Date: 11 April 2018
Town Hall, Penrith, Cumbria CA11 7QF Tel: 01768 817817 Email: [email protected]
Dear Sir/Madam Council Agenda - 19 April 2018 Notice is hereby given and you are hereby summoned to attend a meeting of the Council to be held at 6.45 pm on Thursday, 19 April 2018 at the Council Chamber, Town Hall, Penrith.
1 Apologies for Absence
2 Declarations of Interest
To receive declarations of the existence and nature of any private interests, both disclosable pecuniary and any other registrable interests, in any matter to be considered or being considered.
3 Minutes
RECOMMENDATION that the minutes Cl/105/03/18 to Cl/119/03/18 of the meeting of Council held on 8 March 2018 be confirmed and signed by the Chairman as a correct record of those proceedings (copies previously circulated).
4 Chairman's Announcements
5 Questions by the Public
To receive questions from the public under Rule 10 of the Constitution
6 Questions by Members
To receive questions from Members under Rule 12 of the Constitution
7 Motions on Notice (Pages 7 - 10)
To consider motions on notice under Rule 13 of the Constitution
8 Chairman/Vice Chairman Chains of Office (Pages 11 - 14)
To consider report CE12/18 from the Chief Executive which is attached and which seeks to secure authority to purchase new Chairman and Vice-Chairman’s chains of
Mr Matthew Neal www.eden.gov.uk Deputy Chief Executive office to replace the out of date ones currently used which are also in a state of disrepair.
RECOMMENDATION that a supplementary revenue budget of £5,000, funded from revenue reserves is approved for the purchase of new Chairman and Vice- Chairman’s chains which the Chief Executive should arrange.
9 Annual Review of the Constitution (Pages 15 - 58)
To consider report G35/18 from the Deputy Chief Executive which is attached and which seeks to outline proposed changes to the Council’s Procurement Rules and Accounting and Audit Rules for consideration and inclusion in the Constitution. This report also seeks to enable consideration to be given to an amendment to the Constitution Council Procedure Rules for inclusion in the Constitution.
RECOMMENDATIONS that:
Subject to consideration of any comments from Accounts and Governance Committee, Council is recommended to approve for inclusion in the Constitution: 1. the amendments to the Accounting and Audit Rules 2018 attached as Appendix 1 to this report; 2. the amendments to the Procurement Rules 2018 attached as Appendix 2 to this report; and 3. the addition of Clause 29 within the Council Procedure Rules under Part 4, Part A of the Constitution as set out in paragraph 3.6 of this report.
10 Scrutiny Structures Review (Pages 59 - 64)
To consider report G45/18 from the Deputy Chief Executive which is attached and which seeks to update Members in relation to the scrutiny structures review and to enable consideration to be given to postponement of the review to a later date.
RECOMMENDATIONS that:
1. The Scrutiny Structure Review be postponed; and
2. The Working Group be requested to re-convene in October 2018 with a view to making recommendations to Council regarding the introduction of any new structure for scrutiny at the commencement of the 2019-2020 municipal year.
11 Proposed Calendar of Ordinary Meetings 2018-2019 (Pages 65 - 72)
To consider report G31/18 from the Deputy Chief Executive which is attached and which seeks to request Members’ provisional approval of a calendar of meetings for the 2018-2019 municipal year.
RECOMMENDATIONS that:
1. The draft calendar of ordinary meetings at Appendix A for 2018-2019 be www.eden.gov.uk 2 approved subject to final agreement by Council in May 2018;
2. All Members and Standing Deputies of the Planning, Licensing and Accounts and Governance Committees be required to undertake full training prior to the first meeting of the respective committees; and
3. The definitive Calendar of ordinary meetings, together with the dates for Portfolio meetings, be presented to the Annual Meeting of Council in May 2018 for verification.
12 Commercial Plan Update (Pages 73 - 82)
To consider report G42/18 from the Assistant Director Commercial Services which is attached and which sets out progress against the Annual Delivery Plan of the Council’s first Commercial Plan that has been in place since 2017 and covers the period 2017-2020. The overriding aim of the Commercial Plan is to set out the intention of the Council to strive towards achieving savings/income of £1 million by 2020/2021. The finance generated or saved will be used to maintain and develop services for the residents, businesses and visitors of the District. The Annual Delivery Plan contained as Appendix 1, is the mechanism for how this will be achieved and monitored.
