Meeting documents

Policy and Resources Scrutiny Committee
Thursday, 4th December, 2014 6.30 pm

Place:
Jubilee Room, Civic 1, Civic Campus, Victoria Ave
 

Attendance Details

ItemDescriptionResolution
Part I
455 Apologies and substitutions.
 Apologies for absence were received from Councillor Chalk (no substitute) and Councillor Stafford (no substitute).
456 Declarations of interest.
 The following interests were declared at the meeting:

(a) Councillors Woodley, D Norman MBE, Gilbert and Longley (Executive Councillors) - interest in the referred item / called in items; attended pursuant to the dispensation agreed at Council on 19th July 2012, under S.33 of the Localism Act 2011;
(b) Councillor Borton - agenda item relating to Universal Credit - non-pecuniary - works at Basildon BDC - future site for Universal Credit;
(c) Councillor Betson - agenda item relating to Universal Credit - non-pecuniary - Board member South Essex Homes - attended pursuant to the dispensation agreed by the Standards Committee on 10th October 2012, under S.33 of the Localism Act 2011 to participate in the debate but not vote; husband is a Director of a property company letting to possible tenants on housing benefits;
(d) Councillor Holland - agenda item relating to Heath & Carby House - non-pecuniary - son has worked on some aspects of this item.
457 Questions from Members of the Public.
 There were no questions from members of the public.
458 Minutes of the Meeting held on Thursday, 16th October, 2014
 Resolved:-

That the Minutes of the meeting held on Thursday, 16th October, 2014 be received, confirmed as a correct record and signed.
459 Minutes of the Meeting held on Thursday, 20th November, 2014
 Resolved:-

That the Minutes of the special meeting held on Thursday, 20th November, 2014 be received, confirmed as a correct record and signed.
460 Universal Credit
Business for item 460
Resolved:-

That the report be noted and endorsed for consideration at its meeting on 6th January 2015.

Note:- This is an Executive Function.
Executive Councillor:- Gilbert
461 Monthly Performance Report
Business for item 461
Resolved:-

That the report be noted.

Note:- This is an Executive Function.
Executive Councillor:- As appropriate to the item.
462 Item called in from The Cabinet minutes of Tuesday, 11th November, 2014.
 
Mid-Year Treasury Management Report - 2014/15
Scrutiny Comment for item 462
Business for item 462
Resolved:-

That the following recommendations of Cabinet be noted:

"1. That the Mid-Year Treasury Management Report for 2014/15, be approved.

2. That the Revised Annual Investment Strategy 2014/15, as set out in section 9 of the submitted report, be approved.

3. That it be noted that treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to September 2014.

4. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned whilst maintaining a low level of risk.

5. That it be noted that an average of £75.7 million of investments were managed in-house. These earned £0.19 million of interest during this six month period at an average rate of 0.49%. This is 0.14% over the average 7-day LIBID (London Interbank Bid Rate) and 0.01% under bank base rate.

6. That it be noted that an average of £24.7 million of investments were managed by the Council's external fund manager. These earned £0.11 million of interest during this six month period at an average rate of 0.87%. This is 0.52% over the average 7-day LIBID and 0.37% over bank base rate.

7. That it be noted that the level of borrowing from the Public Works Loan Board (PWLB) (excluding debt relating to services transferred from Essex County Council on 1st April 1998) remained at the same level of £250.8 million (Housing Revenue Account HRA): £84.5m, General Fund: £166.3m) during the period from April to September 2014."

Note:- This is a Council Function
Executive Councillor:- Woodley
463 Item called in from The Cabinet minutes of Tuesday, 11th November, 2014.
 
Heath & Carby House - Victoria Avenue
Scrutiny Comment for item 463
Business for item 463
Resolved:-

That the following decisions of Cabinet be noted:

"1. That the preferred course of action is the acquisition of Heath House and Carby House by agreement and in the event that acceptable terms can be reached, the Corporate Director for Corporate Services, in consultation with the Leader, be authorised to agree such terms subject to external valuation advice confirming that the price is reasonable.

2. That simultaneously to 1 above, the detailed case be prepared for Heath House and Carby House, Victoria Avenue, Southend-on-Sea, shown edged black on the plan at Appendix 1 to the submitted report, to be compulsorily purchased pursuant to Section 226 Town and Country Planning Act 1990 in order to facilitate the carrying out of development that will promote the economic, environment and social well-being of the area and that a report come back to Cabinet and Council to make the formal resolution.

3. That the Head of Finance & Resources be authorised to re-profile the existing allocated capital budget to ensure that finance is available when required to facilitate a purchase by agreement or a Compulsory Purchase Order and to proceed with demolition.

4. That it be noted that separate applications for the demolition of Heath House and Carby House (14/01728/DEM) and the redevelopment of the land (14/01763/OUT) have been submitted by the Council and the demolition work is specified ready to tender to ensure that if a purchase can be negotiated, the buildings can be demolished without delay to mitigate risk."

Note:- This is an Executive Function
Executive Councillor:- Woodley
464 Minutes of the Meeting of Chairmen's Scrutiny Forum held on Tuesday, 4th November, 2014
Business for item 464
Resolved:-

That the Minutes of the meeting of Chairmen's Scrutiny Forum held on Tuesday, 4th November, 2014, be received and noted and the recommendations therein endorsed.

