There were no apologies for absence at this meeting.

The following Councillors declared interests as indicated:

(a) Cllr Mulroney – Minute 605 (The proposed development of the Seaway Car Park) – non-pecuniary interest – member of Development Control Committee and Minute 611 (Draft General Fund Revenue Budget) – non-pecuniary interest – member of Leigh Town Council;

(b) Cllr Jones – Minute 613 (Special Educational Needs and Disabilities Inspection) – non-pecuniary interest – member of Little Heroes Charity referred to in the report;

(c) Cllr Flewitt – Minute 612 (Future phases of Affordable Housing Development Programme) – non-pecuniary interest – lives in the vicinity of Lundy Close and knows individual residents and has been lobbied by some residents on the matter;

(d) Cllr Cox – Minute 605 (The proposed development of the Seaway Car Park) – Disclosable Pecuniary Interest – family member is employed by Stockvale and is a business involved in discussions with regard to the development and lobbying of Councillors (withdrew).

Resolved:

That, subject to a minor amendment to resolution 2 in minute 432 to change the word ‘endorsed’ to ‘noted’, the minutes of the meeting held on Tuesday 6^th November 2018, be confirmed as a correct record and signed.

Resolved:-

That the Minutes of the Special Meeting held on Tuesday 4^th December 2018, be confirmed as a correct record and signed.

Report of Chief Executive attached

The Cabinet considered a report of the Chief Executive presenting the Strategic Delivery Plans (SDPs) following the agreement of the Southend 2050 Ambition, Themes & Outcomes and Southend 2050 Five Year Road Map at Full Council on 13^th December 2018.

Resolved:

1. That the Strategic Delivery Plans supporting the delivery of the Southend 2050 Ambition and the Southend 2050 Five Year Road Map, be adopted.

2. That the Transforming Together work be noted and the new Council values, be endorsed.

Reasons for decision:

To have in place Strategic Delivery Plans to deliver the Southend 2050 ambition, Themes, Outcomes and Five Year Road Map, ensuring the successful and sustainable future of the borough.

Other Options:

None.

Note: This is an Executive Function

Referred direct to: All three Scrutiny Committees

Cabinet Member: Cllr Lamb

Report of Strategic Director (Finance and Resources) to follow

The Cabinet considered a report of the Strategic Director (Finance and Resources) reviewing the proposed development of the Seaway Car Park and associated land and the Agreement for Lease and Sale dated 10^th December 2014 made between the Council and Turnstone Southend Limited.

The report dealt with the proposed Development in the context of the Council’s land ownership, regeneration and economic development responsibilities.  It was noted that whilst the strategic planning context was mentioned in the report, the planning application recently submitted for the Development (Ref: 18/02302/BC4M) must be considered quite separately by the Council as local planning authority through the Development Control Committee.

On consideration of the report the Cabinet Member for Growth put the following questions to the Strategic Director, Finance and Resources (Council’s Section 151 Officer):

• Are you satisfied that this is a good deal for the Council, from a financial point of view?
• Have you and other relevant Council staff personally checked the figures in the report and are content with their accuracy?
• Are you satisfied that the Council has not only obtained a S123 assessment from Savills but that it has also had this independently reviewed by the District Valuer Service which has ‘signed it off’?
• Are you satisfied that the Council has a sufficiently independent, up-to-date, valuation on the site?
• Are you satisfied that the Council has done everything that it reasonably could to gather the facts to decide as of today whether this is a good deal for the Council?

The Strategic Director answered “yes” to each of the questions.

Resolved:

1. That it be noted, that unless either party takes a decision to terminate, the Agreement for Lease and Sale dated 10 December 2014 made between the Council and Turnstone Southend Limited (“the Agreement”)  for the development of the Seaway Car Park and associated land (“the Development”) remains in full legal force. 

2. That the Council does not seek to terminate the Agreement at the present time, but maintains its support for the Development based on the strong and viable economic case, the fresh independent valuations under S.123 Local Government Act 1972, the contribution to the Council’s published Ambition and Outcomes, the level of commitment (including investment) made by Turnstone and the progress which has been made to date.

