| Time: | 7.30pm | Place: | Council Chamber, Council Offices, Gernon Road, Letchworth Garden City |
| PRESENT: | Councillor Mrs L.A. Needham (Chairman), Councillor T.W. Hone (Vice-Chairman), Councillor P.C.W. Burt, Councillor Jane Gray, Councillor Tony Hunter, Councillor David Levett and Councillor Bernard Lovewell. |
| IN ATTENDANCE: | Chief Executive, Strategic Director of Finance, Policy & Governance, Strategic Director of Customer Services, Head of Finance, Performance & Asset Management, Head of Revenues, Benefits & IT, Strategic Planning & Projects Manager, Principal Strategic Planning Officer, Contracts and Projects Manager, Services Manager - Waste & Recycling, Acting Senior Lawyer and Committee & Member Services Manager. |
| ALSO PRESENT: | Councillors Cathryn Henry (Chairman of Overview & Scrutiny Committee), Michael Weeks (Chairman of Finance, Audit & Risk Committee) and David Leal-Bennett. 2 Members of the Public. |
| Meeting attachment |
Agenda Front Sheets |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 1 |
APOLOGIES FOR ABSENCE Apologies for absence were submitted on behalf of Councillor Julian Cunningham. |
Noted | ||
| 2 |
MINUTES Minutes RESOLVED: That the Minutes of the meeting of Cabinet held on 24 March 2015 be approved as a true record of the proceedings and signed by the Chairman. |
Agreed | ||
| 3 |
NOTIFICATION OF OTHER BUSINESS There was no notification of other business. |
Noted | ||
| 4 |
CHAIRMAN'S ANNOUNCEMENTS (1) The Chairman reminded Members that, in line with the Code of Conduct, any Declarations of Interest needed to be declared immediately prior to the item in question; (2) The Chairman asked that, for the benefit of any members of the public present at the meeting, Officers announce their name and their designation to the meeting when invited to speak; (3) The Chairman stated that she would be varying the order of business, so that after Item 13, Item 17 (the Part 2 report on Letchworth Leisure Management Contract and Development of North Herts Leisure Centre) would be taken following the exclusion of the press and public; then the press and public would be invited back into the meeting for the consideration of Item 14 (Part 1); and then the press and public would be excluded again prior to consideration of Item 16 (the Part 2 item relating to the Strategic Outline Case for Waste and Street Cleaning Services for North and East Hertfordshire District Councils); and (4) The Chairman announced that the Part 1 elements of the meeting were being recorded. |
Noted | ||
| 5 |
PUBLIC PARTICIPATION Councillor David Leal-Bennett re: Letchworth Leisure Management Contract and Development of North Herts Leisure Centre Councillor Leal-Bennett had noted that it was proposed that the Stevenage Leisure Ltd ("SLL") contract be extended a further 5 years to 2024 in exchange, he believed, for NHDC upgrading the facility and spending over £3M; as part of this arrangement SSL had offered to increase their payment to NHDC. Councillor Leal-Bennett advised that the officer report stated at Paragraph 10.1 "SLL financial bid shows an overall annual increased payment of £220,776 to the Council" - there was no mention of inflation index linking. Councillor Leal-Bennett was not sure why the Capital spend and the contract extension were connected, but he strongly suggested that they should be dealt with separately. He felt that concurrently agreeing to the Capital spend and extending the contract would expose NHDC, who was duty bound to obtain fair value. He was disturbed that officers were rushing this through without a full analysis, and was extremely concerned that the figure, provided by SLL, did not appear to have been robustly analysed. He was fully aware that there was a "profit sharing" element in the contract, but the base line was the amount stated, and he would wish to be assured that this was correct and should not be higher. Accordingly, Councillor Leal-Bennett requested that Cabinet provided an assurance that, in arriving at the figure of £220,776, the following due diligence had been undertaken: 1. Detailed analysis of the accounts of SLL for the last 3 years to include: o Income and Expenditure on Letchworth Leisure Centre (this breakdown was not shown in SLL's published accounts); o Independent audit of these figures to ensure that they represented a true picture; o Any internal cost centre transfers to be explained, ie. was there cross subsidisation; o Independent audit of the basis of the calculation of the NHDC payment. 2. Detailed analysis of the SLL Business Plan showing projections for the next 5/10 years, to include: o SLL Financial Model and Projections for the next 10 years covering Inflation assumptions Profit projections Cash Flow analysis NHDC payments Business Growth; o 'What if' scenarios on the Financial Model to cover topside and downside variance; o Assumptions and details of new/revised income streams. Councillor Leal-Bennett commented that if the contract was extended then this would be a revenue item for the next 9 years, and it was extremely important that NHDC got it right. He stated that, to date, he had been less than impressed with how officers had undertaken financial reviews and analysis of such projects. If, following its Part 2 deliberations, Cabinet would be unable to provide such an assurance, he would