Agenda, decisions and minutes

Commercial Ventures Executive Sub-Committee - Thursday, 7th November, 2019 6.30 pm

Venue: Executive Meeting Room - Town Hall. View directions

Contact: Democratic Services (01737 276182)  Email: Democratic@reigate-banstead.gov.uk

Items
No. Item

31.

Minutes pdf icon PDF 200 KB

To confirm as a correct record the Minutes of the Commercial Ventures Executive Sub-Committee held on 5 September 2019.

Minutes:

RESOLVED that the minutes of the Commercial Ventures Executive Sub-Committee meeting held on 5 September 2019 be approved as a correct record.

32.

Apologies for absence

To receive any apologies for absence.

Minutes:

Apologies for lateness were received from Councillor T Archer.

Clerk’s Note: Councillor M A Brunt, Vice Chair of the Commercial Ventures Executive Sub-Committee, took the Chair for the meeting.

33.

Declarations of interest

To receive any declarations of interest.

Minutes:

There were no declarations of interest.

34.

Creation of a Housing Association pdf icon PDF 189 KB

To consider the creation of a Housing Association.

Additional documents:

Minutes:

Councillor M A Brunt, the Leader of the Council, introduced the Creation of a Housing Association report.  It was recommended that the Head of Legal and Governance be authorised to establish a Community Benefit Society for the purpose of becoming a housing association, and to take the necessary steps to establish appropriate structures around the Community Benefit Society.

As set out in the report, establishing this Community Benefit Society (‘CBS’) would enable the CBS to help to secure the quality of tenancy for a number of residents in supported living, who were supported by Pathway for Care, in which the Council was a shareholder.  The CBS would also provide the potential to consider future related opportunities around housing provision.

The report identified that the business case for the CBS was sound and additional information was available in the exempt report in the Part 2 section of the agenda.

The recommended actions were to establish the CBS and take the necessary steps to establish it as an arm’s length company through an appropriate company structure.  Establishing the CBS would enable the Council to support the ongoing supported living work of Pathway for Care, and provide opportunities for additional housing work in the longer term.

RESOLVED that

(i)         the Head of Legal and Governance be authorised to complete and file the necessary paperwork to establish a CBS for the purpose of becoming a housing association; and

(ii)        the Head of Legal and Governance be authorised to take the necessary steps to establish the CBS as an arm’s length company through an appropriate company structure in consultation with the Members of the Commercial Ventures Executive Sub-Committee.

Reason for decision: To enable the Council to support the on-going work of Pathway Care Limited in the short-term and to support the housing work of the Council in the longer term against the back drop of ensuring good governance for all commercial related activities.

Alternative option: establish a CBS directly held by the Council or not establish a CBS.

35.

Acquisition of Property in Redhill East pdf icon PDF 184 KB

To consider the acquisition of a property in Redhill East.

Additional documents:

Minutes:

Councillor M A Brunt introduced the report and explained that it set out the proposed acquisition of a number of properties in Redhill East with additional information set out in the accompanying confidential report in the exempt Part 2 section of this agenda.

The proposed acquisition would provide an opportunity to support the provision of housing in the borough, and allow for the potential to generate income for the Council, and thereby support the Council’s other services.  It was reported that, having considered the potential acquisition in consultation with the other Members of the Sub-Committee, the balance of the potential benefit against the cost and potential risks, it was considered that there were better alternatives available to achieve the CVESC’s objectives.

RESOLVED that the acquisition of the leasehold of the properties and associated delegations and use of funding were not authorised.

Reason for decision: The proposed acquisition did not provide sufficient benefit in relation to the associated cost and potential risks.

Alternative options: To authorise the acquisition of the leaseholds of the properties and associated delegations and use of funding.

36.

Companies Performance Update, Autumn 2019 pdf icon PDF 207 KB

To consider an update on the performance of Council companies.

Additional documents:

Minutes:

Councillor M A Brunt introduced the report which provided an update on the performance of companies owned by the Council.  Updates were also provided on a 6 monthly basis to the Overview & Scrutiny Committee to support the good governance of the Council’s investments.  This update report had been considered by the Overview & Scrutiny Committee on 17 October 2019 and the CVESC noted the observations and points raised by the Overview & Scrutiny Committee as set out in its minutes.

