets obligations with regard to the Tolerable and Repairing standard (applicable to dwellinghouses) ☐ Page 80 of 193
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Part 7. Declaration. To be completed by ALL categories of applicant. NORTH LANARKSHIRE COUNCIL, AS LICENSING AUTHORITY, WILL USE INFORMATION IT HOLDS ABOUT YOU TO DETERMINE WHETHER YOU ARE A FIT AND PROPER PERSON TO OPERATE A SHORT-TERM LET. IN ADDITION, LICENSING AUTHORITIES TO WHICH YOU APPLY MAY SHARE RELEVANT INFORMATION THEY HOLD ABOUT YOU WITH ONE ANOTHER TO HELP THOSE AUTHORITIES DETERMINE WHETHER YOU ARE A FIT AND PROPER PERSON TO ACT AS A SHORT TERM LET OPERATOR, OR TO ACT FOR A SHORT TERM LET OPERATOR. THEY MAY ALSO SHARE AND SEEK RELEVANT INFORMATION WITH POLICE SCOTLAND AND, IF APPROPRIATE, OTHER RELEVANT AUTHORITIES. I DECLARE THAT I HAVE READ AND UNDERSTOOD THE MANDATORY CONDITIONS THAT APPLY TO SHORT-TERM LET LICENCES AND NORTH LANARKSHIRE COUNCIL STANDARD CONDITIONS. ☐ I WILL COMPLY WITH THE REQUIREMENT TO DISPLAY A SITE NOTICE IN ACCORDANCE WITH PARAGRAPH 2 OF SCHEDULE 1 OF THE CIVIC GOVERNMENT (SCOTLAND) ACT 1982 ☐ I DECLARE THAT THE INFORMATION GIVEN IN THIS APPLICATION IS CORRECT TO THE BEST OF MY KNOWLEDGE ☐ SIGNATURES ANYONE WHO KNOWINGLY PROVIDES FALSE OR MISLEADING INFORMATION IN AN APPLICATION MAY BE GUILTY OF AN OFFENCE, WHICH IS SUBJECT TO A LEVEL 4 FINE ON THE STANDARD SCALE. NOTE: (Where a Co-partnership, each partner should sign. If a corporate entity, please also state position of signatory. Print Name and position (If applicable) Signature Date THE INFORMATION SUPPLIED WILL BE USED FOR THE PURPOSES OF THIS APPLICATION AND IN ACCORDANCE WITH THE GENERAL DATA PROTECTION REGULATIONS 2018 Page 81 of 193
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North Lanarkshire Council The Civic Government (Scotland) Act 1982(Licencing of Short term lets) Order 2022 Application for Short Term Let Licence. NOTICE FOR DISPLAY AT LIVING ACCOMMODATION Type of Licence. New Application. ☐ Renewal ☐ Home Sharing. ☐ Home Letting ☐ Home Sharing & Letting ☐ Secondary Letting ☐ NOTICE IS HEREBY GIVEN that application has been made on ___________________________to North Lanarkshire Council for a Short Term Let Licence in respect of living accommodation at:__________________________________________________________ BY: (a) Applicant. Any objections and representations in relation to the application may be made to North Lanarkshire Council per the Private Sector Enforcement Manager, Built Environment, Civic Centre, 2nd Floor, Windmillhill Street, Motherwell, ML1 1AB, generally within 21 days of the above- mentioned date. Objections and representations should be made in accordance with the below provisions, namely: Name. Address. (b) Day to day Manager/ Agent details. Name. Address. Page 82 of 193
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North Lanarkshire Council The Civic Government (Scotland) Act 1982(Licencing of Short term lets) Order 2022 Application for Short Term Let Licence. Certificate of Compliance. I _______________________________________________________________________ being the applicant for a Licence for a short Term Let, herby certify that a Notice has been displayed on or near to the living accommodation at: ________________________________________________________________________ From ______________________________________ To: ________________________________________ Containing such information as is required by Paragraph 2(2) of the Schedule 1 to the above Act and displayed so that it can be conveniently read by the public. *Where the said Notice was removed, obscured or defaced during this period, I took reasonable steps for its protection and replacement as follows: (give details and circumstances) Print Name Signature Date Page 83 of 193
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North Lanarkshire Council Report Housing committee Does this report require to be approved? ☐ Yes ☒ No Ref Date 16/11/22 New Supply Community Benefits - Summary Report From Pamela Humphries, Head of Planning & Regeneration E-mail mallaghant@northlan.gov.uk Telephone Tony Mallaghan, Tel 07970 016251 1. Background 1.1 Community benefits are tangible, positive outcomes linked to public sector contracts, which help to improve the lives of local people in North Lanarkshire and help local communities to thrive. Community benefits help to boost employment and skills opportunities for local people and support local community initiatives, in addition to the general economic benefit the investment brings to each area such as increased opportunities for local businesses. 1.2 The Council is committed to maximising the delivery of community benefits. The procurements undertaken for any New Supply project includes a community benefit requirement which is assessed as part of the quality evaluation. 1.3 The Council predominantly use procurement Frameworks to deliver its new build programme where a points based approach is used and the supplier must deliver a stated number of community benefits points depending on the contract value. A list of Executive Summary The purpose of this report is to update the Committee regarding Community Benefits related to the new build housing programme. Recommendations It is recommended that the Committee: 1) Consider the contents of the report regarding the current position on the delivery of community benefits 2) Note that an update on community benefits from the New Supply Programme will be submitted annually The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth AGENDA ITEM 6 Page 85 of 193
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community benefit outcomes and associated points are provided which are specifically focused on recruitment and employment, however purchasers may agree on alternatives with the supplier depending on the needs of the local area. 1.4 As part of the Council’s Plan for North Lanarkshire to support young people towards more positive outcomes, collaboration between New Supply; Education and Families; Supported Enterprise and Employability teams helps facilitate work experience and opportunities to positive destinations within construction. There is a particular emphasis on supporting key priority groups, as part of the delivery of the Plan for North Lanarkshire and the Workforce for the Future Strategy to help tackle inequalities. 2. Report 2.1 Current Position 2.1.1 Community benefits for each new build development are pledged by contractors during the tender process and are monitored through the contract. The New Supply Team work closely with the contractors and provide relevant support and assistance to help maximise the benefits for local people and meet the council’s requirements. 2.1.2 A Community Benefits Development group has been established which meet every two months with the various stakeholders such as Education, Early Careers, Virtual Schools, Developing the Young Workforce, Supported Enterprise, the Apprenticeship team, and Employability services. The Group helps to co-ordinate and maximise opportunities created through the new supply programme, establishing clear lines of communication and developing plans to deliver and achieve the targets set out in each tender and to deliver the council’s objectives. 2.2 Community Benefits Menu 2.2.1 Each of the elements below describe the Community Benefits included in the council’s tender process. 2.2.2 Employment - Targeted Recruitment and Employment The new supply team collaborate at the early stages of each project with ALEO “Routes to Work” to maximise the partnership with the contractors to match the right job for the right person within North Lanarkshire and to tackle any training requirements to support people into employment. Understanding the contractors’ proposed community benefits activities and outcomes from future projects, helps with forward planning, and the ability to collaborate with internal and external stakeholders prior to the commencement of the project to achieve maximum benefit. All relevant stakeholders meet at the Community Benefits Working Group chaired by New Supply to collaborate and discuss future plans and requirements. As outlined in Appendix 1, since 2019, there have been 31 local people employed through Community Benefits from key priority groups such as people who have been unemployed for more than 6 months and/or have no relevant experience and/or women returning to the labour market. A further 9 employment opportunities for people from priority groups are projected. The posts provided must be a minimum of 30 hours per week and last a minimum of 26 weeks. In addition, 23 new start apprentices have been employed with 6 more forecast. The apprenticeship must be filled either by a person aged 16 years of age or older. There have also been 14 workplace placements which lasts a minimum of 2 weeks for an unemployed person 16 years or over and include Page 86 of 193
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vocational tasters, to enable the person to gain a meaningful insight into the construction sector and/or business operations evident with the supply chain. Collaboration at the early stages of each development has proven to help secure a meaningful work placement or permanent position. Good examples of success and collaborative working include the Department of Work and Pensions “Kickstart Scheme” which provides an opportunity to offer young people facing multiple barriers to employment to not only gain valuable experience of the industry but also potentially access long term employment and careers. As part of the Kickstart Scheme, which provides full time employment for 6 months as well as a supported training programme, two young people successfully progressed to permanent employment in January 2022, after completing the work placements programme on our site in Wishaw. 2.2.3 Education • Scottish Apprenticeship Week 2022 Collaboration with Education and Families is delivering prescriptive education events the schools and young people need through careers events and work experience. During the pandemic North Lanarkshire Council asked the contractors to come up with learning material that could be delivered virtually. In early 2022, with restrictions not fully eased to allow face to face sessions, North Lanarkshire Council’s community benefits team worked together with Developing the Young Workforce, Skills Development Scotland and contractors to plan and deliver construction related education sessions as part of the council’s Scottish Apprenticeship Week “Introducing the Apprenticeship Family” and “Careers in Construction” event. The event which ran over the week of 7th March was a huge success and included 23 interactive workshops with the aim of increasing awareness of the apprenticeship family, the range of career opportunities available in the construction industry, what these careers involve, pathways into them and support and advice available as to how young people can find and get the job that is right for them in the industry. 23 interactive sessions were delivered to 29 North Lanarkshire schools and 2,400 young people accessed the workshop sessions. An average of 105 pupils per session, approximately 600 young people per day. To mark International Women’s Day on 8th March a number of sessions were set up that day and throughout the week highlighting Women in Construction. The events targeted all pupils P7 to S6 but many of the sessions were also open to younger pupils at primary schools. The sessions were delivered by employees and apprentices from contractors working in North Lanarkshire as part of their community benefits. Examples of how these sessions could be used in future might include incorporating them into school career events, to help young people understand what apprenticeships are and the benefits of them, to raise awareness of the range of jobs in construction and to reduce barriers to help make parents aware of the opportunities that are available to the young people. It is intended to continue to run virtual sessions in conjunction with face to face sessions as a hybrid approach to gauge how successful they are with a view to reach more Page 87 of 193
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young people. Virtual sessions can also be added to a library of information for each school to tap into at various times of the school curriculum. • Construction Skills Certification Scheme (CSCS) Training for Additional Supported Needs (ASN) Sector Another initiative supported by one of our new supply contractors involved delivery of bespoke training to help reduce barriers for our young people with additional support needs, in preparation to enter the world of work. Five pupils from Buchanan High school participated in the CSCS training. Each of these pupils has an additional support need from Global Learning Delay to Autism and at least two pupils have severe difficulty reading and writing. The pupils required the course to be well structured, clear, practical where possible, and support to be given in reading and writing. The appointed contractor has been instrumental in providing workshops to suit the needs of the young people. With the use of videos, activities and discussion the contractor created a solid foundation of understanding in Health and Safety in Construction. All five pupils have taken and passed their SQA Health and Safety in a Construction Environment exam, as has their teacher. All are scheduled to take their CSCS Exam in autumn 2022 and will also attend a site visit to one of NLC’s larger construction sites. As part of the plan for North Lanarkshire, helping to break down these barriers to achieve these accreditations will help our disadvantaged young people into a construction related career. 2.2.4 Enterprise – Supply Chain Development As part of Supply chain development, the Council encourage appointed contractors to get involved in “Meet the Real Buyer” events. These events are useful in terms of engaging with small businesses within the area to help them develop and grow their business. An example of this is that as part of their Community Benefits, a new supply contractor delivered a Meet the Buyer session to approximately 30 construction businesses in partnership with Business Gateway Lanarkshire. This session covered how to join their supply chain and the process for securing work from them. They discussed future projects and upcoming activities that the local supply chain could be part of. 2.2.5 Community Engagement - Financial support There has been engagement with the Communities Team to develop new approaches to implement community benefits including Participatory Budgeting (PB). This allows officers who understand local communities at grass roots level to create a process for giving community groups an input to how and where funds should be spent in a fair and transparent process. It is intended that PB will be the preferred method to implement community benefits financial support and will be part of a future Community Benefits Wish List process. Some examples of financial benefits provided to communities are outlined below: • £250 donation to Chryston Gala Day 2022. • £300 donated to the Health Improvement Team to help disadvantaged young people during the holiday period. • £3,000 donation to Sunnyside Café within Volvo Construction at Newhouse Industrial Estate. Page 88 of 193
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Sunnyside Café is a training cafe for young people with additional support needs within Volvo Construction at Newhouse Industrial Estate. This is an initiative created for young people from local ASN schools to attend for periods of real work experience, they will also have trainees who were due to leave school in June on paid placement while working in partnership with the college to ensure they will achieve qualifications/training for their CV and get them ready for work. The remainder of the budget outlined in Appendix 1 has still to be apportioned through the Participatory Budgeting process. 2.2.5 Non – Financial Support Community Benefits team receive requests or ‘wishes’ from local community groups. There have been a number of non-financial support activities carried out with an approximate value £9,000 where the New Supply Team co-ordinate and collaborate with other internal and external agencies to achieve goals / activities and outcomes. Contractors who are part of the New Supply programme have donated various items such as training time, and excess construction related materials that may otherwise have been re-cycled or sent to landfill. There are multiple benefits with this process including environmental and financial savings such as: • 50 internal doors which were excess material with an estimated value of £2,920.00 donated to Getting Better Together in Shotts. • £80 worth of materials such as plywood, offcuts of skirting board, door facings, and fixings were donated to Viewpark Conservation group, which were used to make benches and signposts for the nature walks in the area. • £2,400 worth of excess brick donated to the restorative justice team to use of community projects – such as making brick planters for two allotments and a brick planter to support a tree at a 5 day centre in Wishaw. • £1,778.50 CSCS training (Signs & Symbols) and Construction Health & Safety Awareness’ training for Buchanan High school – as per 2.3.2. • £150.00 worth of excess timber donated to the Men’s Shed, Coatbridge. 3. Measures of success 3.1 Contract performance and community benefits are proactively managed against a number of Key Performance Indicators that are managed by the New Supply Team. Appendix 1 shows an extract from the New Supply Community Benefits Tracker showing measures of success from 2019 to date and the forecast for the coming months. 4. Supporting documentation Appendix 1 Measures of success from 2019 to date. Pamela Humphries Head of Planning & Regeneration Page 89 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 90 of 193
