Agenda and decisions

Cabinet
Wednesday, 27th May, 2020 10.00 am

Venue: Skype Meeting

Contact: Sarah Culwick (01202 795273)  Email: democratic.services@bcpcouncil.gov.uk

Media

Items
No. Item

2.

Declarations of Interests

Councillors are requested to declare any interests on items included in this agenda. Please refer to the workflow on the preceding page for guidance.

Declarations received will be reported at the meeting.

3.

Confirmation of Minutes pdf icon PDF 274 KB

To confirm and sign as a correct record the minutes of the Meeting held on 22 April 2020.

4.

Public Issues

To receive any public questions, statements or petitions submitted in accordance with the Constitution. Further information on the requirements for submitting these is available to view at the following link:-

https://democracy.bcpcouncil.gov.uk/ieListMeetings.aspx?CommitteeID=151&Info=1&bcr=1

The deadline for the submission of public questions is Wednesday 20 May 2020.

The deadline for the submission of a statement is 12.00 noon, Tuesday 26 May 2020.

The deadline for the submission of a petition is 12.00 noon, Tuesday 26 May 2020.

5.

Recommendations from the Overview and Scrutiny Board

To consider recommendations from the Overview and Scrutiny Board on items not otherwise included on the Cabinet Agenda.

6.

Update on BCP Council's Response to the Covid-19 Pandemic pdf icon PDF 575 KB

This report provides a further update to the report summarising the Council’s response to the Covid-19 pandemic, which was presented to Cabinet in April 2020.

 

7.

BCP Council Finance Update pdf icon PDF 426 KB

The country is currently facing the biggest public health emergency for a generation. This will require urgent and decisive action by the council to support its community while also supporting the integrity of the council’s financial position and sustainability.

Additional documents:

Decision:

RESOLVED that Cabinet:-

a)            Note the contents of the report and that a further report is scheduled for June Cabinet outlining the progress made in establishing and managing the financial impact of Covid-19;

b)           Request that the annual budget for 2020/21 is reviewed and an early budget monitoring report is brought forward to Cabinet in June; and

c)            Request that the Corporate Director for Resources brings forward a report outlining the Council’s transformation programme to June Cabinet. 

Voting: Unanimous

Portfolio Holder: Finance

Reason

The Covid-19 pandemic has a very significant impact on the council’s finances beyond that currently expected to be supported by central government. Early action has been taken to limit expenditure where possible. Further actions are now needed. There is the prospect of measures to maintain social distancing

continuing for some time with venues remaining closed during periods when higher income levels are normally generated. There is also no certainty that there will not be further periods of disruption related to the outbreak this financial year or in future. The council’s response in maintaining services during the pandemic may also have consequences for the transformation agenda which should be refreshed to take account of the latest developments.

8.

Bournemouth Development Company LLP Business Plan pdf icon PDF 492 KB

1.   Bournemouth Development Company llp (“BDC”) is a joint venture between the Council and wholly owned subsidiary of Morgan Sindall Investments Ltd.

 

2.   This report summarises the BDC 5 year rolling business plan, with a particular emphasis on the programme of activity for 2020/21. This is the eighth update of the plan since BDC was formed in February 2011 and has been updated to reflect the recently approved Corporate Strategy.

 

 

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a)          Approves the updated BDC Business Plan, a copy of which is set out at Appendix 3;

(b)          Agrees a principle that any BCP profit within the BDC partnership shall only be withdrawn pursuant to a Cabinet decision; and

(c)          Requests Officers to advise Cabinet whether under the BDC partnership agreement the Council can secure a commitment to retain a significant proportion of profit within the BDC partnership to be used as reserves for general working capital and reinvestment for progression and delivery of schemes listed in the Business Plan.

Voting: Unanimous

Portfolio Holder: Regeneration and Culture

Reason

The BDC Business Plan sets out the strategic direction of BDC over the next five years, with a particular emphasis on the development activity BDC will undertake during 2020/21. The Council has reserved the right for Cabinet to approve the annually updated BDC business plan which highlights the next steps to be undertaken on sites which are currently in the development phase

and those which are earmarked for development but yet to enter the development cycle.

