| 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 Julian Cunningham, Councillor Jane Gray, Councillor Tony Hunter, Councillor David Levett (from 8.56pm) and Councillor Bernard Lovewell. |
| IN ATTENDANCE: | Chief Executive, Strategic Director of Finance, Policy & Governance, Head of Finance, Performance & Asset Management, Head of Development and Building Control, Head of Leisure and Environmental Services, Accountancy Manager, Revenues Manager, Strategic Housing Manager, Strategic Planning & Projects Manager, Contracts & Projects Manager, Senior Estates Surveyor, Group Accountant, Communications Manager, Property Solicitor, Democratic Services Manager and Committee & Member Services Manager. |
| ALSO PRESENT: | Councillor Michael Weeks (Chairman of the Finance, Audit & Risk Committee) Mike Lee - Focus Consultants - Project Manager Rob Baker - Quantity Surveyor, Press and Starkey 1 Member of the Public. |
| Meeting attachments |
Agenda Front Pages Audio Recording of Hearing |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 75 |
APOLOGIES FOR ABSENCE There were no apologies for absence. |
Noted | ||
| 76 |
MINUTES Minutes RESOLVED: That the Minutes of the meeting of Cabinet held on 10 November 2015 be approved as a true record of the proceedings and signed by the Chairman. |
Agreed | ||
| 77 |
NOTIFICATION OF OTHER BUSINESS There was no notification of other business. |
Noted | ||
| 78 |
CHAIRMAN'S ANNOUNCEMENTS (1) The Chairman announced that Members of the public and the press may use their devices to film/photograph, or do a sound recording of the meeting, but she asked them to not use flash and to disable any beeps or other sound notifications that emitted from their devices. In addition, the Chairman had arranged for the sound at this particular meeting to be recorded; (2) 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; and (3) 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. |
Noted | ||
| 79 |
PUBLIC PARTICIPATION There was no public participation. |
Noted | ||
| 80 |
ITEM REFERRED FROM FINANCE, AUDIT AND RISK COMMITTEE: 10 DECEMBER 2015 - RISK MANAGEMENT UPDATE Referral Appendix A - Top Risks The Chairman of the Finance, Audit and Risk Committee presented the following referral from that Committee, made at its meeting held on 10 December 2015 in respect of a Risk Management Update (Minute 45 refers): "RECOMMENDED TO CABINET: (1) That the increased assessment of the likelihood of the "Office Accommodation" Top Risk" be approved; and (2) the increase in likelihood of the "Sale of Materials" sub-risk to the "Waste and Street Cleansing Contract Renewal" Top Risk, be approved." The Executive Member for Finance and IT stated that he had no objection to the above recommendations. RESOLVED: That the following amendments to the Top Risks be approved: (1) the increased assessment of the likelihood of the "Office Accommodation" Top Risk; and (2) the increase in likelihood of the "Sale of Materials" sub-risk to the "Waste and Street Cleansing Contract Renewal" Top Risk. REASON FOR DECISION: To ensure management of Cabinet Top Risks. |
Agreed | ||
| 81 |
ITEM REFERRED FROM FINANCE, AUDIT AND RISK COMMITTEE: 10 DECEMBER 2015 - BUILDING CONTROL - 7 HERTFORDSHIRE AUTHORITIES PROJECT Referral The Chairman of the Finance, Audit and Risk Committee presented the following referral from that Committee, made at its meeting held on 10 December 2015 in respect of the Building Control 7 Hertfordshire Authorities Project (Minute 53 refers): "RECOMMENDED TO CABINET: (1) That the Business Case outlined in the report, and attached as Appendix A to the report, be approved; and (2) That the Council proceeds with the joint arrangements for the provision of its Building Control functions, as outlined in the report and Business Case. RESOLVED: That the recommendations of the Finance, Audit and Risk Committee be noted, and taken into consideration in Members' deliberations on the 7 Hertfordshire Authorities Project on Building Control later in the meeting. REASON FOR DECISION: To provide an opportunity for the Finance, Audit and Risk Committee to comment on the 7 Hertfordshire Authorities Project for Building Control. |
Noted | ||
| 82 |
STRATEGIC PLANNING MATTERS Report Appendix A - NHDC Response to Uttlesford District Council Local Plan Issues and Options The Executive Member 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; Uttlesford Local Plan; Government Announcements; North Hertfordshire Local Plan; and Neighbourhood Plans. The following appendix was submitted with the report: Appendix A - NHDC Response to Uttlesford District Council Local Plan Issues and Options. The Executive Member for Planning and Enterprise updated Cabinet on the following matters: - Luton and Central Bedfordshire progress on Local Plans - Central Bedfordshire had now formally advised (20 November 2015) that their Council had decided to withdraw their Development Strategy and start work on a new Local Plan for the area. Luton Borough and Central Bedfordshire Councils had now finalised their updated Strategic Housing Market Assessment (SHMA), which was now published as background evidence alongside Luton's Pre-submission draft Local Plan. As previously reported the latest housing figure for Luton was unchanged at 17,800, however, the numbers for Central Bedfordshire had increased from 25,600 to 29,500 over the plan period 2011 to 2031. Luton in their Pre-submission draft Local Plan had stated that they could only accommodate up to 6,700 dwellings within their borough which left a shortfall of 11,100 dwellings to be accommodated within the Housing Market Area (HMA). The study commissioned by Luton, Bedford, Central Bedfordshire, Milton Keynes, Aylesbury Vale, Stevenage and North Hertfordshire councils to re-examine the housing market areas (HMAs) which function across this area was nearing completion. In terms of North Hertfordshire, there was no change in the eastern section of the district which fell within the Luton and Central Bedfordshire HMA. An extension of time until early January 2016 for submission of comments from NHDC on the Luton Borough Pre-submission draft Local Plan 2011-31 was being sought with Luton. There were a number of issues in their plan that required further investigation in terms of how NHDC may choose to respond. The duty to co-operate, and the unresolved issue of meeting Luton's unmet housing need was of concern. A response would be prepared and agreed under the Executive Member's delegated powers. A copy of the response would be appended to the next Strategic Planning Matters Cabinet report; - Uttlesford Local Plan - Uttlesford District Council had consulted on their