Agenda and minutes

Apologies were received from Councillor Rowena Hay.

Councillors Smith and Hay declared an interest in Agenda item 8 as members of the Cheltenham Trust.

Minutes of the meeting held on 30 March 2015

The minutes of the last meeting held on 30 March 2015 were approved as a correct record.  

None.

The Leader announced that it was now open for community groups to bid for monies from the community pride pot. A total sum of £50K was available as well as £4K for smaller events. Bidding was open from 20 April to 22 June and he encouraged Members to promote it in their wards and communities.

These must be received no later than 12 noon on Wednesday 8 April 2015 and must relate to the nature of the business for which the meeting was called.

These must be received no later than 12 noon on Wednesday 8 April 2015 and must relate to the nature of the business for which the meeting was called.

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that the Council’s current Asset Management Plan expired in 2015. He reported that advice had been received from CIPFA to review the approach to Asset Management which would help shape future thinking including the role of members in making decisions and reviewing the performance of the property portfolio. Therefore a more dynamic and purposeful document had been drawn up focused around a small number of clear, forward looking policy objectives.

The Cabinet Member explained that the Asset Management Plan was crucial in making a number of important linkages with the corporate strategy, the medium term financial strategy and with the Cheltenham economic development strategy. The key objective of the asset management policy was to use assets to generate income and cut costs.

The Cabinet Member made reference to the Athey consultant’s report which recently reported on the economic strategy. It highlighted the positive contribution the Cheltenham Development Task Force had made to promoting economic development but more work was required to bring forward more sites for commercial development. This was a key issue for the Council’s asset management.

The Cabinet Member highlighted the new draft terms of reference for the Asset Management Working Group, approved by the group at its last meeting and which would give them a more strategic role in asset management.

The Planned Maintenance Budget of £846 k which represented a substantial investment in the council’s assets was also highlighted by the Cabinet Member. He reported that at the same time a new 10 year planned maintenance programme was being worked up to provide a longer term view about the need for further investment. 

New capital projects were detailed in Appendix 4 of the report. These had been assessed and scored by a panel of officers against the corporate objectives, deliverability, likely costs and return on investment and feedback from the public consultation. The Cabinet Member emphasised that this had not been an easy process and at this stage some of the proposals required more work. High priority would however be given to projects which could attract additional external funding, such as the town hall redevelopment scheme.  This scheme had been most highly rated by the public in the public consultation. He reported that some time ago consultants had been asked to look at how the Town Hall could be improved and updated and a plan had been drawn up to increase capacity of the main hall, improve the flow of people around the building and create new dedicated spaces for events and create new hospitality and catering facilities. He proposed to earmark £2.4 million for this project (£2.2 million from the £8 million capital pot and a further £200 000 still to be found from future capital receipts). He reported that £400k should be made available immediately so that the project could be worked up in enough detail to go forward to potential funders such as the Heritage Lottery Fund and charitable trusts. It was estimated that  ...  view the full minutes text for item 8.

Report of the Cabinet Member Finance, Councillor John Rawson
(if Members wish to discuss any exempt information in the appendices the Cabinet will need to pass the resolution in the following agenda item and consider these in exempt session)

The Cabinet Member Finance introduced the report on the Accommodation Strategy which had been circulated with the agenda.

The report explained that the council had had a long-term aspiration to relocate to modern, more flexible office accommodation which would meet both existing and future needs, improve the customer experience and provide better value for money to the taxpayers of Cheltenham.  This had been restated at the Council meeting of 31 March 2014 and the report and the supporting business case now outlined the case for relocation and considered how each option met the Council's desired outcomes. An amended cost benefit analysis for option 2 including inflation had been circulated in Members’ places at the start of the meeting together with corresponding amendments to the summary.

In his introduction the Cabinet Member highlighted that the Municipal Offices were unsuitable for modern office accommodation but he was passionate to secure the building’s long-term survival. The accommodation strategy was also a critical part of the ongoing process to achieve budget savings without the need to cut critical services.  He acknowledged that it was a huge decision but it was the opportunity of a lifetime for the town.  The council had a successful history of purchasing property for investment and the Regent Arcade was a good example where the council had secured a long term income through this joint-venture. A recent review from Cipfa had also urged the council to invest in property to secure future income. In acquiring the property, the council would be purchasing grade A office accommodation in the centre of the town which was fully accessible, provided modern office accommodation, underground car parking and would attract prospective tenants. CBH had indicated they were keen to relocate with the council.  The council had been conservative in the rental estimates but the rental income stream in the next 8 years would cover 71% of the purchase price and stamp duty. Acquiring the building would also give the council flexibility for the future in terms of accommodating its future workforce.  In conclusion he thanked officers for all their hard work.  He considered he had done his duty for Cheltenham in bringing this proposal to Council today and he urged members to support the recommendations.

The Mayor invited questions to the Cabinet Member Finance.

In response to questions from Members, the Cabinet Member Finance gave the following responses set out below:

• A number of members asked for clarification on the Cabinet Member’s stated expression of interest from CBH in moving into the building as they were not aware that this had been proposed to the Board of Directors or agreed by senior management. They understood that CBH was preparing its own accommodation strategy in preparation for their lease on Cheltenham House running out in September 2016. It was not correct to assume that CBH would be paying the council a future rent and therefore this should not be assumed in the proposals.
  • The Cabinet Member confirmed that senior management of CBH had seen  ...  view the full minutes text for item 9.