9.

Seascape Group Limited 5 Year Strategic Plan (2020-25) pdf icon PDF 272 KB

The purpose of this report is to seek approval for the Seascape Group Limited 5-year Strategic Plan.

Seascape Group Limited’s Strategic Plan sets out a 5 year vision for the period 2020-25 for how the Group will continue to deliver and grow its quality services, support communities and help deliver the Council’s Corporate Strategy.

The activities within Seascape Group Limited will contribute towards the Council’s key objectives in many ways but primarily by ensuring investment in the homes needed, tackling homelessness and rough sleeping, and supporting people to live safe and independent lives.

The Strategic Plan 2020-25 has been approved by the Directors of Seascape Group Limited, and those of the subsidiary companies, and sets out the growth ambitions moving forwards.  The Plan builds on the existing activities, bringing in additional expertise and capacity to help drive a step-change in delivery and generate increased financial returns for the Council as its sole shareholder.

The ambitions set out in this Plan remain current despite the context of Covid-19.  However, the impact and timing of being able to deliver this Plan will be considered in due course once the full impact of Covid-19 is understood.

Additional documents:

Decision:

RESOLVED that:-

(a)     Cabinet approves the Seascape Group Limited’s Strategic Plan 2020-25 attached in Appendix A and;

(b)     Cabinet authorises officers to change the current obligation in the Shareholder Agreement between BCP Council and Seascape Group Limited from the requirement to produce an annual plan to a longer term 5 year strategic plan, in order to facilitate planning in the medium term.

Voting: Unanimous

Portfolio Holder: Housing

Reason

Seascape Group Limited enables the Council to trade and generate income in order to support its core services to residents through surpluses. It is a requirement of the shareholders agreement between the Council and Seascape Group Limited that Council/Cabinet approves the Strategic Plan.

10.

Transforming Cities Fund (TCF) Programme pdf icon PDF 169 KB

To inform Cabinet of progress to date regarding the Department for Transport (DfT) based Transforming Cities Fund (TCF) award and process

To seek delegated authority to the Director of Growth and Infrastructure in consultation with the relevant Portfolio Holder through the TCF Governance Structure for decisions on delivery

To inform Cabinet of proposed next steps regarding the TCF programme.

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a)         Notes the Transforming Cities Fund (TCF) Award, seeks Council approval to accept the grant funding and notes the progress to date regarding the TCF programme;

(b)        Approves in principle the proposed three-year delivery programme, in line with the TCF Strategic Outline Business Case, and guidance set out by the Department for Transport (DfT) in the Assurance Framework;

(c)         Approves the proposed Governance Framework and delegates authority to the Director of Growth and Infrastructure in consultation with the Portfolio Holder for Transport and Infrastructure, through the TCF Council Governance Board (CGB), for approval of future proposals, the detailed design of each element of the programme and to advertise associated Traffic Regulation Orders (TROs);

(d)        Approves any variation (as required) to the spend against the corridor based budgetary allocations identified in the SOBC and the making of TROs, following consideration of any objections to the advertising of those orders associated with the programme;

(e)          Receives quarterly TCF reports on progress to Cabinet for approval prior to submitting to DfT; and

(f)           Notes the proposed next steps regarding the TCF processes and the commitment of participating partners.

Voting: Unanimous

Portfolio Holder: Transport and Infrastructure

Reasons

The delegations are designed to:

·         Allow maximum flexibility in meeting the strict DfT timeline for delivery over the next three years, with appropriate BCP approvals in place

·         Ensure that the authority is best placed to progress scheme delivery at pace.

11.

Delivery of Sprinkler Installation at Sterte Court pdf icon PDF 64 KB

This paper brings forward the recommendation of the award of a new contract for the delivery of works to install a full sprinkler system to Residential Category 3 (flats and communal areas) at 1-57 & 58-114 Sterte Court.  These works will deliver a new sprinkler system in order to enhance fire safety management across the buildings.

