Meeting documents

• (Attachment: 1)Minutes

RESOLVED that the minutes of the meeting held on 16 July 2015 be approved as a correct record and signed.

Executive Members: Councillors G.J. Knight and Mrs R. Renton

Non-Executive Members: Councillor M.J. Selby.
 

None.

• (Attachment: 2)Item 4: External Auditors Report (2M/bytes)

The Leader of the Council, Councillor V.W. Broad (in the absence of the Executive Member for Finance) was delighted to present the ISA 260 report from KPMG following their audit of the Council’s 2014/15 accounts.
It was noted that KPMG, the Council’s external auditors, had made many favourable references to the quality of the accounting statements, supporting working papers and the Council’s continuing commitment to achieve good value for money.

Mr Hewitson from KPMG, at the Leader’s invitation, presented his findings on their audit report on the Council’s 2014/15 Financial Accounts.

Reference was made to the Management Representation Letter which formed part of the audit process that requested the Council to provide assurances on matters which were required by auditing standards.

The Executive congratulated all involved for such a positive report and thanked Mr Hewitson from KPMG for attending the meeting and presenting his report and the conclusions of the audit.

RESOLVED that:

(i) the report on the 2014/15 audit be noted; and

(ii) the Management Representation Letter be agreed.

Reasons for decision:
The Executive is responsible for corporate governance. How we utilise and account for resources is intrinsic to good governance.

Alternative options:
None.
 

• (Attachment: 3)Item 5: Approval of Accounts 2014-15 (2M/bytes)

Leader of the Council, Councillor V.W. Broad reported on the Statement of Accounts for the financial year 2014/15 that had been prepared, audited and presented to the Executive as part of the Annual Financial Report.
The Leader made reference to the external auditors report (Minute 24 above) on the Statement that complimented the Council on its Statement of Accounts.

The foreword to the Accounts provided a summary of the year’s activity and explained how we paid for it.
It was emphasised that the Accounts also reported on the healthy balance on the General Fund and other reserves, which was as a result of careful budget management against a backdrop of improving, but still difficult, economic conditions.

Councillor V.W. Broad thanked Councillor G.J. Knight, the Executive Member for Finance for all of his efforts working with the Officer and the Member Panel that reviewed the Statements. The Leader also referenced the work of the shadow Portfolio Holder, Councillor K. Foreman and the Officers for their time and effort put into the preparation of these Accounts.

RESOLVED that the Statement of Accounts for the year ended 31 March 2015 be approved.

Reasons for decision:
The Code of Practice of Local Government Accounting recommends that the Statement of Accounts should be endorsed by the body within the Council that is responsible for overall corporate governance. Under the Council’s Constitution this function has been delegated to the Executive.

Alternative option:
None.
 

• (Attachment: 4)Item 6: Town Hall Parking Expansion Report (2M/bytes)

The Executive Member for Property and Regeneration, Councillor Mrs N.J. Bramhall introduced the report by referring to the comprehensive investigation that had been undertaken into the viability of expanding car parking at the Town Hall site.

The report highlighted the Red Cross site and the North car park as being sites that were capable of supporting more parking spaces at the Town Hall.

It was noted that planning permission had been granted for the proposed expansions in the Car Parks which would create an additional twenty nine spaces on the town hall site.

The two projects were anticipated to take four months to complete during which displaced car park users would be relocated at Bancroft Road Multi Storey Car Park.

The proposed works were estimated to cost approximately £185,000 and it was envisaged that the additional car parking spaces would assist in the lettings agreed on the Town Hall site to both private sector and public sector organisations.

In response to a question from Councillor C.T.H. Whinney, the Executive Member agreed to provide a written answer on the issue of renting out car park spaces to local residents.

RECOMMENDED that the Capital programme be revised to provide the funding for this development, estimated at £185,000.

RESOLVED that the Head of Property Services be authorised, in consultation with the Executive Member for Property and Regeneration, to make all necessary consultant and construction contractor appointments to commence and complete the construction project of providing new car parking on the Town Hall site, subject to all costs associated with the project not exceeding the budget of £185,000.