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Page 91 of 193
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Appendix 1 - Measures of Success Extract from New Supply Community Benefits Tracker Completed Community Benefits 2019 – 2022 * 1 year constitutes no of completions from 1st Sept – 1st Sept of the following year. Targeted Recruitment and Employment 2019 2020 2021 2022 Completed 2019-2022 Forecast 2022/2023 TRE01 New Entrants – Key priority Groups 4 4 10 4 22 6 TRE02 New Entrants – no relevant experience 1 2 6 9 3 TRE03 New Entrant - Graduate 1 TRE04 New Start - Apprentice 1 7 15 23 6 Targeted Skills & Training 2019 2020 2021 2022 Completed 2019-2022 Forecast 2022/2023 TST01 Work Experience Placement (16 + years of age) 5 0 0 9 14 50 TST02 Work Experience Placement (14 - 16 +years of age) 0 1 1 2 TST03 Work Experience Placement - Graduate TST04 Careers Event 2 1 1 25 29 31 TST05 Site Visit 3 9 12 17 TST06 School Mentoring or Enterprise Programme 1 0 6 7 0 Supply Chain Development 2019 2020 2021 2022 Completed 2019-2022 Forecast 2022/2023 SCD01 Supply Chain Briefing with SME’s 1 3 4 2 SCD02 Business Mentoring for a SME’s Community Engagement 2019 2020 2021 2022 Completed 2019-2022 Forecast 2022/2023 CCE01 Financial Support for a Community Project 3 3 3 7 16 0 CCE02 Non-Financial Support for a Community Project 1 7 7 15 1 Page 92 of 193
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Extract from New Supply Community Benefits Tracker 2019 - 2022 Targeted Recruitment and Employment Pledged Completed Forecast 2022/2023 TRE01 New Entrants – Key priority Groups 19 22 6 TRE02 New Entrants – no relevant experience 4 9 3 TRE03 New Entrant - Graduate 0 0 1 TRE04 New Start - Apprentice 8 23 6 Targeted Skills & Training Pledged Completed Forecast TST01 Work Experience Placement (16 + years of age) 46 14 50 TST02 Work Experience Placement (14 - 16 +years of age) 3 1 2 TST03 Work Experience Placement - Graduate 0 0 0 TST04 Careers Event 37 29 31 TST05 Site Visit 16 12 17 TST06 School Mentoring or Enterprise Programme 1 7 0 Supply Chain Development Pledged Completed Forecast SCD01 Supply Chain Briefing with SME’s 3 4 2 SCD02 Business Mentoring for a SME’s 0 0 0 Community Engagement Pledged Completed Forecast CCE01 Financial Support for a Community Project 14 16 0 CCE02 Non-Financial Support for a Community Project 5 15 1 Pledged = Total number of community benefits pledged from new build contracts awarded from 2019 to date. Completed = Total of completed community benefits from 12 developments from 2019 to date. Note total number of completions are higher than post contract award. Some pledges still to be achieved are included in the forecast figure. Forecast = Total includes the community benefits still to be delivered from 5 developments in progress or just started. A further 44 projects, total of 1880 units still to commence post September 2022 – 2027 which will become part of the forecasted figures as they complete the tender process. These figures will continually change as developments complete and new developments begin. Page 93 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/TM Date 16/11/22 New Supply Programme - Update on Progress Programme of Work – P013 (1) From Pamela Humphries, Head of Planning and Regeneration Email mallaghant@northlan.gov.uk Email mallaghant@northlan.gov.uk 1. Background 1.1 In May 2018 the Committee approved proposals to increase the new supply programme to deliver 5,000 new homes by 2035. This was specifically linked to the proposals for the potential re-provisioning of all tower blocks (4,600 flats) over 20 years. It was estimated that around 2,300 new homes (50%) would be built on the sites of the tower blocks following their demolition. The target also included an assumption that the council would purchase around 550 homes through an expanded empty homes purchase scheme, which had proved popular and had enabled the council to buy back a number of former council houses. Executive Summary The purpose of this report is to update Committee regarding progress with the delivery of the new supply programme which aims to deliver 5,000 new homes by 2035. The report provides an update on progress against the annual targets previously set; outline some of the current challenges the programme faces, and seek approval for revised targets. Recommendations It is recommended that the Committee: 1) Consider the contents of the report regarding progress and challenges with the delivery of the new supply programme. 2) Approve the proposed targets for delivery of the programme set out in 2.4.1. 3) Note that an update on overall progress with the delivery of the new supply programme against targets will be reported to committee annually. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth AGENDA ITEM 7 Page 95 of 193
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1.2 In September 2019 the Committee approved proposals to pilot a proposed ‘Development Pathfinder’ scheme to enable the council to acquire completed housing units from developers ‘off the shelf’. The council already acquired units ‘off the shelf’ from developers in the North area where the Affordable Housing Policy applies, but the committee agreed to extend this approach to the Motherwell, Bellshill, Coatbridge and Airdrie areas. It was noted that this could potentially act as a catalyst to enable private development sites to be brought forward and therefore stimulate investment in these areas and increase new housing provision. In November 2020 the Committee approved proposals to extend the ‘Development Pathfinder’ scheme to cover all of North Lanarkshire. 1.3 In November 2021 the Committee received an update on progress with delivery of the programme and approved targets for the delivery of the programme up to 2035. It was also agreed that an annual update would be provided to committee regarding the delivery of the programme. This report therefore provides an update on progress to date against the previous targets; outlines the challenges faced and the proposed mitigation measures to address these issues and sets out proposed targets for the coming years. 1.4 The November 2021 committee also approved an expansion of the Open Market Purchase Scheme to help facilitate common works by giving the option to the last remaining owner in a block of flats to sell their flat to the council and remain in their home as a council tenant. 2. Report 2.1 Progress to date 2.1.1 New Build As at 31st October 2022, 970 new build homes have been completed with 421 on site with 170 new build homes in total expected to complete in 2022/23. Sites have been identified and are at various stages of progression for a further 1,346 homes across North Lanarkshire, including a number of town centre sites and Phase 1 tower re- provisioning. The vast majority of the sites are council owned and are brownfield, which, while bringing their own challenges, also help to support wider place making and regeneration objectives. The new build homes have also provided much needed accommodation for households affected by disability, including purpose built wheelchair accommodation. The council’s specification for its new build homes also includes a higher energy efficiency/sustainability standard than is required by current Building Regulations. Additionally, new build homes are also digitally enabled providing prewired connections for broadband and Cat 5 Digital cabling to all rooms. 2.1.2 Open Market Purchase Scheme As at 31st October 2022, 589 homes had been purchased through the Empty Homes and Open Market Purchase Scheme to date. The Open Market Purchase Scheme (OMPS) has proven to be very popular and is providing much needed accommodation to meet identified local need, while also enabling common works to be progressed where the purchase of flats is providing full or majority ownership of blocks of flats. The OMPS also represents good value for money with an average purchase and repair cost in 2022/23 of £83,698. The number of applications for the Page 96 of 193
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programme has been lower so far this year compared to other years and more in line with 2021/22. Taking account of this, it is therefore projected that this year approximately 50 homes will be purchased. This is directly linked to the heated housing market at present where homeowners in this sector of the market are able to sell their homes at a value higher than the home report valuation quickly in the open market and has badly affected the number of applicants for the programme. The market conditions have now been taken into account for the amended projections. The projections also account for the recent expansions of the scheme to allow in some cases the final owners in blocks to sell their homes to the Council and remain as tenants and for the purchase of homes from private landlords to ensure tenants do not become homeless. There has been an increase in enquiries from Landlords and it is expected that the numbers will grow over time for this category. 2.1.3 Off the shelf purchases (Affordable Housing Policy sites) There have been 78 homes purchased from private developers in the North as part of their Affordable Housing Policy planning obligation, with a further 100 acquisitions in the pipeline. In addition, 39 homes have been purchased from developers in Ravenscraig. These acquisitions continue to represent good value for money and are a good option to help deliver much needed housing in an area of high demand. 2.1.4 Development Pathfinder Work is now underway at the former John Orrs Building in Airdrie following completion of demolition works and the acquisition of 20 flats on completion is scheduled for 2023/24. In addition, the committee has approved the acquisition of 39 homes at the former DWP Building at South Circular Road in Coatbridge and 24 homes at Lorne Place, Coatbridge. Both projects have planning permission and work is due to commence following completion of missives. There have been further enquiries from developers for potential projects throughout North Lanarkshire, with every site being assessed on its merits. 2.2 Current challenges impacting on programme 2.2.1 Availability/suitability of sites The availability of suitable sites, in areas where there is a demonstrable need for housing remains a challenge. The majority of council owned sites are brownfield sites, the development of which help support sustainable communities and meet localised need, but can be problematic, and in some cases unviable, to develop. Approximately half of the current programme assumptions were based on the re- development of sites following demolition of the tower blocks. It was always acknowledged that these assumptions would be subject to on-going review to reflect the timescales for the availability of the sites, and the proposed mix/ capacity of each site. It is likely that the density of replacement housing will be lower than 50% and therefore alternative sites will require to be identified to support delivery of the programme. The council’s wider Ambition programme, including asset rationalisation and town/community hub programmes will also result in sites (including school sites) being released that may be suitable for the new supply programme. Furthermore, any sites being declared surplus by the council are assessed for their viability and there are a number of town centre sites that have been identified that will be progressed as part of the new supply programme. Page 97 of 193
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2.2.2 Scottish Water Drainage Policy As previously reported to committee in November 2020 and November 2021 Scottish Water had been strictly enforcing their policy whereby developers must retain as much surface water as possible within the site or connect directly to a surface water sewer or directly to a water course. Scottish Water have recently amended how they apply their policy to allow more flexibility in assessing applications to connect to a combined sewer if certain criteria showing betterment can be met by the applicant. At present there are now three sites being affected by this policy with an estimated additional cost to the Council of £1.4million to be able to connect to Scottish Water systems. 2.2.3 Procurement/ contractor capacity Due to the level of development activity in recent years by councils and housing associations, as well as a healthy private sector market there are ongoing issues with contractor capacity and availability of labour. This combined with impacts of Brexit and the ongoing war in Ukraine upon supply chains has also impacted on tender prices. The council has used every available procurement method from direct award and mini competition through frameworks to open tender procedures and all approaches have shown a significant increase in tender bid prices. The procurement process itself is also lengthy and resource intensive. The council will continue to utilise available frameworks including the Scotland Excel new build framework and the Scottish Procurement Alliance (SPA) new build frameworks. 2.3 Costs 2.3.1 As outlined above the cost of the new build homes has increased significantly in recent years. The tender cost increases over the past 12 months are on average 16% to 20% and this trend of tender price increases will extend into 2023. Comparing similar sized projects the tender costs over past 18 months are on average 25% higher. This is due to a number of factors including ground remediation/ infrastructure costs; contractor capacity/ shortage of skilled labour, scarcity of materials due to various reasons such as the ongoing war in Ukraine and increased standards/specifications. This has been further exacerbated by high inflation this year of circa 10%. The Building Costs Information Service (BCIS) has reported that the housing construction price index is showing a cost increase of 15.3% over the year from Quarter 2 in 2021. They are also indicating a further increase of 3.3% over quarter 3 of 2022/23. At the end of 2021 BCIS reported that annual growth in material costs was at a 40-year high and since then the pressures have become even more acute 2.3.2 There are changes to legislation that have had an impact on the cost of the new build homes, including: • From 2024 new build homes cannot be powered by gas and will require an alternative heating system. Alternative options, including a fabric first thermal efficiency approach and the use of air source heat pumps combined with PV Cells and battery storage are currently being piloted and evaluated to assess the most cost effective options for the future, both in terms of installation; maintenance and, crucially running costs. There will inevitably be an increased construction cost per unit which is currently costed at £20,000 and is rising with inflation. • Legislation has been in place as of March 2021 to make it a requirement that all new build social rented homes will require to have a sprinkler fitted, at an average cost of £4,000 per property which is also rising with inflation. Page 98 of 193
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2.3.3 The increased costs associated with the delivery of the new build programme will continue to be factored in to the HRA 30 Year Business Plan, along with the most up to date assumptions around availability of Scottish Government grant including the recently increased level of grant funding for councils. It is also hoped tender costs will stabilise and plateau in the medium to longer term. In the meantime progressing acquisitions through off the shelf purchases and the open market purchase scheme will continue to offer good value options to augment the traditional new build programme and deliver new supply to meet housing need. 2.4 Programme Targets 2.4.1 The new supply programme is continually monitored, reviewed and updated but as it currently comprises over 30 approved sites, with further sites still to be identified, it is difficult to establish accurate long term annual targets. In addition, the ‘off the shelf’ acquisitions are difficult to forecast as they are reliant on the private developers’ delivery programmes which are out-with the control of the council. The current estimated targets for the current year and each of the next three years is set out in Table 1 below, as well as the balance to be delivered by 2035. Table 1 New Supply Projections as at November 2022 2.5 The targets for 2021/22 were not met mainly due to the following reasons that are carrying forward into this year: • Difficulties with supply of materials and labour which impacted on completion dates resulting in handovers being delayed. This has been partially due to COVID having an impact on labour availability at the early part of the year but mainly due to the reasons detailed in 2.3.1 which has also increased costs. • The heated housing market affecting the purchase of homes through the OMPS as detailed in 2.1.2 and a slower than projected uptake to date of the option for the last owner in a block to sell their home to the council and remain as a tenant. New Build New Build Council Off the Shelf 2021/22 137 0 75 212 305 2022/23 170 0 50 220 413 2023/24 226 50 75 351 631 2024/25 261 87 100 448 407 2025/26 299 34 100 433 333 2026 - 2035 989 315 750 2054 2335 Total 2082 486 1150 3718 4424 Completions (to March 2021) Grand total 2762 603 1635 5000 Year OMPS (incl. targeted extension) Total 680 117 485 1282 Approved Targets November 2021 Page 99 of 193