Local Plan Issues and Options from 22 October to 4 December 2015. The consultation document was the first stage in the local plan process, identifying key strategic issues for Uttlesford. The document did not contain much which was of relevance to North Hertfordshire owing to the small shared boundary. A copy of the NHDC response was attached at Appendix A to the report; - Government Announcements - The Housing and Planning Bill had its second reading in the House of Commons on 2 November 2015 and had been sent to the Public Bill Committee (PBC) that would scrutinise the bill line by line; - North Hertfordshire Local Plan - A separate report on the agenda set out the next steps in the preparation of the Local Plan and sought Cabinet endorsement of a draft timetable (the Local Development Scheme) for the preparation of the Local Plan, which needed approval by Full Council to take effect (see Minute 83 below); and - Neighbourhood Plans - To date, nine neighbourhood planning areas had been designated for Pirton, Kimpton, Ashwell, Codicote, Barkway and Nuthampstead, Ickleford, St Ippolyts, St. Pauls Walden and Wymondley. The Pirton Neighbourhood Plan Steering Group were well advanced in their work towards a pre-submission consultation plan for the Pirton Neighbourhood Plan which was the first formal step in the preparation of a neighbourhood plan. Work was also progressing towards a pre-submission consultation plan for Barkway and Nuthampstead. Officers continued to meet and offer guidance to the neighbourhood planning steering groups during the preparation of their plans. The Head of Development and Building Control advised that the next Cabinet report would contain views on the Housing and Planning Bill. The Strategic Planning and Projects Manager added that Stevenage and St Albans Councils would be approving their Local Plan Submission drafts in December 2015, ready for consultation in January 2016. An update would be provided in the next report to Cabinet. 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 | ||
| 83 |
NORTH HERTFORDSHIRE LOCAL PLAN - NEXT STEPS AND REVISED LOCAL DEVELOPMENT SCHEME Report Appendix A - Draft NHDC Local Development Scheme: December 2015 The Executive Member for Planning and Enterprise presented a report of the Strategic Director of Planning, Housing and Enterprise in respect of the North Hertfordshire Local Plan - Next Steps and Revised Local Development Scheme. The following appendix was submitted with the report: Appendix A - Draft NHDC Local Development Scheme - December 2015. The Executive Member for Planning and Enterprise reminded Members that Cabinet, at its meeting held on 10 November 2015, resolved that a proposed submission draft of the Local Plan be presented to Full Council in July 2016. As Members were also aware, 8,500 representations were received in respect of the Local Plan Preferred Options consultation and it was anticipated that a similar volume of representations might be made in respect of the proposed submission consultation. As a result of that analysis and the revised Objectively Assessed Need for the District, officers had identified that a number of studies, as set out in Paragraph 8.2 of the report, were required to support the proposed submission Local Plan. The Executive Member for Planning and Enterprise advised that, as a consequence of the above matters, a revised Local Development Scheme (last approved in September 2014) was now submitted for Cabinet support and recommendation for approval by Full Council in January 2016. RESOLVED: That the report be noted. RECOMMENDED TO COUNCIL: That the updated draft Local Development Scheme, as attached at Appendix A to the report, be approved and take effect from 21 January 2016. REASON FOR DECISION: To publish an up to date timetable for the preparation of the North Hertfordshire Local Plan. |
Agreed | ||
| 84 |
0.33 HECTARE SITE, MEADOW WAY, THERFIELD Report Appendix A - Location Plan [Prior to the consideration of this item, Councillor Tony Hunter declared that he would leave the room for the duration of the item and not take part in the debate or vote as he may be perceived to be biased as a result of the assistance he had provided to a family with a disabled child in Meadow Way, Therfield.] The Executive Member for Finance and IT presented the report of the Head of Finance, Performance and Asset Management in respect of the proposed disposal of 0.33 hectares of land at Meadow Way, Therfield. The following appendix was submitted with the report: Appendix A - Location Plan. The Executive Member for Finance and IT advised that a year ago Cabinet had resolved to dispose of the Meadow Way site to the Howard Cottage Housing Association for the provision of 8 affordable dwellings. After the terms had been agreed between Howard Cottage and the District Council the Government announced that Housing Associations had to cut social housing rents by 1% for the next 4 years from April 2016. Previously, Housing Associations had prepared their financial plans on the assumption that social housing rents would increase each year. The Executive Member for Finance and IT stated that Howard Cottage had informed the District Council that, in the light of the Government's decision over reducing their rents, the assumed returns on new housing schemes had taken a significant hit and that its Board could no longer approve any significant schemes, including Meadow Way, Therfield. Since that time Officers had been working with Howard Cottage to explore alternative options to facilitate affordable housing at Meadow Way. The Executive Member for Finance and IT explained that one option was to find an alternative Housing Association to take over the scheme. The Aldwyck Housing Group had a number of existing and planned housing schemes in the area. They had met with Howard Cottage and the District Council. Following their appraisal of Howard Cottage's proposals, Aldwyck had indicated that they would like to move forward in place of Howard Cottage with their scheme. This was based upon the same land value as reported to Cabinet a year ago and the assumptions that they could transfer their grant allocation and use Recycled Capital Grant Funding as a top up. The existing authority only allowed for disposal of the 0.33 hectare land to Howard Cottage. It was therefore necessary to seek a new authority from Cabinet if another Housing Association was to progress Howard Cottage's scheme. RESOLVED: (1) That the sale of land of approximately 0.33 hectares at Meadow Way, Therfield for the provision of 8 affordable houses be agreed; and (2) That the Strategic Director of Finance, Policy and Governance, in consultation with the Executive Member for Finance and IT, be delegated authority to agree the terms of the disposal of the 0.33 hectares of land for the provision of 8 affordable dwellings. REASON FOR DECISION: To facilitate the provision of new affordable social housing through the use of Council-owned land that might otherwise remain of limited benefit to the community. |
