Agenda, decisions and minutes

To confirm the minutes of the meeting held on  25 April 2017 (circulated separately to Cabinet members).

The minutes of the meeting held on 25^th April 2017 were agreed by the members present and signed by the Chairman.

The minutes of the meeting held on 25^th April 2017 were agreed by the members present and signed by the Chairman.

To receive any apologies for absence.

None received.

None received.

To receive any declarations of interest

A member with a disclosable pecuniary interest or a personal interest in a matter who attends a meeting of the authority at which the matter is considered -

(i)            must disclose the interest at the start of the meeting or when the interest becomes apparent

and, if the interest is a disclosable pecuniary interest, or a personal interest which is also prejudicial

(ii)            may not participate in any discussion or vote on the matter (and must withdraw to the public seating area) unless they have been granted a dispensation.

A member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Members’ Register of Interests, or is not the subject of a pending notification, must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal and prejudicial interests are defined in Part 2 of the Code of Conduct for Members

[If a member is in any doubt as to whether they have an interest which should be declared they should seek the advice of the Monitoring Officer before the start of the meeting]

None received.

None received.

An opportunity for members of the public to make statements and ask questions in accordance with the rules as to Public Participation.

None received.

None received.

There were no referrals to Cabinet

None received.

None received.

That the Cabinet Forward Plan be noted with the following changes:

·        27 June – Add ‘Service Specification for new Leisure Contract’

That the Cabinet Forward Plan be noted with the following changes:

·        27 June – Add ‘Service Specification for new Leisure Contract’

The virements as detailed on the attached Form A to the Cabinet report be approved.

Decision

The virements as detailed on the attached Form A to the Cabinet report be approved.

Reason for Decision

To seek Cabinet approval to proposed virements for the purpose of increasing the capital budget for Play Area refurbishment to reflect additional grant funding received.

Corporate Objectives

To standardise documentation and authorisation requirements for all virements.

Monitoring Officer/S.151 Officer Comments

Monitoring Officer: 

No comments to add to the report

Deputy S.151 Officer

This is Deputy S151 Officer report.

Advice

Councillor Elliot explained that the report referred to a straight forward transfer between budgets.

Voting

None.

1.The provisional outturn position for each of the accounts shown within the Cabinet  

     report be noted; and

Resolved to Recommend:

2. approval of the reserve movements outlined in Section 10 of the Cabinet report

Decision

1.The provisional outturn position for each of the accounts shown within the Cabinet

      report be noted; and

Resolved to Recommend:

2. approval of the reserve movements outlined in Section 10 of the Cabinet report

Reason for Decision

To provide details of the provisional outturn position for the:

· General Fund

· Housing Revenue Account

· Capital Programme

To provide details of the proposed transfers to and from earmarked reserves.

Corporate Objectives

Delivering an efficient and modern council

Monitoring Officer/S.151 Officer Comments

Monitoring Officer  

 No further comments to add.

S.151 Officer

The S151 Officer has recommended reserve movements that will most appropriately assist the Council to deliver its stated objectives in the medium term.

The Finance Team will work closely with Service Managers throughout the budget-setting process for 2018/19 to ensure that income forecasts are not overly prudent, and that expenditure budgets, where appropriate, are set to reflect underspends in 2016/17.

Advice

Councillor Elliot introduced the report and noted that paragraph 1.1 incorrectly referred to paragraph 2.5 and stated £1.109m which should read £1.158m. He added that the report showed a good outturn and resulted in having a surplus. The increase in garage income was a result of hard work from a new member of staff and the improvements made.

Councillor Williams congratulated the Officer who worked on the garage income. He said there had been significant changes across the council and this surplus would ease the situation.

Councillor Marshall recognised that it helped to be pro-active and actively marketing garages to help increase the income received.

Councillor Griffiths extended the thanks to all staff across all services as everyone had helped to get to this position.

Voting

None.

