Agenda and minutes
Venue: Council Chamber, Municipal Offices
Contact: Rosalind Reeves, Democratic Services Manager
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Apologies Minutes: Apologies were received from Councillors Bickerton, Fletcher, Lansley, Reid and Wall. |
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Declarations of Interest Minutes: Councillors Driver, C
Hay, Smith and Williams declared an interest in agenda item 9 as
board members of Cheltenham Borough Homes and announced their
intention to leave the meeting at that point. Councillor Hay also declared an interest in agenda item 8 as one of the council appointed trustees on the shadow board of the Leisure and Culture trust.
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Minutes of the last meeting PDF 134 KB Minutes of the meeting held on 16 December 2013 Minutes: Councillor Garnham proposed the following amendments to the minutes:
Agenda item 7; member question 6 - final paragraph change the wording to “ In response the Leader confirmed that nothing had been done on the day but explained that the…”
On page 16 of the minutes he queried why Councillor Sudbury and a member of the public had been named in the minutes when Members had previously been told that it was not the policy to name individual members.
The Leader did not agree with the proposed changes to his response and he explained that as the council was working on things continuously small business Saturday had been covered by these other initiatives.
Upon a vote it was
Resolved that the minutes of the last meeting held on 16 December 2013 be approved and signed as a correct record with no amendments. |
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Communications by the Mayor Minutes: The Mayor said that her thoughts were with those affected by the floods and she was pleased that this council was working with neighbouring councils to help those affected.
She encouraged members to give their support to the bobble day being organised by Councillor Harman in support of the Age Concern appeal to help keep the elderly warm.
She invited Councillor Stewart to speak and he thanked councillors and staff for all their support in the last two weeks since his wife sadly passed away.
The Mayor paid tribute to ex-councillor David Hall who had sadly passed away recently and asked members to stand for a minutes silence.
She reported to members that she had been honoured to unveil the Kiss at the Wilson the previous evening. It was great that the Wilson could attract this quality of exhibit and she encouraged all members to go and see it. |
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Communications by the Leader of the Council Minutes: The Leader added his thanks to staff who were on standby over the weekend in case Tewkesbury Borough Council needed additional support.
Regarding the A417 missing link, he advised members that there was a big campaign across Gloucestershire. He had added his personal support and suggested that it may be appropriate for Council to have a debate in this chamber and pass a motion supporting it.
Referring to the government recommendation to hold a recorded vote on the budget, although he was entirely happy with the principle of being open to the public, he had a slight concern that a central government directive of this nature seemed to be against the spirit of localism.
He thanked everybody involved in the successful completion of the sale of North Place and Portland Street and thought the ongoing development would bring big benefits to the town. |
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Public Questions These must be received no later than 12 noon on the fourth working day before the date of the meeting Minutes: None received. |
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Member Questions Minutes:
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Final General Fund Budget Proposals 2014/15 (including Section 25 Report) PDF 155 KB Report of the Cabinet Member Finance and the Director Resources Additional documents:
Minutes: The Mayor invited the Cabinet Member Finance to introduce the budget which would then be followed by a statement from the Director of Resources, Mark Sheldon as the Council’s Section 151 officer. To facilitate the presentation of the Budget, the Mayor proposed suspension of certain rules of debate, namely:-
That the time limit on speeches is relaxed with regard to the following speeches
The Cabinet Member Finance and Group Leaders could also speak more than once in the debate (in addition to any rights of reply etc) for the purpose of putting and answering questions.
This was agreed by Council with 2 abstentions.
The Mayor referred to a letter from the DCLG which had been sent to all Chief Executives suggesting that a recorded vote was held on all items relating to the budget. She proposed that a recorded vote was held on any significant decision relating to the budget or council tax (including any amendments) as set out in Part 4A – Council Procedures Rule 14.5 as required by the ‘Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014’. This will apply to agenda items 8 and 9.
This was resolved unanimously.
The Cabinet Member Finance introduced the 2014/15 budget proposals with a detailed speech (please see Appendix 1).
The Cabinet Member
Finance moved acceptance of the 2014/15 budget as set out in the
report. The motion was seconded
by Councillor Jordan
who reserved his right to speak. The Director of Resources referred to appendix 2 in the budget papers which set out his assessment of the budget and the financial risks and made the following points:
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Final Housing Revenue Account Revenue Budget 2014/15 PDF 101 KB Report of the Cabinet Member Finance and the Director Resources Additional documents: Minutes: Having declared a personal and prejudicial interest in this agenda item Councillors C Hay, Driver, Smith and Williams left the chamber and did not participate in the debate.
The Mayor informed Members that proceedings would return to standing orders.
The Cabinet Member Finance introduced the report and said this budget was not just good news for the Council but for tenants, leaseholders and the town as a whole. The Housing Revenue Account (HRA) was in a healthy financial position with revenue reserves of three and a half million pounds with projections forecasting a reserve balance of four million pounds by March 2017 and an increasing surplus of operating income year on year. This provide an opportunity to fund very substantial investment in the housing stock, together with better services for tenants and leaseholders.
