Agenda and draft minutes

Strategy and Resources Committee
Monday, 29th October, 2018 7.30 pm

Venue: Civic Offices, St Nicholas Way, Sutton SM1 1EA

Contact: Alexa Coates, Head of Committee and Management Support  Tel: 020 8770 4990 | Email:  committeeservices@sutton.gov.uk

Items
No. Item

18.

Apologies for absence

Minutes:

Apologies for absence were received from Councillors Marian James, Jayne McCoy and David Hicks. Councillors Chris Williams and Jane Pascoe attended as substitute members.

19.

Declarations of Interest

Minutes:

There were no declarations of interest.

20.

Any Items the Chair deems urgent

Minutes:

There were no urgent items.

21.

Minutes pdf icon PDF 84 KB

To approve as a correct record the minutes of the meeting held on 16 July 2018.

Minutes:

The minutes of the meeting held on 16 July 2018 were agreed as a correct record and signed by the Chair.

22.

Performance and Finance Report (Q2) pdf icon PDF 246 KB

This report provides an overview of council performance and finance during April - September 2018 as reported through the new corporate plan and financial monitoring arrangements.

Additional documents:

Minutes:

The Assistant Director - Customers, Commissioning and Governance and Assistant Director, Shared Finance Service for Sutton and Kingston introduced the report. The Chair invited the Strategic Director of Resources to give an overview of recent government regulations which would lift the cap on borrowing against the Housing Revenue Account.

 

Members queried the costs associated with the impact of unlawful encampments and the costs of the single flytip removal. The Strategic Director of Environment, Housing and Regeneration responded that flytip costs are not usually recorded but this was reported to members due to the unusually high cost of the removal.

 

Resolved

 

1.    That it be noted the new Corporate Balanced Scorecard is currently being designed and built and will be ready for the end of year Strategy & Resources Committee.

 

2.    That the recommended measures of success in the Outcomes Based Commissioning Plan 18/19 (Appendix A) be agreed.

 

3.    That the projected revenue outturn position be noted

 

4.    That the projected capital position be noted.

 

5.    That the one off use of reserves to fund £400k of support of the Outcome Based Commissioning Review Programme as per paragraph 3.6 be agreed.

 

6.    That for 2018/19 only use of reserves to fund part-time business support to Opposition Group Leadership, which has been costed at £25k in a full year be agreed.

 

7.    That the capital programme adjustments shown under Appendix B be agreed.

23.

Revision to CIL Regulation 123 List and Guidance pdf icon PDF 378 KB

Seek approval for a new Regulation 123 list and provide guidance on the spending of CIL receipts

 

Additional documents:

Minutes:

The Head of Development Management and Strategic Planning introduced the report. Members discussed the impact of conversion of office to residential when there is no new floor space created and were advised that those types of development would not result in CIL charges to the developer; how CIL money was recovered and what information could be made available to demonstrate how CIL money was spent.

 

Resolved

 

1.    That the council continues with its current CIL Charging Schedule (index-linked) rather than produce a new Charging Schedule.

 

2.    That the CIL Charging Schedule be reviewed with the Local Plan, due in 2023.

 

3.    That public consultation on a draft revised Regulation 123 List (see Appendix B) be agreed.

 

4.    That the Regulation 123 List be reviewed on a regular basis to ensure it remains aligned with the council’s wider priorities.

 

5.    That it be agreed to allocate 15% of CIL receipts to the neighbourhood portion where that CIL is generated by new development, except in areas with an adopted neighbourhood plan where the allocation will be 25% of CIL receipts.

 

6.    That the Strategic Director of Environment, Housing and Regeneration be tasked in consultation with the Strategic Director of Resources and the Chair of the Housing, Economy and Business Committee and Lead Member for Finance to (a) review and consider the governance arrangements for allocating and spending the neighbourhood portion of CIL receipts; and (b) report back to the Strategy and Resources Committee with a preferred option.

24.