Decision:

RESOLVED that Cabinet:-

(a)         Endorses the previous decision made in July 2018 by the Borough of Poole to install sprinklers in the tower blocks owned by BCP Council and managed by Poole Housing Partnership; and

(b)         Approves the award of a new contract to Harmony Fire Ltd to deliver the sprinkler installation and approve the overall sprinkler budget of £575k.

Voting: Unanimous

Portfolio Holder: Housing

Reason

The award of this contract will enable the delivery of new water sprinkler systems and further enhance fire precautions to the two 10 storey tower blocks that comprise Sterte Court. This will then ensure full coverage across all 6 tower blocks owned by BCP Council.

12.

Whitecliff Recreation Ground - Pavilion Redevelopment pdf icon PDF 65 KB

In December 2017 Borough of Poole Cabinet approved the commencement of procurement to seek a developer to deliver enhanced sports changing, permanent catering and public toilet facilities within Whitecliff Pavilion - see Appendix 1.

Through the planning application process, approval has been granted to redevelop the pavilion. Thetender to find an operator to design, build, manage & maintain the facility is livewith a closing date 1 July.  Consultation has been undertaken with stakeholders, ward councillors and the public.

 

There are covenants on Whitecliff Recreation Ground which restrict the commercial uses of the space.  They prevent the development of a full-service café appealing to a wider clientele.  The developer will need maximum opportunity to build a successful business model for financial viability.  The café will provide a service for all park users and the income will cross subsidise the cost of running the changing rooms and public toilets.  The Council’s Estates Team tried to negotiate the release of the covenants but negotiations failed when the Council were asked to indemnify against possible future claims from other parties.

 

If Cabinet agree to the appropriation - and delegate authority to officers to make the award of contract to the successful bidder - when the tender closes the development can be commenced.

Decision:

RESOLVED that:-

(a)          Cabinet approve the appropriation of land at Whitecliff Recreation Ground for planning purposes; and

(b)          Members delegate authority to officers in consultation with the Portfolio Holder and Ward Councillors to award contract to the successful bidder following close of Tender on 1 July and all subsequent decisions to enable the completion of the development.

Voting: Unanimous

Portfolio Holder: Environment and Climate Change

Reasons

a)            To enable the redevelopment and funding of land and buildings known as Whitecliff Pavilion, approved by the Borough of Poole Cabinet 5 December 2017 – Appendix 1.

b)            Delegating authority to Officers to award a contract to the successful tenderer, following the tender process will ensure the development can progress in line with the conditions detailed in the legal contracts.

13.

Holes Bay, Poole (former power station site) acquisition strategy pdf icon PDF 241 KB

To seek agreement for the Council to purchase the former power station site according to the defined terms set out in the report.  A potential purchase is proposed based on negotiations with the landowner and with support from both Homes England and the Dorset Local Enterprise Partnership (DLEP).

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a)          Agrees that the site is acquired on the acquisition proposal set out in this report for the consideration detailed in the confidential part at appendix 1 of this report (site indicatively edged red on the plan attached at appendix 2);

(b)          Agree in principle to accept the £5m Dorset Local Enterprise Partnership (DLEP) grant (with its associated terms and conditions) to part fund the acquisition of the site, with delegated authority to the Section 151 Officer;

(c)          Agree that plans are developed promptly following acquisition to bring the site forwards, with a further report to Cabinet/Council seeking approval on the associated investment decisions, revenue implications and proposed detailed delivery model;

(d)          Agree that a project team for this site be formally established as part of the Poole Regeneration Board framework within existing resources to drive the project forward and ensure appropriate governance; and

(e)          Delegate authority to the Corporate Property Officer to complete the acquisition and all associated property transactions to prepare the site for development.

RECOMMENDED that Council:-

Amend the Capital Programme to include provision for this purchase, to be funded by prudential borrowing, on the basis set out in the confidential report.

Voting: Unanimous

Portfolio Holders: Housing

                             Regeneration and Culture

Reason

To facilitate the acquisition of this key brownfield site in order to ensure the timely delivery of much needed housing and create a new and vibrant community in Poole.