Agreed | ||
| 85 |
UPDATE ON THE CURRENT POSITION REGARDING THE PROPOSED RESETTLEMENT OF SYRIAN REFUGEES Report Addendum Report The Executive Member for Housing and Environmental Health presented a report and addendum report providing an update on the current position regarding the proposed resettlement of Syrian refugees. The Executive Member for Housing and Environmental Health asked the Strategic Housing Manager to summarise the latest position, as set out in the addendum tabled at the meeting. The Strategic Housing Manager advised that the Chancellor had recently announced that over £460million of the overseas aid budget would be used by 2019/20 across the statutory sector to assist with first year costs of resettling up to 20,000 of the most vulnerable Syrian refugees. The Government would provide around a further £130million by 2019/20 just to local authorities to contribute to the costs of supporting refugees up to their fifth year, including an ‘extreme cases' fund that would assist with high cost cases. The Strategic Housing Manager commented that the Home Office had released a document entitled ‘Syrian Resettlement Scheme - Funding Process', which outlined the typical unit costs per refugee, dependant on whether they were a child or an adult. The actual amounts covered would be determined by the ages of the children and whether or not the adults were in receipt of mainstream benefits. These costs also included an amount for the management of the scheme. The Government expected this funding to cover the costs of resettlement; however, it had confirmed that it would keep the general level of funding under review. In terms of resettlement schemes, the Strategic Housing Manager stated that the Local Government Association had confirmed that the local authority decided when it was ready to receive refugees. The Home Office provided referral forms that gave detail on family make up, age and specific needs. The local authority was asked to accept or reject cases. If authorities wanted a particular make up of cases, the Home Office had indicated they should state this and they would do their best to match cases. Further detail on any medical needs followed shortly after, via a full medical health assessment report. As soon as a local authority had indicated they wished to participate, they would be sent this detailed information. On accepting a case, local authorities then needed to arrange housing, school places etc. In parallel, an arrival date would be agreed. Cabinet noted that, in order for the scheme to operate successfully, the resettlement arrangements would need to be finalised prior to the arrival of the refugees. Furthermore, many services would need to be co-ordinated to ensure that all necessary support and advice was available at the appropriate time. These requirements were specified by the Home Office with the key provision of interpreting services throughout the period of resettlement. The ‘requirements' also included the initial greeting at the airport and transport to the accommodation, registration with utility companies, provision of a welcome pack of groceries, provision of a cash/clothing allowances whilst a claim for benefits was being processed, advice and support in registering for mainstream benefits and services, registering with local schools, attending Job Centre Plus appointments, registering with a local GP and advice on appropriate mental health services. A support plan should also be put in place for each family for 12 months to facilitate their orientation into their new home/area. Arrangements for the provision of English language classes should be put in place within one month of arrival. The Strategic Housing Manager advised that Hertfordshire County Council had confirmed that it would send a representative to any planning meetings with the Home Office and it also wished to be notified once the household took up residence, so they were able to offer any necessary educational and social care services. The Strategic Housing Manager explained that St. Albans District Council had co-ordinated relevant updates on the situation regarding the resettlement of Syrian Refugees through the Hertfordshire Heads of Housing Group. This had included reviewing the practical issues involved with any resettlement scheme and to informally discuss the options for delivery. A further meeting had been scheduled for 16 December 2015, with the majority of local authorities keen to explore the option of a shared solution for the co-ordination of a resettlement scheme and delivery of the Home Office requirements. Should a shared solution be agreed, it was likely the service provider would liaise with community and charitable groups in the local authority area in order to help facilitate integration. The Strategic Housing Manager stated that Local registered providers' (formerly known as housing associations) had been approached to ascertain whether they were able to assist with the provision of accommodation and some had indicated they were willing to help. The private rented sector was also an option, although may prove challenging due to market rent levels and difficulties with affordability for benefit reliant households. In terms of the fifty refugees to be housed by NHDC, the Strategic Housing Manager advised that this would be on the basis of 10 refugees per year over the five year period. The Executive Member for Housing and Environmental Health commented that, whilst supportive of the way forward, he had some concerns over the officer time and resources that may need to be devoted to supporting the refugees. However, he was grateful to the support offered by the Refugee Council. The Executive Member for Finance and IT drew attention to the possibility that an item on Syrian refugees may shortly be added to the Council's Risk Register. RESOLVED: (1) That the current situation regarding the proposed resettlement of Syrian refugees be noted; and (2) That officers be authorised to make the necessary arrangements to accommodate the number of refugees agreed by Council in current and future years, ensuring full cost recovery in line with the Home Office Funding Process. REASON FOR DECISION: To enable the consideration of the latest position relating to the proposed resettlement of Syrian refugees, and to authorise officers to make the necessary arrangements for the local scheme. |