request that the Capital spend be suspended until such time as a full analysis had been completed, as previously mentioned, or alternatively that the contract extension be deferred. Councillor Leal-Bennett concluded by stating that Members were all elected to ensure that the Council got value for money and it was imperative that decisions were made with a full understanding of the underlying figures and the financial impact. This was a substantial investment and, if the contract was extended, NHDC would be exposed to a significant risk for the next 9 years, being totally dependent on the performance of SLL and their management. He asked Cabinet to also consider what risk assessment had been undertaken on SLL? Also, did the Council have any concerns about their VAT status and was this likely to be challenged by Her Majesty's Revenue and Customs (HMRC), with a consequential knock on to NHDC? The Chairman thanked Councillor Leal-Bennett for his presentation. |
Noted | ||
| 6 |
ITEM REFERRED FROM OVERVIEW AND SCRUTINY COMMITTEE: 9 JUNE 2015 - STRATEGIC OUTLINE CASE FOR WASTE AND STREET CLEANING SERVICES FOR NORTH AND EAST HERTFORDSHIRE DISTRICT COUNCILS Referral RESOLVED: That consideration of this referral take place in conjunction with agenda item number 13 (see Minute 15 below). |
Noted | ||
| 7 |
ITEM REFERRED FROM FINANCE, AUDIT AND RISK COMMITTEE: 18 MARCH 2015 - RISK MANAGEMENT UPDATE AND ANNUAL REPORT ON RISK MANAGEMENT 2014/15 Referral Appendix A - Annual Report on Risk Management The Chairman of the Finance, Audit and Risk Committee presented the following referral from that Committee, made at its meeting held on 15 June 2015 in respect of a Risk Management Update and Annual Report on Risk Management 2014/15 (Minute 11 refers): "That the Annual Report on Risk and Opportunities Management 2014/15, as set out at Appendix A to the report be supported and referred to Council for approval." The Portfolio Holder for Finance and IT stated that he had no problems with the above recommendation. RECOMMENDED TO COUNCIL: That the Annual Report on Risk and Opportunities Management 2014/15, as set out at Appendix A to the report be approved. REASON FOR DECISION: To comply with the requirements of the Risk and Opportunities Management Strategy. |
Agreed | ||
| 8 |
ITEM REFERRED FROM FINANCE, AUDIT AND RISK COMMITTEE: 15 JUNE 2015 - UPDATED CONTRACT PROCUREMENT RULES AND SOCIAL VALUES ACT RECOMMENDATIONS Referral The Chairman of the Finance, Audit and Risk Committee presented the following referral from that Committee, made at its meeting held on 15 June 2015 in respect of updated Contract Procurement Rules and Social Values Act Recommendations (Minute 17 refers): "That the updated Contract Procurement Rules, as set out at Appendix A to the report, be supported and referred to Council for approval." The Portfolio Holder for Finance and IT stated that he had no problems with the above recommendation. It was noted that a report would be submitted to a future meeting of Cabinet in respect of the Public Services (Social Value) Act 2012. RECOMMENDED TO COUNCIL: That the updated Contract Procurement Rules, as set out at Appendix A to the report, be approved. REASON FOR DECISION: To contribute towards effective organisational internal control and to comply with the requirements of the Council's Procurement Strategy. |
Agreed | ||
| 9 |
RENEWAL OF IN-BOUND MAIL CONTRACT Report The Portfolio Holder for Finance and IT presented a report of the Head of Revenues, Benefits and IT in respect of the renewal of the Council's In-bound Mail Contract. Cabinet was informed that, after the initial teething problems associated with any major change in process, the existing contract had worked extremely well. Errors were rare and when there had been any, they had been quickly resolved. A good working relationship had developed between Northgate Public Services and the Council and the timely provision of post each day was taken as normal by Officers using the outsourced service. The Portfolio Holder for Finance and IT stated that Officers were recommending extending the contract for a further five years for the following reasons: - There was no other supplier that can provide a comparable service; - A new supplier would incur additional set up costs, which were £16,000 in 2010 and would be more at today's prices; and - Northgate Public Services had provided a very good service to the Council during the last five years. The Portfolio Holder for Finance and IT advised that the cost of the new contract would be £232,500. There was consequently a minimum saving of £108,250 in revenue costs over the life of the next five year contract, compared with the existing budget. This was a minimum, as it was likely that the additional costs would reduce as the volumes reduced. However, for the purposes of the exercise a "worst case" had been assumed. RESOLVED: (1) That the renewal of the in-bound mail contract with Northgate Public Services at a projected cost of £232,500 over five years, as detailed at Paragraph 10.14 of the report, be approved; and (2) That the issuing of a Voluntary Ex Ante Transparency (V.E.A.T.) Notice in the Official Journal of the European Union (OJEU) be approved. REASON FOR DECISION: To ensure that the Council preserves the provision of an in-bound mail contract for its high volume Service Departments at reduced cost; and to ensure that the Council complies with European Union Procurement Legislation. |