Reasons for decision:
Developing Council owned sites maximises the Council’s capital receipts and/or revenue income without the need of acquiring fully developed sites at premium prices. This additional car parking will support the revenue generating proposals and lettings that the Council has achieved on the Town Hall site to commercial and public sector organisations.

Alternative options:

The Red Cross Car Park: Do nothing with the car park being left as it is providing 28 spaces.

North Car Park: Do nothing with the car park being left as it is and the Council would not gain the additional car parking it requires to support its letting policy on the Town Hall site.
 

• (Attachment: 5)Item 7: Lee Street Housing Development Report (112K/bytes)
• | (Attachment: 6)Item 7: Background Paper - Site Location Plan (86K/bytes)

The Executive Member for Property and Regeneration, Councillor Mrs N.J. Bramhall presented a report detailing a potential housing development at Lee Street, Horley that had the potential to be developed with two houses on a Council owned site.

An appraisal of the site had been undertaken which had determined that this site could be used to support the Council’s temporary accommodation strategy by constructing properties for that purpose on the site. It was envisaged that this would reduce the costs that the Council incur in bed and breakfast charges. The Executive noted the financial appraisals for the development including the build costs being funded from S106 contributions.

The construction programme was estimated to start in early 2016 with a completion in late 2016.

RESOLVED that:

(i) the Head of Property be authorised to progress the development of the site for two bungalows in accordance with the Planning consent received, subject to the strategy set out in this report and further key stage sign off by the Head of Property in consultation with the Portfolio Holders for Finance and Property and Regeneration. The project to be progressed in accordance and within the financial parameters set out in Part 2 of this report;

(ii) the Head of Property be authorised in consultation with the Portfolio Holders for Finance and Property and Regeneration to procure all necessary consultants to enable the scheme to be progressed through to Planning and tendering of the project to suitable main construction contractors, subject to the Council’s procurement requirements and key stage sign off set out in this report and the budget envelope set out in Part 2 of this report;

(iii) the Head of Property be authorised in consultation with the Portfolio Holders for Finance and Property and Regeneration to appoint the main building contractor and grant the building contract subject to compliance with the Council’s Contract Procedure Rules, key stage sign off and meeting the budget envelope set out in Part 2 of this report;

(iv) the Head of Property be authorised to fund the project through applicable funding acquired through section 106 contributions to support the Councils temporary housing strategy.

Reasons for decision:

The redevelopment would provide the following benefits to the Council:

• Develop a redundant commercial property on a brownfield site into an asset and income stream;
• Support the Councils Temporary Accommodation strategy;
• Provide temporary accommodation for the Borough’s homeless; and
• Provide an addition to the property stock which could be sold if it became surplus to requirements.
 

Alternative options:

• Develop to sell with an estimated profit yield of £305,000. The budget allocated to fund this project is from Section 106 affordable housing contributions, which would be reused for affordable housing purposes if the properties were sold on the open market;
• Develop for affordable housing to yield a profit of £102,500 and provide social benefits for the borough; and
• Sell the land with planning permission yielding a profit of £225,000.
 

• (Attachment: 7)Item 8: Quarterly Performance Report (207K/bytes)

A report was submitted with financial monitoring information for the first quarter of 2015/16. The report also provided the headline issues on major variances in relation to the Council's overall performance for the period. Members of the Overview and Scrutiny Committee would consider the performance at their meeting on 17 September and report any issues to the Leader or the Executive following their meeting.

The Leader of the Council confirmed that 6 of the Council’s 8 key service indicators were on target or within agreed tolerances. The 2 indicators not within target were KS14, relating to planning applications, and KS17, relating to planning appeals.

On the financial side, the Council was projecting a year end overspend of £338,700 on the revenue budget. The capital budget was projecting an underspend of over £1.5m due to slippage of the regeneration, parking and waste blueprint projects.

The report also highlighted two new operational risks that had been identified.

In response to a question from Councillor J.C.S. Essex regarding the provision of recycling facilities for flats, Councillor A.J. Kay, Deputy Leader and Executive Member for Parks and Recycling indicated that he would provide a written response.

RESOLVED that the performance outlined in the report be noted.

Reasons for decision:
To consider the performance for the first quarter of the financial year 2015/16.

Alternative option:
None.
 