Noted | ||
| 86 |
SECOND QUARTER REVENUE MONITORING 2015/16 Report Appendix A - General Fund Summary The Executive Member for Finance and IT presented the report of the Strategic Director of Finance, Policy and Governance in respect of the Second Quarter Budget Monitoring 2015/16. The following appendix was submitted with the report: Appendix A - General Fund Summary. The Executive Member for Finance and IT referred to the Executive Summary and the various tables of information contained in the report, as follows: - Net General Fund expenditure for 2015/16 (Table 1) - Forecast net expenditure at second quarter in 2015/16 was £16.572million. This was £8,000 (0.05%) higher than the working budget, and £511,000 (3.2%) higher than the original budget; - Budgets Carried Forward from 2014/15 (Table 2) - Of the £464,000 of carry forward budgets into 2015/16, £161,000 (35%) had been spent by the end of the second quarter. There were three carry forwards at amber status that may not be spent by the end of the year; - Achievement of Efficiencies (Table 3) - It was expected that £185,000 of agreed efficiency proposals would be achieved; - Key Financial Indicators (Table 4) - All five indicators were at green status; - General Fund Reserve Balance (Table 5) - The General Fund reserve was now forecast to have a balance of £6.034million at 31 March 2016. This was £4.361million higher than the originally approved minimum balance of £1.673million, although it remained within the limits set in the Medium Term Financial Strategy; - Allowance for financial risks (Table 6) - The budgeted minimum General Fund balance of £1.673million included an allowance of £873,000 for known financial risks. As at the end of the second quarter, £403,000 of these risks had been realised; and - Earmarked Reserves (Table 7) - As at 1 April 2015 there was a balance of £4.938million in other useable earmarked reserves. The balance was forecast to be £4.438million at 31 March 2016. RESOLVED: (1) That the report be noted; (2) That the changes to the 2015/16 General Fund Budget, as identified in Paragraph 8.1, Table 1 of the report, and involving an increase in net expenditure of £8,000, be approved; and (3) That the changes to the 2016/17 General Fund Budget, as identified in Paragraph 8.1, Table 1 of the report, and involving an increase in net expenditure of £205,000, be approved. REASON FOR DECISION: To monitor and request appropriate action of Directorates who do not meet the budget targets set as part of the Corporate Business Planning process; and to ensure that changes to the Council's balances are monitored and approved. |
Noted | ||
| 87 |
TREASURY MANAGEMENT SECOND QUARTER 2015/16 Report Appendix A - Treasury Management Update - September 2015 The Executive Member for Finance and IT presented a report of the Strategic Director of Finance, Policy and Governance in respect of the Second Quarter Treasury Management Monitoring 2015/16. The following appendix was submitted with the report: Appendix A - Annual Treasury Management Update - September 2015. The Executive Member for Finance and IT advised that the Council had operated within the treasury and prudential indicators set out in the Treasury Management Strategy Statement and in compliance with the Treasury Management Practices. The Executive Member for Finance and IT stated that the Council had generated £0.221M of interest during the first six months of 2015/16. The average interest rate agreed on new deals during the quarter by Tradition was 1.37% and in-house was 0.58%. The average interest rate on all outstanding investments at 30 September 2015 was 1.31%. The Executive Member for Finance and IT explained that it continued to prove challenging to find counterparties willing to pay a reasonable return on cash investments, either long or short term. This issue was expected to continue during 2015/16. The bank rate had remained at 0.5%, and Capita expected this rate to hold until June 2016 when they were forecasting a rise to 0.75%. The Executive Member for Finance and IT commented that, at the end of the second quarter, the Council had 22% (£10.5M) invested for longer than 364 days. Three new deals totalling £4.75M was placed during the quarter for longer than one year. As approved in the Treasury Strategy, maturing Sterling deals had been reinvested by Tradition. £4.5M of Sterling deals that matured in October 2015 would be retained in-house to fund Capital expenditure. The amount of investment interest expected to be generated during the year was £0.431M. This was an increase on the original budget of £0.018M. RESOLVED: That the position of Treasury Management activity as at the end of September 2015, as set out in the report, 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 to ensure the Council manages its exposure to interest and capital risk. |
Noted | ||
| 88 |
SECOND QUARTER CAPITAL MONITORING 2015/16 Report Appendix A - Capital Programme Summary 2015/16 Onwards Appendix B - Capital Programme Detail 2015/16 Onwards The Executive Member for Finance and IT presented the report of the Strategic Director of Finance, Policy and Governance in respect of the Second Quarter Capital Programme Monitoring 2015/16. The following appendices were submitted with the report: Appendix A - Capital Programme Summary 2015/16 onwards; and Appendix B - Capital Programme Detail 2015/16 onwards. The Executive Member for Finance and IT referred to the tables in the report with regard to the Scheme Timetable Revision and Changes to Capital Schemes commencing in 2015/16. He drew attention to the £360,000 worth of works to Letchworth Multi-Storey Car Park, which had been re-profiled to take place in 2016/17. The Executive Member for Finance and IT commented that the Council would be investing Capital expenditure of £25million for projects throughout the District between the years 2015/16 to 2019/20. RESOLVED: (1) That the changes to the projected Capital Programme for 2015/16 onwards arising from the re-profiling of schemes, as identified in Paragraph 8.3, Table 1 of the report, and totalling a decrease in expenditure in 2015/16 of £1.539million, be approved; and (2) That the changes to the projected Capital Programme for 2015/16 arising as a result of changes to the capital schemes, as identified in Paragraph 8.4, Table 2 of the report, and totalling a net decrease in expenditure of £19,000, be approved. REASON FOR DECISION: To approve revisions to the Capital Programme, and to ensure that the Capital Programme is fully funded. |
Noted | ||
| 89 |
