Agenda and draft minutes

Executive Board
Tuesday, 17th January, 2023 2.00 pm

Venue: Ground Floor Committee Room - Loxley House, Station Street, Nottingham, NG2 3NG. View directions

Contact: Nancy Barnard  Email: nancy.barnard@nottinghamcity.gov.uk

Items
No. Item

86.

Apologies for Absence

Minutes:

Councillor N Khan – Personal Reasons

Councillor Clarke – Work Commitments

 

Malcolm Townroe. Director of Legal and Governance

87.

Declarations of Interests

Minutes:

Councillors Barnard and Wynter declared pecuniary interests in agenda item 5, Proposal for a scheme of Selective Licensing for Private Rented Houses, as they are owners of private rented houses. They left the meeting for the duration of the item and did not take any part in discussions.

88.

Minutes pdf icon PDF 441 KB

Minutes of the meeting held on 20 December 2022 for confirmation.

Minutes:

The Minutes of the meeting held on 20 December 2022 were agreed as a correct record and they were signed by the Chair.

89.

Library Transformation pdf icon PDF 462 KB

Report of the Portfolio Holder for Leisure, Culture and Planning

Additional documents:

Minutes:

The Portfolio Holder for Leisure, Culture and Planning presented a report providing an update on the findings from the second phase of public consultation on the future delivery and transformation of Nottingham’s library service and making recommendations regarding the future of the services having taken account of that consultation. The following points were discussed:

 

a)  A previous proposal to close up to three libraries had been considered but, in light of changes circumstances including the cost of living increase and greater reliance of communities on libraries, together with the response to the consultation, further work had been undertaken and it was no longer proposed to close any libraries.

 

b)  Library opening hours across the network would be reduced and vacant posts deleted to enable the required £79,000 of savings to be achieved without any library closures.

 

c)  The report also outlined a framework for the future of library service provision in the city. Engagement would be ongoing on this.

 

Resolved to:

 

(1)  Approve the transformation principles for future delivery of the library service as set out in Appendix 1 to the report (“The Next Chapter Nottingham City Council Library Service Transformation, Phase 2 Findings Report, Part 2, REVISED Recommendations December 2022”)

 

(2)  Agree to the retention of Aspley Library as a publicly accessible library but redesign the space to enable the building to become a stock distribution hub and base for outreach services as detailed in Section 5.1 3 of the report.

 

(3)  Agree, as an alternative to the library closures, to a change of opening hours across the network. This will result in a reduction in service, the implications of which were set out in section 5.2 & Appendix 1 to the report.

 

(4)  Note that the proposals, if approved, will be implemented by the Corporate Director for Communities, Environment and Resident Services in accordance with delegation 18 of the Constitution.

 

·  Reasons for decision:

 

The recommendations consider feedback given by citizens and stakeholders, including further analysis of the proposals around the closure of three libraries, in particular the following themes:

o  Importance of Libraries

o  Use of Technology - The majority said that they would welcome the use of technology as long as physical books and library buildings remain.

o  Partnerships - The majority were in support of partnership work.

o  Shared Spaces - Most respondents understood the opportunity of how council services and buildings could co-locate and make efficiencies through the use of shared spaces.

o  Library Closure Proposals - The majority of responses showed disagreement with the proposals.

Emerging factors, concerns raised during the consultation and analysis of new information has raised further questions affecting both the Council and its residents that needed to be considered alongside the responses and data already collected. This changing environment, and the new information established are recognised in the decisions taken. The key considerations included:

o  Library financial position - To date a saving of £0.154m has been achieved by a staffing restructure within the service. This has enabled the consideration of other options to achieve the remaining saving required of £0.079m.

o  Library Performance - The emerging picture of the use of libraries has been heavily influenced by the pandemic. Libraries are back to providing many of their services in person however, there has been a shift towards a more blended service.

o  The library sector has also been identified as playing a central role in meeting the needs of individuals and communities who may be struggling to overcome the impact of the pandemic and the high cost of living.