1.     Work to progress on the creation of a Devco based on Option 3b of the Cushman Wakefield model, i.e. to sell a portion of the units developed on the private market, and to retain a portion for private rental in order to generate a revenue stream for the Council be approved

Resolved to Recommend:

2.     the approval of a budget of £200k to progress Recommendation 1 of this report. This will cover the finalisation of design work, the finalisation of the business case, and consequent legal advice on the most appropriate tax and governance arrangements on creation of a Development Company.

Decision

1.     Work to progress on the creation of a Devco based on Option 3b of the Cushman Wakefield model, i.e. to sell a portion of the units developed on the private market, and to retain a portion for private rental in order to generate a revenue stream for the Council be approved

Resolved to Recommend:

2.     the approval of a budget of £200k to progress Recommendation 1 of this report. This will cover the finalisation of design work, the finalisation of the business case, and consequent legal advice on the most appropriate tax and governance arrangements on creation of a Development Company.

Reason for Decision

To update Cabinet on work undertaken to date on the viability of the Council establishing a Development Company to develop the Civic centre site.

Corporate Objectives

This project aligns with all of the Council’s corporate objectives, as approved by Council in February 2016.

Monitoring Officer/S.151 Officer Comments

Monitoring Officer:

The Council has the power to establish a Development Company pursuant to provisions contained in the Local Government Act 1972, Local Government Act 2003 and the Localism Act 2011.

As highlighted in the report, detailed legal advice will be obtained in relation to the governance arrangements, which will operate between the Council and the Development Company, the applicability of ‘State Aid’ rules (EU rules in place to prevent members states distorting cross boundary competition), and the Council’s requirement to achieve ‘best consideration’ for any disposal/transfer of land to the Development Company.   This further advice will be reported in forthcoming reports.”

S.151 Officer

My comments are included in the body of the report.

Advice

J Deane introduced the report and explained that it had been based on a feasibility study. He explained that following a procurement exercise, Capita Asset Services was appointed to produce a report on the viability of several Council-owned sites. This report identified the Civic Centre site as the most viable development opportunity. Cushman Wakefield (CW) was appointed to undertake this detailed modelling based on previous knowledge of the site gained from a Feasibility Study they produced in 2016.

Of the 5 development options, Option 3b would be the preferred options with headlines based on currently modelled assumptions:

·        180 units – 60 sold as affordable; 60 sold private market; 60 rental units retained

·        Net revenue stream – c£300k in first full year; inflationary increase up to c£400k by year 12

·        Interest premium for Council lending to Devco not yet factored in (subject to legal advice)

·        Debt profile (c£6.5m outstanding after sales) – interest only repayments

·        Model assumes sale of units/refinancing in year 30

Some of the key risks and mitigations associated with Option 3b were summarised in section 7 of the Cabinet report.

He added that it is likely that the primary source of funding for the Devco will be via the Council borrowing from PWLB and then on-lending to the Devco. This will require the Council to meet financing costs on its borrowing for a likely period of 2-3 years until  ...  view the full minutes text for item CA/53/17

That, under s.100A (4) of the Local Government Act 1972 Schedule 12A Part 1 as amended by the Local Government (Access to Information) (Variation) Order 2006 the public be excluded during the item in Part 2 of the Agenda for this meeting, because it is likely, in view of the nature of the business to be transacted, that, if members of the public were present during this item, there would be disclosure to them of exempt information relating to the financial and business affairs of the Council and third party companies/organisations and also contains legal advice which may be subject to a claim for legal privilege. (Minute CA/055/17)

Local Government Act 1972, Schedule 12A, Part 1, paragraph 3.

That, under s.100A (4) of the Local Government Act 1972 Schedule 12A Part 1 as amended by the Local Government (Access to Information) (Variation) Order 2006 the public be excluded during the item in Part 2 of the Agenda for this meeting, because it is likely, in view of the nature of the business to be transacted, that, if members of the public were present during this item, there would be disclosure to them of exempt information relating to the financial and business affairs of the Council and third party companies/organisations and also contains legal advice which may be subject to a claim for legal privilege. (Minute CA/055/17)

Local Government Act 1972, Schedule 12A, Part 1, paragraph 3.

Full details in Part 2 Decision Sheet

Full details in Part 2 Minutes