Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 9 February 2022.
Minutes:
The Committee considered the following reports on the Part 1 agenda for the meeting of the Executive on 9 February 2022:
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(5) |
2022/23 COUNCIL TAX FSD22019 |
The report identified the final issues affecting the 2022/23 revenue budget and sought recommendations to the Council on the level of the Bromley element of the 2022/23 Council Tax and Adult Social Care precept. Confirmation of the final GLA precept would be reported to the Council meeting on 28 February 2022. The report also sought final approval of the ‘schools budget’. The approach reflected in the report was for the Council to not only achieve a legal and financially balanced budget in 2022/23 but to have measures in place to deal with the medium-term financial position (2023/24 to 2025/26).
The Director of Finance introduced the report and explained that the Council was imminently expecting the final settlement. Once the final settlement had been received an update would be provided to the Executive. The Committee noted that the Mayor of London had needed permission to increase Council Tax above referendum limits, this had been granted and it was therefore expected that the 8.8% increase in the London precept would still apply. The Director of Finance drew the Committee’s attention to the reference in the report to reforms to adult social care which would need to be closely monitored and would be subject to future reports to Members. In response to a question concerning the revenue raised from the adult social care precept and the proportion of that funding directed to adult social care, the Director of Finance confirmed that specific details would be provided following the meeting. However, Members were advised that the precept has been fully utilised to contribute towards inflation, demographic and other cost pressures for adult social care - the Council was required to identify that funding raised through the precept was directed to adult social care.
In respect of recent government announcements concerning support for households for winter fuel bills, the Director of Finance confirmed that every household in Council Tax bands A-D would receive a £150 fuel rebate from the Government, as long as it was a primary property. Members noted that for residents paying Council Tax by Direct Debit the fuel rebate would be easy to administer however some households would need to be written to. Local Authorities had been advised to wait for further guidance and some information would be included in Council Tax bills. There was a separate discretionary fund of £144m which could be utilised, for example, for households in Council Tax Bands E-H in receipt of benefit or Council Tax Support. There could be others alternatives for the funding that will need to be considered. Further guidance on this aspect was awaited. In response to a question, the Director of Finance confirmed that details of the percentage of council taxpayers in Bands A-D would be provided following the meeting. Members noted however that Bromley had a higher proportion of council taxpayers in the higher bands.
In response to a question concerning the other measures available to the Council to support households struggling with high fuel bills, the Director of Finance confirmed that the Household Support Fund was being utilised to support the most vulnerable families.
In relation to fairer funding, the Director of Finance confirmed that there had been delays to the Fairer Funding Review. Members noted that some of the data used to inform the financial settlement was 20 years old and it was likely that following the 2021 Census, the government would take the opportunity presented by the Review to update the data. It was further noted that the impact on Bromley of the Government’s Levelling Up programme was unclear, although it was likely that Levelling Up would have a more significantly negative impact on inner London boroughs.
RESOLVED: That the Executive be recommended to recommend to Council that it:
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£’000 |
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London Pension Fund Authority* |
478 |
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London Boroughs Grant Committee |
247 |
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Environment Agency (Flood defence etc.) * |
270 |
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Lee Valley Regional Park * |
321 |
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Total |
1,316 |
*Provisional estimate at this stage
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(6) |
CAPITAL PROGRAMME MONITORING Q3 2021/221 AND CAPITAL STRATEGY 2022 TO 26 Report FSD22015 |
The report updated the Council’s Capital Strategy. It also summarised the current position on capital expenditure and receipts following the third quarter of 2021/22 and presented for approval the new capital schemes in the annual capital review process. The Executive was asked to consider the updated Capital Strategy and approve a revised Capital Programme.
In response to a question concerning the transfer of funds for Education, the Director of Finance agreed to provide a response following the meeting.
The Committee noted that the Capital Programme would need to be updated to reflect any decision taken by the Executive in respect of the Bromley Town Health and Wellbeing Centre.