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2.6 The projections this year have been adjusted in relation to the revised delivery timescales provided by contractors reflecting the availability of labour and materials to deliver each of the current projects. The variance between the projected completions in 2022/23 and the actual anticipated completions is mainly due to the following reasons: • Difficulties with supply of materials which impacted on completion dates resulting in handovers being delayed. This has been a factor throughout the construction industry as a whole with steel and timber being particularly affected as detailed in 2.3.1. This has also led to very high tender prices which have required some projects to be retendered resulting in delays to the commencement of those projects. • The heated housing market affecting the purchase of homes through the OMPS as detailed in 2.1.2. and a slower than projected uptake to date of the option for the last owner in a block to sell their home to the council and remain as a tenant. • Projected acquisitions of off the shelf homes from developers not progressing as projected with significant delays in the works at the former John Orr’s building due to supply of materials and labour as well as the site at Lorne Place, Coatbridge being delayed due to issues with securing connections to the Scottish Water drainage system. 2.7 The delivery of the new supply programme will be closely monitored, and regular updates reported to committee, including an annual update on progress against targets and any adjustments to the programme that may be required 3. Measures of success 3.1 The measure of success will be the cost-effective delivery of the council’s new supply programme which aims to deliver 5,000 homes by 2035 3.2 The New Supply programme will also contribute to the regeneration of the town centres within North Lanarkshire which is one of the main priorities within the council’s Economic Regeneration Delivery Plan 4. Supporting documentation Appendix 1 New Build Sites as at 27 September 2022 Pamela Humphries Head of Planning & Regeneration Page 100 of 193
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The development of new affordable housing contributes to reducing inequalities through the provision of good quality, energy efficient and accessible homes to meet housing need. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The cost of the new build programme has been increasing, and is now on average around £190,000 per unit and can be higher on some more challenging sites, including town centre projects. The new supply programme is funded through a combination of Prudential Borrowing, Capital Funded from Current Revenue (CFCR), Scottish Government Funding and Subsidy Income. The affordability of both the new build programme and OMPS are reviewed each year and incorporated into the 30 year business plan. The Scottish Government’s new baseline benchmark assumptions have increased from £57,000 to £71,500 per unit (base on 3 person equivalent as well as additional grant funding available for additional quality measures benchmarks. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Page 101 of 193
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5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? In terms of the environmental impact, the New Supply Programme has been considered through the Strategic Environmental Assessment (SEA) as required by The Environmental Assessment (Scotland) Act 2005 and there are no major issues of relevance identified. The new homes will be built to modern standards and as a result be more energy efficient contributing to the reduction in CO2 emissions. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The implementation and delivery of the New Supply programme will be promoted through the New Supply PR plan in conjunction with Corporate Communications, and via communications with Local Members and local stakeholders 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Page 102 of 193
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Risk associated with the New Supply Programme is managed within the New Supply Risk Register process. The risk register has been updated to reflect the impact of the current national issues affecting the costs and availability of materials and labour along with general high inflation on programme timescales and costs as well as how the risk to the council will be mitigated as far as possible. The council will also undertake detailed ground investigation and other relevant site assessments prior to proceeding with the development of any particular site to help mitigate the risk of unforeseen costs relating to ground conditions, although this risk cannot be eliminated entirely. Page 103 of 193
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Appendix 1 New Build Sites as at 31 October 2022 Area Location Units Comments Completed Holytown Main St 10 Completed (Amenity) Holytown Spruce Way 10 Completed Motherwell Ravenscraig (David Wilson Homes) 18 Completed (off the shelf) Airdrie Clarkston PS 19 Completed Millerston Coshneuk Rd 11 Completed (Amenity) Cumbernauld North Rd 29 Completed Wishaw Cambusnethan PS 20 Completed (Amenity) Viewpark Laburnum Rd (Phase 1) 12 Completed Viewpark Laburnum Rd (Phase 2) 28 Completed Moodiesburn Gartferry Road 50 Completed Cumbernauld Westfield Drive 30 Completed Airdrie Former Albert PS 14 Completed Chryston Lanrig Rd 27 Completed (Amenity) Coatbridge Corsewall St 14 Completed Bellshill Former Belvidere PS 20 Completed Kilsyth Fisher Ave 30 Completed Chryston Old Lindsaybeg Rd (Persimmon) 14 Completed (off the shelf) Motherwell Glencairn Tower site 25 Completed Viewpark Former Tannochside PS 16 Completed Wishaw Walkerburn Dr, Coltness 20 Completed Cumbernauld Cardowan Drive 30 Completed Cumbernauld Kildrum Nursery 16 Completed Chryston Station Rd (Persimmon) 30 Completed (off the shelf) Chapelhall Former St Aloysius PS (Phase 1) 24 Completed Chapelhall Former St Aloysius PS (Phase 2) 6 Completed Cumbernauld Brown Road 20 Completed New Stevenston Former New Stevenston PS 15 Completed Chryston Greenlea Road 21 Completed Coatbridge Old School Court 20 Completed Airdrie Former Alexandra PS 14 Completed Harthill Former Harthill PS 20 Completed Motherwell Cleekhimmin, Ravenscraig (Barratt) 10 Completed (off the shelf) Coatbridge Blair Road 40 Completed Motherwell Calder PS 30 Completed Page 104 of 193
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Gartcosh Johnston Rd / Inchnock Ave (Bellway) 16 Completed (off the shelf) Cumbernauld Cedar Road Nursery 14 Completed Chryston Main Street (Bellway) 18 Completed (off the shelf) Wishaw Meadowhead Rd, Ravenscraig (Keepmoat) 11 Completed (off the shelf) Bellshill Caledonian Avenue (Phase 1 ) 19 Completed Wishaw Dimsdale Road (Phase 1) 6 Completed Bellshill Caledonian Avenue (Phase 2) 8 Completed Wishaw Dimsdale Road (Further Phases) 55 Completed Coatbridge St James PS / Lismore Drive 58 Completed Wishaw Roberts Street (Belhaven House) 16 Completed Wishaw Mossburn St, Waterloo 20 Completed Plains Plains PS 16 Completed Sub total 970 Completed On Site Chryston Chilterns Care Home 21 On Site Airdrie Dykehead Road (Holehills) 150 On Site Airdrie Northburn Place 31 On Site Bellshill Community Road 29 On Site Airdrie Former Orrs Building (Wilson) 20 On Site Wishaw Castlehill Road, Gowkthrapple (Phase 1) 97 On Site Coatbridge Berwick St 19 On Site Stepps Gateside Farm (Barratt) 30 On Site Motherwell Former BRE, Ravenscliff Rd, Ravenscraig 24 On site Sub total 421 On site Design Development Underway Cumbernauld Community Growth Area 75 Planning app submitted Motherwell Mabel Street 20 Planning app approved Glenmavis McArthur Ave 21 Planning app approved Coatbridge Columba High School 130 Design development underway Viewpark Laburnum Rd 26 Planning app approved Coatbridge Bank Street 9 Planning app approved Airdrie Glenacre Drive 16 Planning app approved Chapelhall Gibb Street 25 Planning app submitted Page 105 of 193
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Wishaw Graham Street 13 Planning app submitted Coatbridge Kildonan Street 49 Design development underway Cumbernauld Former Cumbernauld Village PS 8 Planning app approved Glenboig Former Police Station, Main Street 7 Planning app approved Motherwell Brandon Street 48 Planning app approved Wishaw King Street 5 Planning app submitted Wishaw Stewarton Street & Kings House 17 Design development underway Motherwell Former Motherwell Town Hall 20 Planning app approved Airdrie Calderigg Place 42 Design development underway Airdrie Former Petersburn PS 40 Planning app approved Millerston Coshneuk Road 16 Approved at Committee - Sept 2021 Wishaw Caledonian Road 9 Planning app submitted Coatbridge Mitchell Street 100 Approved at Committee - Aug 2022 Caldercruix Former St Mary's PS 25 Approved at Committee - Aug 2022 Bellshill Thorn Road 26 Approved at Committee - Aug 2022 Airdrie Airdriehill Road 75 Approved at Committee - Aug 2022 Motherwell Hope Street (Masonic Hall) 10 Approved at Committee - Aug 2022 Coatbridge Main Street 40 Approved at Committee - Aug 2022 Sub total 872 Design development underway Re- provisioning Coatbridge Shawhead 111 Re-provisioning site Coatbridge Dunbeth 170 Re-provisioning site Motherwell Coursington 60 Re-provisioning site Sub total 341 Re-provisioning sites Off The Shelf Chryston Gartferry Road (Allanwater) 22 Off the shelf Purchase approved at Committee Page 106 of 193
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Coatbridge Lorne Place (Allanwater) 24 Off the shelf Purchase approved at Committee Moodiesburn Auchengeich, Gartferry Road (Bellway) 12 Off the shelf Purchase approved at Committee Cumbernauld Kingfisher, Dowanfield Road (Zoom) 24 Off the shelf Purchase approved at Committee Coatbridge Former DWP Offices, South Circular Road (ML5 Limited) 39 Off the shelf Purchase approved at Committee Gartcosh Johnston Rd - Phase 2 (Bellway) 12 Off the shelf Purchase approved at Committee Sub total 133 Future off the shelf purchases from developers Total 2737 Page 107 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/TM Date 16/11/22 New Housing Supply Programme – Procurement Report From Pamela Humphries, Head of Planning and Regeneration E-mail mallaghant@northlan.gov.uk Telephone Tony Mallaghan, Housing Development Manager, 07970 016251 Executive Summary The purpose of this report is to update the Committee on current procurement activity relating to the new build housing programme and seek approval to progress procurement arrangements as outlined in the report. Recommendations It is recommended that the Housing Committee: 1) Approve the procurement of call off contracts in line with the Scotland Excel New Build Residential Framework for: a) the construction of new build housing at Dunnottar Avenue and Burleigh Place, Shawhead, Coatbridge up to the value of £26.50M, including contingency allowance; and; b) the conversion and refurbishment of the former Masonic Hall, Hope Street, Motherwell up to the value of £3.00M, including contingency allowance. 2) Approve the procurement of call off contracts in line with the Scottish Procurement Alliance (SPA) H2 framework agreement conditions for the construction of new build housing at: a) the former St Marys Primary School, Hill Street, Caldercruix up to the value of £6.50M, including contingency allowance. b) the former Thornlie Church halls, Caledonian Road, Wishaw up to the value of £1.50M, including contingency allowance. c) Airdriehill Road, Airdrie up to the value of £16.90M, including contingency allowance. d) The former Cumbernauld village school, Glasgow Road, Cumbernauld up to the value of £2.00M, including contingency allowance. AGENDA ITEM 8 Page 109 of 193
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1. Background 1.1 The Council has an approved target to deliver 5,000 new homes by 2035. The delivery of such a large scale programme presents a number of challenges, not least of which is the procurement of contractors to build the houses to the required standard, within the timescale required and at a competitive cost. In order to increase the pace of delivery, secure best value and minimise risk to the Council, a range of procurement options have been utilised. 1.2 The Council has also participated in the establishment of a new build framework agreement through Scotland Excel, which has been available for use from August 2019. This framework agreement is for the delivery of new build housing projects for Scottish local authorities, housing associations and other public bodies and includes a number of lots covering different geographical areas and different sized developments. 1.3 The Housing and Regeneration Committee on the 25 November 2020 approved the procurement route for the next phase of the new build programme to commence procurement activity with the Scottish Procurement Alliance (SPA) and Scotland Excel New Build Residential framework to deliver the next phase of new build sites approved by the Committee. As reported at the Housing and Regeneration Committee on the 8 September 2021, due to the current capacity issues in the market we intend to utilise the ability in the SPA and Scotland Excel Frameworks to direct award to available contractors, including to contractors who are not highest ranking. Justification for the identification of a contractor can be made by complying with the direct award criteria listed in the respective frameworks, with a contract award being subject to value for 3) Approve the procurement of call off contracts in line with the Scottish Procurement Alliance (SPA) PB3 framework agreement conditions for the conversion and refurbishment of Old Motherwell Town Hall, Hamilton Road, Motherwell up to the value of £5.500M, including contingency allowance. 4) Approve the award of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing to McTaggart Construction at the former Petersburn PS, Petersburn Road, Airdrie, up to the value of £9.40M, including contingency allowance. 5) Note the award of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing to CCG (Scotland) Limited at Ravenscliff Road, Motherwell up to the revised value of £5.75M, including contingency allowance. 6) Note the award of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing to McTaggart Construction at Glenacre Drive, Airdrie, up to the value of £3.726M, including contingency allowance. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth Page 110 of 193
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money assessment against the framework rates. A benchmarking appraisal was carried out for each project and is identified in each project’s Sourcing Methodology. 2. Report 2.1 It is proposed to engage with contractors on the Scotland Excel New Build Residential Framework for the following two projects: • Dunnottar Avenue and Burleigh Place, Shawhead, Coatbridge (Up to 102 units) up to the value of £26.50M, including contingency allowance. • Former Masonic Hall, Hope Street, Motherwell (Up to 10 units) up to the value of £3.00M, including contingency allowance. Feasibility costs will be obtained and analysed to ensure best value and, subject to benchmarking against the appropriate framework rates, it is proposed that a final tender price be agreed to allow the contract award. 2.2 It is proposed to engage with contractors on the SPA H2 framework for the following three projects: • Former St Marys Primary School, Hill Street, Caldercruix (Up to 25 units) up to the value of £6.50M, including contingency allowance. • Thornlie Church halls, Caledonian Road, Wishaw (Up to 6 units) up to the value of £1.50M, including contingency allowance. • Airdriehill, Airdriehill Road, Airdrie (Up to 65 units) up to the value of £16.90M, including contingency allowance. • The former Cumbernauld village school, Glasgow Road, Cumbernauld (up to 8 units) up to the value of £2.00M, including contingency allowance. Feasibility costs will be obtained and analysed to ensure best value and, subject to benchmarking against the appropriate framework rates, it is proposed that a final tender price be agreed to allow the contract award. 2.3 It is proposed to engage with contractors on the SPA PB3 framework for the following project: • Old Motherwell Town Hall, Hamilton Road, Motherwell (Up to 20 units) up to the value of £5.500M, including contingency allowance. Feasibility costs will be obtained and analysed to ensure best value and, subject to benchmarking against the appropriate framework rates, it is proposed that a final tender price be agreed to allow the contract award. 2.4 The Housing and Regeneration Committee in November 2021 approved the procurement of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing by McTaggart Construction at the former Petersburn PS site, Petersburn Road, Airdrie, (40 units), up to the value of Page 111 of 193