3. That the contractual ‘End Date’ of 10 December 2018 be extended to 17 January 2020 for the discharge of all conditions (including obtaining planning permission) in the Agreement to be dealt with so that the Lease can be granted.  Under the Lease, practical completion is then required within 3 years of granting the Lease which necessitates an early start on site. 

4. That amendments be made to the Agreement as set out in section 5.8 of the submitted report, including the extension of time referred to in recommendation 3 above, on the basis of the fresh valuations referred to in sections 6.2 (e) and 9.2 and attached at Appendices 4 and 5 to the report.

5. That the Chief Executive, in  ...  view the full minutes text for item 605.

Report of Strategic Director (Transformation) to follow

The Cabinet considered a report of the Strategic Director (Transformation) setting out for consideration the implications for the Council of the UK leaving the European Union (EU).

Resolved:

That the likely implications, including risks and opportunities, for the Council leaving the EU and the action being taken by the Council to address these, be noted.

Reasons for decision:

To enable the Cabinet to assess the potential implications of the UK leaving the EU and whether further action by the Council is needed.

Other options:

None.

Note: This is an Executive Function

Referred Direct to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Report of Deputy Chief Executive (Place) attached

The Cabinet considered a report of the Deputy Chief Executive (Place) presenting the updated Highways and Parking Policies for approval.

Resolved:

1. That the replacement of Highway Policy Note No.2 (1999) with the updated Highway Safety Inspection Policy and Guidance, be approved.

2. That the replacement of Parking Policy (2015) with the updated policy on Civil Enforcement of Parking, be approved.

3. That the Director of Planning and Transport be authorised to update the Parking Policy with any updates in respect of the issue of updated contravention codes descriptions, in consultation with the lead Cabinet Member for Infrastructure.

Reasons for decision:

To update and refresh previous existing Highways Inspection and Parking Enforcement policies in line with best practice, current legislation and statutory requirements ensuring the Council is fully compliant with its statutory duties.

Other options:

None.

Note: This is an Executive Function

Referred direct to: Place Scrutiny Committee

Cabinet Member: Cllr Moring

Report of Strategic Director (Finance and Resources) attached

The Council considered a report of the Strategic Director (Finance and Resources) concerning the calculation of the Council Tax Base for 2019/20 and the submission of the National Non Domestic Rates (NNDR1) form to the Department of Communities and Local Government (DCLG) by 31^st January 2019.

Resolved:

In respect of the Council Tax Base:

1. That in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992 (as amended by the Local Authorities (Calculation of Council Tax Base) (Amendment) (England) Regulations 2003) and Local Government Finance Act 2012 (Calculation of billing authority’s council tax base Section 15):

(i) The Local Council Tax Support Scheme for 2019/20 approved by Council on 13 December 2018, be incorporated into the Council Tax base setting as outlined in Appendices A and B to the submitted report;

(ii) That the following changes to Council Tax discounts and exemptions approved by Cabinet on 5 January 2016 will remain unchanged, with the exception of the premium increase from 50% to 100% on Long Term Empty properties (those properties which have been empty for over 2 years or more) from 1 April 2019, these will be incorporated into the Council Tax Base:-

·      Properties requiring or undergoing structural alteration or major repairs (Class D) as allowed by Section 11A of the Local Government Finance Act 2012 is set at 0%;

·      Vacant and substantially unfurnished properties (Class C) as allowed by Section 11A of the Local Government Finance Act 2012 to be entitled to receive a discount of 100% for up to 1 month.

·      The second homes discount and exemption (Classes A and B) that were approved by Council on 13 December 2012 will remain unchanged from 1 April 2019 and these are incorporated into the Council Tax Base;

·      Long-term empty homes (Class C) as allowed by Section 11A of the Local Government Finance Act 2012, a current surcharge of 50% is set allowing a full charge of 150% where they have been unoccupied for more than 2 years.  From April 2019 this surcharge will increase to 100% allowing a full charge of 200%;

·      That a continuous 6 week period of occupancy is required between empty periods before a further discount can be awarded;

2. That the amount calculated by Southend-on-Sea Council as its Council Tax Base for the year 2019/20 shall be 58,424.44 (Appendix A).