Agreed | ||
| 10 |
STRATEGIC PLANNING MATTERS Report Addendum The Portfolio Holder for Planning and Enterprise presented a report of the Strategic Director of Planning, Housing and Enterprise informing Members of the current position regarding strategic planning matters, with particular reference to Luton and Central Bedfordshire progress on Local Plans; Cambridge and South Cambridgeshire Local Plans; Economic Development Strategy; Hertfordshire Waste Local Plan - Employment Areas of Search; and North Hertfordshire Local Plan. An addendum paper had been circulated in respect of the Stevenage and North Hertfordshire Strategic Housing Market Assessment Update 2015. The Portfolio Holder for Planning and Enterprise updated Cabinet on the following matters: - Luton and Central Bedfordshire progress on Local Plans - A hearing date was expected shortly for the Judicial Review into the Planning Inspectorate's decision that Central Bedfordshire's Development Strategy had failed the duty to co-operate and could not proceed. In the meantime, Luton and Central Bedfordshire had jointly commissioned an update to their Strategic Housing Market Assessment. Officers from North Hertfordshire had been attending the steering group of wider authorities; - Economic Development Strategy - The draft Economic Development Strategy consultation had now closed. A number of varied responses had been received. The final strategy, together with an action plan was to be submitted to Cabinet in September 2015, following some more focussed consultation with representative groups and business forums in the summer, culminating in a workshop to form an action plan; - Hertfordshire Waste Local Plan: Employment Areas of Search - Hertfordshire County Council had published a draft supplementary planning document (SPD) on ‘Employment Land Areas of Search'. The SPD did not propose specific sites for waste development, but gave guidance for applicants wishing to develop waste facilities within the employment land areas of search. Consultation on the SPD ran until 10 July 2015; - Cambridge and South Cambridgeshire Local Plans - these Councils had been working to produce their local plans in tandem with each other, with the two plans being examined concurrently. The inspectors examining their plans wrote to the two Councils on 20 May 2015 recommending that the examinations be suspended to allow for further work on a number of potentially serious issues. The draft plans had proposed that a significant proportion of the new growth should be in the form of new settlements on former airfield sites in South Cambridgeshire. The inspectors had concerns that delivery of new settlements may be difficult, with a significant funding shortfall, and that they would be highly dependent upon out-commuting, which may be unsustainable. The calculation of the ‘objectively assessed need' for development was also questioned. The inspectors were concerned that the two Councils did not appear to have taken into account the Planning Practice Guidance of March 2014 which required consideration of whether market signals indicated that higher targets should be adopted than those based simply on demographics and migration; and - North Hertfordshire Local Plan - Consultation on the Local Plan Preferred Options paper closed on 6 February 2015. It was confirmed that about 8,400 comments had been made, which were now being processed, read and analysed. Work continued with Stevenage Borough Council and consultants Opinion Research Services on updating the Strategic Housing Market Assessment. The new study would look again at the objectively assessed need for housing development, taking into account the latest household projections from the Department for Communities and Local Government, and the latest Government guidance (notably on market signals). It was anticipated that the study may be ready for publication within the next few weeks. In respect of the addendum report regarding the Stevenage and North Hertfordshire Strategic Housing Market Assessment Update 2015, the Portfolio Holder for Planning and Enterprise advised that, on 27 February 2015 the Department for Communities and Local Government published new household projections. According to the Planning Practice Guidance such projections were supposed to be the starting point for local planning authorities in establishing the objectively assessed need for development in an area. Such projections were normally published every two years. The Portfolio Holder for Planning and Enterprise explained that, working with Stevenage Borough Council, the Council commissioned Opinion Research Services to prepare an updated Strategic Housing Market Assessment for the two authorities, taking into account these latest projections and recent changes in Government guidance. The draft study should be ready to publish shortly. It concluded that the adjusted local household projections for North Hertfordshire was 13,080 dwellings for the period 2011-2031. The Portfolio Holder for Planning and Enterprise commented that the estimated workforce arising from this population should adequately cover the projected jobs growth over the same period, so no further adjustment for workforce balance was