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£8,290M, including contingency allowance. McTaggart Construction have submitted a revised cost of £9.40M, including contingency allowance. The tender cost obtained is considered to represent best value and, and the rates have been benchmarked against the appropriate framework rates with an allowance for current market conditions, to allow the contract award to be made. 2.5 The Housing Committee in August 2022 approved the award of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing to CCG (Scotland) Limited at Ravenscliff Road, Motherwell, (24 units), up to the value of £5.40M, including contingency allowance. However due to delays with concluding the site acquisition the tender cost has increased to £5.75M, including contingency allowance. The tender cost obtained is still considered to represent best value and, and the rates have been benchmarked against the appropriate framework rates with an allowance for current market conditions, to allow the contract award to be made. 2.6 The Housing Committee in August 2022 approved the award of a call off contract in line with the Scotland Excel New Build Residential Framework for the construction of new build housing to McTaggart Construction at Glenacre Drive, Airdrie, (Up to 16 units), up to the value of £3.555M, including 10% contingency allowance. McTaggart Construction have submitted a revised cost of £3.726M, including contingency allowance. The tender cost obtained was considered to represent best value and, and the rates have been benchmarked against the appropriate framework rates with an allowance for current market conditions, to allow the contract award to be made. 2.7 The approval to commence procurement for the site at Airdriehill Road, Airdrie is being sought to evaluate the site for the construction of new build housing for up to 65 units. The site is not in council ownership but already has obtained planning approval for approximately 50 units. The evaluation being undertaken is at no risk or cost to the council and will include site suitability and feasibility costs. Should the site be considered a viable option the site will be brought to a future committee to seek approval to progress with site acquisition and tender award. Next Steps 2.8 The next batch of sites will be reviewed, and a suitable procurement route will be identified to progress these projects to deliver new build housing to align with the Plan for North Lanarkshire. Price Savings / Increases 2.9 There are no cashable savings attributed to the contracts outlined within this report. Price Stability 2.10 The pricing mechanism is a Priced Contract with Activity Schedule offering a good level of cost certainty. Community Benefits 2.11 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. Page 112 of 193
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The successful tenderer for contracts recommended for award within this report have committed to delivering a range of community benefits and these are detailed in the table below: Petersburn Road, Airdrie OUTCOME No of Mandatory Outcomes New Sustainable Jobs for entrants from Key Priority Groups 3 Work Experience Placement (16+ Years of Age) 8 Careers Event 5 Supply Chain briefing with SMEs 3 Financial Support for a Community Project 2 Non Financial Support for a Community Project 4 TOTAL 25 Fair Work Practices 2.12 All contractors appointed to the SPA and Scotland Excel frameworks have evidenced Fair Work Practices within their organisations as part of the procurement procedures to be appointed to the respective frameworks and have further demonstrated how they will promote them in the delivery of Council call-off contracts. Contract Strategy 2.13 Officers from New Supply will be responsible for managing contracts which will be undertaken in accordance with the council’s agreed approach to contract and supplier management. 3. Measures of success 3.1 The proposed contract awards detailed within this report will deliver the following outcomes: a) The appointment of contractors who have the experience and capability to deliver new build social housing; b) The procurement procedure is compliant with the procurement legislation and internal procedures; c) That best value is both demonstrable and achieved; d) That the contracts secures a range of community benefits; Page 113 of 193
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e) That the contract supports a variety of fair working practices to staff employed in the delivery of the contracts; f) That the performance of contracts are proactively managed against a number of Key Performance Indicators. 4. Supporting documentation Appendix 1 Summary of Procurement Procedures Appendix 2 SME Status of all Tenderers Pamela Humphries Head of Planning and Regeneration Page 114 of 193
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Council’s new build programme helps reduce inequalities through a number of design specifications including: • Housing for Varying Needs; • Secure by Design; • Achieving the Scottish Government requirements for “Greener Homes” to reduce the incidence of fuel Poverty; and • The inclusion of design standards relating to access to internet capabilities including ‘fibre to the property’. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The funding for all of the projects referred to in this report can be met from the Council’s Housing Revenue Account budget for the New Supply Programme. Grant support is also provided by the Scottish Government. The costs associated with contract delivery will be contained within the New Supply budget. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☒ No ☐ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☒ No ☐ 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 115 of 193
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5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The proposed award of contracts detailed within this report will ensure that the impact on the Council’s carbon footprint is mitigated. The specifications incorporated within the contract documentation will: deliver reduced energy need; encourage sustainable construction; promote health and wellbeing; reduce waste and resources through effective storage, collection and composting of waste and recyclable materials and; include measures which will reduce CO2 emissions. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The implementation and delivery of the New Supply programme will be promoted through the New Supply PR plan and via communications with elected members and local stakeholders 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Page 116 of 193
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Risk associated with the New Supply Programme is managed within the New Supply Risk Register process. The risk register has been updated to reflect the impact of the current national issues affecting the costs and availability of materials and labour along with general high inflation on programme timescales and costs as well as how the risk to the council will be mitigated as far as possible. The tender cost increases over the past 12 months are on average 16% to 20% and this trend of tender price increases will extend into 2023 excluding the additional changes to legislation and meeting Scottish Government energy targets. Comparing similar sized projects the tender costs over past 18 months are on average 25% higher. The council will also undertake detailed ground investigation and other relevant site assessments prior to proceeding with the development of any particular site to help mitigate the risk of unforeseen costs relating to ground conditions, although this risk cannot be eliminated entirely. Page 117 of 193
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Appendix 1 Summary of Procurement Procedures Construction of New Build Social Housing at Petersburn Road, Airdrie Procurement Title Contractor Design and Construction of New Build Social Housing at Petersburn Road, Airdrie Estimated contract start date January 2023 – April 2024 Initial Contract Period 15 Months Contract Defects Period 12 Months Estimated Total Contract value £9,395,545 (£8,945,545 + £450,000) Contract Reference Number NLC-SLP-22-066. Contract Notice Reference Not Applicable Date Contract Notice Published Not Applicable Governing UK Regulation Public Procurement Regulations (Scotland) 2015 Procurement Procedure Direct Award from a 3rd Party Framework Evaluation approach adopted Not Applicable Interest List – number of Contractors that downloaded the procurement documents from the procurement portal N/A Number of selection stage documents received N/A Number of Contractors invited to tender 1 Number of tenders received 1 Number of non-compliant tenders 0 Number of compliant tenders 1 Number of recommended contractors 1 Basis of contract award Quality 40% Price 60% Evaluation team names and job titles of Evaluators and their role in evaluation New Supply Page 118 of 193
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Appendix 2 SME Status of all Tenderers Project Tenderers Name Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Petersburn Road, Airdrie McTaggart Construction Medium North Ayrshire Page 119 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/TM Date 16/11/22 Future Approaches to Heating Within New-Build Homes From Pamela Humphries, Head of Planning and Regeneration E-mail mallaghant@northlan.gov.uk Telephone Tony Mallaghan, Housing Development Manager 07970 016251 Executive Summary This report requests that the Committee consider and approve a new approach to providing space and water heating to new-build homes, which complies with the Scottish Government’s Heat in Buildings Strategy, published October 2021. The expectation of the Heat in Buildings Strategy is that emissions of greenhouse gases from heating our homes and buildings will have all but disappeared by 2045. This requires energy demands to be greatly reduced, and space and water heating to be provided by zero emissions heating systems. In the short to medium term, this report proposes that heat pumps are used in place of gas combination boilers to provide space and water heating to new-build homes and to conversions of older buildings to social housing. To mitigate the possibility of fuel poverty, this report proposes that large PV arrays coupled with energy storage (hot water tanks and/or batteries) are provided to each property. In the medium to long term, this report proposes that newer technologies including heat networks and hydrogen fuel should be examined as more information and evidence becomes available. The current energy price increases are noted as a significant barrier to the successful implementation of zero emissions heating systems. Recommendations It is recommended that Committee: 1) Approve the approach to heating new-build homes and conversions as outlined within section 2 of the report. 2) Note that future options to deliver energy efficient homes will continue to be explored as set out in the report. AGENDA ITEM 9 Page 121 of 193
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1. Background 1.1 The key milestones below are discussed in the Heat in Buildings Strategy to reduce greenhouse gas emissions from Scotland’s homes, workplaces and community buildings. https://www.gov.scot/publications/heat-buildings-strategy-achieving-net-zero- emissions-scotlands-buildings/ Date Milestone 2024 Low or zero emissions heating systems1 required to all New Build Homes. This means that gas boilers will no longer be permitted in Building Warrant applications submitted after 01/04/2024. 2030 75% reduction in greenhouse gas emissions for heating our homes and buildings2 2032 All social housing to achieve an Energy Efficiency Rating of Band B by the end of December 2032 3 2040 90% reduction in greenhouse gas emissions for heating our homes and buildings2 2040 <5% households in fuel poverty (in 2015 prices) 4 2040 <1% households in extreme fuel poverty (in 2015 prices) 4 2045 Net Zero Greenhouse gas emissions for heating our homes and buildings Notes 1 Low and zero emission heating systems are systems that have zero direct greenhouse gas emissions, such as individual electric heat pumps and connection to heat networks, or electric systems such as storage heaters, and systems that have very low emissions such as those that use hydrogen. 2 The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 3 Energy Efficiency Standard for Social Housing (EESSH2). NLC New Build Housing Specification already exceeds this target 4 The Fuel Poverty (Targets, Definitions and Strategy) (Scotland) Act 2019 1.2 Currently, 88% of the council’s housing stock is heated using gas, compared with 80% across Scotland. 11% are heated using electricity which is comparable to the rest of Scotland. 1.3 Details relating to the requirement for non-gas heating from 2024 and the proposed pilot to examine and evaluate the use of an alternative to gas heating was reported to the Housing and Regeneration Committee on 25 November 2020. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth Page 122 of 193
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2. Report 2.1 The challenges of meeting the requirements of the Heat in Buildings Strategy whilst keeping rents and heating bills affordable are discussed in The Scottish Government Zero Emissions Social Housing Taskforce Report (August 2021). This report recommends a Just Transition including the need for social landlords to:- • Mitigate against potential negative impacts for social tenants and maximise potential opportunities such as jobs. • Promote a Fabric First approach as an essential step towards decarbonisation. • Continue to evaluate their wider impacts and on-going contribution to tackling the climate emergency, through systematic monitoring and measurement. 2.3 An options appraisal has been carried out to consider various options for zero emission heating systems that could be used in new homes for social rent. The options (set out in table 1) include Air source pumps, electric storage heating and electric wet combi boiler systems. In each option, it is proposed that a PV array and battery storage are provided to help offset the higher unit costs for electricity, and to mitigate the risk of fuel poverty. It should be noted that the combined cost of installing the new technologies is around £15,000 higher per unit than the current specification. The preferred option is to use heat pumps because it is a proven technology in Scotland; the extremely high efficiency will minimise energy consumption, and because it will provide significantly lower running costs for the tenants given current costs of fuel. Ground source heat pumps (shared boreholes and small individual heat pumps within homes), are expected to significantly outperform air source heat pumps in terms of efficiency and running costs, but are not suitable in as many sites. The viability of ground source heat pumps is currently being investigated. Table 1 Space and Water Heating Options Appraisal Typical Capital, Maintenance and Operational Costs Heating Type Capital cost per home (Supply and Install exc VAT) Annual revenue cost per home (Annual maintenance and servicing) Annual net utility cost Baseline Gas Combination Boiler Radiators & Pipework 4kW PV array to houses, 2kW to cottage flats £8,800 £224.67 £1404 - £1974 Page 123 of 193
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Option A Air Source Heat Pump Hot Water Tank Radiators & Pipework 4kW PV array 13.5kW Battery £23,700 £135.19 £612-£886 Option B Storage Heating Elec Hot Water Tank 4kW PV array 13.5kW Battery £21,815 £125.90 £1382 -£1757 Option C Electric Wet Combi Boiler Radiators & pipework 4kW PV array 13.5 kW Battery £21,580 £125.90 £2184 -£2838 2.4 Future Options that will be considered include thermal batteries, mechanical heat recovery and ventilation, solar thermal panels, hydrogen ready boilers, and heat networks. 2.5 The Scottish Government announced the Heat Network Fund in February 2021. This is a fund of over £300million over this parliamentary session to support development and rollout of zero emission heat networks across Scotland. The use of communal heating systems using air or ground source heat pumps for flatted developments may be eligible for this fund. 2.6 A pilot project for net zero emission heating is currently under construction at Dykehead Road, Airdrie. The first properties are due to hand over towards the end of 2022. This pilot project consists of 19 properties (out of a site total of 150 properties) being built with the following additions to our standard New Build specification:- • Air Source Heat Pumps and Hot Water Cylinder in place of a gas combi boiler; • Extra 25mm insulation to external walls; • Extra 50m insulation to loft spaces; • Triple glazed windows; • 4kW PV array (13 panels); and • 13.5kW battery storage. Data and tenant feedback will be collected from both the net zero homes and the properties heated by gas combination boilers. This will allow the council to assess the performance and future viability of these proposals, with particular cognisance of the current energy price increases, to help inform future investment decisions. 2.7 It is proposed that the approach for achieving low/ zero emissions for space and water heating systems to both new-build and regeneration / redevelopment projects should be as outlined below:- ▪ Continue to implement the Fabric First approach which will be reviewed and amended as appropriate to focus on reduced energy consumption. Page 124 of 193