3. That the amount calculated by Southend-on-Sea Council as the Council Tax Base in respect of Leigh-on-Sea Town Council for the year 2019/20 shall be 8,839.09 (Appendix B).

In respect of the Non-Domestic Rates Base (NNDR1 Form):

4. That the NNDR1 form at Appendix C to the submitted report be approved for submission to the Ministry of Housing, Communities and Local Government.

Reasons for decision:

The setting of the Council Tax Base and National Domestic Rating Base enables the calculation of the core funding derived through local taxation that is used to finance the Council’s proposed budget for 2019/20.

Other options:

None

Note: This is an Executive  ...  view the full minutes text for item 608.

Report of Strategic Director (Finance and Resources) attached

The Cabinet considered a joint report of the Deputy Chief Executive (People) and Strategic Director (Finance and Resources) setting out the Housing Revenue (HRA) budget for 2019/20, together with the information necessary to set a balanced budget as required by legislation.

Resolved:

1. That a rent reduction of 1% on secure tenancies, as required by the Welfare Reform and Work Act 2016, be endorsed.

2. That an average rent increase of 4.86% on shared ownership properties, be endorsed.

3. That the proposed rent changes in 1 and 2 above be effective from 1 April 2019.

4. That the increase in garage rents by 2.5% to £11.70 per week for tenants (£14.04, being £11.70 plus VAT for non-tenants), with all variants on a standard garage receiving a proportionate increase, be endorsed.

5. That the South Essex Homes core management fee of £5,738,000 for 2019/20, be endorsed, with additional one-off funding also being made available of:

·        £10,000 for the data cleansing, training and embedding of new data protection practices in compliance with General Data Protection Regulations (GDPR); and

·         £140,000 to undertake a project to achieve better integration between the various ICT systems that the company uses, with the aim to achieve efficiencies going forward.

6. That the South Essex Homes proposals for average changes of 4% in service charges and 17% in heating charges, be endorsed.

7. That the following appropriations, be endorsed:

·        £60,000 to the Repairs Contract Pensions earmarked reserve;

·         £1,397,000 to the Major Repairs earmarked reserve; and

·         £444,000 HRA to the Capital Investment earmarked reserve.

8. That, subject to 1 to 7 above, the HRA budget as set out in Appendix 1 to the submitted report, be endorsed.

9. That the value of the Council’s capital allowance for 2019/20 be declared as £37.326M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

Reasons for decision:

Part of the process of maintaining a balanced budget for the HRA is to consider and set a rent rise (and associated increases in other income streams).  Full Council need to approve the HRA budget prior to the start of the financial year.

Other options:

None.

Note: This is an Executive Function save that approval of the final budget following Cabinet on 12^th February 2019, is a Council Function.

Referred direct to the Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Cox

Report of Strategic Director (Finance and Resources) attached

The Cabinet considered a report of the Strategic Director (Finance and Resources) setting out a draft programme of capital investment for the period 2019/20 to 2023/24.

Resolved:

1. That the current approved programme for 2019/20 to 2021/22 of £153.1m as set out in Appendix 1 to the submitted report, be noted.

2. That the Capital Investment Strategy for 2019/20 to 2023/24, as set out in Appendix 2 to the report, be approved.

3. That the following be approved:

(i) New schemes and additions to the Capital Investment Programme for the period 2019/20 to 2023/24 totalling £14.5m for the General Fund and £20.8m for the Housing Revenue Account (Appendix 6 to the submitted report);

(ii) Schemes subject to external funding approval for the period 2019/20 to 2020/21 totalling £3.0m (Appendix 6 to the report);

(iii) Schemes subject to viable business cases for the period 2019/20 to 2021/22 totalling £48.6m (Appendices 6 and 7 to the report).

4. That it be noted that the changes to the approved Programme will result in a proposed Capital Investment Programme of £177.0m for 2019/20 to 2023/24, as set out in Appendix 7 to the report, of which £70.7m is supported by external funding.