 

·  Other options considered and rejected:

 

Targeted reduction in opening hours and the closure of 1 library:  Basford or Radford-Lenton Library

 

This option would see a small targeted reduction in opening hours across the network which would release a potential saving of £36K, and would involve a realignment of core hours to be between 9am and 6pm across the whole community network. In addition this would see the full closure of either Radford Lenton or Basford Library making up the remaining saving requirement

 

Benefits and impacts/considerations for closing or retaining Basford or Radford Lenton Libraries is set out below: 

 

Radford Lenton Library

Basford Library

  Catchment overlap with Hyson Green and Central Library

 

  5,024 households (692 in IMD worst 20%) and 778 library users would have no library provision within a 20 min walk if closed

  Annual visits: 19/20: 7,920 pre covid vs 22/23: 6,986 post covid (est. on 6 month actuals)

 

  Operating cost: £41k with estimate £39k maintenance liabilities

 

  Investment has recently taken place at Radford-Lenton Library making the building more sustainable with reduced maintenance costs longer term

 

  Large space at the back of building provides wider opportunities for community activity and partnership development

 

  Safeguards a community facility in the Radford & Lenton area which has already seen the closure of John Carroll Leisure Centre   

 

  University of Nottingham Volunteer Coordinator role – discussions taking place to use library as a base

 

  Catchment overlap with Aspley, Bulwell Riverside, Sherwood Libraries

 

  3,178 households (1,845 in IMD worst 20%) and 544 library users would have no library provision within a 20 min walk if closed

 

  Annual visits: 19/20: 22,680 pre-covid 22/23:10,174 post covid (est. on 6 month actuals)

 

  Operating cost: £37K with estimate £90k maintenance liabilities

 

 

 

 

 

 

 

  Building design limits potential longer term development but opportunity for direct link to Vernon Park outdoor space with capital investment

 

 

 

 

 

  Community partnership potential explored, but with no emerging opportunities

 

 

Continue with current network of 15 Libraries with no operational changes

 

This would see no operational changes to the current library network but would require the completion of investment in the New Central and Sherwood Libraries. However, this option is not considered sustainable for the network size current level of use or for providing an effective and efficient service in the long term.

 

Benefits

No immediate change to the current provision in terms of access for citizens.

 

Impacts / Considerations

·  The saving target would not be achieved without significant further reduction in opening hours, staffing, book resources and library programming and activity 

·  There would be investment required and unresolved maintenance liabilities on some of the older libraries.

·  This does not deliver a modern agile service, and has limited ability to redirect and target resources to changing community need.

 

Libraries Transformation as originally proposed with the closure of 3 libraries

 

The original proposals outlined were developed to create a more agile modernised sustainable service whilst retaining a strong community focus. This recognises the need to maximise the use of technology and to work in collaboration with other community partners around delivery of neighbourhood services.

 

Benefits

·  Would achieve an additional saving of £58K over and above the £79K  saving gap required.

·  Enables the transformation of the service as outlined in the report.

·  Delivers savings over the next three years with further potential sustainable reductions being able to be considered as the programme progresses.

·  Ensures that the delivery network mirrors other providers with stronger performance against our benchmarked CIPFA local authority comparators.

·  Would remove potential maintenance liabilities on older building stock needing significant repair.

·  Would release potential for sale of sites to contribute a receipt back to the authority which can be used for reinvestment.

 

Impacts / Considerations:

·  Does not consider consultation feedback and concerns raised by communities and stakeholders

·  Reduced service provision within the most deprived areas of the City

·  May limit the opportunity to effectively support communities with emerging issues from post pandemic and cost of living crisis

·  Reputation management in terms the potential closure of three library service points.

·  Alignment required to a Council wide programme looking at community assets and on other decisions being made on services and facilities in communities.

·  Displacement of  current users to other neighbouring libraries

·  Realignment of local activities affected by closures to other libraries in the network

 

Community/Volunteer run Neighbourhood Libraries

 

This would see neighbourhood libraries partially or fully managed by community volunteers. A number of authorities have followed this route with varying success. Where authorities have been successful this has often been as a result of significant investment in community capacity building a sustainable volunteer network developed over a 3-4 year period.

 

Benefits:

·  Engages citizens directly in providing services in the city.

·  Reduce paid staff costs for the service.

 

Impacts / Considerations

·  Limited appetite for resident to run the library service. Many residents feel that that libraries should be run by the authority with paid specialist staff.

·  Resource and investment required for the development of, and ongoing support and management of volunteers

·  Any savings achieved through the building a sustainable volunteer network and community capacity are unlikely to be achieved with the MTFP timeframe

·  Agreements need to be reached around who retains the responsibility for the liabilities of buildings and provision of resources.