The Cabinet Member Finance noted that the capital programme being proposed for 2014/15 was £8,249,000. This included investment in property improvements and major repairs, adaptations for disabled people and environmental works. He also reminded members that CBH planned to spend a million pounds over three years on services for tenants, including support for older people, disabled people and young people, the expansion of employment services to tenants and benefits and money advice. £353 000 was budgeted for 2014/15 which was the second year of this programme.
The Cabinet Member then explained that 2014/15 was the final year of the Government’s rent restructuring scheme, designed to bring rents up to the formula rent. The proposed rent increase for next year was in line with national rent restructuring guidelines. Income generated as a result would be used to deliver the best possible value to tenants, leaseholders and where possible to the wider community.
The Council and CBH were keen to build new homes and work was progressing on St Pauls Phase two and a number of garage site developments in the town. It was now being proposed to set up a new reserve within the HRA to fund new build. £0.6 million was being proposed to help with site set up costs for new build progrects with a proposal to add to the reserve by transferring funds from the HRA surplus, to be considered each year at outturn.
Finally, the Cabinet Member thanked management and staff at CBH for their achievements.
A member expressed concern about the 4% increase in rents, recognising that this was in line with national guidelines. He noted however that there would be significant funds invested back into the service to the benefit of tenants. The Cabinet Member Finance added that tenants should be assured that they would be getting value for money for their rent which included not only improvements to their properties but also the provision of specific services. The Cabinet Member Housing and Safety then referred to the positive feedback on the budget proposals received from the CBH Tenant Scrutiny Improvement Panel. He thanked CBH for the hard work it had undertaken over the last year.
A recorded vote having been ... view the full minutes text for item 9. |
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Treasury Management and Annual Investment Strategy 2014/15 PDF 75 KB Report of the Cabinet Member Finance Additional documents:
Minutes: The Cabinet Member Finance introduced the report and explained that the Treasury Management and Annual Investment Strategy 2014/15 had been scrutinised by the Treasury Management Panel to whom he was grateful. He said that the Council had operated in accordance with the Prudential Indicators and would continue to do so. He explained that the Council had followed a prudent and sensible borrowing strategy which reduced the need for short-term external borrowing whilst investment returns were low. In terms of the annual investment strategy the Council operated a very sophisticated system to determine the creditworthiness of investment counterparties. This was not just based on ratings but on a whole host of other information which was regularly reviewed. He referred to the creditworthiness policy which was laid down in section 4.3 of the report. The Council typically looked to the short end of the market when making investment decisions. He explained that whilst some overseas banks were now permitted as counterparties by the policy these were only the most highly rated institutions in countries which had a minimum sovereign rating of triple A. The Cabinet Member hoped that this strategy and general approach of investment gave the Council the confidence and security it needed.
In response to a question with regard to the Icelandic investments the Cabinet Member Finance confirmed that the council had received the funds from the recent auction of claims in Landsbanki. In response to a subsequent question with regard to the imminent break up of RBS and what that would mean for the council’s investment in the bank, the Cabinet Member Finance explained that investments were continually kept under review. It was important to consider how it could achieve the spread it wanted whilst ensuring that the bank was a safe institution. The council was currently lending short which was a reflection of the current investment policy.
A question was then raised about the possibility of local authorities issuing bonds to provide an alternative source of finance and it was asked where this would fit in the strategy. In response the Cabinet Member said this was at an early stage of development but would be considered and proposed should it be deemed appropriate.
RESOLVED that
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Appointment of Mayor and Deputy Mayor 2014/15 PDF 47 KB Report of the Chief Executive Additional documents: Minutes: The Chief Executive introduced the report which explained that Councillor Simon Wheeler had served as Deputy Mayor since last year’s Annual Council Meeting and Members would be asked to elect him as Mayor at this year’s Annual Meeting. In accordance with the Order of Precedence in Appendix 2 Members had been approached to ascertain if they were willing and able to have their name put forward for appointment as Deputy Mayor for 2014-15. Councillor Duncan Smith had indicated a willingness to put his name forward as Deputy Mayor subject to no other eligible councillor wishing to do so.
RESOLVED that
The Order of Precedence in Appendix 2 be noted and that Councillor Simon Wheeler and Councillor Duncan Smith will be put to the Annual Council Meeting for election as Mayor and Deputy Mayor respectively for the municipal year 2014 - 2015. |
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The Wilson - Development Project Outturn Briefing Report PDF 94 KB Report of the Executive Director and the Director
Resources. Please note that this item contains exempt information. Should members wish to discuss this information a resolution would need to be passed to go into exempt session. Additional documents:
Minutes: The Cabinet Member Sport and Culture introduced the report which provided an update on the Art Gallery and Museum Development including a projection of the outturn financial costs and projected funding shortfall of £360 000. She explained that it was well known that the renovation of old buildings often resulted in unforeseen problems and to some extent this explained the delays in opening the Wilson which in itself carried a cost. Internal Audit had been commissioned to identify any weaknesses in the control, monitoring and approval mechanisms supporting the Art Gallery and Museum project and to understand how the Council might have been better informed about the likely cost overrun thus giving the council an opportunity to take corrective action. This work would be important for learning lessons for future projects, such as the Town Hall redevelopment.