CORPORATE BUSINESS PLANNING - DRAFT BUDGET 2016/17 Report Appendix 1 - General Fund Estimates (1.9% Council Tax increase) Appendix 2 - Efficiency Proposals Appendix 3 - Revenue Investment Proposals Appendix 4 - Capital Investment Proposals Appendix 5a - Notes of November 2015 Member Workshops(1) Appendix 5b - Notes of November 2015 Member Workshops(2) Appendix 5c - Notes of November 2015 Member Workshops (3) Appendix 6 - MTFS extract - budget assumptions The Executive Member for Finance and IT presented the report of the Strategic Director of Finance, Policy and Governance in respect of Corporate Business Planning - the Draft Budget for 2016/17. The following appendices were submitted with the report: Appendix 1 - General Fund estimates (1.9% Council Tax increase); Appendix 2 - Efficiency proposals; Appendix 3 - Revenue Investment proposals; Appendix 4 - Capital Investment proposals; Appendices 5a to 5c - Notes of November 2015 Member Budget Workshops; and Appendix 6 - Medium Term Financial Strategy extract - budget assumptions. The Executive Member for Finance and IT advised that the report outlined the draft budget proposals based on information available to date. He stressed that these were provisional figures and that further work remained to be done to refine the estimates before the final budget recommendation in January/February 2016. The Executive Member for Finance and IT invited Cabinet to consider each of the Efficiency Proposals, Revenue Investment Proposals and Capital Investment Proposals set out in Appendices 2 to 4 of the report. The following amendment was made: Efficiency E4 - Parking Strategy Review - deletion of the description "consider a flat rate fee for Sunday and evening charging to all NHDC's car parks" and deletion of the figure of £50,000 for 2017/18, 2018/19 and 2019/20 and its replacement with "TBC". The Cabinet supported the Executive Member for Finance and IT's desire that a 1.9% increase should be recommended as an appropriate level of Council Tax for 2016/17. RESOLVED: (1) That it be noted that the provisional finance settlement for 2015/16 is expected on 17 December 2015, following the Autumn Statement on 25 November 2015; (2) That the estimated position on the Collection Fund and the impact of the general fund for 2016/17, as set out at Paragraph 9.1.6 of the report, be noted; (3) That the position relating to the Council's General Fund balance be noted, and that due to the risks identified in Paragraph 9.2.3 of the report, a minimum balance of £1.669million is recommended; (4) That the position of the Council's other reserves and provisions, as identified in section 9.3 of the report, be noted; (5) That the inclusion of the efficiencies and investment Proposals, as set out at Appendices 2 and 3 to the report, in the budget estimates for 2016/17, be noted, subject to the following amendment: Efficiency E4 - Parking Strategy Review - deletion of the description "consider a flat rate fee for Sunday and evening charging to all NHDC's car parks" and deletion of the figure of £50,000 for 2017/18, 2018/19 and 2019/20 and its replacement with "TBC"; (6) That it be noted that work will continue during the production of business cases for the items marked "tbc" in Appendices 2 and 3 to the report; (7) That the intended inclusion of the capital investment proposals, as set out at Appendix 4 to the report, in the Capital Programme, and the subsequent implications on the general fund budget estimates, be noted; (8) That the report be referred to all Members of the Council, via the Members' Information Service (MIS) for comment; (9) That the comments on the proposals from the November 2015 Member Budget Workshops, as set out in Appendices 5a to 5c to the report, be noted; (10) That it be noted that the budget estimates, and hence the provisional Council Tax requirement, may be subject to change before the Cabinet meeting to consider the Final Budget for 2016/17 on 26 January 2016; and (11) That a 1.9% increase be recommended as an appropriate level of Council Tax for 2016/17. REASON FOR DECISION: To ensure that all relevant factors are taken into consideration when arriving at the proposed Council Tax precept for 2016/17; and to ensure that the Cabinet recommends a balanced budget to Council on 11 February 2016. |
Agreed | ||
| 90 |
NORTH HERTS LEISURE CENTRE - PARKING Report and Appendices Amended Recommendations The Executive Member for Leisure presented a report of the Head of Leisure and Environmental Services in respect of the North Herts Leisure Centre (NHLC) - Parking. The following appendices were submitted with the report: Appendix A - Plan of improvement works to car park; and Appendix B - Appendix E of the Memorandum of Agreement. The Executive Member for Leisure advised that, due to the delay on the main capital project at the NHLC, consideration needed to be given to proceed with the Letchworth Rugby Club (LRC) car park improvement work separately to the main project. The proposed solution was to refurbish the LRC car park and create a single, larger shared car park which addressed the parking requirements of the site as a whole. The Executive Member for Leisure stated that the proposed solution had been drawn up by the officers, working in conjunction with the Letchworth Garden City Heritage Foundation, Letchworth Rugby Club and Letchworth Football Club. The proposal would be to take the piece of wasteland currently used by the Rugby Club as a car park, re-surface it and lay out 92 spaces, and install lighting to make it a more attractive offer for users of the Leisure Centre, the Rugby Club and Football Club. The Executive Member for Leisure explained that the maximum spend for NHDC would be £110,000, to be funded from the Leisure Management Profit Share, thereby reducing the capital required for the Leisure Centre development by £50,000. The Heritage Foundation would also be allocating funding of £50,000 and the Rugby Club £37,000 (in cash and works in kind), as set out in the memorandum of Agreement. The NHDC maximum allocation for lighting the new car park was £60,000. The Executive Member for Leisure introduced the following amended recommendations to the report, which had been tabled at the meeting: "2.1 Agree to proceed with the car park improvement works at the Letchworth Rugby Club separately to the NHLC main project subject to: (a) the Council's estimated contribution not to be funded from the council Capital programme, but instead from profit share from the Leisure contracts; (b) the Strategic Director of Customer Services, in consultation with the Executive Member for Leisure, considering that the proposed scheme (including the associated