·  Loss of specialist staff skills and resources.

·  Staff redundancies and associated costs

 

90.

Proposal for a Scheme of Selective Licensing for Private Rented Houses pdf icon PDF 679 KB

Report of the Portfolio Holder for Housing and Human Resources

Additional documents:

Minutes:

Having declared a pecuniary interest in this item as owners of privately rented properties Councillors Barnard and Wynter withdrew from the meeting and did not play any part in discussions.

 

The Portfolio Holder for Housing and Human Resources presented a report on the outcomes of the consultation which had been completed following the Board’s resolution of 24 May 2022 in respect of a proposed Designation for Selective Licensing of privately rented houses. The following points were discussed:

 

a)  Selective Licensing provides council with additional powers to drive up standards through inspection and enforcement activity to address specific property issues. It is proposed that a new scheme is adopted due to the success of the first scheme. It requires Secretary of State approval before it can be implemented.

 

b)  The scheme will be used to tackle poor quality housing, antisocial behaviour and to support improvements in community safety.

 

c)  While 62% of consultation responses were against the new scheme it was recommended for approval due to the strategic benefits it brings.

 

d)  If approved by the Secretary of State, it is anticipated the scheme will be implemented in August 2023.

 

e)  Selective Licensing brings additional benefits to those that may arise from the Renters Reform Bill which is awaited.

 

f)  Areas not covered by the scheme will continue to be supported through existing Environmental Health and Community Protection services.

 

Resolved to

 

1)  consider the results of the consultation and responses to the consultation comments as outlined in Appendix 3 and Appendix 4 to the report

 

2)  Having considered the results of the consultation, approve the making of the Designation contained in Appendix 1 of the report as being subject to Selective Licensing and confirm that Board is satisfied:

·  that the statutory conditions for making a Designation referred to in paragraph 2.2 and 10.1 of the report, more specifically detailed in section 2.12 to 2.18 of the Executive Board Report of 24 May 2022, have been met

·  that the making of the Designation is consistent with the Council’s Housing Strategy and would form part of a coordinated approach in connection with dealing with homelessness, empty properties and anti-social behaviour

·  that other courses of action available have been considered that might provide an effective method of achieving the objectives that the Designation would be intended to achieve, and

·  that it considers making the Designation will significantly assist it to achieve that/those objectives.

 

3)  agree that a submission be made to the Secretary of State for Levelling Up, Housing and Communities seeking confirmation of the Designation

 

4)  agree the revised licence conditions in Appendix 6 to the report and the reviewed and updated Fee Policy in Appendix 7

 

5)  delegate to the Corporate Director of Growth and City Development, in consultation with the Corporate Director of Communities, Environment and Resident Services, Section 151 Officer and Monitoring Officer and the Portfolio Holder for Housing and Human Resources the power to:

·  finalise and approve the documentation to be submitted to the Secretary of State when the Designation is submitted for confirmation,

·  liaise with officers and the Department for Levelling Up, Housing and Communities in relation to the confirmation of the Designation and to make any subsequent determinations that may be necessary in relation to it arising from that process

·  ensure the design and operation of the renewed Selective Licensing Scheme is operated through the Council’s Customer First and Business Support Transformation Programmes to the fullest extent possible, as mandated in the Chief Executive’s instruction to senior officers dated 10th October 2022.

 

6)  In the event of the Secretary of State confirming the Designation, delegate power to the Corporate Director of Communities, Environment and Resident Services i) to comply with the relevant statutory requirements in relation to its notification and publication and ii) to implement the Designation and licensing scheme (in consultation with the Corporate Director of Growth and City Development, the Council’s 151 Officer and Monitoring Officer)

 

7)  To approve the use of ring-fenced reserves, as detailed in paragraphs 5.1- 5.3 and 7.2 - 7.6 of the report, for this Designation from 1st August 2023 to 31st July 2028 or upon the required commencement date as per DLUHC approval timeframe.

 

·  Reasons for Decision

 

The evidence which has been collated in accordance with the DCLG guidance indicates that relevant statutory tests have been met to make the case that Selective Licensing of privately rented houses in the proposed designated area would be an appropriate tool to resolve the issues and problems identified.

 

A consultation on the proposed Designation has been undertaken and after full consideration of the consultation responses, the case for Selective Licensing in the proposed designated area still stands.