Note: This is a Scrutiny Function.
18.30 / 19.50

Attendance Details

Present:
Councillor Habermel (Chairman), Councillor Evans (Vice-Chairman)
Councillors Ayling, Betson, Borton, Callaghan, Chalk, Lamb, Holland, J Garston, Moring, Nevin, Robinson, Ward, Waterworth and Wexham
In attendance:
Councillors Woodley, D Norman MBE, Gilbert and Longley (Executive Councillors)
J K Williams, F Abbott, J Lansley, V Dewsbury and M Gatrell

Scrutiny Comment

ItemComment
462 Called in by Councillors J I Courtenay and J Lamb.
Final call on 21/11/2014 at 14:26
Resolved:-

That the following recommendations of Cabinet be noted:

"1. That the Mid-Year Treasury Management Report for 2014/15, be approved.

2. That the Revised Annual Investment Strategy 2014/15, as set out in section 9 of the submitted report, be approved.

3. That it be noted that treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to September 2014.

4. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned whilst maintaining a low level of risk.

5. That it be noted that an average of £75.7 million of investments were managed in-house. These earned £0.19 million of interest during this six month period at an average rate of 0.49%. This is 0.14% over the average 7-day LIBID (London Interbank Bid Rate) and 0.01% under bank base rate.

6. That it be noted that an average of £24.7 million of investments were managed by the Council's external fund manager. These earned £0.11 million of interest during this six month period at an average rate of 0.87%. This is 0.52% over the average 7-day LIBID and 0.37% over bank base rate.

7. That it be noted that the level of borrowing from the Public Works Loan Board (PWLB) (excluding debt relating to services transferred from Essex County Council on 1st April 1998) remained at the same level of £250.8 million (Housing Revenue Account HRA): £84.5m, General Fund: £166.3m) during the period from April to September 2014."

Note:- This is a Council Function
Executive Councillor:- Woodley
463 Called in by Councillors J I Courtenay and J Lamb.
Final call on 21/11/2014 at 14:26
Resolved:-

That the following decisions of Cabinet be noted:

"1. That the preferred course of action is the acquisition of Heath House and Carby House by agreement and in the event that acceptable terms can be reached, the Corporate Director for Corporate Services, in consultation with the Leader, be authorised to agree such terms subject to external valuation advice confirming that the price is reasonable.

2. That simultaneously to 1 above, the detailed case be prepared for Heath House and Carby House, Victoria Avenue, Southend-on-Sea, shown edged black on the plan at Appendix 1 to the submitted report, to be compulsorily purchased pursuant to Section 226 Town and Country Planning Act 1990 in order to facilitate the carrying out of development that will promote the economic, environment and social well-being of the area and that a report come back to Cabinet and Council to make the formal resolution.

3. That the Head of Finance & Resources be authorised to re-profile the existing allocated capital budget to ensure that finance is available when required to facilitate a purchase by agreement or a Compulsory Purchase Order and to proceed with demolition.

4. That it be noted that separate applications for the demolition of Heath House and Carby House (14/01728/DEM) and the redevelopment of the land (14/01763/OUT) have been submitted by the Council and the demolition work is specified ready to tender to ensure that if a purchase can be negotiated, the buildings can be demolished without delay to mitigate risk."

Note:- This is an Executive Function
Executive Councillor:- Woodley

Business

ItemBusiness
460(This is a pre-Cabinet Scrutiny item).

The Committee considered a report by the Corporate Director for Corporate Services by way of pre-Cabinet Scrutiny. This informed members about the roll out of Universal Credit in February 2015 and also sought views on a number of proposed actions, prior to consideration by Cabinet at its meeting on 6th January 2015.

The Committee discussed the report in detail and made a number of comments - potential for debt, as payments will be made ‘in arrears'; the need for claimants to be IT literate; possibility of using a Post Office Card Account; issues around data sharing.

In response to questions, the Council's Benefits Manger said that she would be happy to circulate details of the publicity which will be made available for the changes around Universal Credit and also agreed to circulate details of the partnership agreement in place with JobCentre Plus.

There was general consensus and support for the content of the report and for the following proposed actions:

• Job centre plus staff presence in Civic 1 reception;
• Setting up a project team to manage direct payments for social housing tenants;
• Explore options for budgeting support and debt management for residents.
461The Committee considered Minute 369 of Cabinet held on 11th November 2014, together with the Monthly Performance Report (MPR) covering the period to end September 2014. The Committee additionally had before it an Exceptions Report which had been circulated on 28th November 2014.

The following matters were discussed:-

(a) CP 8.1 (level of current rent arrears), in response to questions, the Chief Executive, South Essex Homes said that he would provide a written answer with regard to the number of people SEH are actively working with who are struggling with the changes from the introduction and application of the spare room subsidy. Members of the Committee also paid tribute to the work of SEH and the CAB.
(b) CP 7.2 (percentage of non-domestic rates for 2014/15 collected in year), in response to questions about whether there were underlying issues emerging, the Executive Councillor said a written response would be provided.
(c) CP 4.12 (Number of eligible homeless prevention applicants discharged into private rented sector) in response to questions, the Executive Councillor said that the annual target will be revised to 20, which is a more realistic target. The ‘comments section' of the MPR will also be revised to reflect the changes and reasons behind the changes.
462The Committee considered Minute 371 of Cabinet held on 11th November, 2014, which had been called in to scrutiny (Cabinet item 6 refers), together with a report of the Corporate Director for Corporate Services detailing the treasury management activity for both quarter two and the period from April to September 2014.
463The Committee considered Minute 374 of Cabinet held on 11th November, 2014, which had been called in to scrutiny (Cabinet item 9 refers), together with a report of the Corporate Director for Corporate Services on the proposed acquisition of Heath House and Carby House by agreement or by compulsory purchase if agreement cannot be reached.
464During consideration of this item, the Chairman referred to the recent Member training session on borrowing and investments which had been helpful. It was felt that financial training was useful for all members and that the training provided for Audit Committee members would be useful for other members as well.

 

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