documentation) under which the improvements are to be undertaken and the facilities made available for NHDC, can be achieved to their satisfaction; and 2.2 In the event that the Strategic Director for Customer Services, in consultation with the Executive Member for Leisure, is not satisfied that the proposed scheme can be achieved, to revert back to the additional fifteen car park spaces for the NHLC project, if that project proceeds." The Executive Member for Leisure advised that the Rugby Club would be procuring the contract, obtaining three tenders in accordance with NHDC Contract Procurement Rules. It was hoped that the work would be completed and the car park operational by March- May 2016. As the major capital scheme to the Leisure Centre was not now likely to proceed until November 2016, it seemed sensible to sever the two elements and proceed with the improved car parking element first. The Cabinet discussed the Memorandum of Agreement, and the Executive Member for Leisure acknowledged that this would need finalising, in consultation with the Strategic Director of Customer Services. The Executive Member for Leisure and head of Leisure and Environmental Services responded to various issues raised by Members as follows: - The new car park would be used on a first come, first served basis. It was expected that the spaces would be used 95% of the available time by Leisure Centre users and the remaining 5% of the time by the Rugby/Football Clubs; - NHDC and the Rugby Club would maintain those parts of the car park within their respective ownerships. NHDC would supply electricity to the new lighting, on the grounds of health and safety of all users, but particularly families and children using the Leisure Centre; - It was not envisaged that weekday use of the car park, nor evening use for training by the Rugby/Football Clubs would cause problems. On weekend match days there could still be issues, but a further 92 dedicated parking spaces should help to partially alleviate the situation; and - The alternative option was to proceed with the original 15 extra spaces approved in the planning permission. However, as officers were mindful of the comments made by Members at that stage about parking, this had driven the move to work with other parties to provide a better solution. The £50,000 cost of the 15 spaces (£3,330 per space) had been compared with the £110,000 cost of providing the 90+ spaces (£1,110 per space), with the latter providing better value for money. The Cabinet concluded that the benefits to the community of the proposed new car park outweighed other considerations. Members supported the Executive Member for Leisure's further minor revisions to the recommendations, with the addition at the end of Recommendation 2.1 (a) of the words "to a maximum of £110,000" and the replacement of the words " is not satisfied that the proposed scheme can be achieved" in Recommendation 2.2 with the words "do not consider that the proposed scheme can be achieved to their satisfaction". RESOLVED: (1) That it be agreed to proceed with the car park improvement works at the Letchworth Rugby Club separately to the NHLC main project subject to: (a) the Council's estimated contribution not to be funded from the Council Capital Programme, but instead from profit share from the Leisure contracts, to a maximum of £110,000; (b) the Strategic Director of Customer Services, in consultation with the Executive Member for Leisure, considering that the proposed scheme (including the associated documentation) under which the improvements are to be undertaken and the facilities made available for NHDC, can be achieved to their satisfaction; and (2) That, in the event that the Strategic Director for Customer Services, in consultation with the Executive Member for Leisure, do not consider that the proposed scheme can be achieved to their satisfaction, to revert back to the additional fifteen car park spaces for the NHLC project, if that project proceeds. REASON FOR DECISION: By separating the car park development from the main capital project, to improve the parking provision and enhance access for users of the North Herts Leisure Centre, Letchworth Rugby Club and Letchworth Football Club. |
Agreed | ||
| 91 |
NORTH HERTS LEISURE CENTRE CAPITAL PROJECT Report and Appendix The Executive Member for Leisure presented a report of the Head of Leisure and Environmental Services in respect of the North Herts Leisure Centre - Capital Project. The following appendix was submitted with the report: Appendix 1 - Cabinet resolutions for the NHLC project. The Executive Member for Leisure introduced and welcomed Mike Lee (Project Manager, Focus Consultants) and Rob Baker (Quantity Surveyor, Press and Starkey), who were both part of the Project Team for the Leisure Centre scheme. The Executive Member for Leisure advised that, having received tenders for the project, the cost of the scheme was higher than estimated and would span a longer time period. The original £3million project would now require a 12% increase in capital costs of £317,000. There would also be a 7 month delay to the contract, which would equate to a total revenue loss of £137,985 (£18,398 per month). The Executive Member for Leisure was disappointed with the tender results. She considered that the Council needed to decide whether or not the scheme reflected value for money in the current market; was the Business Case still attractive enough for the Council to proceed; and was the intention of providing enhanced swimming teaching facilities and associated improvement to the Leisure Centre something that the Council still wished to pursue for the community. A Cabinet Member asked a number of questions: - In terms of alternative options, aside from the "do nothing and replace the Leisure Centre in the future" option, another option was to refurbish the Centre as necessary and not proceed with the Learner Pool works. Had this option been considered? - He thought that Stevenage Leisure Limited (SLL) had been given approval to increase their charges at the Centre. Surely part of that increased income should come back to NHDC? - Why was the scheme delayed by over 7 months, when Cabinet had only last considered the matter some 5 months ago? In respect of the first question, the Executive Member for Leisure advised that the pros and cons of alternative options were set out in the table at Paragraph 9.4 of the report. She dealt with these in turn: (a) Complete replacement of the Leisure Centre (>£20M) in the next decade or more - £20M plus of capital in the next decade on a single project was highly unlikely to be achievable, as too was the opportunity