14.

Bournemouth Town Centre Vision (TCV): Winter Gardens Site – Regeneration Opportunities pdf icon PDF 540 KB

Cabinet on 12 February 2020 approved a number of decisions in relation to the Winter Gardens scheme relating to the funding and lease terms which will assist the ability to secure third party funding.

 

The purpose of this report is to (i) seek approval for additional Council finance in accordance with the terms of the BDC Members Agreement to deliver the scheme and realise the scheme benefits and; (ii) consider the acquisition of certain elements of this strategically important scheme to enable the Council to meet its housing targets and long term regeneration objectives.

 

The proposed financing structure for the Winter Gardens Scheme is made up of Third-Party Finance (Debt and Forward Funding) and what is termed under the BDC Members Agreement as “Member Loans”, Additional Council Finance and Additional Private Sector Partner (PSP) Finance. The relevant extract from the BDC members Agreement is set out at Appendix B.

 

The Additional Council Funding requested will be in the form of a loan which will be repaid back at the end of the scheme in advance of development returns in accordance with Clause 7 and 26 of the BDC Members Agreement.

 

A key part of the financing structure is to secure investors via the forward sales/funding of key elements such as the Public Car Park, Private Rented Sector units (PRS) and Age Friendly residential elements.

 

In addition to agreeing the Additional Council Finance it is proposed that the Council acquire the Public Car Park and Private Rented Sector (PRS) elements of the scheme to  support its Corporate Plan objectives to deliver socio-economic benefits to the town and create Dynamic Places through strategic regeneration or redevelopment opportunities.

 

The PRS element will be operated via the Council’s wholly owned company, Seascape Homes and Property Limited.

 

The financial case for acquiring these elements is detailed in the confidential appendix attached to this report.

 

The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on 11 March 2020, has impacted global financial markets and market activity is being impacted in many sectors.

 

The short to medium term impact of COVID-19 on the residential PRS market sector is unclear at this stage. The impact on the market and valuations will be constantly reviewed and considered as part of the due diligence still to be undertaken prior to completion.

 

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a)          approves the request for up to a further £7.6MAdditional Council Finance less the Site Lease Value. The Site Lease Value will be calculated once the construction procurement process is complete and the terms of the Third Party Finance have been settled. It is anticipated this will be around Q1 2021;

(b)          approves the MTFP to be updated in 2021/22 to include £304k per annum (plus interest) for the Minimum Revenue Provision (MRP) associated with this Additional Council Finance;

(c)          the purchase of the Private Rented Sector (PRS) and Car Park elements of the Winter Gardens Scheme, from the Bournemouth Development Company LLP, on the terms detailed in the confidential part of the report;

(d)          authorises the Corporate Property Officer in consultation with the Monitoring Officer to agree the detailed [contract provisions];

(e)          approves the grant of a 50-year lease of the PRS elements to Seascape Homes and Property Limited on terms to be agreed by the Corporate Property Officer in consultation with the Monitoring Officer; and

(f)           approves the MTFP to be updated in 2021/22 for the net loss of income relating to the redevelopment of the Winter Gardens car park totalling £743,200.

RECOMMENDED that Council:-

(a)          amend the Capital Programme to include Additional Council Finance up to £7.6M less the Site Lease Value anticipated to be drawdown in 2021/22. [It would be prudent to assume the Additional Council Finance will be £7.6M];

(b)          amend the Capital Programme to include provision for these acquisitions to be funded by prudential borrowing, which is subject to RPI as detailed in the confidential part of this report; and

(c)          authorise the Section 151 Officer in consultation with the Portfolio Holder for Finance to determine the detailed funding arrangements for both the forward purchase of the PRS and Public Car Park and the Additional Council Finance.

Voting: Unanimous

Portfolio Holder: Regeneration and Culture

Reason

To enable this exciting and reputationally important mixed-use regeneration scheme to go ahead, helping to deliver high quality homes, and increased footfall in Bournemouth Town Centre.

