Agenda item

DISTRICT HEATING CHARGES

The Leader has agreed to admit to the agenda an item of Urgent Business ‘District Heating Charges’.  The report is not yet available but the Leader has agreed to consider the report as an urgent item of business in order to enable Cabinet to respond in a timely manner to a judicial review challenge on the matter.

Cabinet is recommended to consider this item in private session as specified below.

JOB EVALUATION – PROJECT MANAGEMENT            Appendix AOUB2

COSTS

The Leader has agreed to admit to the agenda the above report as a matter of urgency because of the impact of the project on the Council if the project is delayed.

Councillor Osman returned to the meeting.

DISTRICT HEATING CHARGE

The Leader agreed to accept the report as a matter of urgency to enable Cabinet to respond in a timely manner to the judicial review challenge on the matter.

Councillor Aqbany submitted a detailed report that informed Members there had been a Judicial Review challenge of the Cabinet decision, taken at its 1st October 2008 meeting, to increase district heating charges by 76% from 10th November 2008.  The report contained an Equality Impact Assessment with regard to the 1st October decision.  It detailed the officer response to the legal challenge and opportunities now currently available in the energy markets that might enable the Council to take advantage of lower fuel prices.  The report also contained an Equality Impact Assessment with regard to the implications of any increases post-April.

In terms of the Council's response to the Judicial Review, the Service Director (Housing Improvement and Repairs Service) amplified the options available to Members in terms of the way forward and at the same time drew Members' attention to the letter that had been copied to all Members on behalf of the St Matthew's Tenants' Association.

The Service Director (Housing Improvement and Repairs Service) responded to questions from Members.  The Service Director, Legal Services, advised Members in relation to legal matters.

RESOLVED:

that Cabinet:

1)     notes the basis of the Legal Challenge mounted by the Public Law Project and the Council’s response;

2)     reconsiders the original decision taken on 1 October 2008 in light of the Equality Impact Assessment attached to the report;

3)     rescinds the decision taken on 1 October 2008 with regard to the imposition of a 76% increase in heating charges, backdated to the date of implementation, with the Corporate Director of Adults and Housing, in consultation with the Cabinet Lead for Housing, being authorised to arrange for tenants who have paid the increases to be given a refund or to have their rent accounts credited appropriately, noting that in view of Cabinet’s decision it will not be possible for the Corporate Director to seek to recover the previously  increased charges that have not been paid;

4)     authorises the Corporate Director of Adults and Housing, in consultation with the Head of Contract Procurement, to adopt a best practice approach to future energy contracts, acquiring some of our future needs in advance;

5)     for the post-April 2009 period, instructs officers to consult tenants via the Housing Performance Panel on the proposals included as part of the terms of reference of the Equality Impact Assessment attached as Appendix D of the report;

6)     for the post-April 2009 period endorses the recommendations included in the Equality Impact Assessment attached at Appendix D of the report;

7)     delegates authority to the Corporate Director of Adults and Housing in consultation with the Leader of the Council and Cabinet Lead for Housing to make a decision once that consultation is concluded;

8)     delelgates authority to the Corporate Director of Adults and Housing to authorise rehousing or installation of meters or review the charge applicable, as recommended in the Equality Impact Assessment;

9)     authorises the Service Director, Legal Services, in accordance with Article 14 of the Council’s Constitution and in consultation with the Corporate Director of Adults and Housing and Cabinet Lead for Housing, to defend the Judicial Review proceedings presently issues and any further Judicial Review proceedings (if any) arising from this resolution;

10)agrees to the Prudential Borrowing Reserve Fund being redesignated as the Prudential Borrowing/District and Communal Heating and Hot Water Reserve Fund.