RESOLVED: That the Executive be recommended to:
1. Note the report, including a total re-phasing of £849k from 2021/22 into future years, and agree a revised Capital Programme;
2. Recommend to Council:
(i) The inclusion of the new scheme proposals in the Capital Programme (paragraphs 3.15 to 3.22)
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(7) |
OPERATIONAL BUILDING MAINTENANCE BUDGETS AND PLANNED PROGRAMME 2022/23 Report HPR2022/007 |
The report provided a brief update on the Operational Property Review and sought approval to draw down from the Growth Fund for a Programme Manager to support feasibility work.
In response to a question, the Assistant Director for Property explained that, in consultation with colleagues in finance it had been considered prudent to place a bid for capital funding for maintenance as a budgetary proposal. The Portfolio Holder for Resources, Commissioning and Contracts Management highlighted that there was a backlog in maintenance across the Council estate and the figures within the report reflected estimates for the repairs that would be necessary.
The Committee noted that Ward Councillors would be consulted as necessary prior to planned works being carried out.
Members noted that the Churchill Theatre was likely to become a significant issue requiring capital investment. Investigations were currently underway to establish the work that would be required to keep the building safe and operational.
A Members noted that the works detailed in the report were essential to keep the buildings open, in use and health and safety complaint.
In response to a question concerning Crystal Palace Park toilets, the Assistant Director for Property confirmed that discussions had taken place with Environmental Services who were leading on the project. It was agreed that an update would be provided following the meeting.
RESOLVED: That Executive be recommended to:
1. To approve, subject to Council agreeing the budget, the following expenditure for operational building maintenance for 2022/23:
· Repairs and maintenance - £2.314m
· Earmarked reserve for Infrastructure Investment for essential and statutory works - £1m
2. Note provision of £2m in 2022/23 and £2m in 2023/24 to a Building Investment Fund, as included in the Draft 2022/23 Budget report
3. Note a new Capital Programme for Operational Estate Maintenance Programme totalling £20.257m, phased over the next three financial years as included in the Capital Strategy 2022 to 2026 report
4. Delegate authority to the Director of Housing, Planning, Property and Regeneration to vary the programmes and budget allocations where such action is considered necessary to either protect the Council’s assets or make the most effective use of resources.
5. Approve the request for £65k to be drawn down from the Growth Fund earmarked reserve for the appointment of a Programme Manager to support the delivery of the next phase of the Operational Property Review.
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(16) |
ACCELERATED DEVELOPMENT OF A NEW HEALTH AND WELLBEING CENTRE AT THE CIVIC CENTRE AS PART OF A WIDER MIXED-USE DEVELOPMENT |
The Committee considered a report seeking the approval of the Executive to to proceed to procurement, to authorise drawdown of up to £2m from the Capital Programme to fund the various professional services required to progress the development of a health and wellbeing centre at the Civic Centre through the initial stages; noting that that this was in addition to £0.5m previously agreed by the Executive in October 2021; and noting that the Clinical Commissioning Group (CCG) would initially underwrite 50% of this total cost.
In opening the discussion, the Chairman expressed concerns around the quantity of the scoping works and risks around these works being completed with no guarantee in terms of delivery of the scheme. The Assistant Director for Property explained that the funding of £2m was intended to take the whole scheme from viability to submission of a planning application, there was an indemnity from the CCG for 50% of the initial costs and the £2m would not be committed without a firm commitment from the CCG.
The £2m was to demonstrate a commitment to the government minister that a programme to deliver the scheme was in place and that the parties were in a position to rapidly move through viability and design prior to the submission of a planning application. The Committee noted that timescales for the programme were tight but achievable to enable the opening of the health and wellbeing centre by April 2024. In terms of the costs of the scheme, Members noted that there was a 10% contingency and inflation of 5.4% included within the cost estimates on the assumption that construction would commence later in 2022. These costs would be updated as the scheme progresses. The Director of Finance recognised that in the current financial climate there were concerns around increasing building costs which would need to be monitored.