required. However, market signals did suggest the trends were worse than comparator areas, suggesting a further uplift was required. The situation appeared to be similar to that in Eastleigh, where a 10% increase was held to be the appropriate uplift to respond to the signals there. Consequently, the study concluded that the objectively assessed need for North Hertfordshire was 14,400 dwellings. This figure took no account of any unmet need from other areas. The figure for Stevenage from this study was 7,300 dwellings. Stevenage Borough Council was about to publish a consultation on this figure, which was substantially higher than the 5,300 they were previously planning for, but still appeared to be within the levels which could be accommodated within the Borough boundaries. Further work was also underway to re-examine how housing market areas fell across the District (in conjunction with several nearby authorities), which would be of use when it came to considering unmet need from other areas. During the debate, it was noted that the average number of new build per year for NHDC would be in the region of 1,000. The most in a year in recent times had been 753. Therefore, the target would be extremely challenging, coupled with the fact that there had to be doubt over whether there were a sufficient number of competent construction companies and tradesman currently operating to fulfil these needs. It was also evident, in the light of the experiences of Cambridge and South Cambridgeshire Councils, that any proposed new settlement would be difficult to achieve. RESOLVED: That the report on Strategic Planning Matters be noted. REASON FOR DECISION: To ensure that the Cabinet is kept informed of developments on strategic planning matters. |
Noted | ||
| 11 |
REVENUE BUDGET OUTTURN 2014/15 Report Appendix A - General Fund Summary Appendix B - Carry Forward Budgets requested for 2015/16 Appendix C - Collection Fund as at 31 March 2015 The Portfolio Holder for Finance and IT presented a report of the Strategic Director of Finance, Policy and Governance in respect of the Revenue Budget Outturn 2014/15. The following appendices were submitted with the report: Appendix A - General Fund Summary; Appendix B - Carry Forward budgets requested for 2015/16; and Appendix C - Collection Fund as at 31 March 2015. The Portfolio Holder for Finance and IT stated that the working budget for 2014/15 was £16.114million, which was £478,000 higher than the original General Fund net expenditure estimate of £15.636million. The major variances to the working budget were detailed in Table 1 of the report. The Portfolio Holder for Finance and IT highlighted the Executive Summary in the report and made the following points: - Net General Fund expenditure for 2014/15 - this was £14.831million, which was £381,000 (or 2.5%) lower than the working budget; - Budgets Carried Forward from 2013/14 - of the £351,000 of carry forward budgets into 2013/14, £208,000 (59%) had been spent. Of the remaining unspent amount of £143,000, a total of £113,000 was requested to be carried forward again into 2015/16; - Achievement of Efficiencies - the £1.514million of agreed efficiency proposals were over-achieved by £136,000 (or 9%); - Key Financial Indicators - the key financial indicators had been monitored throughout 2014/15 and one was at red status (Building Control); - General Fund Reserve Balance - this had a balance of £5.986million at 31 March 2015. This was £4.313million higher than the minimum balance approved for 2015/16 of £1.673million; - Allowance for Financial Risks - the budgeted minimum General Fund balance of £2million included an allowance of £1.2million for known financial risks. £518,000 of these risks had been realised in 2014/15, leaving a remaining balance of £682,000; - Earmarked Reserves and Provisions - as at 1 April 2014 there was a balance of £3.999million in other useable earmarked reserves. The balance at 31 March 2015 was £5.132million. A total of £805,000 was held as bad debt provision, (excluding Council Tax bad debt provision) at 31 March 2015; and - Collection Fund - as at 31 March 2015, the Collection Fund had a deficit balance of £3.03million. The Council's share of this deficit was £1.2million. In respect of Careline, the Portfolio Holder for Housing and Environmental Health stated that the service had made a net overall deficit of £336,000 in 2014/15. This was chiefly due to expenditure on a significant amount of new equipment, aimed at improving the service provided. He still felt that the service was excellent, and it was estimated to break even in 2015/16. He intended to submit a report on Careline to a Cabinet meeting later in the year. In respect of Building Control, the Portfolio Holder for Planning and Enterprise stated that it was hoped to address the on-going red status of this Key Corporate "Health" Indicator by way of the proposed Building Control Consortium of Hertfordshire Authorities. This should enable the public sector to compete on a more level playing field with private sector providers. RESOLVED: (1) That the contents of the report be noted: (2) That a decrease of £381,000 in the 2014/15 General Fund expenditure (Paragraph 8.1, Table 1 refers) to £14.831million, be approved; (3) That the changes to the 2014/15 General Fund budget, involving an increase in net expenditure of £28,000, and including the total carry forward into 2015/16 of budgets from 2014/15 of £464,000 (Paragraph 8.6 refers) be approved; and (4) That the transfer of £50,000 from the underspend on the General Fund to the Strategic Priority fund to enable Corporate Board to undertake invest to save and/or continuous improvement projects (Paragraph 8.7 refers) be approved. RECOMMENDED TO COUNCIL: That the net transfer to earmarked reserves of £1.133million (as set out in Paragraphs 8.15 - 8.17 and Table 8 of the report), be approved. REASON FOR DECISION: To ensure Cabinet's budget monitoring role is fulfilled before the finalisation of the Annual Statement of Accounts by 30 June 2015; and to ensure that changes to the Council's balances are monitored and approved. |
