Agenda item

Report No: COU/SE/16/021

 

(A)    Referral from Cabinet: 18 October 2016
1.	Arrangements for Appointment of External Auditors
	Portfolio Holder: Cllr Ian Houlder
(B)    Referral from Cabinet: 1 November 2016
1.	Investing in our Leisure Provision in West Suffolk and Establishing a Long Term Strategic Partnership Approach and Reduced Management Fee with Abbeycroft Leisure
	Portfolio Holder: Cllr Joanna Rayner
(C)    Referrals from Cabinet: 8 December 2016
1.	Barley Homes – Five Year Business Plan
	Portfolio Holder: Cllr Sara Mildmay-White   (Note: Due to the length of the document and to save on printing costs, Exempt Appendix A attached to the Overview and Scrutiny Committee Report No: OAS/SE/16/028, which was the five year business plan, is not contained in this Council agenda pack. Members can access the document electronically on the West Suffolk Intranet, or request a paper copy from Democratic Services.   Members are reminded that should they wish to discuss the specific content of Exempt Appendix A at the meeting, the appropriate motion must be carried to exclude the press and public and move into private session.)
2.	Delivering a Sustainable Budget 2017/2018 Medium Term Financial Strategy 2017-2020
	Portfolio Holder: Cllr Ian Houlder
3.	Mid Year Treasury Management Performance Report and Investment Activity (April – September 2016)
	Portfolio Holder: Cllr Ian Houlder
4.	Training Requirement for Hackney Carriage and Private Hire Vehicle Drivers
	Portfolio Holder: Cllr Alaric Pugh
5.	Local Council Tax Reduction Scheme and Council Tax Technical Changes 2017/2018
	Portfolio Holder: Cllr Ian Houlder
6.	Council Tax Base for Tax Setting Purposes 2017/2018
	Portfolio Holder: Cllr Ian Houlder
7.	Exempt: Investing in our Commercial Asset Portfolio
	Portfolio Holders: Cllrs Alaric Pugh and Peter Stevens   (Note: As this referral from Cabinet is exempt,  it is attached separately to the agenda for consideration in private session (see Item 14 below)

 

Council considered the Referrals report of Recommendations from Cabinet contained within Report No: COU/SE/16/021.

 

(A)    Referrals from Cabinet: 18 October 2016

 

1.       Arrangements for Appointment of External Auditors

 

Approval was sought for a preferred option for making appropriate arrangements for the appointment of external auditors.

 

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.

 

On the motion of Councillor Houlder, seconded by Councillor Sarah Broughton, and duly carried, it was

 

RESOLVED:

 

That Option 3, to ‘opt-in’ to the sector led body (Public Sector Audit Appointments Limited (PSAA)) for the independent appointment of the Council’s External Auditor, beginning with responsibilities for the financial year 2018-2019, as set out in Report No: PAS/SE/16/021, be approved.

 

(B)    Referrals from Cabinet: 1 November 2016

 

1.       Investing in our Leisure Provision in West Suffolk and Establishing a Long Term Strategic Partnership Approach and Reduced Management Fee with Abbeycroft Leisure

 

(Councillor Terry Clements declared a pecuniary interest as a Board Member of Abbeycroft Leisure Trust; and due to the nature of his businesses recorded on his Register of Interests, Councillor Richard Rout also declared a pecuniary interest as he was in competition with Abbeycroft Leisure. Both Members left the meeting during the consideration of this particular referral.)

 

Approval was sought for the creation of a strategic investment fund of £5m across West Suffolk (£3.5m FHDC and £1.5m SEBC) and a specific investment in Skyliner Sports Centre, Bury St Edmunds.

 

Council noted that the Cabinet had previously approved recommendations relating to the longer term strategic approach to leisure provision in West Suffolk through the future development of a leisure partnership agreement for consideration by St Edmundsbury Borough Council (SEBC) and Forest Heath District Council (FHDC); and a separate investment of £240,000 (ex VAT) into equipment for the Skyliner Sports Centre from the Council’s previously approved capital invest to save fund. 