RECOMMENDATION that progress against the Council’s Annual Delivery Plan covering the period 2017/18 is noted.
13 Related Party Transactions and Members' Interests (Pages 83 - 90)
To consider report F25/18 from the Director of Finance which is attached and which seeks to remind Members of the approach for gathering the information required for the ‘Related Party Transactions’ note in the annual accounts.
RECOMMENDATIONS that:
1. The disclosures in the accounts regarding Interests and Related Party Transactions for Member be extracted from the Registers of Interests.
2. Members continue to be required to keep up-to-date their Interests in the Register of Interests.
14 Carry Forward of Revenue Budgets (Pages 91 - 100)
To consider report F24/18 from the Director of Finance which is attached and which seeks to secure Members' approval of the carry forward of a number of individual unused 2017-2018 budgets into 2018-2019.
RECOMMENDATION that the budgets set out in Appendix A of the report be carried forward from 2017-2018 to 2018-2019 and a supplementary estimate of up to £416,583 be recommended to fund this. It be noted that there is a corresponding underspend in 2017-2018.
15 Penrith Master Plan (Pages 101 - 110) www.eden.gov.uk 3 To consider report CE10/18 from the Chief Executive which is attached and which asks Members to consider the use of the £250,000 received from Government to support multi-authority working on reviewing the infrastructure and associated issues to determine the planning principles for land to the East of Penrith. RECOMMENDATIONS that:
1. the £250,000 grant which has been awarded to support the work from Government be welcomed;
2. it be noted the Council Officers are working with officers from Cumbria County Council on the appropriate way to deal with assembling the necessary information to support the assessment of future housing and employment growth options as part of the Master Plan work which is presently being undertaken;
3. the Deputy Director Technical Services be given delegated authority to spend the £250,000 on those infrastructure studies required to support the Master Plan proposal and such other professional development work including project management, consultation, supporting the production of a draft Section 106 Planning Obligation and other legal agreements if required. This is in order that the vision in the Master Plan as it emerges, could be taken forward as a planning application which would facilitate wide consultation; and
4. the Deputy Director Technical Services, following consultation with the Leader be given authority to determine in particular cases that exceptional circumstances arise, enabling a contract to be awarded in relation to one or multiple suppliers in order to deliver this programme of work.
16 Council Accommodation (Pages 111 - 130)
To consider report TES22/18 from the Deputy Director Technical Services and Assistant Director Organisational Development which is attached and which seeks to report on the outcome of the cross party Accommodation Working Group and recommend the best option to enable the Council to provide accommodation which is fit for purpose, meets legislative requirements and supports accessibility for all, for both service users and staff.
RECOMMENDATIONS that:
1. To fund the design and build of additional accommodation at the Town Hall to provide a centralised site for key Council services and to re-develop the Mansion House to provide for economic development opportunities and some affordable housing; 2. The Director of Finance is given delegated powers to agree the details of any loan finance; 3. Funding will be by way of a 50 year from the Public Works Loans Board at the prevailing rate (currently 2.9%) or other suitable means of funding with the overriding provision being that the final funding model is cost neutral or near www.eden.gov.uk 4 cost neutral; 4. A provisional capital budget of £2.3m to undertake the works for the additional accommodation and re-development be approved and included in the 2018/19 capital programme, 5. It be noted that commencement of works will be subject to a full business case demonstrating that the scheme is affordable over its life. If in the circumstance where the scheme does not demonstrate that it is achievable at cost neutral or near cost neutral basis further Council approval will be sought. 6. That it be noted that the Accommodation Working Group will;
a. be consulted on the final specification for the works; and b. will nominate members to sit on the tender assessment panel.
7. The Deputy Director Technical Services be authorised to seek competitive tenders from relevant suppliers to complete works for the selected option and a supplementary budget of £10,000 be approved to support this in 2018/19 funded from revenue balances.
17 Date of Next Scheduled Meeting
The next scheduled meeting of Council be confirmed as the Annual Council meeting on 10 May 2018.