To contribute to the Council’s Corporate vision, specifically helping to create dynamic places, investing in the homes our communities need and revitalising and re-inventing our high streets and local centres.

The proposals in addition to delivering regenerative benefits are in accordance with the Capital Investment Strategy (Non-Treasury) 2020-2025 (CIS) objectives and criteria adopted by Cabinet on 18 March 2020 and take note of the HM Treasury consultation document; Public Works Loan Board: future lending terms dated March 2020.

15.

Children's Services Capital Strategy pdf icon PDF 276 KB

To seek approval of the Children’s Services Capital Strategy 2020/23 and the associated use of capital programme funds for 2020/21.

Decision:

RESOLVED that Cabinet:

(a)          Approves the adoption of the Children’s Services Capital Strategy 2020/21 to 2022/23 as contained within this report;

(b)          Notes the funding constraints within which the Strategy is drafted, as outlined in Appendix A;

(c)          Approves the inclusion of programme of activity / works as set out at Appendix B within the Capital Investment Programme; and

(d)          Approves the use of school condition grant for children’s centres to maintain urgent health and safety issues as identified.

Voting: Unanimous

Portfolio Holder: Children and Families

Reason

To agree the priorities for the investment of ring-fenced government capital grant received in support of Children’s Services for 2020/21 and beyond. This will support the Council in complying with its statutory duties in relation to the

supply of school places, special educational needs/disabilities (SEND) and school condition.

16.

Traffic Regulation Orders pdf icon PDF 33 KB

This covering report asks the Cabinet to consider representations made in response to the advertisement of a number of Traffic Regulation Orders.

 

Additionally, Cabinet is asked to approve the sealing and advertisement of a number of other Traffic Regulation Orders.

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a)         confirms the Traffic Regulation Order as advertised in Aston Way as set out in TRO sub-report A;

(b)         confirms the Traffic Regulation Order as advertised in Steeple Close and Tollerford Road as set out in TRO sub-report B;

(c)         confirms the Traffic Regulation Order as advertised in Dear Hay Lane as set out in TRO sub-report C;

(d)         confirms the Traffic Regulation Order as advertised in North Street as set out in TRO sub-report D;

(e)         confirms the Traffic Regulation Order as advertised in Sherwood Avenue as set out in TRO sub-report E;

(f)          confirms the Traffic Regulation Oder as advertised in Douglas Gardens as set out in TRO sub-report F;

(g)         confirms the Traffic Regulation Order as advertised in Salterns Road as set out in TRO sub-report G;

(h)         confirms the Traffic Regulation Order as advertised in Sunridge Close as set out in TRO sub-report H;

(i)           confirms the Traffic Regulation Order as advertised in Southill Road and Sunnyside Road as set out in TRO sub-report I;

(j)           confirms the sealing of Traffic Regulation Orders ref P16 2019

(k)         confirms the sealing of Traffic Regulation Orders ref P17 2019

(l)           confirms the sealing of Traffic Regulation Orders ref P18 2019

(m)       confirms the following Traffic Regulation Orders and sealing of the following Traffic Regulation Orders for which no representations were received:-

                     i.        Ashley Road (loading bay)

                    ii.         Cardigan Road (parking bay amendments)

                  iii.        Kellaway Road (yellow line extension)

                  iv.        Sherborn Crescent (20mph limit)

                    v.         Kitchener Crescent/ Plumer Road (yellow lines)

                  vi.        Hoyal Road, Stanley Road and Courthill Road (disabled bay changes)

                 vii.        Churchill Road (yellow lines)

               viii.        Parr Street (Taxi bay)

                  ix.        Sandecotes Road, junctions with Overbury Road and Glengariff Road (yellow lines)

                    x.         Slip Way (parking bay amendments)

                  xi.        Kingland Road Service Road (verge parking Order)

Voting: Unanimous

Portfolio Holder: Transport and Infrastructure

Reason

To confirm and approve various Traffic Regulation Orders as set out within the individual reports.

17.

Cabinet Forward Plan

To consider the latest version of the Cabinet Forward Plan for approval.