 

Councillor Joanna Rayner, Portfolio Holder for Leisure and Culture, drew relevant issues to the attention of Council.  In response to a question, Councillor Rayner explained that the proposed investment fund would be available for schemes across West Suffolk to provide new capacity or upgraded sports and leisure facilities.  The total of £5m (£3.5m FHDC and £1.5m SEBC) would be created within each Council’s capital programmes, and funded from each Council’s strategic priorities and medium financial strategy reserve; however they would remain two separate ‘pots’.  Funding would be allocated from the respective authority’s pot depending on which borough/district the proposed future scheme was located.

 

On the motion of Councillor Rayner, seconded by Councillor Clive Springett, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the creation of a strategic investment fund of £5m, as set out in Section 3 of Report No: CAB/SE/16/055,  be approved, funded from the strategic priorities and medium term financial strategy reserve, across West Suffolk (£3.5m FHDC and £1.5m SEBC) with delegated authority given to Cabinet (for sums of £500,000 or more), and delegation to the Portfolio Holder for Leisure and Culture, in conjunction with a  Director and the Head of Resources and Performance (for sums of less than £500,000), to draw down from this fund subject to satisfactory business case for each investment proposal for investment in the Council’s leisure facilities; and

 

(2)     due to the urgency of an initial funding request, an additional £177,582 (ex VAT) funding be approved, as set out in Section 4 of Report No: CAB/SE/16/055, from unallocated capital receipts for the 3G pitch at Skyliner Sports Centre to meet the additional cost incurred to deliver a 3G pitch facility to meet FA and community requirements.

 

(C)    Referrals from Cabinet: 8 December 2016

 

1.       Barley Homes – Five Year Business Plan

 

(Councillor Clive Springett declared a pecuniary interest as a Director of Havebury Housing Partnership and left the meeting during the consideration of this particular referral.) 

 

(Councillor Robert Everitt declared a local non-pecuniary interest as a Board Member of Havebury Housing Partnership. Councillors Diane Hind and Patsy Warby declared local non-pecuniary interests as Members of Havebury Housing Partnership's Performance and Scrutiny Panel. Councillor Sarah Broughton declared a local non-pecuniary interest as her business was Prime-Purchase, a subsidiary of Savills PLC.  Savills had advised Barley Homes as part of the development of its Business Plan. Councillors Trevor Beckwith, Tony Brown, Terry Clements, Beccy Hopfensperger, David Nettleton and Sarah Stamp declared local non-pecuniary interests as Members of Suffolk County  Council.  All of the aforementioned councillors remained in the meeting for the consideration of this particular referral.)

 

Approval was sought for a number of recommendations relating to the initial five year business plan devised for Barley Homes (Group) Limited.

 

Councillor Sara Mildmay-White, Portfolio Holder for Housing, drew relevant issues to the attention of Council, including that the Overview and Scrutiny Committee had taken the opportunity to thoroughly scrutinise the Business Plan for which she thanked the Committee and for its subsequent recommendations for consideration by the Cabinet. 

 

The majority of Members supported the proposals; however some concern was expressed regarding potential issues with Barley Homes being regarded as a separate entity from the Council in it’s role as the Local Planning Authority (LPA); whether Barley Homes would meet the LPA’s 30% affordable housing requirement, where applicable; that the profits made from the company would not be ring-fenced for investment in future housing;  costs required to bring forward one of the initial sites for development; and the composition of the Board of Directors for Barley Homes.  These matters had been previously addressed by the Portfolio Holder during other meetings.

 

As no specific detail of the Business Plan (attached as Exempt Appendix A to Report No: OAS/SE/16/028)  was discussed, the meeting remained in public session.