18 Exclusion of Press and Public
To consider whether, in accordance with Section 100A(4) of the Local Government Act 1972, members of the public (including the press) should be excluded from the meeting during discussion of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 1 of Part 1 to Schedule 12A of the Act.
19 Chief Executive Recruitment Update (Pages 131 - 180)
To consider the report of the Assistant Director Organisational Development which is attached.
Yours faithfully
Matthew Neal Deputy Chief Executive
Democratic Services Contact: Vivien Little
Encs www.eden.gov.uk 5 For Attention
All members of the Council
Chairman – Councillor M Robinson (Independent Group) Vice Chairman – Councillor W Patterson (Independent Group)
Councillors A Armstrong, Conservative Group E Martin, Conservative Group D Banks, Independent Group A Meadowcroft, Conservative Group K Beaty, Conservative Group G Nicolson OBE, Conservative Group P Breen, Conservative Group R Orchard, Conservative Group I Chambers, Conservative Group J Owen MBE, Conservative Group M Clark, Independent Group J Raine, Conservative Group A Connell, Liberal Democrat Group M Rudhall, Liberal Democrat Group J Derbyshire, Liberal Democrat Group H Sawrey-Cookson, Independent Group M Eyles, Liberal Democrat Group R Sealby, Conservative Group P Godwin, Independent Group L Sharp, Labour K Greenwood, Independent Group M Slee, Conservative Group L Grisedale, Conservative Group M Smith, Independent Group A Hogg, Conservative Group V Taylor, Liberal Democrat Group D Holden, Liberal Democrat Group M Temple, Conservative Group S Jackson, Conservative Group J G Thompson, Conservative Group V Kendall, Conservative Group A Todd, Conservative Group T C Ladhams, Independent Group J Tompkins, Liberal Democrat Group J C Lynch, Conservative Group M Tonkin, Independent Group
Please Note: 1. Access to the internet in the Council Chamber and Committee room is available via the guest wi-fi – no password is required 2. Under the Openness of Local Government Bodies Regulations 2014 this meeting has been advertised as a public meeting (unless stated otherwise)
www.eden.gov.uk 6 Agenda Item 7
Eden District Council
Council 19 April 2018
Motion on Notice
Motion by Councillor K Beaty
A66 Proposed highway improvements 1. That this Council strongly objects to any proposal to build a fly-over at the junction of the A6 with the A66 at Penrith for the following reasons: The serious detrimental environmental impact it would have generally on Penrith, Eamont Bridge and also when viewed from the Lake District National Park, which is a World Heritage Site;
The very serious concern over the way in which traffic would move west along a new A66 to junction 40 of the M6 and the integration of traffic onto that road junction resulting in either danger to life or exacerbating existing major traffic hold-ups;
The existing air quality in the area of Kemplay Bank and Eamont Bridge already is inadequate and the proposals for increasing traffic in that area would exacerbate the serious impact that already exists potentially resulting in the District Council having to make the area an Air Quality Management Area, resulting in closure of the roads;
The Roman remains in the area which may be of significant archaeological value would be demonstrably impacted upon such that harm would be caused;
Any major road works in this area would lead to major public facilities including the Fire Station, Police Station, the resilience centre for Cumbria and the West Coast Nuclear industry being impacted upon; and
The development of this option would hinder or stop the potential for the proposed growth in Penrith of housing and employment due to lack of capacity for highway movements
2. That this Council considers that alternative routes either to the North and East of Penrith or to the South of Penrith be seriously considered and not discounted by any agency involved in planning the routes and it be noted that Landowners in the area are also supportive of these alternative routes.
3. That this Council notes that: The route to the East of Penrith would support the proposed growth developments for housing, employment, education, leisure and recreation and flood alleviation in accordance with government policy in the emerging revised National Planning Policy Framework;
Page 7 The development of the East of Penrith option would also reduce the use of the A66 around Penrith thereby creating highway capacity for localised traffic to support the growth proposals; and
The Government has supported the growth concepts for Penrith already in February 2018 by the award of £250,000 towards studies in the delivery of the housing and employment etc initiatives.
This motion will be seconded by Councillor D Banks and Councillor I Chambers.