for external funding. Over time the condition of the leisure facilities would deteriorate and would have an adverse impact on usage and income; (b) To withdraw/close the NHLC to reduce the Council's overall capital liabilities - Closure of the NHLC would have a significant negative impact on the residents/users, as the nearest leisure pool was in Bedford and would increase the burden of swimming lessons and other activities on existing well used facilities; and (c) Provide a reduced scheme based on existing provision - Improving the existing facilities without a new cafeteria or swimming pool would not meet current or existing expectations. There would still be an unmet need for swimming lessons and the lost opportunity for increased revenue from the leisure management contractor (£18,398 a month, or £1.6m over the contract period). With regard to the second question, the Head of Leisure and Environmental Services stated that the increase in charges had been put forward by SLL as part of its Business Case (ie. putting up the charges by 10% in 2015/16 and by 15% in 2016/17). In relation to the third question, Mr Rob Baker explained that a two stage tender process had been followed, whereby a main contractor was appointed on the basis of a first stage set of documentation (preliminaries, overheads and profit), as well as a quality submission. The second stage had involved the main contractor tendering in the open market for various sub-contractor packages. Given the inflationary pressures in the market, it had taken longer than anticipated to achieve value for money. Mr Baker commented that the main contractor had submitted the second stage tender, which was significantly in excess of the estimated budget. Further time was then spent working with the contractor to secure best value, meaning that alternative sub-contractors were invited to submit fresh prices which, when received, were much more competitive than the original prices. Mr Baker stated that the delay had also been due to the main contractor endeavouring to secure sub-contractors who were willing and able to undertake the necessary works within the timescales originally envisaged. There was a trade off between engaging sub-contractors who were able to turn around a job very quickly and achieving value for money in terms of sub-contractors taking longer. So having gone down the best value/value for money route, the actual period that the main contractor would be on site was now slightly longer than originally envisaged. A Cabinet Member asked how certain was it that the project would be delivered in the new timeframe, had the contract been signed and did it contain penalty clauses. Mr Mike Lee replied that the Council had yet to enter into a contract with the main contractor, as formal approval to proceed was still awaited. However, the draft contract contained Liquidated and Ascertained Damages clauses, whereby the main contractor would be penalised for non-performance. The Cabinet shared the Executive Member for Leisure's disappointment over the increased capital cost and delay to the project, but acknowledged from experience with other current NHDC capital projects that construction costs were rising. However, Members considered that the proposal was always a social, rather than a purely commercial, commitment. They further acknowledged that the Council had a proven commercial record with SLL over the years. In view of the wider community gains offered by the project, the Cabinet supported the recommendation to proceed with the scheme, subject to Full Council approving the revised financial arrangements. RESOLVED: That, subject to Council approving the consequential amendments to the Capital Programme, it be agreed to proceed with the development, noting the 7.5 months overall delay on the project. RECOMMENDED TO COUNCIL: That the annual budget be amended by way of an increase in capital of £317,327 and a reduction in revenue income of £137,985 in 2016/17. REASON FOR DECISION: To develop the NHLC to ensure this facility is fit for purpose for the future and to improve the financial and operational performance of the NHLC. |
Agreed | ||
| 92 |
COUNCIL TAX REDUCTION SCHEME 2016/17 Report Appendix 1 - Council Tax Reduction Scheme values May 2013 to November 2015 by category Addendum Report Appendix A to Addendum Report The Executive Member for Finance and IT presented a report and addendum report of the Head of Revenues, Benefits and IT in respect of the Council Tax Reduction Scheme 2016/17. The following appendix was submitted with the report: Appendix 1 - Council Tax Reduction Scheme Values May 2013 to November 2015 by Category. The following appendix was submitted with the addendum report: Appendix A - BMG Research Report. The Executive Member for Finance and IT advised that this matter was last before Cabinet in September 2015, when it was decided not to change the structure of the existing Scheme. At that time, there was no agreement on an percentage change to the Scheme, although he reminded Members that the Council had previously reduced the amount reimbursed to claimants from 33% to 25%. The Executive Member for Finance and IT reported that the Council had consulted on the Scheme, the results of which were set out in the addendum circulated to Members. The consultation responses were generally positive, although the responses to two of the questions were anomalous, and it was felt that this was due to the overly complex way in which the questions were phrased. This would be rectified prior to next year's consultation process. The Executive Member for Finance and IT stated that, notwithstanding the above issue, the consultation had given the Council the "green light" to proceed. He re-iterated that there were no structural changes to the Scheme; Town and Parish Councils were advised of the likely effect of the Scheme on their precepting; those that reached pensionable age and those with disabilities would be protected; and the Scheme should provide an incentive for individuals to work. The Executive Member for Finance and IT commented that he would be recommending a further percentage reduction because the incentive for individuals to work had been successful, as the number of claimants had been significantly reduced. The Executive Member for Finance and IT referred to the statistics set out in Paragraph 8.7 of the report, which showed that the collection rates for the previous two/three years were stable. He also reminded Cabinet that the Scheme included a sum of £50,000 for Discretionary Council Tax payments. So far, only £6,550 of this sum had been spent, but it was proposed to retain the £50,000 budget