The Cabinet Member Sport and Culture stated that visitor numbers were expected to triple the number in the first year. The fundraising and sponsorship campaign would continue and the prospects for closing the funding gap of £360 000 were very real. She believed that the opening of the Wilson was one of the most exciting things that had happened in Cheltenham particularly now that it had a dedicated education and young people’s space and the ability to host large exhibitions.
Whilst recognising that the Wilson was an excellent facility, an asset to the town and a tribute to the hard work of officers, Members questioned the quality of the project management and the ability of the administration to keep control of costs. In addition the issue of including some information in the report and likewise on other major council projects, on pink, confidential papers was raised.
A member of the Cabinet acknowledged that the report did not provide for happy reading but paid tribute to the foresight and initiative of the council to undertake the development in the first place as it represented a landmark development for Cheltenham. It was important to review what had happened and that lessons were learned for similar developments in the future. He reiterated the fact that projects involving old buildings were often fraught with extra costs. He highlighted that the pink papers in this particular report concerned sensitive commercial information and the council was under a statutory obligation not to disclose this. The majority of the report was publicly available and there was no proposal to discuss the item in closed session. The success of the project was clearly being demonstrated by visitor numbers. Caution was expressed that this discussion risked turning the Wilson into a bad news story which could reduce the future ability to raise funds for the Art Gallery and Museum.
The Chair of the Audit Committee welcomed the fact that Internal Audit had been commissioned to undertake a review. The financial issues should be explored but questions also needed to be asked on the decision-making and whether this was done with the best possible information at hand. He made reference to the ... view the full minutes text for item 12. |
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Notices of Motion Minutes: None received. |
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To receive petitions Minutes: The Mayor informed the meeting that she had received a petition containing more than 900 signatures from residents opposing a planning application in Charlton Kings. She clarified that as this was a planning application this did not fall under the Council’s petition scheme and would thus be taken as a representation to the application. |
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Any other item the Mayor determines as urgent and which requires a decision |
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Local Government Act 1972-Exempt Information The Council is recommended to approve the following resolution:-
“That in accordance with Section 100A(4) Local Government Act 1972 the public be excluded from the meeting for the remaining agenda items as it is likely that, in view of the nature of the business to be transacted or the nature of the proceedings, if members of the public are present there will be disclosed to them exempt information as defined in paragraphs 1 and 3, Part (1) Schedule (12A) Local Government Act 1972, namely:
Paragraph 1; Information relating to any individual
Paragraph 3; Information relating to the financial or business affairs of any particular person (including the authority holding that information)
Minutes: RESOLVED that “That in accordance with Section 100A(4) Local Government Act 1972 the public be excluded from the meeting for the remaining agenda items as it is likely that, in view of the nature of the business to be transacted or the nature of the proceedings, if members of the public are present there will be disclosed to them exempt information as defined in paragraph 3, Part (1) Schedule (12A) Local Government Act 1972, namely:
Paragraph 1 : Information relating to any individual
Paragraph 3: Information relating to the financial or business affairs of any particular person (including the authority holding that information)
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St Paul's Phase Two Report of the Cabinet Member Housing and Safety Minutes: The Cabinet Member Housing and Safety introduced the report and explained that on 17 October 2013 CBC, CBH and the contractor entered into a development agreement and it has become necessary to agree changes to the terms of the development agreement as access to the whole of the development site has been delayed from January. Access to most of the site is possible, but to maintain the build programme and retention of HCA Grant funding the developer has identified some civil engineering work which they can bring forward. Due to this variation the cost of the preliminary works to be completed prior to the satisfaction of key requirements contained in the development agreement would increase and the developer would require CBC to reimburse this cost if the development agreement was terminated. All parties remain committed to the delivery of the development.
Members were concerned that they had only received the report immediately prior to the Council meeting and requested further explanation as to the details of the situation. The Cabinet Member Housing and Safety therefore invited Paul Stephenson, Chief Executive, CBH, to address the meeting.
A member urged that agreement was reached in order to progress the St Paul’s Phase Two project and secure the HCA funding so more affordable homes could be built in the town.
On behalf of the Council, the Cabinet Member Housing and Safety thanked CBH for their work on this issue.
RESOLVED THAT
The underwriting of the increase in the preliminary works in the event of the development agreement between The Authority, CBH and the contractor being terminated be approved.
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