Page 8 Eden District Council
Council 19 April 2018
Motion on Notice
Motion by Councillor M Eyles
Heart of Cumbria
On 20th April 2017 Council agreed to grant £100,000 to Heart of Cumbria Limited for it to carry out its activities over the first three years of its existence, paid in three equal tranches over three financial years. One of those tranches is recorded to have been made to the company in financial year 2017/18.
On 15th February 2018 council agreed to purchase shares in Heart of Cumbria for one million pounds. In light of this increase of resources available to Heart of Cumbria, not expected when the grant was made, Council wishes to withdraw the grant and will not make the remaining two tranches and will request that the first tranche be repaid. The motion is :
1. In light of the one million pounds (£1,000,000) now available to Heart of Cumbria Limited from its sale of shares to Eden District Council the offer of a grant of one hundred thousand pounds (£100,000) to Heart of Cumbria Limited by Eden Council is withdrawn; and
2. Eden Council requests that the initial payment of this grant already paid to Heart of Cumbria Limited is returned.
Page 9 This page is intentionally left blank Agenda Item 8
Report No: CE12/18 Eden District Council Council 19 April 2018 Chairman/Vice Chairman Chains of Office Portfolio: Leader Report from: Chief Executive Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To secure authority to purchase new Chairman and Vice-Chairman’s chains of office to replace the out of date ones currently used which are also in a state of disrepair. 2 Recommendation That a supplementary revenue budget of £5,000, funded from revenue reserves is approved for the purchase of new Chairman and Vice-Chairman’s chains which the Chief Executive should arrange. 3 Report Details 3.1 The current Chairman and Vice-Chairman chains were passed over to Eden District Council in 1974 when Penrith Rural District Council was abolished. The badge which is currently used as the Vice-Chairman’s chain actually states Chairman. Over the last few months, the Chairman’s chain in particular has had to be repaired on a couple of occasions. Due to age, condition and the fact that neither refer to Eden District Council but to Penrith Rural District Council, it is appropriate that they are both replaced. 3.2 An estimate of the cost has been obtained for a new Chairman’s chain which is around £2,000 - £2,500. This has been based on a similar design to the chain the Council currently has. It is thought that a Vice Chairman’s chain could be of a similar cost. Detailed costings for both chains will be obtained before any final decision is made. 3.3 There is currently no allocated budget provision for the purchase of new civic chains of office. Members are therefore asked to agree the amount of £5,000 to enable replacements to be purchased. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council
Page 11 4.2 This report meets the Quality Council corporate priority. 5 Consultation 5.1 Consultation has taken place with the current Chairman, Vice-Chairman and Leader of the Council. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 There is no provision for the replacement of the chains in the revenue budget. The recommendation is therefore made that a supplementary budget of £5,000 be approved to be funded from revenue balances. 6.2 Legal 6.2.1 There are no implications. 6.3 Human Resources 6.3.1 There are no implications. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity None Health, Social None Environmental and Economic Impact Crime and Disorder None Children and None Safeguarding 6.5 Risk Management Risk Consequence Controls Required Existing chain of office Causes personal injury A replacement is breaks provided 7 Other Options Considered 7.1 None. 8 Reasons for the Decision/Recommendation 8.1 To ensure the Chairman and Vice-Chairman can appropriately represent the authority in their civic roles.
Page 12 Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 9 April 2018 Monitoring Officer (or Deputy) 9 April 2018 Relevant Assistant Director N/A Background Papers: None Appendices: None Contact Officer: Robin Hooper, Chief Executive
Page 13 This page is intentionally left blank Agenda Item 9
Report No: G35/18 Eden District Council Accounts and Governance Committee 12 April 2018 Council 19 April 2018 Annual Review of the Constitution Portfolio: Not applicable Report from: Deputy Chief Executive Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To outline proposed changes to the Council’s Procurement Rules and Accounting and Audit Rules for consideration and inclusion in the Constitution. 1.2 To also enable consideration to be given to an amendment to the Constitution Council Procedure Rules for inclusion in the Constitution. 2 Recommendation Accounts and Governance Committee is recommended to consider the following suggested amendments to the Constitution and recommend them to Council for inclusion in the Constitution: 1. the amendments to the Accounting and Audit Rules 2018 attached as Appendix 1 to this report; 2. the amendments to the Procurement Rules 2018 attached as Appendix 2 to this report; and 3. the addition of Clause 29 within the Council Procedure Rules under Part 4, Part A of the Constitution as set out in paragraph 3.6 of this report. Subject to consideration of any comments from Accounts and Governance Committee, Council is recommended to approve for inclusion in the Constitution: 1. the amendments to the Accounting and Audit Rules 2018 attached as Appendix 1 to this report; 2. the amendments to the Procurement Rules 2018 attached as Appendix 2 to this report; and 3. the addition of Clause 29 within the Council Procedure Rules under Part 4, Part A of the Constitution as set out in paragraph 3.6 of this report.