As set out in the report, the companies were considered to either be performing in line with the Council’s objectives, or to be on target to do so once work currently in progress was complete.

Councillor Brunt confirmed that as the CVESC continued to move forward with developing and progressing the Council’s commercial approach to help support the Council’s other services, it would continue to monitor the performance of the companies and other Council investments to ensure that they secured the best value possible for the Council and its residents.

RESOLVED that the 17 October 2019 Companies Performance Update, as set out in this report, and the observations from the Overview and Scrutiny Committee from its meeting of 17 October 2019 be noted.

Reason for decision:  To support the good governance of the Council’s companies.

Alternative options: To request additional information on the performance of the companies owned, or part-owned, by the Council. 

Clerk’s Note: Councillor Archer arrived at the end of item 6.

37.

Shareholder Actions

To undertake actions on behalf of the Council with regard to shareholder / partnerships functions for Greensand Holdings Limited; Horley Business Park Development LLP; RBBC Limited; and Pathway for Care Limited.

37a

Greensand Holdings Limited Shareholder Consent Matter pdf icon PDF 162 KB

Additional documents:

Minutes:

Councillor M A Brunt introduced the report.  It was recommended that, as shareholder representative, the Commercial Ventures Executive Sub-Committee approve and sign the shareholder resolution increasing Greensand Holdings Limited’s borrowing limit which was required to be increased following the Executive approving, on 19 September 2019, a loan of funds to the Company.

RESOLVED that the increase in Greensand Holdings Limited borrowing limit be approved by signing the shareholder written resolution, as set out in the accompanying exempt report in the Part 2 section of the agenda.

Reason for decision: Approving and signing the shareholder written resolution supports the good governance of the Council-owned company by complying with the requirements of the Shareholder Agreement between the Council and the Company.

Alternative options: To not approve the increase in the borrowing limit by not signing the shareholder written resolution.

38.

Investment Opportunities

To consider any investment opportunities.

Minutes:

There were no items to be considered.

39.

Property Acquisitions and Disposals

To consider any property acquisitions or disposals.

Minutes:

There were no items to be considered.

40.

Loans, Grants and Draw Down Agreements

To review loans, grants or draw down agreements.

Minutes:

There were no items to be considered.

41.

Any Other Urgent Business

To consider any item(s) which, in the opinion of the Chairman, should be considered as a matter of urgency – Local Government Act 1972, Section 100B(4)(b).

(Note:  Urgent business must be submitted in writing but may be supplemented by an oral report).

Minutes:

None.

42.

Exempt Business

RECOMMENDED that members of the Press and public be excluded from the meeting for the following item 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.

Minutes:

RESOLVED that members of the Press and public be excluded from the meeting for the following item 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.

43.

Creation of a Housing Association (Exempt) pdf icon PDF 189 KB

To consider exempt information in relation to the creation of a Housing Association.

Additional documents:

Minutes:

RESOLVED that the exempt information in relation to the Creation of a Housing Association report be noted.

44.

Acquisition of Property in Redhill East (Exempt)

To consider any exempt information in relation to the acquisition of a property in Redhill East.

 

Minutes:

RESOLVED that the exempt information regarding the acquisition of property in Redhill East was noted. 

45.

Companies Performance Update, Autumn 2019 (Exempt)

To consider any exempt information in relation to the Companies Performance Update.

 

Minutes:

RESOLVED that the exempt information in relation to the Companies Performance Update report be noted.

46.

Shareholder Actions (Exempt)

To consider any exempt information in relation to shareholder actions.

46a

Greensand Holdings Limited Shareholder Consent Matter (Exempt)

Minutes:

RESOLVED that the exempt information in relation to the Greensand Holdings Limited Shareholder Consent Matter report be noted.

47.

Investment Opportunities (Exempt)

To consider any exempt information in relation to investment opportunities.

Minutes:

There was no exempt business to be considered under this agenda item.

48.

Property Acquisitions and Disposals (Exempt)

To consider any exempt information in relation to property acquisitions or disposals.

Minutes:

There was no exempt business to be considered under this agenda item.

49.

Loans, Grants and Draw Down Agreements (Exempt)

To consider any exempt information in relation to investment opportunities.

Minutes:

There was no exempt business to be considered under this agenda item.