for 2016/17. The Executive Member drew attention to Paragraph 8.38 of the report, which showed that the number of claimants had gone down over the past year, which was why there was a residual amount of over £500,000 in the budget. He felt that it would be appropriate to give some of this back by reducing further the impact of the discount. Paragraph 8.47 of the report gave some choices for the level of potential reduction. He recommended that the level of reduction for 2016/17 should be reduced from 25% to 12.44%. This was supported by Cabinet. RESOLVED: (1) That the outcome of the consultation exercise with the public regarding the proposed Council Tax Reduction Scheme 2016/17 be noted; (2) That the current position of the 2015/16 Scheme be noted; (3) That the current position relating to the Discretionary Council Tax Payments Scheme be noted; (4) That it be noted that a provision of £50,000 is suggested to meet the requirements of the Discretionary Council Tax Payments Scheme; (5) That it be recommended to Council that there be no changes to the Council Tax Reduction Scheme for 2016/17; (6) That it be recommended to Council that the percentage reduction to be applied to claims in the non-protected groups be 12.44% for 2016/17; (7) That it be recommended to Council that the amount of Council Tax Reduction Scheme Grant distributed to the Local Precepting Authorities should be reduced by the same percentage as the Council's own Funding Settlement, which will not be known until just before Christmas 2015; (8) That the Family Premium be retained within the Council Tax reduction Scheme calculation, and that this be uprated in line with other Premiums; and (9) That the Strategic Director of Finance, Policy and Governance, in consultation with the Executive Member for Finance and IT, be delegated authority to: - review the funding available for the Council Tax Reduction Scheme following the announcement of the Final Settlement, including the recommendation at (6) above; and - calculate the actual amount referred to in (7) above following the Final Settlement figures. REASON FOR DECISION: To ensure that the Council complies with the requirement to ensure that a Scheme is in place by 31 January 2016. |
Agreed | ||
| 93 |
BUILDING CONTROL - 7 HERTFORDSHIRE AUTHORITIES PROJECT Report The Executive Member for Planning and Enterprise presented a report of the Head of Development and Building Control in respect of the 7 Hertfordshire Authorities Building Control Project. Cabinet noted that, since the report to Cabinet in March 2015, work on the project had been on-going: - In September 2015, all seven Chief Financial Officers had agreed the financial model; - An interim Managing Director (MD) was appointed in September 2015 to take over from the Project Manager, as a dedicated resource was required; - Expert legal advice had and was being sought with regard the project; - A procurement exercise for a single IT office and mobile solution had commenced; - Expressions of interest had been sought from each of the seven authorities in order to provide the company with start-up support services; - Initial meetings with building control staff had been undertaken by the MD at each local authority; - Key leads for areas of the project were provided by participating authorities, with NHDC providing the operational lead: - Legal: Stevenage; - Finance: Broxbourne; - IT: Hertsmere; - Human Resources: Three Rivers; - Operations: North Hertfordshire. The Executive Member for Planning and Enterprise was pleased to note that the Finance, Audit and Risk Committee had supported the project. RESOLVED: That the report be noted. REASON FOR DECISION: To keep Cabinet informed of recent developments. |
Noted | ||
| 94 |
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). |
Noted | ||
| PART II | ||||
| 95 |
BUILDING CONTROL - 7 HERTFORDSHIRE AUTHORITIES PROJECT Report Appendix A - Hertfordshire Building Control Collaborative Venture - Business Case The Executive Member for Planning and Enterprise presented a Part 2 report of the Head of Development and Building Control in respect of the 7 Hertfordshire Authorities Building Control Project. The following appendix was submitted with the report: Appendix A - Hertfordshire Building Control Collaborative Venture - Business Case. The Executive Member for Planning and Enterprise invited the Head of Development and Building Control to summarise the Business Case. In so doing, the Head of Development and Building Control drew attention to the cost comparisons between the "do nothing" and "proceeding with the partnership" options set out in Table 4 of the report, which demonstrated that significant savings were projected should the Council and its partner authorities go forward with the partnership option. In order to progress matters, the Head of Development and Building Control drew attention to the recommendation in the report requesting that authority be delegated to the Strategic Director of Planning, Housing and Enterprise, in consultation with the Executive Member for Planning and Enterprise, the Corporate Legal Manager and the Director for Finance Policy and Governance, to take all such steps necessary to complete the project in accordance with the principles of the existing Business Case. However, any material changes to the existing Business Case be reported back to Cabinet for consideration. RESOLVED: (1) That the Business Case outlined in the report, and attached as Appendix A to the report, be approved; (2) That the Council proceeds with the joint arrangements for the provision of the Council's Building Control functions; (3) That authority be delegated to the Strategic Director of Planning, Housing and Enterprise, in consultation with the Executive Member for Planning and Enterprise, the Corporate Legal Manager and the Director for Finance Policy and Governance, to take all such steps necessary to complete the project in accordance with the principles of the existing Business Case, as require Cabinet approval; and (4) That any material changes to the existing Business Case be reported back to Cabinet for consideration. REASON FOR DECISION: To keep Cabinet informed of recent developments, and to enable the project to proceed in a timely manner. The Cabinet Chairman and Portfolio Holder for Finance and IT advised that the Head of Finance, Performance and Asset Management (Andy Cavanagh) was attending his final NHDC Cabinet meeting, prior to him leaving the Council's service in the near future to take up a position with the National Health Service. They thanked Andy for his unique contribution to NHDC, and wished him well in his new role. |
Agreed | ||