 

Nottingham’s Housing Strategy 2018-2021 ‘Quality Homes for All’ is committed to improving and maintaining good quality homes across all tenures in the city. This Strategy includes the full exploration of housing licensing schemes for private rented accommodation to drive up the standards and protect tenants across the city.

 

The proposal supports the delivery of objectives set out in the Strategic Council Plan 2021-2023, particularly Outcome 9 – Better Housing and key strategic aims around ASB, reduced energy use, and building quality neighbourhoods.

 

The Private Rented Sector (PRS) forms a key component of the total housing supply to help people meet their housing needs when faced with homelessness. For example, of 1,042 households in Nottingham whose homelessness prevention duty ended during 2021/22, 195 secured accommodation in the sector. Given the vulnerable situation a household will be facing when they are homeless, or in imminent risk of becoming homeless, it is important that the Council, when fulfilling its statutory duties in this regard, is able to refer homeless households to private sector accommodation that is safe and meets the standards that would be expected. The City’s Homelessness Prevention Strategy 2019-2024 notes that the need for PRS accommodation continues to grow and the Council and its partners must work with landlords to progress leasing/letting schemes to offer as an option. The Strategy also seeks to work with tenants and landlords to reduce evictions from the Private Rented Sector, and to utilise the PRS as a solution to homelessness.

 

The Homelessness Prevention Strategy recognises there are many good landlords operating in Nottingham who provide a valuable source of housing for Nottingham people. However, there are other landlords in the private rented sector who do not adhere to their responsibilities in appropriately supporting their tenants and providing a decent standard of accommodation. These landlords are putting people’s health, wellbeing and safety at risk and exposing them to increased risk of homelessness. This places further strain on other housing resources in the city, and the Council’s services that seek to help people find suitable accommodation. This ultimately places costs on the taxpayer. Licensing can act as a valuable tool in tackling problems in the tenure, and as a consequence, making a helpful contribution to tackling homelessness.

 

The proposals align well with the Government’s current White Paper – “A fairer private rented sector” which recognises selective licensing as a tool to address particular issues. It should be noted that the Council’s current Selective Licensing Scheme is cited in the White Paper.

 

·  Other Options Considered

 

Other Options

Implications / Impact

Recommendation

To not pursue the Designation further.

·  Any necessary enforcement would result in required interventions being resourced by existing Council functions

·  The Council would lose the proactive power of entry

·  Interventions would only be carried out on a reactive basis

·  Increased number of complaints and complaint resolution time

·  The number of interventions would be greatly reduced

·  The absence of regulation would make

the market the main driver for property improvements

·  The Council would no longer hold the intelligence gathered on persons responsible for PRS properties or engage with them in the same way

·  The Council’s ability to provide assurance regarding its regulation of PRS would be limited, placing The Council in a weaker position

 

To reject, as evidence presented to Executive Board in May shows a clear need for the scheme.

 

Consideration of a smaller scheme Designation.

May not require Secretary of State confirmation depending on size.

The proposed Designation gives the best opportunity to continue the improvements made by the first Designation and also allows the opportunity to improve properties in the newly identified areas which were not included previously.

To reject, as evidence in the May Report has used a minimum of 2 criteria (as opposed to 1 criteria for the current scheme) to provide the Designation area to which Selective Licensing will apply. This Designation is already smaller in geography (size) and in the estimated number of privately rented properties that will fall within the scheme compared with the 2018 Designation.

Voluntary accreditation only.

Accreditation schemes have a set of standards (or codes) relating to the management or physical condition of properties and recognise properties / landlords who achieve / exceed the requirements. The Council currently works with DASH, UNIPOL and ANUK as its accreditation providers. Before the first Selective Licensing Scheme voluntary accreditation with these accreditation providers was only circa 5%. Selective Licensing has encouraged an increase up to circa 30% with the lower accredited licence fee incentive triggering a sixfold increase in accreditation and the standards required to meet this.

To reject, the option of using voluntary schemes alone would not be expected to deliver necessary improvements.

(Voluntary schemes alongside Selective Licensing are considered more effective as landlord accreditation has worked well in conjunction with licensing).

Targeted use of Interim Management Orders (IMOs) and Final Management Orders (FMOs).

 

The Housing Act 2004 gives local authorities powers to use Management Orders for tackling comprehensive and serious management failures. However, these are complex to implement and administer (and thus expensive) as they involve taking over the management of the property and are done on a case by case basis with individual properties.