In response to a question, the Assistant Director for Property confirmed that the view of the Chief Planner had been sought in terms of massing, proximity to local residents and proximity to the Civic Centre. Whilst the scheme was not at pre-application stage, no concerns had been raised in respect of overdevelopment although the importance of respecting and reflecting the heritage of the local area through any design was recognised.
It was noted that Ward Councillors and the Council’s Heritage Champion would be kept informed of progress and would be consulted in respect of the design of the scheme.
Whilst expressing reservations around the viability of the scheme, Members of the Committee recognised that the delivery of a health and wellbeing centre was essential for Bromley Town Centre in terms of much needed healthcare facilities.
The Committee noted that there had always been an aspiration to deliver a health and wellbeing center by April 2024, however the Minister for State had recently announced a review of projects across Southeast London and this had escalated the need to demonstrate a commitment with a viable scheme in place. Although the timeframe was tight, it was deliverable if the procurement aspects were in place.
The Chairman summarised the discussion, noting that the project had been under development for some considerable time. The real need for healthcare facilities in Bromley Town Centre was recognised however a key issue was that there was the Ministerial review of healthcare projects across Southeast London. If the Executive took the decision not to approve the scheme it would be taken as a sign that the Council was not committed to the project. A number of concerns had been raised by Members of the Committee in terms of cost, timeframes and viability and the Chairman would report these concerns to the Executive. The Committee agreed that the Executive should be recommended to approve the scheme however, the Executive, Resources and Contracts PDS Committee should retain scrutiny oversight of the project and receive regular updates as the scheme progressed.
RESOLVED: That
1. the Executive be recommended to:
a) Agreed and incorporate the following into the forthcoming Capital Programme at an estimated additional total cost of £25m including the CCG’s estimated 25% share, together with non-recoverable VAT.
b) Subject to the above and following Executive approval (20 October 2021) to proceed to procurement, to authorise drawdown of up to £2m from the Capital Programme to fund the various professional services required to progress the scheme through the initial stages; noting that that this is in addition to £0.5m previously agreed in October 2021; and noting that the CCG will initially underwrite 50% of this total cost.
c) Authorise the drawdown of an additional £1.5m including non-recoverable VAT from the Capital Programme to fund surveys and other project costs including LBB internal costs (£3.5m running total). Estimated inclusive cost as 2.1. The CCG will initially underwrite 50% of this cost.
d) Authorise proceeding to procurement via a compliant route for a works contract to demolish The Great Hall and Adventure Kingdom and prepare the site with enabling works subject to receipt of detailed planning consent at an estimated contract value of £650,000 (£4.15m running total) from the Capital Programme. The CCG will be responsible for 25% of this cost.
e) Authorise proceeding to procurement via a compliant route for a construction contract for the building works at an estimated contract value of £21.4M; noting that commencement of the Build element will be subject to both Member approval for the detailed design and costs of the scheme and subject to receipt of detailed planning consent. The CCG will be responsible for 25% of this cost. Executive are asked to note that it is to be determined whether the optimum route is to procure a Build contract directly or whether to utilise a two stage (via a Pre-Contract Service Agreement [PCSA] with suitable break clause) Design & Build approach. In the event of a Design & Build approach, the first stage of Technical Design is included within the costs for professional services outlined above.
f) Delegate authority to the Director of Housing, Planning, Property and Regeneration or Director of Finance with oversight from the Resources Portfolio Holder, to agree and settle all the commercial terms arising and to deal with publicising, if appropriate, any Open Space Notices and considering representations received and reporting to Members as necessary.
g) Delegate authority to the Assistant Director of Legal Services to enter into all relevant legal agreements and any other ancillary legal documentation relating thereto.
h) Note that an Executive report will be forthcoming with a full business case for consideration including details of the worked-up scheme, procurement of the construction element of the scheme, including additional professional fees and project costs prior to any Planning Application being made.
2. That the Executive, Resources and Contracts Committee continue to receive regular updates as the scheme progresses.