Annual Audit Letter pdf icon PDF 114 KB

The Annual Audit Letter for 2017/18 formally reports the outcome of the external audit of the Council’s financial statements for the year and the auditor’s opinion on the Council’s arrangements to secure value for money.

Additional documents:

Minutes:

The Strategic Director of Resources introduced the report

 

Resolved

 

That the external auditor’s unqualified opinion on the Council’s financial statements for the 2017/18 year and the auditor’s conclusion that the Council had proper arrangements in all significant respects to ensure it delivered value for money in its use of resources be noted.

25.

Constitutional Update Report pdf icon PDF 200 KB

This report reviews the terms of reference of the Sutton Shareholdings Board for the efficient and effective oversight of the council interests in companies and decision-making in relation to matters reserved to the Council as shareholder.

Additional documents:

Minutes:

The Assistant Director - Customers, Commissioning and Governance introduced the report.

 

Resolved

 

Governance Arrangements

 

1.    Recommend the Sutton Shareholdings Board’s amended terms of reference to Council as a constitutional amendment detailed in Appendix A.

 

2.    Recommend to Council that authority be delegated to the Monitoring Officer to make any consequential amendments to the Council’s Constitution arising from these recommendations.

 

Committee Substitutes: Sutton Independent Residents

 

3.    Recommend to Council that the number of substitutes for committees for the Sutton Independent Residents is increased to two.

26.

Portage Spin Out pdf icon PDF 264 KB

This paper explores the potential opportunities for Portage to spin out of the local authority. This content includes the business plan, financial plan and options for new service delivery

 

Additional documents:

Minutes:

 

The Chair advised that this item had postponed until the next meeting.

 

27.

Annual Report Investment Property Portfolio pdf icon PDF 468 KB

Annual Report on the Investment Property Portfolio (IPP) which includes a revised strategy for IPP that takes into consideration the new statutory guidance published by the government on investments.

 

Additional documents:

Minutes:

Assistant Director, Asset Planning, Management and Capital Delivery introduced the report. Members discussed delivery of the Grove, Officers advised that a report would be brought back to the committee in February next year to discuss options in relation to the Grove.  In addition members questioned any potential impact of Oxfam moving their headquarter offices, on rental income.

 

Resolved

 

1.    That the good progress that has been made in implementing the corporate asset management strategy 2015 - 2019 be noted.

 

2.    That the strong performance of the Investment Property Portfolio be noted.

 

3.    That the strategic aims and priorities of the Investment Property Portfolio are amended as set out in paragraph 4.60 of this report be agreed.

 

4.    That the revised Policy for Governance and Portfolio Management (October 2018) as attached at Appendix D be agreed.

28.

Letting of the Charles Cryer Centre pdf icon PDF 272 KB

This will report on the bids received for the future use of the Charles Cryer Theatre

 

Additional documents:

Minutes:

The Head of Asset Management introduced the report.

 

Members asked questions about due diligence and status of Cryer Art, Officers advised that due diligence had been conducted and Officers were satisfied that Cryer Arts were the best option following review of financial position and proposed business plan.

 

Resolved

 

1.    That the grant of a 25 year lease to Cryer Arts for the Charles Cryer Centre as shown edged red on the plan at Appendix B, at a rent set out in the exempt Appendix A, with terms otherwise as negotiated by the Assistant Director (Asset Planning, Management and Capital Delivery) be agreed

 

2.    That it be agreed in the event of a transaction with Cryer Arts not being achievable within a reasonable time, to agree the grant of a 25 year lease to the underbidders Nickel Support Limited or Carshalton Baptist Church, with first consideration given to Nickel Support at a rent as set out in the exempt Appendix A, with terms otherwise as negotiated by the Assistant Director (Asset Planning, Management and Capital Delivery);

 

3.    That it be agreed in the event of a letting to an underbidder, consent is given to a letting at less than the best consideration reasonably obtainable, as further described in this report; and

 

4.    That the Council’s solicitors be instructed to complete all necessary documentation