Page 15 3 Report Details 3.1 A comprehensive review of the Constitution took place in the municipal years 2015 - 2016 and 2016 - 2017. This resulted in an amended Constitution which has been designed to be easier to use with a table of contents referenced to page numbers. 3.2 Accounts and Governance Committee at its meeting of 30 November 2017 considered a report which sought the views of the Committee on a further review of the Constitution. Committee agreed to not convene a Constitution Review Group on the grounds that it is considered that there was no need for any other significant changes to the Constitution. 3.3 There are elements of the Constitution which do need to be reviewed annually and this report outlines annual changes which have been requested to the Accounting and Audit Rules and Procurement Rules. 3.4 The existing Accounting and Audit Rules and Procurement Rules have been reviewed and amended where it is felt amendment will clarify and improve procedures and compliance by staff. Where changes have been made they have been highlighted. 3.5 Assuming the draft Accounting and Audit Rules and Procurement Rules are approved by Council, they will be included in the 2018 Constitution. 3.6 Members have been asked whether there are any other amendments they want to be considered for inclusion in the Constitution. The following proposal has been received for consideration from Councillor Connell, Chairman of Accounts and Governance Committee: “At present the position of councillors representing Eden District Council on outside and arm’s length bodies is not covered; and it should be. I would suggest a Clause 29 along these lines:
Part 4 29. Effect of Council-appointed Membership of Outside and Arm’s Length Bodies on Participation. Councillors appointed by the Council to represent the Council on Outside and Arm’s Length Bodies in an unpaid role are considered not to have disclosable pecuniary interests. They are therefore not considered to be debarred by the Localism Act 2011 from participating in and voting on Council discussion on matters relating to these Bodies. In deciding whether and how to participate in Council discussions on such bodies appointed Councillors should be aware of the risks of and the public perception of bias, prejudice and predetermination, and be prepared to seek the advice of the Monitoring Officer.” 3.7 The views of the Accounts and Governance Committee are sought on the proposed amendments. Council will be given an update as to the recommendations from the Committee.
Page 16 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 This report meets the Quality Council corporate priority 5 Consultation 5.1 This should set out whether relevant ward councillors or portfolio holders or other agencies have been consulted. It should summarise the response. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 There are no direct financial implications. However, adherence to the Accounting and Audit Rules and Procurement Rules should result in effective financial administration and effective procurement, resulting in decreased costs to the Council. 6.2 Legal 6.2.1 The Council’s Constitution is reviewed annually to ensure that rules and procedures and up to date. 6.2.2 This Council will, and must take account of, comply with, and where appropriate, promote any relevant statutory provision or change of recommended practice in its Accounting and Audit Rules and Procurement Rules. The Accounting and Audit Rules and Procurement Rules prescribe the detailed provisions which must be met on the conduct of any procurement and how the relevant statutory provisions are to be applied. 6.3 Human Resources 6.3.1 Should set out any Human Resources implications arising out of the proposal, this should include any impact on officer time/resources. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity There are no implications. Health, Social There are no implications Environmental and Economic Impact Crime and Disorder There are no implications.
Page 17 Consideration: Details of any implications and proposed measures to address: Children and There are no implications Safeguarding 6.5 Risk Management Risk Consequence Controls Required That the constitution is That processes, in Regular review of not up to date. particular procurement constitution. exercises are not carried out in a lawful way. 7 Other Options Considered 7.1 No alternatives are suggested. 8 Reasons for the Decision/Recommendation 8.1 Effective financial administration and procurement is important in a sound system of corporate governance. The Accounting and Audit Rules and Procurement Rules set out the procedures are steps that the Council should take. 8.2 The suggested other change to the Constitution arises from a representation from a member.
Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 4 April 2018 Monitoring Officer (or Deputy) 3 April 2018 Relevant Assistant Director 4 April 2018 Background Papers: Appendices: Appendix 1 – Draft amended Accounting and Audit Rules Appendix 2 – Draft amended Procurement Rules Contact Officer: Mr M Neal, Deputy Chief Executive Direct Line 01768 212237
Page 18 Appendix 1 G. Accounting and Audit Rules
Rule Page No
1. General ...... 225
2. Budget ...... 226
3. Accounting ...... 226
4. Virements ...... 227
5. Supplementary Estimates ...... 228
6. Advance Accounts ...... 228
7. Internal Audit ...... 229
8. Banking Arrangements, Cheques and BACS ...... 232
9. Contracts for Building, Construction, Engineering or Consultancy Work ..... 232
10. Land and Property ...... 234
11. Income ...... 234
12. Insurances ...... 235
13. Inventories ...... 236
14. Write-Offs and Losses ...... 236
15. Investments, Borrowings and Trust Funds ...... 236
16. Payment of Accounts ...... 236
17. Lost Property ...... 237
18. Salaries ...... 238
19. Security ...... 238
20. Stocks and Stores ...... 239
21. Travelling and Subsistence Allowances ...... 239
22. Agency Services ...... 239
23. Code for Treasury Management ...... 240
Page 19
24. Determination of Borrowing Requirement ...... 241
25. Reporting of Fraud, Theft and Corruption ...... 241
26. Management of Partnerships...... 242
27. Emergency Events ...... 242
28. Annual Revision ...... 243
29. Effective Date ...... 243
Page 20 G Accounting and Audit Rules 2017 1. General
1.1 These Rules, in conjunction with the Procurement Rules, comply with the requirements for Standing Orders under Section 135 of the Local Government Act 1972.
1.2 The purpose of the Rules is to ensure that the Council's financial affairs are conducted with openness, probity and accountability. The Director of Finance is responsible to the Council for the proper administration of the financial affairs of the Council, as required by Section 151 of the Local Government Act 1972.
1.3 In these Rules the following definitions apply:
Deputy Directors/ Chief Executive, Deputy Chief Executive, Deputy (Assistant) Director Directors and all Assistant Directors
Chief Officer One of the following: Chief Executive, Deputy Chief Executive, Director of Finance
Contract Any form of contract, agreement, or other arrangement, for the supply of goods, services, or works
Director of Finance Includes the Director’s deputy, the Assistant Director Financial Services.
Executive Member A member of the Council’s Executive
Leader The Leader of the Council, as appointed by full Council
Management Team The Chief Executive, Deputy Chief Executive, Director of Finance, Deputy Directors and (Assistant) Directors Commercial Services and Assistant Director Organisational Development. acting corporately
Senior Manager Any officer who is part of Management Team and the Assistant Director Legal Services, Assistant Director Financial Services, Assistant Director Revenues and Benefits, Assistant Director Customer Services and Transformation
Services Includes all services which the Council purchases, or obtains, including advice, specialist consultancy work
Page 21 and agency staff
Virement Where one or more budgets are reduced to fund an increase in another budget(s). There is no net change in the total budget arising from a virement
Works Covers all construction and property-related procurement
1.4 Each Deputy Director/(Assistant) DirectorSenior Manager shall consult the Director of Finance with respect to any matter which is liable to affect the approved income or expenditure contained in the annual budget of the Council.
2. Budget
2.1 The form of capital and revenue estimates shall be determined by the Director of Finance.
2.2 Estimates of capital and revenue income and expenditure shall be prepared by Deputy Directors/(Assistant) Directorseach Senior Manager, in conjunction with the Director of Finance, who shall collate the estimates for consideration by Management Team and the relevant Executive Members and submit them to the Executive. The Executive shall submit a draft budget to the Scrutiny Co- ordinating Board at the latest by the first working day after 14 December each year. The Scrutiny Co-ordinating Board shall respond by the first working day after 21 January each year. The Executive shall consider the response of the Scrutiny Co-ordinating Board and then recommend a budget to the Council at a meeting by the end of January each year.