 

They are also reactive for dwellings where such problems are apparent and as such do not provide value for money.

To reject, this is not a preferable option for driving up standards across an area and would not provide a level of improvement in standards that Selective Licensing can deliver (IMOs and FMOs can be used in individual cases if required alongside licensing).

Other initiatives / tools combined with the use of statutory powers have been successful however Selective Licensing is one of the only proactive tools that has the power to tackle a broad range of issues in the Private Rented Sector including property conditions, ASB, crime and deprivation (see section 8 of the Proposal accompanying the May Report for the list of conditions required to make a Designation and the evidence prepared and see section 5 for detail on how these conditions have and will be addressed by Selective Licensing). Selective Licensing allows the Council to properly resource tackling these issues within the sector and be proactive about it. Being able to target and deal with properties where tenants may not realise that they are in poor condition / badly managed, or perhaps they do, but don’t know how to complain or are fearful of what might happen if they do complain. Selective Licensing provides the tools and opportunity to engage and work with landlords if they wish to improve, or work towards removing them from the market if they do not. 

 

91.

Employment Support for Individuals with Health Related Barriers to Work pdf icon PDF 475 KB

Report of the Portfolio Holders for Skills Growth and Employment and for Adult Social Care and Health

 

Minutes:

Councillors Barnard and Wynter returned to the meeting.

 

The Portfolio Holder for Adult Social Care and Health introduced the report jointly with the Portfolio Holder for Skills, Growth and Employment and which proposed the acceptance of a £6.5 million grant from the Department of Work and Pensions to support people in Nottingham City, Nottinghamshire and Derby City with long term health problems or disabilities back into work. The following points were discussed:

 

a)  Should the funding bid be successful it will need to be implemented from April 2023 and will support 3500 people across the three areas.

 

b)  Nottingham City Council will become the accountable body for the grant and will administer it on behalf of the three authorities.

 

c)  A lower proportion of people in Nottingham with disabilities are currently in employment than elsewhere and this grant will help to widen partnerships and develop practices that can be embedded to help address this and support people into sustainable employment.

 

Resolved to note submission of the Individual Placement and Support in Primary Care (IPSPC) Grant Application (attached at appendix A to the report), to the Department for Work and Pensions (DWP)

 

Subject to approval of the Grant Application, resolved to

 

1)  delegate authority to the Corporate Director for Growth and City Development to enter into a Grant Funding Agreement on behalf of the Council (as set out in a Grant Funding Letter from the DWP) to accept IPSPC grant funding paid under section 2 of the Employment and Training Act (1973) up to £6,503,245.22

 

2)  delegate authority to Corporate Director for Growth and City Development to enter into partnership agreement on behalf of the Council with Activity Delivery Partners

 

3)  approve the staffing budget allocation from within the Grant Funding for the creation of project management roles (noting recruitment is delegated to the Corporate Director for Growth and City Development as a non-executive staffing decision)

 

4)  delegate authority to the Corporate Director for Growth and City Development to allocate funds for delivery of the Initiative in accordance with Grant Funding Agreement; including:

·  the procurement and appointment of Activity Delivery Partners and training partners, if applicable

·  relevant training

·  development of supporting processes and procedures ready for service; and

·  marketing of the IPSPC Initiative

 

5)  delegate authority to the Corporate Director for Growth and City Development to determine the outcome of tenders and award and enter into contracts with Delivery Partners and additional grant agreements associated with the project delivery.

 

6)  delegate authority to the appropriate Officer to appoint external procurement support

 

7)  delegate authority to the appropriate Officer to advise on project evaluation.

 

·  Reasons for Decisions

 

Compared to national averages, Economy, Research & Development, Health & Wellbeing and Devolution represent Nottingham’s most significant Levelling Up gaps.

 

Nottingham continues to see high levels of inequality and deprivation across a number of indicators important for quality of life (e.g. Pay, Employment, Basic Skills Attainment, Healthy Life Expectancy, Anxiety)

·  The disability employment rate in Nottingham stands at just 46% compared to the England average of 53% (DWP 2022)

·  Current published evidence shows that 17,500 people of working age are out of work due to long term health problems in Nottingham.

·  On average, people in Nottingham start to experience long term health problems at a younger age than regionally or nationally, men at 57.4 years and women at 57.1 years (2018-20 figures).