 

On the motion of Councillor Mildmay-White, seconded by Councillor Alaric Pugh, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the five year Business Plan, attached at Exempt Appendix A to Report No: OAS/SE/16/028, be approved;

 

(2)     a £3m revolving investment facility, to be added to the Council’s capital programme, financed from the reallocation of the “Housing Company” pending capital budget of £2.35m and an additional £0.65m from the Strategic Priorities and the Medium Term Financial Strategy reserve, be approved;

 

(3)     delegation be given to the S151 Officer and Monitoring Officer, in consultation with the Portfolio Holders for Resources and Performance and Housing to issue equity and loan funding from the revolving investment facility (set out in (2) above), subject to state aid requirements;

 

(4)     the S151 Officer and Monitoring Officer, in consultation with the Portfolio Holder for Resources and Performance, be authorised to negotiate and agree the terms of such  loans with Barley Homes and the funding and necessary legal agreements, taking into consideration the Council’s loans policy and state aid requirements;

 

(5)     the sale of Council owned land as detailed in the five year Business Plan (Exempt Appendix A to Report No: OAS/SE/16/028), with outline planning permission, subject to approval by the planning authority and with Section 123 best value obligations, with the costs of planning permission being approximately £35,000 being funded from the Strategic Priorities and Medium Term Financial Strategy reserve, be noted; and

 

(6)     approval of the Business Plan will constitute consent for Barley Homes to issue shares and enter into debt financing, in line with the Business Plan, be noted.

 

 

2.       Delivering a Sustainable Budget 2017/2018 Medium Term Financial Strategy 2017-2020

 

Approval was sought for progressing the securing of a balanced budget for 2017/2018 and a sustainable budget in the medium term.

 

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.  

 

In response to questions, Council was informed that:

 

(a)     the projected increase in car parking income in the medium term was considered achievable and such levels of income was required to maintain existing car parks and provide additional parking for visitors and workers, particularly in Bury St Edmunds where demand was particularly prevalent; and

 

(b)     a written response would be provided in respect of when street lighting would be installed along the recently improved Haverhill Railway Walks scheme.

 

On the motion of Councillor Houlder, seconded by Councillor John Burns, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the proposals, as detailed in Section 5 and Table 2 at paragraph 5.1 of Report No: PAS/SE/16/029, be included, in securing a balanced budget for 2017-2018;

 

(2)     the items, as detailed in paragraph 5.3 of Report No: PAS/SE/16/029 are treated as pending budgets that will require the necessary approvals before they can be committed;

 

(3)     the items as detailed in paragraph 5.5 and Table 3 of Report No: PAS/SE/16/029, be removed from the capital programme; and

 

(4)     the reserve transfers as detailed in paragraph 5.7 and Table 4 of Report No: PAS/SE/16/029, be approved.

 

 

3.       Mid Year Treasury Management Performance Report and Investment Activity (April - September 2016)

 

Approval was sought for the Mid-Year Treasury Management Report and the addition of Enhanced Cash Funds to the Council’s list of authorised investments.

 

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including that together with considering the recommendations contained in the report, Council was also asked to note the recent use of the Chief Executive’s Urgency Powers.  

 

With the recent reduction in the Bank of England base rate, it had become increasingly difficult to find suitable investment counterparties, with many withdrawing from the market and others offering less than base rate in return.  To achieve reasonable rates of return on investments the Treasury team had sought approval to increase the Council’s counterparty limits in order to be able to secure more favourable rates with the banks and investments houses still in the market place.

 

Due to the significant effect on the Council’s investments and need to act quickly, following consultation between the Chief Executive; Head of Resources and Performance (Section 151 officer); Vice Chairman of the Overview and Scrutiny Committee (in the absence of the Chairman); Portfolio Holder for Resources and Performance; Chairman of the Performance and Audit Scrutiny Committee; the Treasury Management Sub-Committee; and Capita, the council’s treasury advisors; the Chief Executive exercised his urgency powers, in accordance with Part C(a) of the Scheme of Delegation to Officers in Part 3, Functions and Responsibilities of the Constitution, to approve the increase in counterparty limits.

 

In response to a question regarding a suggestion to invest in the North West Haverhill Relief Road, Council was informed that the Council had previously invested heavily in Haverhill and through the development of the aspirations detailed in the Haverhill Town Centre Masterplan, further investment was expected to follow in future years. 