The Leader of the Council, Councillor V.W. Broad, made a statement to the Executive on the Syrian Refugee Crisis and his recent offer to the Prime Minister to assist in finding homes and other support in our area for those in need. The Leader’s action was welcomed by the Executive.

• (Attachment: 8)Urgent Court Lodge Report (451K/bytes)

The Executive considered the following item which, in the opinion of the Chairman, was considered to be a matter of urgency as prescribed in the Local Government Act 1972, Section 100B(4)(b).

The urgency reasons were as follows:

At its meeting on 27 February 2014 the Executive authorised the Deputy Chief Executive, in consultation with the Executive Member for Property and Regeneration, to “enter into a construction contract with the successful contractor to complete the development subject to the tendered construction cost not exceeding the budget as detailed in the part 2 report to the Executive”.

The tender exercise had been completed and because of the prevailing market conditions, the tenders were in excess of the authorised budget. The matter must therefore be referred back to the Executive.

The Executive was requested to consider this matter urgently so that it could make a recommendation to Full Council on 1 October 2015.

This was because the tenders were only valid for 90 days and the next Council meeting was not until 17 December 2015. Failure to consider the tenders within the deadline may lead to further increases in cost and could also mean that that the agreed timetable for development of this important residential site was not adhered to.

COURT LODGE RESIDENTIAL DEVELOPMENT, HORLEY

Councillor Mrs N.J. Bramhall, Executive Member for Property and Regeneration informed the Executive that the Court Lodge site and that of the Horley Leisure Centre were two former school sites that had been acquired from Surrey County Council for redevelopment. The sites had been redeveloped with the exception of the proposed housing site at Court Lodge.

It was noted that the Executive approved, in 2014, that the site be developed for housing and authorised a revised planning application to be submitted for 19 units together with the construction of the site being tendered. The revised planning approval had been received and a tender exercise had been undertaken for the construction of the houses. On receipt of the tenders both the sales value and construction costs had increased.

The Executive Member indicated that there were therefore two options, to either:

• sell the site with Planning Permission in place; or
• act as developer, build out the scheme and sell the completed houses on the open market.

The financial appraisals had shown that if the Council developed the site itself it would provide a greater financial return than a straight forward land sale. Full details of the anticipated receipts were set out in the Part 2 section of the agenda.

RECOMMENDED that authorisation be given to revise the capital programme to provide the necessary additional funding for this development as set out in Part 2 of this report.

RESOLVED that:

(i) the Head of Property Services be authorised, in consultation with the Executive Member for Property and Regeneration, to enter into a construction contract with the selected contractor to build 19 two and three bedroom houses on the Council owned land in Court Lodge Road, Horley (as shown in Annex 1 to the report presented), subject to the construction cost not exceeding the budget envelope detailed in Part 2 of this report;

(ii) the Head of Property Services be authorised, in consultation with the Executive Member for Property and Regeneration, to make the necessary professional consultancy appointments to complete the construction project, subject to all costs associated with the project not exceeding the budget envelope set out in Part 2 of this report; and

(iii) the Head of Property Services be authorised, in consultation with the Executive Member for Property and Regeneration, to agree the plots sale scheme and individual transfer terms and subsequently enter into individual contracts for the sale of the constructed properties as private market housing, subject to overall sale values being within the values set out in Part 2 of this report.

Reasons for decision:

The Council has undertaken a strategic procurement exercise and has now received construction tenders from selected contractors resulting in the recommendations contained in this report.
Proceeding with the recommended option will provide the greatest capital receipt for the Council for this land holding.

The development of this site for market housing is considered to contain known and manageable development risks and an excellent development opportunity for the Council to maximise its assets.

Alternative options:

The site be re-marketed for disposal with the benefit of full planning permission and site surveys or do nothing.
 

RESOLVED that members of the Press and public be excluded from the meeting for the following items of business under Section 100A(4) of the Local Government Act 1972 on the grounds that:

(i) it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act; and

(ii) the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
 

• (Attachment: 9)Item 12: Less Street Housing Development Part 2 Report (115K/bytes)

RESOLVED that the exempt information relating to the Lee Street Housing Development be noted.

• (Attachment: 10)Urgent Court Lodge Part 2 Report (200K/bytes)

RESOLVED that the exempt information relating to the Court Lodge residential development be noted.