5. That it be noted that a final review is being undertaken on the 2018/19 projected outturn and the results will be included in the report to Cabinet on 12 February 2019.

Reasons for decision:

The Capital Investment Programme is compiled from a number of individual projects which either contribute to the delivery of the Council’s ambition and desired outcomes or enhance the Council’s infrastructure.

Other options:

The Capital Investment Programme is compiled from a number of individual projects, any of which can be agreed or rejected independently of the other projects.

Note: This is an Executive Function save that approval of the final budget following Cabinet on 12 February 2019 is a Council Function.

Referred direct to all three Scrutiny Committees

Cabinet Member: Cllr Lamb

Report of Strategic Director (Finance and Resources) attached

The Cabinet considered a report of the Corporate Management Team presenting the draft General Fund Revenue budget for 2019/20.

Resolved:

1. That the 2019/20 draft revenue budget and any required commencement of consultation, statutory or otherwise, be endorsed.

2. That it be noted that the 2019/20 draft revenue budget has been prepared on the basis of a Council Tax increase of 4.49%, being 2.99% for general use and 1.5% for Adult Social Care.   

3. That it be noted that the 2019/20 draft revenue budget has been prepared using the provisional local government finance settlement and that the outcome from the final settlement will need to be factored into the final budget proposals for Budget Cabinet and Budget Council.

4. That the 2019/20 revenue budget, as endorsed, be referred to all three Scrutiny Committees, Business sector and Voluntary sector to inform the Budget Cabinet, which will then recommend the Budget and Council Tax to Budget Council.

5. That the Schools budget position and that the recommendations for the  Education Board on 22 January 2019, as set out in Appendices 11and 11(i) to the submitted report, be noted and referred to the People Scrutiny Committee and then to Budget Cabinet and Budget Council.

6. That the direction of travel for 2020/21 and beyond, noting the need for the organisation to move to a longer term and outcome based budgeting approach as set out in Section 15 of the report, be endorsed.

Reason for Decision:

Budget scrutiny is at the core of the Council’s corporate planning framework. It is a complex process that is fully integrated with strategic service planning. Annually, prior to the start of the year, the Council agrees the budget using a consistent, transparent and prudent approach.

Other Options:

None

Note:- This is an Executive Function save that approval of the final budget following Cabinet on 12th February 2019 is a Council Function.

Referred direct to all three Scrutiny Committees.

Cabinet Member: Cllr Lamb

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Report of Deputy Chief Executive (People) to follow

The Cabinet considered a report of the Deputy Chief Executive (People) providing an overview of the future phases of the HRA Land Review project and requesting agreement to progress with Phases 3 and 4 of the project, to fund and construct 56 units of affordable housing and undertake feasibility studies for Phases 5 and 6 of the project.  The report also sought agreement to undertake Modern Methods of Construction (MMC) pilot projects across 2 garage sites and develop a Land Purchase Fund using existing S106 contributions.

Resolved:

1. That sites be brought forward within Phases 3 and 4 of the HRA Land Review.

2. That further feasibility work be undertaken on a number of sites that will form Phases 5 and 6 of the HRA Project.

3. That the proposed method of funding for the projects and the use of S106 funds for the feasibility  works for Phases 5 and 6, to a maximum of £50,000, be endorsed.

4. That the options for the delivery of 2 garage sites for Modern Methods of Construction (MMC) pilots be investigated, including undertaking a procurement exercise of solutions put forward by the market and also a value for money exercise.  Furthermore, to explore subsequent pilot sites to test Modern Methods of Construction on a broader scale, including Lundy Close.

5. That the use of S106 contributions received from developers, in order to facilitate the provision of affordable housing through the creation of an ongoing fund for the purchase of developable land in the borough, be endorsed.

Reasons for decision:

There is an established need for affordable housing within the borough as demonstrated by the local strategic housing market assessment (SHMA), and by our own Housing Register data.

Other options:

Do nothing – This option considered leaving the existing garage areas in their current state.  This would not improve community safety or reduce antisocial behaviour.  It would also not help the Council to meet its 2050 Vision or contribute to the 2050 road map.