2.3 Upon approval by the Council of the capital estimates, the Deputy Directors/(Assistant) Directors concernedeach Senior Manager, in conjunction with the Director of Finance, shall be authorised:
a) to take steps to enable land required for the purposes of the programme to be acquired in due time; and b) to prepare a scheme and estimate, including a financial appraisal, for approval by the appropriate Executive Member.
2.4 Any proposals which commit future budgets to a level of expenditure greater than that provided for in the current year shall be reported by the relevant Deputy Director/(Assistant) DirectorSenior Manager to the appropriate Executive Member and the Executive. The Director of Finance should shall be consulted on the draft report.
2.5 Each Deputy Director/(Assistant) DirectorSenior Manager shall ensure that the authorised budget holders in his or her department monitor the revenue and capital budgets for which they are responsible. The Director of Finance
Page 22 shall ensure that the Financial Management System is up-to-date and that all authorised budget holders are appropriately trained in its use.
2.6 Where there is, or may be, any material variation (over 10%) in the actual expenditure, or income against the approved estimate, for any service or business unit, it shall be the duty of the Deputy Director/(Assistant) DirectorSenior Manager concerned to consult with the Director of Finance and to report to the Executive Member as appropriate. There is no authority for officers to overspend. ; whereWhen an overspend is projected, a virements or supplementary estimate must be identified.
3. Accounting
3.1 All accounting procedures and records of the Council and its officers shall be determined by the Director of Finance. Such procedures shall have regard to current statutory requirements. Where such procedures and records are maintained in a department other than that of the Director of Finance, the Director of Finance shall, before making any changes, consult the Deputy Director/(Assistant) Directorrelevant Senior Manager of the department concerned.
3.2 The duties of providing information regarding sums due to, or from the Council, or of calculating, checking and recording these sums, shall, as far as possible, be separated from the duty of collecting or disbursing them.
4. Virements (see definition in paragraph 1.3)
4.1 Revenue
4.1.1 Virements can relate to either:
the current budget only; or
or to the base recurring budget.
This should be clearly stated on the virement form (see 4.1.6 below).
4.1.2 Virements can relate to non-staff costs and staff costs (but see 4.1.5 below).
4.1.3 Any virement requested must be appropriately approved as follows:
Value of Virement Between Virement Expenditure Codes Business Units or Portfolios Any Property within a Business Services within a Maintenance Unit or Service Portfolio Budgets <£Less than Budget Manager Budget Manager Relevant Executive Budget Manager £10,000 Members (Portfolio Holders) >£10,001 Chief Officer or Chief Officer or Relevant Executive Chief Officer or <£20,000£10,0 Assistant Assistant Members (Portfolio Assistant 00 or more but Holders)
Page 23 Value of Virement Between Virement Expenditure Codes Business Units or Portfolios Any Property within a Business Services within a Maintenance Unit or Service Portfolio Budgets less than DirectorRelevant DirectorRelevant DirectorRelevant £20,000 Senior Manager Senior Manager Senior Manager >£20,001 Chief Officer or Relevant Executive Relevant Executive Relevant Executive <£50,000£20,0 Assistant Member (Portfolio Members (Portfolio Members (Portfolio 00 or more but DirectorRelevant Holder) Holders) Holders) less than Senior Manager £50,000 >£50,001£50,0 Chief Officer or Full Council Full Council Full Council 00 or more Assistant DirectorRelevant Senior Manager
No virement request will be processed by the Financial Services Section until evidence of approval, as above, is received (see 4.1.64 below).
4.1.4 Virement resulting from tender submissions will not require Executive Member approval where such virement:
a) results from a tender being in excess of budget provision; and b) does not exceed 10% of the agreed budget for the scheme; and c) can be funded from uncommitted schemes within the same portfolio. Any such virement shall be reported to the relevant Executive Member.
4.1.5 Where When a recurring virement increases the permanent staffing establishment by more than a 0.5 full time equivalent, the virement must be approved by the Executive.