Agreed | ||
| 12 |
ANNUAL TREASURY MANAGEMENT REVIEW 2014/15 Report Appendix A - Annual Treasury Management Review 2014/15 The Portfolio Holder for Finance and IT presented a report of the Strategic Director of Finance, Policy and Governance in respect of the Treasury Management Review 2014/15. The following appendix was submitted with the report: Appendix A - Annual Treasury Management Review 2014/15. The Portfolio Holder for Finance and IT advised that Capita Asset Services Ltd were contracted to provide Treasury advice for the financial year 2014/15 and that this arrangement had been continued for 2015/16. The service included regular updates on economic and political changes which may impact on the Council's borrowing and investment strategies, advice on rescheduling, information and prudent parameters in respect of investment counterparty creditworthiness, document templates, access to technical updates and to the Technical Advisory Group. The Portfolio Holder for Finance and IT explained that the Council had generated £0.489million of interest on its investments during 2014/15. The average interest rate agreed on new deals during the year by the cash managers was 1.03% for Sterling and 1.20% for Tradition. The average interest rate on all outstanding investments at 31 March 2015 was 1.24%. The Portfolio Holder for Finance and IT commented that the investments outstanding at the 31 March 2015 were £35.72million. This compared to a balance of £37.53million at 31 March 2014. The reduced balance reflected the use of maturing investments to fund capital expenditure. RESOLVED: That the position of Treasury Management activity as at the end of March 2015 be noted. RECOMMENDED TO COUNCIL: (1) That the actual 2014/15 prudential and treasury indicators be approved; and (2) That the Annual Treasury Management Report for 2014/15 be noted. REASON FOR DECISION: To ensure the Council's continued compliance with CIPFA's Code of Practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk. |
Agreed | ||
| 13 |
CAPITAL PROGRAMME OUTTURN 2014/15 Report Appendix A - Capital Programme Summary 2014/15 Onwards Appendix B - Capital Programme Detail 2014/15 Onwards Appendix C - Capital Scheme Funding 2014/15 Onwards The Portfolio Holder for Finance and IT presented a report of the Strategic Director of Finance, Policy and Governance in respect of the Capital Programme Outturn 2014/15. The following appendices were submitted with the report: Appendix A - Capital Programme Summary 2014/15 onwards; Appendix B - Capital Programme Detail 2014/15 onwards; and Appendix C - Capital Scheme Funding 2014/15 onwards. The Portfolio Holder for Finance and IT advised that outturn Capital expenditure for 2014/15 was £4.532million. This was a reduction of £1.792million on that previously reported at the end of the third quarter. The decrease in spend was in part due to a revision in the timetable for completion of schemes, leading to the re-profiling into future years of £921,000 (Table 1 of the report), and also to a net decrease in the expected spend on other schemes of £871,000 (Table 2 of the report). Details of the schemes completed in 2014/15 were set out in Paragraph 8.3 of the report. The Portfolio Holder for Finance and IT stated that the total Capital Programme from 2013/14 to 2017/18 totalled in the region of £40million, contributing towards the Council's objectives and priorities for the District. The Portfolio Holder for Housing and Environmental health explained that, although there remained a backlog in the delivery of Disabled Facilities Grants (DFGs), primarily due to a lack of staff resources, an external agent had been appointed to support DFG work in 2015/16. RESOLVED: (1) That expenditure of £4.532million in 2014/15 on the Capital Programme (Paragraph 8.2 refers), and in particular the changes detailed in Table 2 which resulted in a net increase on the working estimate of £0.871million, be noted; (2) That the changes to the Capital Programme for 2015/16 and onwards as a result of the revised timetable of schemes detailed in Table 1, increasing the estimated spend in 2015/16 by £921,000, be approved; (3) That the position of the availability of Capital resources, as described in Paragraphs 8.7 to 8.10 of the report, and the requirement to keep the Capital Programme under review for affordability, be noted; and (4) That the application of £0.566million of Capital receipts towards the 2014/15 Capital Programme, and the drawdown of £3.165million of cash investments from set aside receipts, as referred to in Paragraph 8.7 of the report, be approved. REASON FOR DECISION: To approve revisions to the Capital Programme; and to ensure that the Capital Programme is fully funded. |