Transfer the land to a Registered Provider – This approach would mean a loss of a capital assets and potential future revenue income to the HRA.

Sale of sites on the Open Market – This option would allow some sites to be sold on the open market with the receipts reinvested in the HRA, potentially to be used for future housing development phases.  This approach would mean a loss of potential future revenue income to the HRA.

Note: This is an Executive Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox

Report of Deputy Chief Executive (People) attached

The Cabinet considered a report of the Deputy Chief Executive (People) presenting the outcomes of the SEND Area Inspection conducted in October 2018 and sought approval for the improvements that have already been put in place to bring about the necessary changes.

On consideration of the report, the Cabinet Member for Children and Learning undertook to ensure that the actions arising from the inspection would be monitored by the Children’s Service Improvement Board.

Resolved:

1. That the findings from the inspection report, including both those areas that were indicated as strengths alongside those areas that show significant concern, be noted.

2. That the requirement for the Local Authority and the Clinical Commissioning Group to joint produce a Written Statement of Action (WSoA), be noted.

3. That the proposed actions contained within the submitted report that will ensure the necessary improvements are made, be approved.

Reasons for Decision:

To robustly and rapidly drive forward the improvements required.

Other options:

None.

Note: This is an Executive Function

Referred direct to People Scrutiny Committee

Cabinet Member: Cllr Boyd

Report of Deputy Chief Executive (People) attached

The Cabinet considered a report of the Deputy Chief Executive (People) presenting the results of the consultation to permanently set the pupil admission number (PAN) at St Mary’s Prittlewell CofE Primary School at 90 pupils per year group, starting from admission into the reception year in September 2019.

Resolved:

That the pupil admission numbers (PAN) at St Mary’s Prittlewell CofE Primary school be set at 90 pupils per year group, starting from admission to the reception year in September 2019 and work up through the school year on year until all year groups are at 90.

Reasons for decision:

Returning to the admission number 60 could leave a shortage of places in the north/south corridor, especially once all the current new housing developments are completed along Victoria Avenue.  Forecasts indicate that agreeing to 90 will allow the Local Authority to meet its surplus margin of 5% to give parental choice across a wider selection of schools.

Other options:

To hold the school at its previous admission number of 60 or agree to increase to a higher admission number of 120.  The lower number could lead to future shortage in places in the central area of the borough.

Setting the admission number at 120 across all year groups would require capital investment by the local authority to increase the schools accommodation.  Current pupil planning does not identify a need for 120 places across all year groups and places a risk of unused places either at St Mary’s or other surrounding schools.

Note: This is an Executive Function

Referred direct to People Scrutiny Committee

Cabinet Member: Cllr Boyd

Report of Deputy Chief Executive (People) attached

The Cabinet considered a report of the Deputy Chief Executive (People) proposing the guideline school term and holiday dates for the academic year 2020/21.

Resolved:

That the school term and holiday dates for 2020/21, as set out in Appendix 1 to the submitted report, for community schools and as a guide to academy schools in the borough, be approved.

Reasons for decision:

To approve the school term dates.

Other options:

None.

Note: This is an Executive Function

Referred direct to People Scrutiny Committee

Cabinet Member: Cllr Boyd

Deputy Chief Executive People (notice of motion attached)

At the meeting of Council held on 13^th December 2018, Councillors received a notice of motion calling on the Council to explore all avenues for building social housing for rent at the former NHS land at Fossetts Farm and investigate potential funding options and calculating the potential benefit, both financial and social to Southend’s residents.

This had been proposed by Councillor McDonald and seconded by Councillor Gilbert.

Resolved:

1. That the notice of motion, be noted.

2. That the Council continues the work to identify housing development opportunities and the best way to deliver the scale of new housing, and specifically locally affordable housing, needed in Southend.

3. That through the work in 2 above, to identify the best delivery methods for those opportunities, including those which are best delivered through Southend Housing Ltd.

4. To continue working in partnership with Homes England to achieve the best outcome for development of the Fossetts Farm site, in terms of the number, tenure, affordability, design and overall quality of the homes to be built.