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▪ Make use of both air and ground source heat pumps (as appropriate to the development) as the principal approach to an alternative to gas heating within new- build and redevelopment projects. ▪ Make use of appropriate supporting technologies, primarily Solar PV and energy storage (hot water tanks, batteries), to support the reduction of tenant energy costs within the council’s housing stock. Solar Thermal Panels and Mechanical Heat Recovery and Ventilation technologies will also be considered as appropriate to the development. ▪ Consider, where viable and appropriate, the use of Local Heat Networks and seek support via applications to the Heat Network Fund. ▪ Continue to examine new heating systems such as hydrogen as they arise for further consideration. 3. Measures of success 3.1 The proposed approach to heating new-build homes detailed within this report will seek to deliver the following outcomes: a) Compliance with Scottish Government Heat in Buildings Strategy. b) Compliance with EESH2 requirements. c) Maintaining similar or betterment of the Energy Performance Ratings performance for New Build Homes. d) Tenant satisfaction. e) That best value for North Lanarkshire Council is both demonstrable and achieved. 4. Supporting documentation There are no Supporting documents. Pamela Humphries Head of Planning and Regeneration Page 125 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? The Scottish Government has made additional grant funding available for the installation of heating systems which produce zero direct emissions at the point of use - £4,000 per unit (3 person equivalent benchmark). The net cost to the Council installing the air source heat pump systems is therefore an increase of £10,900 per home compared to installing a gas central heating system once the extra grant is taken into account. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 126 of 193
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Will introduce technologies that may transmit via SIM Cards data relating to Battery Storage and Heat Pumps. These technologies have been used on properties elsewhere. Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The proposed approach to heating new-build homes will remove the combustion of fossil fuels from home heating to comply with the Heat in Buildings Strategy and promote successful achievement of the council and Scottish Government goals on Climate Change. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risk associated with the New Supply Programme is managed within the New Supply Risk Register process. The risk register has been updated to reflect the impact of the installation of the new technology in heating systems Page 127 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref SL/GT/AN Date 16/11/22 Revenue Monitoring Report – Housing Revenue Account From Stephen Llewellyn, Head of Housing Solutions E-mail telferg@northlan.gov.uk Telephone Greg Telfer, Business Finance Manager, 07586 010692 1. Background 1.1 The Council approved its Housing Revenue Account Budget of £149m on 17 December 2021. This has increased to £154m with the utilisation of the £2.5m reserve set aside for use within housing repairs, currently under pressure as a result of higher than anticipated contract inflation (see 2.2.2) and ambition related virements. 1.2 The Financial Regulations require Services to remain within their approved budgetary provision, and to report all significant deviations – defined as the higher of £100,000 or 5% - within their budget monitoring reports. Where significant deviations are identified, Services must provide explanatory commentary, outline the action required to rectify such a deviation, and where relevant, must also highlight the impact this has on other budget headings. Executive Summary This report provides a summary of the Housing Revenue Account financial performance for the period 1 April 2022 to 16 September 2022 (Period 6). The report illustrates the projected outturn as at 31 March 2023, with major outturn variances highlighted and explained in accordance with the Council’s approved Financial Regulations. The service is currently projecting a breakeven position for the financial year. It is currently anticipated that £1.849m of savings (100%) will be delivered by the financial year-end. Recommendations It is recommended that Committee: 1) Acknowledges the financial position of the HRA revenue budget 2022/23. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 10A Page 129 of 193
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2. Report 2.1 Summary of Financial Position 2.1.1 The service is currently projecting a breakeven position in the financial year. 2.2 Analysis of Significant Variances 2.2.1 The Housing Revenue account currently anticipates an underspend of £1.400m within Employee Costs due to increased turnover / vacancy savings. 2.2.2 In addition, an overspend of £2.607m is anticipated within Property Costs mainly as a result of increased repair costs (£4.500m) due to the current economic climate and contract inflation, however with the drawdown of the repairs earmarked reserve of (£2.5m) this will be reduced to £2.000m. Other overspends include utilities (£0.337m), void rent loss (£0.150m), grounds maintenance (£0.070m) and rents (0.050m). 2.2.3 An underspend of £0.300m is projected within Administration Costs as a result of reduced legal (£0.150m) and sheriff officer fees (£0.150m) associated with the restrictions placed on evictions. 2.2.4 An anticipated underspend of £1.107m is anticipated within ambition funding. 2.2.5 An under-recovery of £0.200m in Fees and Charges due to the freeze in charges for laundry facilities (£0.100m) since Covid and a reduction in court activity (£0.100m). 2.3 Earmarked and One-off Resources 2.3.1 An update of the earmarked reserves is detailed in Appendix 2. When account is taken of the £1.470m core reserve, and other previously earmarked reserves totalling £12.871m, the remaining unallocated resources total to £5.155m. 2.4 2022/23 Budget Savings 2.4.1 The service uses a variety of information, records and processes to monitor achievement of its approved budget savings of £1.849m. As at Period 6, it anticipates 100% of its approved savings will be delivered by the financial year-end. 3. Measures of success 3.1 Service is currently operating within approved budgeted constraints and meeting required savings targets. 4. Supporting documentation 4.1 Appendix 1 HRA Summary Appendix 2 Earmarked Reserves / Balance Sheet Provisions Stephen Llewellyn Head of Housing Solutions Page 130 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The financial impacts are contained within the report and supporting appendices. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 131 of 193
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy (September 2012), Services manage these as part of their overall corporate and service planning process. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. Reflecting the risk analysis matrix included within the Risk Management Strategy, the Service considers the impact of inflation on key service contracts and the cost of living crisis presents an ongoing risk to the financial outturn for 2022/23 and this is an ongoing focus of discussion within the Service and with Financial Solutions. To minimise risk, this report has been prepared by service-based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations Page 132 of 193
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Appendix 1 FINANCIAL MONITORING REPORT DIVISION : HRA SUMMARY 01 April 2021 to 16 SEPTEMBER 2021 (Period 6) Cost Centre: HRA [H] COMMITTEE: HOUSING CATEGORY BUDGET ACTUAL YEAR TO DATE ANNUAL PROJECTED ANALYSIS TO DATE TO DATE VARIANCE BUDGET OUTTURN (1) (2) (3) (4) (5) (6) (10) £ £ £ £ £ EMPLOYEE COSTS 11,686,540 11,020,217 666,323 FAV 29,312,183 27,912,183 1,400,000 FAV Underspend due to increased turnover savings PROPERTY COSTS 21,928,150 23,267,348 (1,339,198) ADV 56,823,690 59,430,690 (2,607,000) ADV Overspend mainly due to increased repair, grounds maintenance, utility, rental costs and void rent loss. These overspends are slightly offset by underspends in the garden assistance scheme. SUPPLIES & SERVICES 421,133 412,569 8,564 FAV 1,182,400 1,182,400 0 - Balanced Budget TRANSPORT & PLANT 142,128 136,837 5,291 FAV 367,140 367,140 0 - Balanced Budget ADMINISTRATION COSTS 828,911 604,400 224,511 FAV 5,490,900 5,190,900 300,000 FAV Underspends due to decreased legal and sheriff officer fees PAYMENTS TO OTHER BODIES 78,952 55,074 23,878 FAV 231,120 231,120 0 - Balanced Budget APPORTIONED EXPENSES 937,022 963,016 (25,994) ADV 6,229,960 6,229,960 0 - Balanced Budget CAPITAL FINANCING COSTS 0 0 0 - 22,408,280 22,408,280 0 - Balanced budget C.F.C.R. 0 0 0 - 27,146,260 27,146,260 0 - Balanced budget OTHER COSTS 0 0 0 - 4,994,497 3,887,497 1,107,000 FAV Ambition TOTAL EXPENDITURE 36,022,836 36,459,461 (436,625) ADV 154,186,430 153,986,430 200,000 FAV OTHER GRANTS 0 0 0 - 0 0 0 - Balanced budget FEES AND CHARGES 260,539 193,227 (67,312) ADV 7,887,859 7,687,859 (200,000) ADV Under recoveries within laundry charges and court dues / fines RENTS 52,732,196 52,723,738 (8,458) ADV 143,783,481 143,783,481 0 - Balanced Budget INTEREST 0 0 0 - 15,000 15,000 0 - Balanced Budget DEPARTMENTAL CHARGES 0 0 0 - 90 90 0 - Balanced Budget SURPLUS 0 0 0 - 2,500,000 2,500,000 0 - Utilisation of prior years Housing Repairs surplus INCOME 52,992,735 52,916,965 (75,770) ADV 154,186,430 153,986,430 (200,000) ADV NET EXPENDITURE (16,969,899) (16,457,504) (512,395) ADV 0 0 0 - FAV = Favourable variation, underspend etc 362,119 ADV = Adverse variation, overspend, income under-recovery etc PROJECTED OUTTURN VARIANCE (7) Page 133 of 193
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Appendix 2 DESCRIPTION OF EARMARKED RESERVES VALUE OF EARMARKED RESERVE CARRY FORWARD ANALYSIS VALUE % (1) (2) (3) (4) (5) (6) £ £ £ Ambition 5,054,483 889,000 82.4% 4,165,483 Balance required in future years Welfare Reform 259,869 0 100.0% 259,869 Utilisation of balance to be considered UCAF 972,633 363,232 62.7% 609,401 Balance required in future years Hardship Fund 347,660 94,084 72.9% 253,576 Balance required in future years Enterprise Contract 670,793 670,793 0.0% 0 Budget fully utilised Rent Restructure 565,469 230,883 59.2% 334,586 Balance required in future years Housing Repairs 2,500,000 2,500,000 0.0% 0 To fund 2022/23 repairs programme HRA Capital Programme 2,500,000 0 100.0% 2,500,000 To fund future programme SUB TOTAL 12,870,907 4,747,992 63.1% 8,122,915 Change Management/Risks & Uncertainty 5,154,712 0 0.0% 5,154,712 Available for future allocation Core Reserve 1,470,000 0 100.0% 1,470,000 No call anticipated in 2021/22 TOTAL 19,495,619 4,747,992 75.6% 14,747,627 PROJECTED OUTTURN Housing Revenue Account - Earmarked Reserves 01 April 2021 to 16 SEPTEMBER 2021 (Period 6) Page 134 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/JMcG Date 16/11/22 Revenue Monitoring Report – Enterprise and Communities From Derek Brown, Depute Chief Executive E-mail telferg@northlan.gov.uk Telephone Greg Telfer, Business Finance Manager, 07583 010692 1. Background 1.1 The Council’s approved Financial Regulations require services to remain within their approved budgetary provision, and to report all significant deviations – defined as the higher of £100,000 or 5% - within their budget monitoring reports. Where significant deviations are identified, services must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. Executive Summary This report provides a summary of the financial performance of the Enterprise and Communities Service for the period 1 April 2021 to 16 September 2022 (Period 6). The report illustrates the projected outturn as at 31 March 2023, with major outturn variances highlighted and explained as per the Council’s approved Financial Regulations. In summary, the Enterprise and Communities Service is currently forecasting an overspend of £3.958m which is in relation to inflationary pressures (£3.068m), which will be offset by a corporate contingency and also the reallocation of the digital savings to Services (£0.890m) for which the Service continues to work with Business and Digital to progress plans for delivery of savings. Recommendations It is recommended that Committee: (1) Acknowledges the financial position of the 2023/23 Enterprise and Communities revenue budget. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 10B Page 135 of 193
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1.2 The most significant financial risk facing Enterprise and Communities during 2022/23 is inflationary pressures across a number of service areas including fuel and utilities, food costs, waste tonnage and contractual inflation on property and road maintenance contracts. At Period 6 it is forecast that the impact of this is £3.068m and this will continue to be monitored and reported through service budget monitoring reports alongside the ongoing impact of the curtailment of non-essential expenditure with the overall impact managed corporately. 2. Report Summary of Financial Position 2.1 The Council approved its General Fund Revenue Budget on 17th February 2022, of which £146.298m (17%) represented the approved Net Revenue Budget for Enterprise and Communities. Since then there has been additional budget added for Scottish Government funding for climate change (£0.075m), a budget transfers to other services mainly (£0.168m) and the transfer of digital savings targets (£1.535m) resulting in a revised Enterprise and Communities Net Budget of £144.670m. 2.1.1 Enterprise and Communities is forecasting an overspend of £3.958m in relation to inflationary pressures and a delay in the delivery of savings linked to the DigitalNL programme. Like most organisations, the Council is facing significant pressures linked to the wider economic outlook and high inflation. Across the service this is having an impact on the cost of energy, waste disposal, fuel, food and materials. The Council has set aside approximately £9.4m corporately to support unbudgeted inflationary pressures faced by services. 2.1.2 In addition, the Service faces a cost pressure attributable to the delay in implementation of savings linked to the DigitalNL programme (£0.890m). The service continues to work with Business and Digital to progress plans for the delivery of these savings. 2.1.3 Section 2.2 provides commentary on the financial performance of the Service per division excluding the impacts of inflation and digital savings. In addition, Appendices 1 to 7 of this report provide further explanation of the significant budget variations contributing to this outturn position. 2.1.4 The 2022/23 Enterprise and Communities budget incorporates £1.545m of savings previously approved by Council on 2 March 2021 with £0.797m of savings (52%) deliverable within the current financial year. Further information regarding particularly challenging savings is noted in paragraph 2.4 below. Analysis of Significant Variations 2.2 Excluding the impact of inflation and digital savings Enterprise and Communities service currently forecasts a year-end balanced budget position. As at Period 6, there are compensating variances across the divisions as follows: 2.2.1 Environmental Assets (£0.215m Underspend) The Environmental Assets division projects vacancy savings of £1.061m. This is partially offset by costs in relation to electric vehicle charging for which there has been significantly increased demand and unit costs (£0.466m). In addition, the division has also experienced increased costs for waste disposal (£0.180m). Page 136 of 193
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2.2.2 Asset and Procurement Solutions (£0.088m overspend) The division projects an overspend of £0.258m within property costs due to a delay in the timing of office accommodation savings (£0.473m) partially offset by a reduction in repairs and temporary rates reliefs for empty properties. Within the provision of school meals the service expects an under recovery in paid meal income (£0.365m) which is fully offset by vacancies across the division. 2.2.3 Regulatory Service and Waste Solutions (£0.789m overspend) The overspend is mainly as a result of increased agency and overtime costs in Waste as a result of delays in recruitment (£0.431m), increased requirement for vehicle parts (£0.204m) and under-recoveries in Special Uplifts as a result of reduced demand (£0.161m). 2.2.4 Planning and Regeneration (£0.335m underspend) Within Planning and Regeneration vacancy savings and additional grant income contribute to a projected underspend of £0.335m. 2.2.5 Included within the reported outturn is the Council’s trading services. For 2022/23 the Council approved a surplus budget of £0.596m. The Council must comply with a statutory requirement to at least break-even over a rolling three year period. The combined surplus in 2019/20, 2020/21 and 2021/22 was £0.380m. As at Period 6 there are no significant variations to report with regards to trading services. 2.2.6 Payments to other bodies are detailed in Appendix 3. This expenditure category accounts for £21.189m with a minor overspend of £0.063m forecasted for 2022/23 within payments to roads contractors. Earmarked and One-off Reserves 2.3 Enterprise and Communities was given approval to earmark £17.536m of resources during the completion of the 2021/22 annual accounts. It is forecast that £14.630m of the reserve balance will be utilised in 2022/23. The remaining balance of £2.906m is required for the original purpose in future years. Appendix 4 details the individual Earmarked Reserves. 2022/23 Budget Savings and Growth 2.4.1 The Service uses a variety of information, records and processes to monitor achievement of its approved budget savings of £1.545m. As at Period 5, £0.797m (52%) of its approved savings are achievable during the year. The gap of £0.748m represents timing delay in office rationalisation savings (£0.473m), the previously approved reduction in school cleaning (£0.200m, offset with an Earmarked Reserve in 22/23) and delays in staffing savings (£0.078m). This currently excludes the impact of savings linked to the DigitalNL programme. 2.4.2 As part of the Council’s investment budgets for 2021/22 and 2022/23, Enterprise and Communities was allocated £9.228m towards a number of one-off investments. Appendix 6 highlights in detail how these are being utilised across the Service. Management Actions 2.5 The Service continues to take a range of corrective management actions to ensure it manages cost pressures. This includes curtailment of non-essential spend and monitoring of vacancies. Page 137 of 193