Agreed | ||
| 14 |
CORPORATE OBJECTIVES FOR 2016 TO 2021 Report In the absence of the Portfolio Holder for Policy, Transport and Green Issues, the Cabinet Chairman presented a report of the Strategic Director of Finance, Policy and Governance in respect of proposed Corporate Objectives for 2016 to 2021. The Cabinet Chairman advised that, before considering the detailed budget position for the authority, the Corporate Business Planning Process required that the Council's objectives were determined. The Council's Budget and its objectives were inextricably linked. It was therefore essential that the objectives were aligned with the Medium Term Financial Strategy (MTFS). The Cabinet Chairman stated that the previous priorities were agreed by Full Council on 5 September 2013, commencing in 2014/15. These were: - Promoting Sustainable Growth - Working with our Communities - Living within Our Means These would continue to apply throughout 2015/16. It was noted that North Hertfordshire District Council had published its first ‘Corporate Plan' in 2005. This high level strategic document set out the Council's ambitions and aspirations for the District over the 10 years from 2005 to 2015. In recent years this had become known as the Priorities for the District. A number of areas of change were anticipated going forward and it was therefore timely with the expiry of one plan to reconsider the objectives and Corporate Plan for the next five years. The Cabinet Chairman explained that NHDC had moved away the production of a formal, printed Corporate Plan document some time ago, but following discussion with the Portfolio Holder for Policy, Transport and Green Issues, it had been agreed that the Council returned to the development of a similar, streamlined policy document. This would not be published in hard copy, but once agreed, provided for download from the Council's website. This document was currently in draft and would be submitted to the next meeting of Cabinet. However, the Council also needed to reflect more recent changes in legislation; capacity; financial constraints; and population. Having considered all of these additional factors, the Cabinet Chairman stated that the three objectives proposed to inform the Council's Corporate Budget Setting 2016/21 set out in the report were: 1. To work with our partners to provide a clean and safe environment for our residents, where diversity is welcomed and the disadvantaged are supported; 2. To promote sustainable growth within our district to ensure economic and social opportunities exist for our communities, whilst remaining mindful of our cultural and physical heritage; and 3. To ensure that the Council delivers cost effective and necessary services to our residents that are responsive to developing need and financial constraints. The Cabinet Chairman commented that, subject to Cabinet agreement, these Objectives would be presented to Council to inform the Corporate Budget setting process, through late 2015, ready for delivery from the new financial year on 1 April 2016. The Corporate Plan would identify key priority areas and the key projects that would deliver against these objectives and appropriate measures of success. The Corporate Plan would be for a five year period, to align with the Medium Term Financial Strategy, rather than ten years as previously. The Cabinet Chairman proposed one minor amendment to the objectives, namely the replacement of the words "a clean" with "an attractive" in Objective 1. She advised that this change had the support of the Portfolio Holder for Policy, Transport and Green Issues. As a general point, she commented that the Portfolio Holder had suggesting moving from priorities to objectives, as he considered these to be more aspirational in their focus. He had also considered that the projects contained in the Corporate Plan should be subject to SMART targets. RECOMMENDED TO COUNCIL: That the following revised Corporate Objectives for 2016 to 2021 be adopted: 1. To work with our partners to provide an attractive and safe environment for our residents, where diversity is welcomed and the disadvantaged are supported; 2. To promote sustainable growth within our district to ensure economic and social opportunities exist for our communities, whilst remaining mindful of our cultural and physical heritage; and 3. To ensure that the Council delivers cost effective and necessary services to our residents that are responsive to developing need and financial constraints. REASON FOR DECISION: To allow Cabinet and Council to review the Corporate Objectives which will guide the Corporate Business Planning process for 2016/17 and for a period of five years. |
Agreed | ||
| 15 |