Reasons for decision:

To respond to the notice of motion

Other options:

None

Note: This is an Executive Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox

Report of Strategic Director (Transformation) attached

The Cabinet considered a report of the Chief Executive presenting the Corporate Risk Register Quarter 3 update.

Resolved:

That the 2018/19 Corporate Risk Register and the Quarter 3 updates outlined in Appendix 1 to the submitted report, be noted.

Reasons for decision:

To receive the Corporate Risk Register.

Other options:

None.

Note: This is an Executive Function

Referred direct to: all three Scrutiny Committees.

Cabinet Member: Cllr Lamb

Report of Strategic Director (Finance and Resources) attached

The Cabinet considered a report of the Strategic Director (Finance and Resources) on the above.

Resolved:

1. That the current outstanding debt position as at 30^th November 2018 and the position of debts written off to 30^th November 2018, as set out in Appendices A and B of the submitted report, be noted.

2. That the write-offs greater than £25,000, as detailed in Appendix B to the report, be approved.

Reasons for decision:

All reasonable steps to recover the debt have been taken, and therefore where write off is recommended it is the only course of action available.

Other options:

None.

Note: This is an Executive Function

Referred direct to Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Report of Strategic Director (Transformation) to follow

The Cabinet considered a report of the Strategic Director (Transformation) recommending amendments to the Constitution and the Council’s employment policies in respect of the dismissal appeal process.

Recommended:

Reasons for decision:

To ensure that the Council has an efficient and effective employment appeal process

Other options:

To retain the status quo.  However, this would not address the issues set out in Section 3 of the report.

Note: This is a Council Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Report of Strategic Director (Finance and Resources) attached

The Cabinet considered a report of the Strategic Director (Finance and Resources) presenting the Revenue and Capital budget report for the period ending 30^th November 2018.

Resolved:

That, in respect of the 2018/19 Revenue Budget Monitoring as set out in appendix 1 to this report:

1. That the forecast outturn for the General Fund and Housing Revenue Account, as at November 2018, be noted.

2. That the planned management actions of £3,230,000 to achieve that forecast outturn, be noted.

3. That the planned budget transfers (virements) of £949,000, be approved.

4. That the transfer of £413,000 from the Children Social Care reserve to support additional secured placements, be approved.

5. That the transfer of £472,000 from the Dedicated School Grant reserve to support 2018/19 in year funding pressures, be approved.

6. That the potential transfer of £1,505,000 to the Business Transformation Reserve in respect of the forecast General Fund underspend, be noted.

7. That the potential transfer of £24,000 to the HRA Capital Investment Reserve in respect of the forecast HRA underspend, be noted.

That, in respect of the 2018/19 Capital Budget Monitoring as set out in appendix 2 of this report:

8. That the expenditure to date and the forecast outturn as at November 2018 and its financing, be noted.

9. That the requested changes to the 2018/19 capital investment programme as set out in Section 2 of Appendix 2 of the report, be approved.

Reasons for Decision:

The regular reporting of Revenue and Capital Budget Monitoring information provides detailed financial information to members, senior officers and other interested parties on the financial performance of the Council.  It sets out the key variances being reported by budget holders and the management action being implemented to address the identified issues.

Other Options:

The Council could choose to monitor its budgetary performance against an alternative timeframe but it is considered that the reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Councillors and to manage the Council’s exposure to financial risk.  More frequent monitoring is undertaken by officers and considered by individual service Directors and the Council’s Corporate Management Team (CMT) including approval of management action.

Note: This is an Executive Function

Referred direct to all three Scrutiny Committees

Cabinet Member: Cllr Lamb

Report circulated separately

Resolved:

That the submitted report be noted.

Note: This is an Executive Function

Referred direct to all three Scrutiny Committees

Cabinet Member: as appropriate to the item

Report attached

Resolved:

That the submitted report be noted.

Note: This is an Executive Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Resolved:-

That, under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the item of business set out below, on the grounds that it would involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A to the Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Report attached

Resolved:

That the SO46 confidential sheet, be noted.

Note: This is an Executive Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Lamb