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Change Management 2.6 The Service expects to use £0.125m of the Council’s Change Management Fund mainly to support the supply of new bins and materials within Environmental Assets. Costs within the Change Management Fund are not included in the Service outturn position. 3. Measures of success 3.1 The Service continues to operate within the approved budget resources. 4. Supporting documentation Appendix 1 Objective Analysis Appendix 2 Subjective Analysis Appendix 3 Payments to Other Bodies Analysis Appendix 4 Status of Earmarked Reserves Appendix 5 Challenging Savings Appendix 6 One-Off Investments Derek Brown Depute Chief Executive Page 138 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Service continues to curtail non-essential expenditure and take management action to minimise the impact of cost pressures on the Council’s overall financial position. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 139 of 193
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services managed these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within the approved budget levels. To reduce other financial risks, this report was prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. Page 140 of 193
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Appendix 1 DIVISION OF SERVICE BUDGET ACTUAL ANNUAL PROJECTED MOVEMENT FROM ANALYSIS TO DATE TO DATE BUDGET OUTTURN % PERIOD 4 (1) (2) (3) (5) (6) (8) (9) (10) £ £ £ £ % ENVIRONMENTAL ASSETS 12,939,267 14,710,833 47,427,455 48,161,565 (1.6%) (734,110) Overspend as a result of Utility Inflation / Digital savings £0.948m and increased usage and price for Electric Vehicle Charging partly offset by vacancy savings. REGULATORY SERVICES AND WASTE SOLUTIONS 15,192,896 15,735,580 37,174,707 39,572,638 (6.5%) (2,397,931) Overspend as a result of Inflation mainly for Waste Disposal costs and Fuel and digital savings £1.609m. Additional spend in agency costs/overtime due to recruitment delays parly offset by vacancies, also reduced demand for Special Uplift resulting in an under recovery in income. ASSETS & PROCUREMENT 18,091,563 17,453,739 38,272,520 39,375,946 (2.9%) (1,103,426) Overspend as a resilt of Utility and Food Inflation and Digital Savings £1.015m and timing delays in Office Rationalisation savings. There is also an under recovery in paid meal income which is offset by vacancy savings. PLANNING & REGENERATION 2,057,893 1,949,455 9,764,283 9,428,845 3.4% 335,438 Underspend as a result of Vacancy savings and increased grant income HOUSING SOLUTIONS 1,446,692 1,315,815 5,130,715 5,126,528 0.1% 4,187 Minor underspend as vacancy savings and other minor miscellaneous budget savings offset the Utility inflation and Digital Savings £0.214m HOUSING PROPERTY & PROJECTS 3,608,348 3,869,254 7,495,518 7,558,142 (0.8%) (62,624) Overspend as a result of Inflation for Stair & Close lighting TRADING (313,672) (436,375) (595,542) (595,542) 0.0% (0) Balanced budget NET EXPENDITURE 53,022,987 54,598,301 144,669,656 148,628,122 (3,958,466) (0) (1,575,314) (3,958,466) 335,438 4,187 (62,624)(260,906) 122,703 £ (734,110) (1,103,426) (2,397,931) 637,824 108,438 130,877 £ (1,771,567) (542,684) (4) (7) Enterprise & Communities Revenue Budget Monitoring Reort - Objective Analysis 1st April 2022 - 16th September 2022 (PERIOD 06) YEAR TO DATE PROVISIONAL VARIANCE VARIANCE Page 141 of 193
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Appendix 2 CATEGORY BUDGET ACTUAL ANNUAL PROJECTED MOVEMENT FROM ANALYSIS TO DATE TO DATE BUDGET OUTTURN % PERIOD 4 (1) (2) (3) (5) (6) (8) (9) (10) £ £ £ £ % EMPLOYEE COSTS 42,459,479 40,362,853 96,823,593 95,639,150 1.2% 1,171,967 Vacancy savings partly offset by overtime and turnover PROPERTY COSTS 10,972,267 11,974,262 39,026,581 41,029,047 (5.1%) (1,849,310) Timing delay in Office rationalisation saving and increased waste disposal costs, inflation increases for utilities SUPPLIES & SERVICES 5,246,531 6,068,941 17,817,122 19,765,686 (10.9%) (2,086,031) Utility increases for Street Lighting and increase demand and cost for electric car charging, increase IT software costs and agency staff due to delayed recruitment in Waste. TRANSPORT & PLANT 2,412,714 2,783,310 5,277,528 6,448,949 (22.2%) (1,169,893) Increased fuel costs as a result of price increases ADMINISTRATION COSTS 860,697 827,123 7,983,537 8,136,277 (1.9%) (171,693) Increase in consultants fees PAYMENTS TO OTHER BODIES 6,345,471 5,516,637 21,188,737 21,251,312 (0.3%) (32,304) Minor variance TRANSFER PAYMENTS 1,707 1,707 584,000 584,000 0.0% 0 Balanced Budget CAPITAL FINANCING COSTS 4,393,185 5,902,369 32,591,588 32,591,588 0.0% 0 Balanced Budget REVENUE FINANCING COSTS 0 0 0 0 0.0% 0 Balanced Budget OTHER EXPENDITURE 726,426 919,500 3,778,062 3,668,692 2.9% 110,554 Underspends in miscellaneous costs and external company payments. TOTAL EXPENDITURE 73,418,478 74,356,702 225,070,749 229,114,701 (1.8%) (4,026,710) INCOME 20,395,491 19,758,402 80,401,092 80,486,579 0.1% 68,245 Minor Variance NET EXPENDITURE 53,022,987 54,598,301 144,669,656 148,628,122 (2.7%) (3,958,465)(1,575,314) (2,002,466) (1,948,564) (1,171,421) (152,740) (62,575) 0 0 0 109,370 (4,043,952) 85,486 (3,958,466) (1,509,184) 0 (193,075) (938,225) 637,089 (822,410) (370,596) 33,574 828,834 0 £ 2,096,626 £ 1,184,443 (1,001,995) (4) (7) Enterprise & Communities Revenue Budget Monitoring Report - Subjective Analysis 1st April 2022 - 16th September 2022 (PERIOD 06) YEAR TO DATE PROJECTED OUTTURN VARIANCE VARIANCE Page 142 of 193
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Appendix 3 DESCRIPTION BUDGET ACTUAL ANNUAL PROJECTED MOVEMENT FROM TO DATE TO DATE BUDGET OUTTURN % PERIOD 4 TYPICAL AREA OF EXPENDITURE/ANALYSIS OF VARIATIONS (1) (2) (3) (5) (6) (8) (9) (10) £ £ £ £ % PUBLIC ANALYST FEES 133,500 133,500 267,000 267,000 0.00% 0 Balanced budget AMEY ALLOCATION 2,790,741 2,784,030 11,064,072 11,064,072 0.00% 0 Balanced budget PAYMENTS TO CONTRACTORS - ROADS MAINT 204,611 248,622 638,433 648,576 -1.59% (8,541) Minor variance SUB-CONTRACTOR PAYMENTS 295,354 306,847 501,355 522,617 -4.24% (21,262) Minor variance PSG COUNCIL PROGRAMME 14,476 14,476 242,853 242,853 0.00% 0 Balanced budget PAYMENTS TO OTHER BODIES - GENERAL 2,296,440 1,495,965 6,846,804 6,843,662 0.05% 1,540 Minor variance AGENCY FEES 2,315 2,348 208,904 241,342 -15.53% (2,168) Minor Variance SUPPORT FEES 572,228 511,207 1,289,930 1,289,930 0.00% 0 Balanced budget OTHER PTOB 35,807 19,642 129,386 131,259 -1.45% (1,873) Minor variance TOTAL EXPENDITURE 6,345,471 5,516,637 21,188,737 21,251,312 (0.3%) (32,304) £ £ 0 (10,143) 6,711 (44,011) 828,834 (62,575) 61,021 0 16,166 (1,873) (34) (32,438) 0 (21,262) 0 (11,493) (4) VARIANCE (7) Enterprise & Communities Revenue Budget Monitoring Report - Payments to Other Bodies Analysis 1st April 2022 - 16th September 2022 (PERIOD 06) YEAR TO DATE VARIANCE PROJECTED OUTTURN 800,475 3,142 0 0 Page 143 of 193
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Appendix 4 Decription of Earmarked Resource Value % Dilapidations APS - Asset Mgt 524 524 0 524 111 524 0 0 0 Costs associated with leased in property disinvestment Energy Mgt System and Office Rationalisation APS - Asset Mgt 551 551 0 551 254 551 0 0 0 Costs associated with Office closures and new energy mgt system Additional School Cleaning and Building Cleaning APS - Building Cleaning 431 431 0 431 213 431 0 0 0 Additional Cleaning requirements in schools until June 2022 and removal of previous cleaning saing Free school meal funds c/f for laptops preordered and not delivered APS - Catering 109 109 0 109 109 109 0 0 0 Laptops Pitches APS - Com Fac 70 70 0 70 0 70 0 0 0 Pitch Maintenance Costs Enterprise Contract APS - Ent Contract 1,686 1,000 0 1,000 248 1,000 0 0 366 Ongoing set up cost for the Enterprise Contract Road improvements EA - Roads 133 133 0 133 86 133 0 0 0 Targeted Roads Immprovement Exp Winter Reserve EA - Roads 1,500 1,500 0 1,500 0 1,500 0 0 0 Contingency for significant winter event Country Parks (Lighitng, rangers, events) EA - Visitors 429 316 0 316 0 316 0 0 0 Countrypark Exp - Park Rangers, Lighting, loss of event income Cemeteries EA - Visitors 140 140 0 140 90 140 0 0 0 Reduction in Cemetery Income target / increased cleaning costs. Service Developments - Bothy H&S / Ashdie Back exploratory works EA - Visitors 350 350 0 350 0 350 0 0 0 Health & Safety Repairs / Survey of requirements for Ashdie back exp HEEPS HPP 591 300 0 300 0 300 0 0 0 Energy Efficiency Schemes - contributions to current programme Additional Education Recovery - Ventillation HPP 415 415 0 415 476 415 0 0 0 School ventilation programme Rapid rehousing HS 1,159 500 0 500 42 500 0 0 0 Rapid Rehousing programme to tackle homelessness Tenant Hardship Rent Grant fund (LACER) HS 363 363 0 363 364 363 0 0 0 Sco Govt. Grant to assist rent arrears Anti Social Behaviour Task Force HS 121 121 0 121 77 121 0 0 0 Staff costs City Deal - Delburn Street / Manse Road P&R - city deal 105 105 0 105 0 105 0 0 0 Temporary Property costs as a result of capital programme Business recovery/growth P&R - Enterprise 4,993 4,094 0 4,094 0 3,994 0 0 100 Costs to support business recovery Local Development Plan P&R - P&P 290 150 0 150 0 150 0 0 0 Set up costs to produce LDP LUF Ravenscraig P&R Growth 400 400 0 400 0 400 0 0 0 Costs assoicated with LUF bid Housing Grants to owner occupiers RSWS - BE 93 93 0 93 0 93 0 0 0 Funding for Private Sector Grants Fleet - Grant for Lease Vehciles RSWS - Fleet 371 253 0 253 0 253 0 0 0 Grant funding for electric vehicles Bellshill Depot Eco hub - Due Diligence RSWS - Fleet 200 200 0 200 0 200 0 0 0 Set up costs for Eco Hub Protective Services - EHO/Pest Control/Food Safety/Env Health RSWS - PS 1,213 1,213 0 1,213 0 1,213 0 0 0 Employee costs / reduction in Pest Control income target / Environmental Health exp Waste Tonnage RSWS - Waste 622 622 0 622 0 622 0 0 0 Increased tonnage costs Digital Savings E&C 677 677 0 677 0 677 0 0 0 Digital Savings Total 17,536 14,630 0 14,630 2,071 14,530 0 0 466 Section Commentary regards usageTotal Earmarked Reserve £000 Initial 22/23 Allocation Adjustments in year 22/23 Approved Reserve Total Spend To Date Projected Outturn, 2022/23 Reserves Required For 2023/24 Onwards Reserves No Longer Required Enterprise & Communities Status of Earmarked Resources 1st April 2022 - 16th September 2022 Period 06 2022/23 Page 144 of 193
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Appendix 5 Reference / Descriptions Reason for Savings Gap £000 £000 £000 £000 £000 Savings 2021/2022 and 2022/23 EC10 Asset Management Rationalisation/Office Dis- investment. 0.800 0.327 0.473 Timing of Office closures Temporary rates savings and other property repairs / Vacncies 0.473 0 EC13 Efficiencies in school cleaning service 0.200 0 0.200 Enhanced cleaning required Ear marked reserve in 22/23 0.200 0 EC37 Review of staffing within Business Intelligence and Strategic Resourcing team 0.076 0 0.076 Delays in staffing changes Mgt action across the division 0.076 Totals 1.076 0.327 0.749 0.749 Description Value Revised Savings Gap Any additional information Enterprise and Communities Revenue Budget Monitoring Report - Challenging Savings 1st April 2022 - 16th September 2022 (PERIOD 06) APPROVED SAVINGS Target Value Value Deliverabl Saving Gap REPLACEMENT SAVING / FUNDING Page 145 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref AN/GT Date 16/11/22 HRA Capital Monitoring Report – 1 April 2022 to 16 September 2022 From Brian Lafferty, Head of Housing Property and Projects E-mail Telferg@northlan.gov.uk Telephone Greg Telfer, Business Finance Manager, 01698 302836 1. Background 1.1. Mainstream Working Programme 1.1.1 The Housing and Regeneration Committee on 16 February 2022 approved an outline mainstream programme for 2022/23 based on targeted expenditure of £58.245m, this has been enhanced by a further £5m to support the Ukrainian Resettlement Programme tower refurbishment. The overall programme is funded as follows: Executive Summary The purpose of this report is to review progress towards agreed spending plans within the 2022/23 HRA capital programmes. Full spend is projected for the Mainstream and New Build Programmes, but due to a lack of demand within the Council Buy Back and Mortgage to Rent Schemes, an underspend of £3.310m is projected reducing the borrowing requirements for the year. Recommendations It is recommended that Committee: (1) Acknowledges the financial position of the 2022/23 HRA Capital Programmes. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 11A Page 147 of 193
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£000 Prudential Borrowing 30,474 Capital Funded from Current Revenue (CFCR) 22,476 Total projected resources 52,950 Slippage allowance 5,295 Mainstream Working programme Additional Scottish Government Grant (Ukraine) 58,245 5,000 Working Programme 63,245 1.1.2 Committee also approved an additional £2.5m EESSH allowance to be utilised during the year if conditions permit. 1.2. New Build Programme 1.2.1 The 2022/23 working programme for new build is £39.436m, with 170 completions expected for the year and is funded as follows: £000 Prudential Borrowing 21,788 Capital Funded from Current Revenue (CFCR) 4,670 Scottish Government Grant 12,978 Total projected resources 39,436 1.3 Council Buy Back Schemes 1.3.1 As part of the 2022/23 Revenue Estimates, the budget provided for the continuation of both the Council’s Empty Homes Purchase Scheme (EHPS) and the Open Market Purchase Scheme (OMPS). This will allow approximately 130 properties to be brought back into Council use. 1.3.2 In addition to the EHPS and OMPS, the Mortgage to Rent scheme (MTR) was also added to the overall Council Buy Back scheme and is anticipating an additional 3 properties to be brought back into council use in 2022/23. 1.3.3 Funding requirements for 2022/23 for the Council Buy Back Scheme is made up as follows: £000 Prudential Borrowing 6,828 Scottish Government Grant Subsidy Income 3,900 244 Total projected resources 10,972 1.3.4 Approval was given at the Housing and Regeneration Committee held on the 24 November 2021 to expand the scheme to acquire homes where this would enable planned common works to progress, with owner occupiers given the option to remain as a Council tenant. It is estimated that this could enable a further 50 properties to be purchased during the year. Page 148 of 193
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The target has currently remained at 130 properties due to the current buoyant property market which may lead owners to sell on the open market, although every effort will be made to secure as many suitable properties as possible. 2. Report 2.1 Mainstream 2.1.1 A summary of the mainstream working programme and actual spend to 16 September 2022 (Period 6) is included within Appendix 1, highlighting that at this stage in the financial year: • £57.242m (91% of the working programme) has been legally committed; and • £23.772m (41% of the projected resources) has been spent. 2.1.2 Legal commitments and spend to date are higher than historic trends and the programme is projected to fully spend. 2.1.3 In order to support the Scottish Government’s Ukraine Resettlement Programme, the Council is recommissioning two towers (Birkshaw, Wishaw and Highcoats, Coatbridge) that were being prepared for demolition in 2023/24. Appendix 1 has been updated to show the projected costs of £5m which will be fully offset fully by Scottish Government funding with no additional cost to the Council. 2.1.4 The programme of work to recommission both towers is extensive and requires support from both the Council's Joint Venture Partners, Mears and Saltire. As a result of our partners resources being targeted towards these works, other programmes normally carried out by Mears (i.e. kitchens, bathrooms, rewires, fire doors etc) and Saltire (electric heating) may be affected. This may result in a reduction in planned spend within the current capital plan. Alternative corrective action is currently being considered to offset any underspend through acceleration of works in other areas.. 2.2 New Build 2.2.1 A summary of projected outturn spend on the new build programme is contained within Appendix 2. Projected spend totals £39.436m and is funded by Prudential Borrowing, CFCR and Scottish Government Funding. 2.2.2 There are currently eight projects on site at Lindsaybeg Road, Chryston; Dykehead Road, Airdrie; Northburn Place, Airdrie; Community Road, Bellshill; Former Orrs Building, Airdrie; Castlehill Road, Wishaw; Berwick Street, Coatbridge; and Gateside Farm, Stepps. 2.2.3 Handover of all 16 homes at Annieshill View, Plains, took place in September 2022. 2.2.4 Following a revision of Scottish Water’s surface water policy, the Council is continuing to progress solutions for connection issues that will allow contract awards to be made at Laburnum Road, Viewpark and MacArthur Avenue, Glenmavis. Page 149 of 193