STRATEGIC OUTLINE CASE FOR WASTE AND STREET CLEANING SERVICES FOR NORTH AND EAST HERTFORDSHIRE DISTRICT COUNCILS Report Appendix A - Draft Waste Collection, Trade Waste and Street Cleansing Policies The Portfolio Holder for Waste, Recycling and Environment presented a report of the Head of Leisure and Environmental Services in respect of the Strategic Outline Case for Waste and Street Cleaning Services for North and East Hertfordshire District Councils. The following appendix was submitted with the report: Appendix A - Draft Waste Collection, Trade Waste and Street Cleansing Policies. The Chairman of the Overview and Scrutiny Committee presented the following referral from that Committee, made at its meeting held on 9 June 2015, in respect of the Strategic Outline Case for Waste and Street Cleaning Services for North and East Hertfordshire District Councils (Minute 19 refers): "(1) That the report entitled Strategic Outline Case for Waste and Street Cleaning Services for North and East Hertfordshire District Councils be noted; and (2) That, providing the proposed model provides savings, the Overview and Scrutiny Committee strongly supports moving forward to the Outline Business Case." The Portfolio Holder for Waste, Recycling and Environment thanked the Overview and Scrutiny Committee for its support in this matter. RESOLVED: That, subject to consideration of the Strategic Outline Case (SOC) set out in the Part 2 report, the principle of a Joint North Hertfordshire District Council/East Hertfordshire District Council Waste and Street Cleaning Contract be supported. REASON FOR DECISION: To determine if there is a Strategic Business Case for North Hertfordshire District Council and East Hertfordshire District Council to provide a joint Waste and Street Cleaning Contract. |
Agreed | ||
| 16 |
EXCLUSION OF PRESS AND PUBLIC RESOLVED: That under Section 100A(4) of the Local Government Act 1972, the public and press be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the said Act (as amended). |
Agreed | ||
| 17 |
LETCHWORTH LEISURE MANAGEMENT CONTRACT AND DEVELOPMENT OF NORTH HERTS LEISURE CENTRE (NHLC) Prior to the consideration of this item, and at the Chairman's invitation, the Acting Senior Lawyer confirmed that, in accordance with Access to Information Regulations, no filming or recording of the proceedings was permitted for the debate on Part 2 matters. Accordingly, the recording device was switched off. The Portfolio Holder for Leisure presented a Part 2 report in respect of the Letchworth Leisure Management Contract and Development of North Herts Leisure Centre (NHLC), primarily with regard to the financial aspects of the project. The following appendix was submitted with the report: Appendix 1 - Stevenage Leisure Limited (SLL) contract variation (finance). The Portfolio Holder for Leisure stated that she was proud of the leisure facilities in the District, which attracted over 1 million visitors a year. The report dealt with much needed improvements to North Herts Leisure Centre, including a new teaching pool and further refurbishment to extend the useful life of the Centre. The Portfolio Holder for Leisure advised that the increase in the SLL management fee from £305,000 to £526,000 per annum, which would result should the proposals be approved, should be gauged against the situation in other parts of the country where many Local Authority-controlled leisure centres were being closed. The Portfolio Holder for Leisure commented that, for the past 10 years, NHDC had developed a very good working relationship with SLL, and that a proven track record could be demonstrated. SLL was a registered charity, with the aims of being self-sufficient and providing the community with high quality leisure facilities. The Portfolio Holder for Leisure explained that a planning application for the capital improvements was about to be submitted and that tenders had been invited for the works. In response to the views on the proposal expressed by Councillor Leal-Bennett, the Portfolio Holder for Leisure commented that this was a variation to an existing contract, which was operating well. In addition, the increase in the annual management fee would prove advantageous to the Council for the next 8 years, as well as improving the Centre and extending its useful life. At the Chairman's invitation, the Head of Performance, Finance and Asset Management advised that the £220,776 would form part of the management fee, which would be updated by RPI each year. SLL would provide the Council with Income and Expenditure accounts for each leisure centre. These were discussed at the contract meeting and SLL were required to explain any variances. The detailed management accounts for the NHLC, prepared quarterly by SLL, were reviewed by both the Service Manager and Group Accountant for Customer Services (in compliance with Internal Audit recommendations). SLL's external auditors provided an annual letter to confirm the accuracy of the contract income and expenditure accounts. In summary, the Head of Performance, Finance and Asset Management considered that SLL was a known quantity, and had developed a very successful working relationship with the Council for the past 10 years. The Portfolio Holder for Finance and IT expressed support for the proposals from a financial perspective. He had been convinced that they provided good value for money, and would be carried out in collaboration with a trusted partner. The Portfolio Holder for Housing and Environmental Health was satisfied that the project was viable. Whilst there were always risks associated with projects of this type, it appeared to him that the majority of the risks would be borne by SLL. Therefore, he saw no reason to delay the project. The Portfolio Holder for Planning and Enterprise was fully supportive of the