 

On the motion of Councillor Houlder, seconded by Councillor Clive Springett, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the Mid-Year Treasury Management Report 2016-2017, attached at Appendix 1 to Report No: TMS/SE/SE/004, be approved; and

 

(2)     the addition of Enhanced Cash Funds to the authorised investments list in the St Edmundsbury Borough Council Treasury Management and Investment Strategy and Code of Practice, attached as Appendices 2 and 3 to Report No: TMS/SE/16/004, be approved.

 

 

4.       Training Requirement for Hackney Carriage and Private Hire Vehicle Drivers

 

Approval was sought for new training requirements for Hackney Carriage and Private Hire Vehicle Drivers.

 

Councillor Alaric Pugh, Portfolio Holder for Planning and Growth, drew relevant issues to the attention of Council.

 

Council supported the requirement for new Hackney Carriage and Private Hire Vehicle drivers to undertake the complete BTEC Level 2 training course; and also endorsed the conclusion of the  Licensing and Regulatory Committee and Cabinet that it was too onerous to place the expectation on existing drivers to undertake this full course, particularly if they had held their licence for a long period of years without incident or complaint.

 

To address some of the concerns raised by the public during the consultation on this matter but considering the potential disproportionate requirement placed on existing drivers, the majority of Members considered the additional recommendations put forward by the officers and subsequently endorsed by Cabinet (as shown in 3(a) and (b) of the report), which would require existing drivers to attend a half-day training course was an acceptable compromise.  The course would cover safeguarding of vulnerable people, customer care and assisting customers with disabilities and would be provided with no cost to attendees.

 

On the motion of Councillor Pugh, seconded by Councillor Frank Warby, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the results of the recent consultation with Hackney Carriage/Private Hire Vehicle Drivers and customers on the proposal to adopt a BTEC Level 2 Certificate ‘Introduction to the role of Professional Taxi and Private Hire Driver’, as detailed in Report No: LIC/SE/16/005,  be noted;

(2)     the change in requirements for all new drivers to complete the BTEC Level 2 Certificate be adopted; and, additionally

(3)    

(a)     existing drivers be required to attend half-day training covering specific issues of concern including safeguarding vulnerable people, assisting customers with disabilities and customer care provided at no cost to attendees; and

 

(b)     the Disciplinary Code for Hackney Carriage/Private Hire Vehicles be amended to reflect that should existing drivers fail to comply with (3)(a) above, this would constitute a contravention of this Code, and as a consequence, he/she will be required to obtain the full BTEC Level 2 Certificate referred to in (2) above.

 

5.       Local Council Tax Reduction Scheme and Council Tax Technical Changes 2017/2018

 

Approval was sought for the Local Council Tax Reduction Scheme and Technical Changes 2017/2018.

 

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.

 

On the motion of Councillor Houlder, seconded by Councillor John Burns, and duly carried, it was

 

RESOLVED:

 

That no change be made to the current Local Council Tax Reduction Scheme or Council Tax Technical changes levels for 2017/2018, as detailed in Section 5 of Report No: CAB/SE/16/065.

 

 

6.       Council Tax Base for Tax Setting Purposes 2017/2018

 

Approval was sought for the Council Tax Base for Tax Setting Purposes 2017/2018.

 

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.  

 

On the motion of Councillor Houlder, seconded by Councillor David Roach, and duly carried, it was

 

RESOLVED:

 

That

 

(1)     the tax base for 2017/2018, for the whole of  St Edmundsbury is 36,257.27 equivalent Band ‘D’ dwellings, as detailed in paragraph 1.4 of Report No: CAB/SE/16/066; and

 

(2)     the tax base for 2017/2018 for the different parts of its area, as defined by parish or special expense area boundaries, are as shown in Appendix 2.

7.       Exempt: Investing in our Commercial Asset Portfolio (para 3)

 

As this referral from Cabinet was exempt, it was considered separately in private session under Agenda Item 14 (Minute 217 below).