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2.2.5 To date, 970 new build homes have been completed as part of the Council’s ambitious new supply programme of 5,000 new homes. Currently, 397 homes are under construction, with 170 homes expected to complete in 2022/23. 2.2.6 Sites have been identified and approved at Committee for a further 1,370 homes across 36 sites, with site investigations, title checks and design development on these sites progressing. 2.2.7 The Council has appointed contractors who are progressing layouts and designs for several sites, with site investigations underway. 2.3 Council Buy Back Scheme 2.3.1 A summary of projected outturn spend on the Council Buy Back Schemes is also contained within Appendix 2. Projected spend currently totals £5.285m collectively between the Council buy back schemes, £4.814m attributable to EHPS and OMPS and £0.471m to the MTR scheme. This is funded by Prudential Borrowing, Scottish Government Funding and Subsidy Income. 2.3.2 The original target of 130 homes to be purchased through the OMPS in 2022/23 has been revised and the current projection is now 50 homes. This is due to lack of demand along with more homes selling on the open market. 2.3.3 To date, 16 properties have been brought back into use as affordable housing in 2022/23. A Scottish Government grant contribution of £1.5m has been secured for 2022/23, with further funding to be made available depending on progress. 2.3.4 The final revenue cost of borrowing will equate to a potential drawdown of £0.142m in 2022/23 from the amounts set aside for “Our Ambition” 3. Measures of success 3.1 The successful delivery of the HRA capital programmes, providing high quality housing stock. 4. Supporting documentation 4.1 Appendix 1 – 2022/23 HRA Capital Programme – Mainstream Budget Monitoring Period 6 4.2 Appendix 2 – 2022/23 HRA Capital Programme – New Build / Council Buy Back Scheme Budget Monitoring Period 6 Brian Lafferty Head of Housing Property and Projects Page 150 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The financial implications are outlined throughout the report. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ Page 151 of 193
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If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy (September 2012), Services manage these as part of their overall corporate and service planning processes. The current economic climate has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. To minimise risk this report has been prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with Financial Regulations. Page 152 of 193
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Appendix 1 Page 153 of 193
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Appendix 2 Page 154 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/JM Date 16/11/22 Enterprise and Communities – Capital Monitoring Report From Derek Brown, Depute Chief Executive E-mail telferg@northlan.gov.uk Telephone Greg Telfer, Business Finance Manager, 07583 010692 1. Background 1.1 Financial year 2022/23 is the second year of the 5 year capital programme which was approved by the Policy and Strategy Committee on 18 March 2021. 1.2 The Enterprise and Communities 2022/23 capital programme of £157.168m was approved by the Policy and Strategy Committee on 17 March 2022. The programme has since been increased by £5.796m relating to carry forwards from 2021/22 and £14.505m reprofiling to 2023/24 was approved at SCDG on 15 September 2022. In Executive Summary This report highlights the financial performance of 2022/23 Enterprise and Communities capital programme for the period ended 16 September 2022 (Period 6). In summary the Service has a total capital budget of £161.151m. At this stage in the financial year the service is currently reporting an underspend of £3.085m. Further explanation of project variances and management action taken by the Service is included within the main report and attached appendices. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the 2022/23 Enterprise and Communities capital programme. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning AGENDA ITEM 11B Page 155 of 193
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addition, a further £12.692m has been received in external funding giving an overall working capital programme of £161.151m. 1.3 The Council’s approved Financial Regulations required services to remain within their approved budgetary provision, and to report all significant deviations – defined as the higher of £0.100m or 5% - within their budget monitoring reports. Where significant deviations were identified, services must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. 2. Report 2.1 At Period 6 the service is reporting an underspend of £3.085m. Capital budgets and expenditure are summarised into Project/Themes (see Appendix A) 2.2 Assets and Procurement Solutions (On Target) There are a number of compensating variances across the Asset and Procurement Solutions division. Demolitions are forecast to underspend by £0.853m mainly in relation to the timing of Fleming House demotion which is now projected to be next financial year. This underspend is being managed by accelerating projects in Maintaining Existing Assets for health and safety works (£0.187m), major maintenance on the Time Capsule flooring (£0.300m) and Bellshill Cutural café works (£0.164m). There is also acceleration within Office Rationalisation (£0.367m) and Rationalisation of ASN (£0.135m). 2.3 Environmental Assets (£2.240m underspend) This underspend predominately sits within Roads Assets Management (£1.469m) and is in relation to the Street Lighting project. The procurement exercise to award this contract has only recently concluded so there is a timing delay on the physical works commencing on site. Works will now continue into the 2023/24 financial year. There is also an underspend within Infrastructure and Transportation improvements (£0.190m) as a result of maximising external funding and also vacancies in the Design Team. The Parks Masterplan is projected to underspend in the current financial year due to the timing of projects commencement and completion. In addition, the service has successfully bid for external funding which has created underspends within Greenspace Infrastructure and Health and Wellbeing. 2.4 Planning and Regeneration (£0.845m underspend) The division expects and underspend in the City Deal programme on Ravenscraig Infrastructure Access (£0.845m) in relation to the delayed Network Rail project delivery timescales for the completion of required work for the West Cost Main Line. This expenditure forecast now falls into the first quarter of 2023/24. 3. Measures of success 3.1 The Service aim is to be in a balanced budget position at financial year-end Page 156 of 193
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4. Supporting documentation 4.1 Appendix 1 Summary Expenditure by Project/Theme Derek Brown Depute Chief Executive Page 157 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Service aims to operate within approved funding levels and utilise budget virements to support emerging issues and mitigate variances across budget heads. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 158 of 193
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services managed these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. To minimise risk this report was prepared by service based Financial Solutions personnel in consultation with budget managers, in accordance with the Financial Regulations. Page 159 of 193
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Appendix 1 Enterprise & Communities Capital Programme 2022/23 Theme Expenditure Summary 1st April 2022 - 16 September 2022 (PERIOD 6) Thematic Category Revised Budget £ Actual £ Committed £ Uncommitted £ Projected Outturn £ Outturn variance £ ASSET & PROCUREMENT SOLUTIONS Maintaining Existing Assets - windows, re-roofing, re-wiring and condition survey works for the Council's building assets 8,857,868 1,693,846 5,899,643 3,632,524 9,532,167 (674,299) Carbon Management 2,126,769 123,729 123,729 1,821,221 1,944,950 181,819 Office Rationalisation (16,849) 44,418 100,713 250,000 350,713 (367,562) Shared Campus 0 0 0 0 0 0 Leisure Development 1,311,349 931,488 1,164,475 218,946 1,383,421 (72,072) Health & Wellbeing & Digital Classrooms 411,693 124,520 124,520 287,173 411,693 0 Rationalisation including ASN & Social Work 3,599,432 382,851 673,970 3,060,889 3,734,859 (135,427) Curriculum Development 863,951 364,042 493,521 393,220 886,741 (22,790) Sustainable Estate 1,474,242 43,312 575,648 920,589 1,496,237 (21,995) Outdoor Education and Outdoor Spaces 343,176 89,902 434,222 0 434,222 (91,046) Future Capital Receipts Investments 985,791 0 236,281 493,719 730,000 255,791 Design Fees 1,525,383 433,195 1,469,356 0 1,469,356 56,027 1140 Early Learning and Childcare Expansion 2,191,802 739,062 954,343 1,198,995 2,153,338 38,464 Demolitions 1,010,383 20,998 77,293 80,000 157,293 853,090 TOTAL ASSET & PROCUREMENT SOLUTIONS 24,684,990 4,991,362 12,327,714 12,357,277 24,684,991 0 TOWN AND COMMUNITY HUBS Town and Community Hubs 49,860,100 18,036,257 45,359,544 4,500,556 49,860,100 0 TOTAL TOWN AND COMMUNITY HUBS 49,860,100 18,036,257 45,359,544 4,500,556 49,860,100 0 ENVIRONMENTAL ASSETS Infrastructure and Transportation Improvements 9,010,727 2,367,919 5,866,978 2,953,898 8,820,876 189,851 Greenspace infrastructure Health & Wellbeing 1,397,618 134,197 299,272 986,151 1,285,423 112,196 Parks Masterplans 2,906,584 664,767 1,497,382 939,742 2,437,123 469,460 Environmental Assets replacement of plant and machinery 666,997 140,318 605,823 61,174 666,997 0 Cemeteries/Tree Infrastructure 4,319,311 64,321 64,321 4,254,990 4,319,311 0 Road Asset Management including street lighting, road improvements and gateway signage 14,550,454 2,759,454 10,091,375 2,990,302 13,081,677 1,468,777 Bin rationalisation project and replacement 137,742 35,802 137,742 0 137,742 0 Play Area Equipment and surface renewal 213,145 95,288 213,145 0 213,145 0 TOTAL ENVIRONMENTAL ASSETS 33,202,578 6,262,065 18,776,039 12,186,254 30,962,294 2,240,284 REGULATORY SERVICES & WASTE SOLUTIONS Contaminated Land and Pollution Control 368,376 99,359 188,296 180,080 368,376 0 Vehicle Replacement Programme 1,448,444 45,000 45,000 1,403,444 1,448,444 0 Depot Rationalisation and Investment 3,509,776 3,771 3,509,776 0 3,509,776 0 HWRC Equipment 464,700 90,745 90,745 373,955 464,700 0 Landfill Provision (Aftercare) 0 0 0 0 0 0 TOTAL REGULATORY SERVICES & WASTE SOLUTIONS 5,791,296 238,875 3,833,817 1,957,479 5,791,296 0 PLANNING & REGENERATION Economic Regeneration 24,443,987 1,034,703 5,450,366 18,993,621 24,443,987 0 City Deal 19,479,365 5,236,288 15,917,048 2,709,159 18,626,207 853,158 Enterprise Projects 2,911,421 567,011 731,237 2,188,809 2,920,046 (8,625) Antonine Wall Project 215,013 82,258 82,258 132,755 215,013 0 TOTAL PLANNING & REGENERATION 47,049,786 6,920,260 22,180,909 24,024,344 46,205,253 844,533 HOUSING PROPERTY & PROJECTS Water Quailty / Ventilation 561,862 496,409 496,409 65,453 561,862 0 TOTAL HOUSING PROPERTY & PROJECTS 561,862 496,409 496,409 65,453 561,862 0 TOTAL ENTERPRISE & COMMUNITIES 161,150,612 36,945,228 102,974,430 55,091,364 158,065,794 3,084,817 YTD OUTTURN Page 160 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref Central Heating Servicing & Maintenance Contract Modification Date 16/11/22 Central Heating Servicing & Maintenance Contract Modification From Brian Lafferty, Head of Business (Housing Property and Projects) E-mail starbucks@northlan.gov.uk Telephone Siobhan Starbuck -Contract Support Manager via MS Teams Recommendations It is recommended that Committee approves the one-off modification to the existing Central Heating Repairs & Maintenance contract. 1. Background 1.1 The contract delivered by Saltire Facilities Management Ltd has been in place since January 2011 and will expire in January 2024. 1.2 The base date is July 2010 which is deemed to equate to the price levels represented at the commencement date. 1.3 In 2021, the index figures were revised two weeks after it was due to be applied to the contract, the Contractor worked with the Council to agree a rate that was more reflective of the current market conditions which secured the Council a 10% saving against the original contracted index percentages. 2. Report Executive Summary The purpose of this report is to seek approval from committee to modify the existing contract for Central Heating Servicing & Maintenance provided by Saltire Facilities Management Ltd. The existing contract is expected to be replaced by the Enterprise contract in January 2024 resulting in this contract modification being utilised as an interim measure to ensure continuity of service for the Council’s tenants until such time as the new contract is awarded. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth AGENDA ITEM 12 Page 161 of 193
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2.1 In line with the financial regulations clause 15.4 any significant variations should be reported at the earliest opportunity. 2.2 The Index rates for July 2022 were reviewed, the levels do not represent current market rates. 2.3 Members will be aware of the well-publicised inflationary pressures in the wider economy linked to Covid-19, Brexit and the war in Ukraine. As a result, material prices have risen significantly in recent times with the only way to address this within the contract being through the index fluctuation. 2.4 A 10% saving was realised last year through working closely with the Contractor to agree an uplift rate lower than that generated through the index, however this is not the case for 2022 and the Contractor is seeking an additional uplift on top of the BCIS index figure which will equate to an overall uplift of approximately 10%. 2.5 An earlier committee report to the Housing and Regeneration Committee on 20 May 2020 regarding the Central Heating Servicing and Maintenance Extension advised there would be no change in the scope of the contract or the schedule of rates. This amendment may be considered a one-off modification to the existing terms and conditions to deal with the unprecedented market conditions and ensure the sustainability of the contract. Allowing an increase to the index percentage would have a consequential effect on the Schedule of Rates. 2.6 The uplift of the Contract will be fully funded from the HRA budget. 2.7 The rates including the 10% uplift have been assessed and are still considered to demonstrate best value. Price Savings / Increases 2.7 Not applicable. Price Stability 2.8 The is index remains volatile, with materials at the labour market still struggling to recover post Brexit and the Covid-19 pandemic, therefore there remains a risk that prices could continue to risk, this will be monitored and managed appropriately. Page 162 of 193
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3. Measures of success 3.1 The contract will remain sustainable for the duration of the contract period; 3.2 that Best Value is both demonstrable and achieved. 4. Supporting documentation Not applicable. Brian Lafferty Head of Business (Housing Property and Projects) Page 163 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The cost associated with increase will be contained within the HRA budget. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Page 164 of 193
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Risks associated with legal proceedings exist if the decision is formally challenged. 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 165 of 193
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N/A 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risks associated with legal proceedings exist if the decision is formally challenged, however the risk remains that if no increase is permitted the contract may no longer be sustainable and could lead to a re-procurement exercise being required earlier than planned which would leave the Service exposed to more volatile market conditions. Page 166 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref Ukrainian Resettlement NTP Date 16/11/22 Ukrainian Resettlement - Negotiated Tender Procedure From Brian Lafferty, Head of Business (Housing Property and Projects) E-mail starbucks@northlan.gov.uk Telephone Siobhan Starbuck -Contract Support Manager via MS Teams Recommendations It is recommended that Committee acknowledges the actions of the Deputy Chief Executive to award a Negotiated Tender to Mears Scotland LLP. 1. Background 1.1 Due to the ongoing war in Ukraine, the Scottish Government requested North Lanarkshire Council step in and offer housing for Ukrainians fleeing the conflict. 1.2 Birkshaw Tower, Wishaw and High Coats, Coatbridge were originally included within the phase 1 demolition programme and as a result most properties were void. 1.3 The Scottish Government have provided additional funding to assist with this resettlement programme for up to 3 years. The towers will be used for up to 3 years Executive Summary Committee is asked to acknowledge the actions of the Deputy Chief Executive to award a Negotiated Tender for the Ukrainian Resettlement Works to recommission the previously decommissioned properties at Birkshaw Tower, Wishaw and High Coats, Coatbridge (the ‘Contract’) to Mears Scotland LLP. The Contract commenced on 18th July 2022 for approximately 24 weeks. The Value of the Contract is approximately five Million Pounds (£5,000.000.00) exclusive of VAT. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (12) Ensure our residents are able to achieve, maintain, and recover their independence through appropriate supports at home and in their communities AGENDA ITEM 13A Page 167 of 193