proposals. Whist he had a few concerns over some elements of the financial information provided, he did not wish to delay the works from proceeding. RESOLVED: (1) That the variation to the Letchworth Leisure Management Contract, as set out in Paragraph 8 and Appendix 1 of the report, be agreed; and (2) That it be agreed to proceed with the project, subject to tender bids for the build element for all of the agreed capital budgets for the North Herts Leisure Centre (NHLC) coming in within the overall budget allocated. REASON FOR DECISION: To develop the NHLC to ensure the facility is fit for purpose and to improve the financial and operational performance of the NHLC in line with Cabinet's decision at its meeting held on 16 December 2014. [Note: At this point in the proceedings, the press and public were re-admitted to the meeting.] |
Agreed | ||
| 18 |
LETCHWORTH LEISURE MANAGEMENT CONTRACT AND DEVELOPMENT OF NORTH HERTS LEISURE CENTRE (NHLC) Report Appendix 1.1 - Letter from Stevenage Leisure Limited Appendix 1.2 - NHDC Development Report The Portfolio Holder for Leisure presented a report in respect of the Letchworth Leisure Management Contract and Development of North Herts Leisure Centre (NHLC). The following appendix was submitted with the report: Appendix 1 - Stevenage Leisure Centre - SLL contract variation (quality). The Portfolio Holder for Leisure advised that the report primarily dealt with the quality aspects of the proposed contract variation, and provided an overview of the business case for the proposed teaching pool; the need for a downstairs café; the need for greater provision of flexible space; the need for sports hall development, changing rooms and corridor improvements; and parking improvements. The Strategic Director of Customer Services confirmed that, on completion of the works (more particularly on the opening of the teaching pool for lessons, and provided that the café and dance studio works were progressing reasonably), SLL would pay NHDC an additional £18,398 per month for the entire length of the contract. In considering the recommendations in the report, it was noted that Recommendation 2.5 was no longer required. The Portfolio Holder for Planning and Enterprise considered that recommendation 2.2 should be amended, to reflect the fact that the variation of the remaining part of the contract would commence at the completion of the project. This was agreed. RESOLVED: (1) That the quality aspects of the variation to the contract, as set out in Paragraph 8 and Appendix 1 to the report, be agreed; and (2) That the variation of the remaining part of the contract to commence at the completion of the project, as set out in Paragraph 8 and Appendix 1 of the accompanying Part 2 report, be agreed and, subject to this: (a) it be agreed to proceed with the project subject to tender bids for the build element for all of the agreed Capital budgets for the NHLC coming in within the overall budget allocated; and (b) it be agreed to re-profile the Capital budget and to bring forward £67,000 to enable the Council to complete the 2 stage procurement and gain a full breakdown of the construction costs. REASON FOR DECISION: To develop the NHLC to ensure the facility is fit for purpose and to improve the financial and operational performance of the NHLC in line with Cabinet's decision at its meeting held on 16 December 2014. |
Agreed | ||
| 19 |
EXCLUSION OF PRESS AND PUBLIC RESOLVED: That under Section 100A(4) of the Local Government Act 1972, the public and press be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the said Act (as amended). |
Agreed | ||
| PART II | ||||
| 20 |
STRATEGIC OUTLINE CASE FOR WASTE AND STREET CLEANING SERVICES FOR NORTH AND EAST HERTFORDSHIRE DISTRICT COUNCILS Report Appendix A - Strategic Outline Case The Portfolio Holder for Waste, Recycling and Environment presented a Part 2 report of the Head of Leisure and Environmental Services in respect of the Strategic Outline Case for Waste and Street Cleaning Services for North and East Hertfordshire District Councils. The following appendix was submitted with the report: Appendix A - Strategic Outline Case. The Portfolio Holder for Waste, Recycling and Environment advised that there were potential savings to be made in respect of this proposal should it be progressed to fruition. However, much more work would be needed, and so he recommended that the Strategic Outline Case be approved, and that the Council proceeded to the next stage of developing an Outline Business Case. He stressed that, at this stage, this decision would not commit the Council to any particular course of action. RESOLVED: That the Strategic Outline Case (SOC) for a Joint North Hertfordshire District Council/East Hertfordshire District Council Waste and Street Cleaning Contract, as set out in Appendix A to the report, be approved, and that it be agreed to proceed to the next stage of developing the Outline Business case (OBC). REASON FOR DECISION: To determine if there is a Strategic Business Case for North Hertfordshire District Council and East Hertfordshire District Council to provide a joint Waste and Street Cleaning Contract. |
Agreed | ||
| 21 |
PART 2 REPORT AND APPENDIX RELATING TO MINUTE 17 ABOVE Report Appendix 1 - Financial Information These are on the E-Genda Committee Management System. |
Noted | ||