·  Nottingham’s healthy life expectancy for men is ranked 139th of 150 local authorities and 143rd for women. DWP information ranks Nottingham City at 129th of 151 Local Authorities for the proportion of the working age population receiving Employment Support Allowance (ESA), due to a health condition or disability, at 5.6% of the working age population.

·  In the 2019 Indices of Multiple Deprivation (IMD), Nottingham ranked as the 11th most deprived Local Authority out of 317 in England.

 

At a local level, the Nottingham Economic Recovery Plan, led by the Nottingham Growth Board, sets out a bold vision for Nottingham’s post Covid economic recovery and renewal, reimagining Nottingham as an inclusive, green, creative, and digitally enabled city.

 

Delivering IPSPC will help operationalise the recovery plan, translating ambitions set out in the plan into local delivery, increasing employment rates in the City, particularly for those with disabilities and other protected characteristics (e.g. BAME, older workers).

 

Accepting IPSPC funding will also help mitigate the loss of European Funding at the end of 2023 and will support the continuation of organisations and projects that have played an integral role in the City’s economic development

 

·  Other Options Considered

 

Apply just as Nottingham. This was rejected as we would not have sufficient numbers to meet the size threshold for funding. All upper tier authorities across D2N2 were invited to join. All agreed to do so and help with developing the bid except Derbyshire.

Not bidding. D1N2 would lose out on the opportunity to support 3,500 residents gain and remain in employment and improve health outcomes.

 

As such, both options were rejected.

92.

Council Tax - Determination of the 2023/24 Tax Base pdf icon PDF 424 KB

Report of the Portfolio Holder for Finance

Minutes:

The Portfolio Holder for Finance presented the report on the Council Tax base figure to be used in the calculation of the Council Tax for 2023/24. The following points were discussed:

 

a)  The Council Tax base is an important component of Medium Term Financial Plan (MTFP) which will be considered by Executive Board in February as it forms an increasingly significant proportion of the Council’s budget. Approving the Council Tax base is a statutory requirement.

 

b)  80% of Nottingham households live in band A or B properties meaning the tax base is low compared with other areas. The Council Tax Support Scheme, which supports those unable to pay full Council Tax further reduces the tax base.

 

c)  There has been increase the number of chargeable dwellings which will bring in new revenue but not all will be taxable as they are designated student accommodation.

 

d)  The report assumes a collection rate of 97.5% which applies across the entire period of liability and not just in one year.

 

Resolved to:

 

1)  approve a tax base of 68,403 Band D equivalent properties for 2023/24

 

2)  agree that a collection rate of 97.5% be used in the determination of the 2023/24 tax base.

 

·  Reasons for Decisions

 

The City Council and precepting authorities (i.e. Police and Fire Authorities) will use the tax base figure in their budget processes in February 2023 to determine the level of Council Tax for 2023/24. This report estimates future changes to the current tax base during 2023/24 and applies an appropriate anticipated collection rate for the period, taking into account collection trends and the prevailing economic environment, to determine the tax base figure to be set.

 

·  Other Options Considered

 

None, as the council is legally required to set a Council Tax base using objective calculations.

93.

Review of Investment Portfolio pdf icon PDF 305 KB

Report of the Portfolio Holder for Strategic Regeneration and Communications

Minutes:

The Portfolio Holder for Strategic Regeneration and Communication presented the report which proposed the progression of portfolio management actions, including disposals of properties, recommended in an independent review of the Council’s investment property portfolio. The following points were discussed:

 

a)  32 properties in the portfolio were purchased to generate income for the Council. Three have been sold to date and an independent review was commissioned of the remaining 29 properties. The review recommended the sale of a number of these properties as the income from them was not reliable.

 

b)  The Medium Term Financial Plan will be adjusted to account for the reduction in revenue and the impact the capital receipts will have on the Council’s borrowing levels.