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and the demolition temporarily postponed but these will still form part of the phase 1 demolition programme. 1.4 This is a stand-alone exercise and therefore there is no incumbent contractor for the works. 2. Report 2.1 Due to the ongoing conflict the contract award recommendation was made based on the urgency of the requirement. A negotiated Tender procedure was carried out with the current partnership contractor (Mears Scotland LLP) to mobilise with immediate effect. Further details of the procurement procedure are included in Appendix 1 and the SME status and location of the tenderer is located within Appendix 2. 2.2 The value of the Contract is approximately £5,000.000.00 and will be fully funded from the Scottish Government grant. Price Savings / Increases 2.4 Not applicable. Price Stability 2.5 The pricing is fixed for the duration of the contract. Community Benefits 2.6 The procurement did not include a community benefit requirement due to the urgency of the award. Fair Work First 2.7 The procurement did not include ‘Fair Work First’ as part of the award criteria due to the urgency of the award. Contract Strategy 2.8 Officers from Housing Property and Projects will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. Page 168 of 193
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3. Measures of success It is anticipated that the award of the Contract will deliver the following successful outcomes: 3.1 a safe and secure residence for Ukrainians escaping the conflict in their country; 3.2 the appointment of a Service Provider who has the experience and capability to deliver an innovative, high quality and responsive service; 3.3 the procurement procedure is compliant with procurement legislation and internal procedures; 3.4 that Best Value is both demonstrable and achieved. Page 169 of 193
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4. Supporting documentation Appendix 1 Summary of Procurement Process Appendix 2 SME Status and Location of Tenderer Brian Lafferty Head of Business (Housing Property and Projects) Page 170 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? This Contract will work towards improving outcomes for people and communities by assisting the Council to reduce inequalities of outcomes caused by socio-economic disadvantage. The Council will continue to carry out equality impact assessments to determine if policies, practices, decisions, functions and strategies identify any negative impact on any particular group covered by the protected characteristics of the Equality Act 2010. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The cost associated with contract delivery will be fully funded by the Scottish Government. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Page 171 of 193
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5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Risks associated with legal proceedings exist if the award decision is formally challenged. 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 172 of 193
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N/A 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risks associated with legal proceedings exist if the award decision is formally challenged. Page 173 of 193
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Appendix 1 – Summary of Procurement Process Response Procurement Procedure Utilised: Negotiated Tender (NTP) Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 12 July 2022 Number of Companies Invited to Take Part: 1 SME % of Expressions of Interest: 0 NLC Based % of Expressions of Interest: 1 Tender Return Deadline: 15th July 2022 Number of Tenders Received: 1 Where Only One Tender Is Received, Why?: Tender was negotiated due to extreme urgency (humanitarian crisis in Ukraine) Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: - Price: 100 Evaluation Team: Staff from Housing Property and Projects Anticipated Contract Start Date: 18 July 2022 Total Contract Period (Months): Approximately 24 months Maximum Total Contract Value: £5,000,000 Page 174 of 193
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Appendix 2 – SME Status and location of Tenderer Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Mears Scotland LLP Large North Lanarkshire Page 175 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref Low Rise Fire Door Programme NTP Date 16/11/22 Low Rise Fire Door Programme - Negotiated Tender Procedure From Brian Lafferty, Head of Business (Housing Property and Projects) E-mail starbucks@northlan.gov.uk Telephone Siobhan Starbuck -Contract Support Manager via MS Teams Recommendations It is recommended that Committee acknowledges the actions of the Deputy Chief Executive to award a Negotiated Tender to Mears Scotland LLP. 1. Background 1.1 The Council has reviewed its fire strategy across low rise blocks and taken the decision to upgrade existing doors in low rise properties. 1.2 Following the installation of fire doors and fire stopping to tower blocks across North Lanarkshire, the Scottish Fire and Rescue Service have supported the Council’s proposal to install fire doors to low rise blocks. Executive Summary Committee is asked to acknowledge the actions of the Deputy Chief Executive to award a Negotiated Tender for the installation of fire doors to low rise properties and fire stopping to supported and linked sheltered housing complexes across North Lanarkshire (the ‘Contract’) to Mears Scotland LLP. The Contract commenced late summer 2022 for approximately 24 months. The Value of the Contract is up to eight Million Pounds (£8,000.000.00) exclusive of VAT. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (12) Ensure our residents are able to achieve, maintain, and recover their independence through appropriate supports at home and in their communities AGENDA ITEM 13B Page 177 of 193
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1.3 It was also identified that additional fire stopping is required to assist fire compartmentalisation within sheltered and supported accommodation complexes/blocks. 1.4 The overall programme of works is forecast to cost approximately £15m, the first phase of the programme will be delivered via a negotiated tender process and the second phase competitively tendered. 1.5 This is a stand-alone exercise and therefore there is no incumbent contractor for the works. 2. Report 2.1 Fire safety within the housing portfolio is of utmost importance. Following the tragedy at Grenfell Tower, the Council embarked on a programme of work installing upgraded fire doors and fire stopping within high rise blocks, the success of this programme and the support of the Scottish Fire & Rescue Service has led to the decision to further safeguard low rise blocks with the addition of fire doors across North Lanarkshire. Further details of the procurement procedure are included in Appendix 1 and the SME status and location of the tenderer is located within Appendix 2. 2.2 The value of the Contract is up to £8,000.000.00. 2.3 The costs associated with contract delivery will be contained within the HRA budget. Price Savings / Increases 2.4 Not applicable. Price Stability 2.5 The pricing is fixed for the duration of the contract. Community Benefits 2.6 The procurement did not include a community benefit requirement due to the urgency of the award. Fair Work First 2.7 The procurement did not include ‘Fair Work First’ as part of the award criteria due to the urgency of the award. Contract Strategy 2.8 Officers from Housing Property and Projects will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. Page 178 of 193
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3. Measures of success It is anticipated that the award of the Contract will deliver the following successful outcomes: 3.1 improved fire safety within low rise blocks; 3.2 the appointment of a Service Provider who has the experience and capability to deliver an innovative, high quality and responsive service; 3.3 the procurement procedure is compliant with procurement legislation and internal procedures; 3.4 that Best Value is both demonstrable and achieved. Page 179 of 193
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4. Supporting documentation Appendix 1 Summary of Procurement Process Appendix 2 SME Status and Location of Tenderer Brian Lafferty Head of Business (Housing Property and Projects) Page 180 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? This Contract will work towards improving outcomes for people and communities by assisting the Council to reduce inequalities of outcomes caused by socio-economic disadvantage. The Council will continue to carry out equality impact assessments to determine if policies, practices, decisions, functions and strategies identify any negative impact on any particular group covered by the protected characteristics of the Equality Act 2010. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The cost associated with contract delivery will be fully funded by the Scottish Government. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Page 181 of 193
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5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Risks associated with legal proceedings exist if the award decision is formally challenged. 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 182 of 193
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N/A 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risks associated with legal proceedings exist if the award decision is formally challenged. Page 183 of 193
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Appendix 1 – Summary of Procurement Process Response Procurement Procedure Utilised: Negotiated Tender (NTP) Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 12 July 2022 Number of Companies Invited to Take Part: 1 SME % of Expressions of Interest: 0 NLC Based % of Expressions of Interest: 1 Tender Return Deadline: 29th July 2022 Number of Tenders Received: 1 Where Only One Tender Is Received, Why?: Tender was negotiated due to extreme urgency (fire safety works) Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: - Price: 100 Evaluation Team: Staff from Housing Property and Projects Anticipated Contract Start Date: August 2022 Total Contract Period (Months): Approximately 24 months Maximum Total Contract Value: £8,000,000 Page 184 of 193
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Appendix 2 – SME Status and location of Tenderer Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Mears Scotland LLP Large North Lanarkshire Page 185 of 193
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☐ Yes ☒ No Ref CG/JMcK Date 16/11/22 Contracts awarded below Committee approval threshold From Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone James McKinstry 07939281102 1. Background Executive Summary This report notifies the Committee of the contracts awarded between 1 July 2022 to 30 September 2022. It sets out those contracts awarded with a value below the financial threshold requiring Committee approval. Recommendations The Housing Committee are: • advised of the Contracts awarded below Committee approval threshold between 1 July 2022 to 30 September 2022 as per the process within the Council’s General Contract Standing Orders. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (17) Ensure we keep our environment clean, safe, and attractive 1.1 The Councils General Contract Standing Orders (the ‘GCSOs’) outline financial approval thresholds for contracts for goods, works and services. Contract awards above £500,000 for Supplies and Services and above £2,000,000 for Works require approval by the Committee. These contract awards are considered by the Committee on a case-by-case basis. 1.2 Where the value of a contract award is between £50,000 and £500,000 for Supplies and Services and between £500,000 and £2,000,000 for Works, GCSOs require that the Head of Asset and Procurement Solutions award these contracts on behalf of the appropriate Chief Officer. 1.3 The Head of Asset and Procurement Solutions is required to notify Committee on a regular basis of any such contracts awarded on behalf of Procuring Service Areas. AGENDA ITEM 14 Page 187 of 193
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2. Report 3. Measures of success 4. Supporting documentation 4.1 Appendix 1 - Summary of contracts awarded. James McKinstry Head of Asset and Procurement Solutions 2.1 The GCSOs require that contracts in excess of £500,000 for supplies and services and £2,000,000 for works are approved, on a case-by-case basis, by the Committee before award. 2.2 The GCSOs require that contracts with a value above £50,000 but less than £500,000 for Supplies and Services and above £500,000 but less than £2,000,000 for Works are awarded by the Head of Asset and Procurement Solutions on behalf of the appropriate Chief Officer. 2.3 The contracts awarded by the Head of Asset and Procurement Solutions that are under the £500,000 Committee financial approval threshold for Supplies and Services and £2,000,000 for Works in the period from 1 July 2022 to 30 September 2022 are detailed in Appendix 1. 3.1 Contracts support the delivery of Council and service priorities. 3.2 Appointment of contractors who have suitable experience and capability to deliver the required supplies, services or works. 3.3 Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 3.4 The Council’s Contract Register is kept updated by services and management information is comprehensive and accurate. 3.5 Best Value is both demonstrable and achieved. Page 188 of 193
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Where Financial impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. The Council’s Procurement Strategy proposes methods of maximising the delivery of procurement benefits that could bring improved financial return to the Council and the areas wider economy. Certain benefits have a monetary value attached and these will be monitored on a project-by-project basis. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☒ No ☐ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Where HR impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Where Legal impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Page 189 of 193
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Contracts awarded by the Council are compliant with GCSOs and procurement legislation. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Sustainable procurement is one of the key objectives of the Strategy and will have a positive impact, including, embedding sustainable procurement as business as usual and incorporating community benefits into the Councils contracts. Supporting local businesses and SMEs through closer working with colleagues in the Council’s Enterprise department and by making our processes more streamlined and accessible. Where Environmental/Carbon impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Where Risk impacts have been identified, they have been established and addressed in each specific Contract Strategy and incorporated into the project. Page 190 of 193
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Contract award procedures may be susceptible to legal challenge if they are not discharged in accordance with GCSO and procurement legislation. Page 191 of 193
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APPENDIX 1 – SUMMARY OF BELOW THRESHOLD CONTRACT AWARDS Contract Description Contract Award Date Contract Start Date Contract End Date Contract Extension Contract Value (inc extension) (£s) Pre- Procurement Estimate (£’s) Successful Tenderer Supplies Services Works No of Tenders Received Route* Replacement of Controlled Door Entry Systems & Associated Works 29/08/2022 30/09/2022 21/01/2024 21/01/2026 £1,987,500.00 £2,408,000.00 DM Integrated Ltd Works 2 CO MTC: Controlled Door Access Systems & Associated Works, Repairs & Maintenance 2020-23 15/09/2022 18/10/2022 17/10/2023 N/A £350,000.00 £350,000.00 DM Integrated Ltd Works 1 EXT* Housing Options e-Learning Toolkit Design & Hosting 08/09/2022 17/12/2022 16/12/2023 N/A £163,312.00 £163,312.00 Aurion Learning Ltd Services 1 EXT* *Contract extensions to incumbent providers delivering best value. Provision for extension made in original contract award reported to previous Committee. Key – Procurement Route CO - Contract Open Procedure CR - Contract Restricted Procedure FO - Framework Open Procedure FR - Framework Restricted Procedure FMCC - Mini Comp Council Framework FMC3 - Mini Comp 3rd Party Framework DAFC - Direct Award Council Framework DAF3 - Direct Award 3rd Party Framework Page 192 of 193
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DAH&SC - Direct Award Health & Social Care Related Services N - Negotiated Contract EXT - Extension to Contract/Framework Page 193 of 193