 

Resolved to

 

1)  approve the principle of disposal of the property investment assets as detailed in the exempt appendix to the report on terms to be agreed

 

2)  delegate the approval of the method of sale to the Director of Economic Development & Property

 

3)  delegate approval of the final terms of sale to the Corporate Director for Growth and City Development in consultation with the Council’s Section 151 Officer

 

4)  pay disposal costs equating to 1.5% of the disposal price as detailed in the exempt appendices to the report

 

5)  appoint sales agent(s) or any other required consultant via a procurement compliant process (tender/framework/quotation)

 

6)  delegate the approval of any licences/agreements or required legal agreements to facilitate a sale to the Director of Economic Development & Property

 

7)  note the retained properties and various estate management activities required to maintain revenue

 

8)  delegate to the Corporate Director for Growth & City Development in consultation with the Council’s Section 151 Officer and Portfolio Holder for Strategic Regeneration and Communication all decisions in relation to determining further sales from the investment portfolio beyond those currently identified in the exempt appendix to the report

 

9)  delegate to the Corporate Director for Growth & City Development, in consultation with the Council’s Section 151 Officer where appropriate, all actions as identified in resolutions 2 to 6 above in respect of all further properties identified for sale.

 

·  Reasons for Decisions

Disposal will generate significant capital receipts which can be used by the Council as considered appropriate. It will also mitigate potential future risks arising from lease events such as break options and lease expiries and will remove any potential risk of downward shifts in the rental/capital performance of the asset. Disposal will also remove any costs associated with voids/reletting and refurbishment which the Council as Landlord would need to cover.

 

·  Other Options Considered

Not to implement the recommendations set out in the independent review. This option has been rejected as this is not the actions of a prudent landowner.

94.

Disposal of Property Assets from the Property Trading Account pdf icon PDF 305 KB

Report of the Portfolio Holder for Strategic Regeneration and Communications

Minutes:

The Portfolio Holder for Strategic Regeneration and Communication presented the report which proposed the disposal of a number of properties in the Property Trading Account in accordance with the Asset Rationalisation Programme and endorsed as being suitable for disposal. The following points were discussed:

 

a)  Three properties within the city boundary have been identified as appropriate for sale which will generate capital receipts.

 

b)  Capital receipts are used to fund capital works and underpins the Council’s transformation programme and therefore the Medium Term Financial Plan.

 

Resolved to:

 

1)  approve the disposal of the property assets detailed in the exempt appendix to the report

 

2)  delegate the approval of the methods of sale to the Director of Economic Development & Property

 

3)  appoint sales agent(s) or any other required consultant via a procurement compliant process (tender/framework/quotation)

 

4)  delegate the approval of any licences/agreements or required legal agreements to facilitate sales to the Director of Economic Development & Property.

 

·  Reasons for Decisions

 

Disposals will generate significant capital receipts which can be used by the Council as considered appropriate. It will also mitigate potential future financial risks arising from expenditure required to meet the council’s repairing obligations, and remove resource-intensive assets from the Council’s ownership, and remove any costs associated with voids/re-letting and refurbishment.

 

·  Other Options Considered

 

Not to sell the assets. This option has been rejected as retention of the assets could present a financial risk to the Council. It would also forego a potentially significant capital receipt which could be used by the Council.

95.

Exclusion of the Public

To consider excluding the public from the meeting during consideration of the remaining items in accordance with Section 100A of the Local Government Act 1972, under Schedule 12A, Part 1, Paragraphs 3, 4 and 5, on the basis that, having regard to all the circumstances, the public interest in maintaining an exemption outweighs the public interest in disclosing the information

Minutes:

The Board resolved to exclude the public from the meeting during consideration of

the remaining items in accordance with Section 100A of the Local Government Act

1972, under Schedule 12A, Part 1, Paragraphs 3, 4 and 5, on the basis that, having

regard to all the circumstances, the public interest in maintaining an exemption

outweighs the public interest in disclosing the information.

96.

Exempt Minutes

Exempt Minutes of the meeting held on 20 December 2022, for confirmation

Minutes:

The Board confirmed the exempt minutes of the meeting held on 20 December 2022 as a correct record and they were signed by the Chair.

97.

Review of Investment Portfolio - Exempt Appendix

Exempt Appendix to the Report of the Portfolio Holder for Strategic Regeneration and Communications

Minutes:

The Portfolio Holder for Strategic Regeneration and Communication presented the exempt appendix to the report which the Board noted.

98.

Disposal of Property Assets from the Property Trading Account - Exempt Appendix

Exempt Appendix to the Report of the Portfolio Holder for Strategic Regeneration and Communications

Minutes:

The Portfolio Holder for Strategic Regeneration and Communication presented the exempt appendix to the report which the Board noted.