4.1.6 To make a virement the relevant budget holder should e-mail a completed virement form to the Financial Services Section ([email protected]). The form is available on SharePoint: Corporate Centre/Financial Services Forms and Procedures/Virement Form. Where the approval of the Deputy Director/(Assistant) Directorrelevant Senior Manager or the Deputy Director/(Assistant) Director relevant Senior Manager and the Executive Member is required by these Rules, the virement form should be forwarded by the budget holder for approval by e-mail. After the final approval by the Deputy Director/(Assistant) Directorrelevant Senior Manager or the Executive Member, the virement form and covering e-mail should be forwarded to the Financial Services Section ([email protected]).
4.1.7 Virements should not be artificially disaggregated.
4.2 Capital
4.2.1 The provisions, as set out in 4.1, shall apply to capital, except that the limit in 4.1.4 is £20,000, rather than £10,000.
Page 24 5. Supplementary Estimates
5.1 A supplementary estimate is an addition to the Council's agreed budget. Supplementary estimates can be one-offs, or recurring. In either case, supplementary estimates should only be considered after all other options, such as virements, or savings, have been considered.
5.2 All supplementary estimates, either revenue or capital, require the approval of the Executive. Referral to Council is not required if the value* of a supplementary estimate is less than £50,000. *For control this purposes, a recurring supplementary estimate is evaluated as five times the annual value.
5.3 Once approved by the Executive, or Council, the Financial Services Section will amend the budgets held within the Financial Management System.
6. Advance Accounts
6.1 The Director of Finance shall provide such advance accounts as he / she considers appropriate for such officers of the Council as may need them. Advance accounts for petty cash purposes shall be maintained on the Imprest system. Arrangements for safe custody of Imprest advances shall be subject to the approval of the Director of Finance.
6.2 No income received on behalf of the Council may be paid into an advance account, but must be banked or paid to the Council as provided elsewhere in these Rules.
6.3 Payments shall be limited to minor items of expenditure (less than £50) and to such other items as the Director of Finance may approve and shall be supported by receipted vouchers.
6.4 An officer responsible for an advance account shall, if so requested, give to the Director of Finance a certificate as to the state of his / her advance account.
6.5 On leaving the employment of the Council, or otherwise ceasing to be entitled to hold an advance, an officer shall account to the Director of Finance for the amount advanced to him/her.
7. Internal Audit
7.1 This section is based on the 20176 Public Sector Internal Audit Standards (PSIAS) issued by the Relevant Internal Audit Standard Setters which includes the Chartered Institute of Public Finance and Accountancy (CIPFA) for UK Local Government Authorities. It also complies with the provisions of the Accounts and Audit Regulations 2015.
7.2 Internal Audit shall annually undertake an objective assessment of the framework of risk management, control and governance processes within the Council.
Page 25 7.3 The Director of Finance will maintain an adequate and effective system of Internal Audit of its accounting records and of its system of internal control in accordance with the proper practices in relation to internal control. Such proper internal control practices for Internal Audit are those included in the PSIAS. The Director of Finance will also conduct an annual review of the effectiveness of the system of internal control.
7.4 The Director of Finance shall be Head of Internal Audit (or Chief Audit Executive as defined in the PSIAS). He / she is responsible for overseeing the work of the in-house Auditor and the external contractor, as well as submitting various reports to the Accounts and Governance Committee, as detailed in 7.5 and 7.8 below. He/she must also ensure that there are established policies and procedures to guide the Internal Audit activity.
7.5 The Director of Finance must deliver an annual Audit Opinion and report that can be used byfor consideration by the Council to inform the Annual Governance Statement. The annual internal Audit Opinion must conclude on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control. The annual report must include the Opinion, a summary of the work that supports the Opinion and a statement on conformance with the PSIAS and the results of the quality assurance and improvement programme.
7.6 When any non-conformance with the PSIAS impacts on the overall scope or operation of the Internal Audit activity, the Director of Finance must disclose the non-conformance and the impact of this to Management Team and the Accounts and Governance Committee. If the deviation is significant, consideration must be given to including it in the Annual Governance Statement.
7.7 The Director of Finance also has some operational responsibilities for some of the functions that are audited. Given Eden’s small size, it is not practicable to comply with PSIAS 1130.A2, which requires that such work is overseen by a party outside the Internal Audit activity. To ensure that as much independence and objectivity as possible is maintained in such circumstances, the Director of Finance (as Head of Internal Audit), does not undertake any actual audit assignments. and tThe Senior Auditor and external contractor are given full authority to report directly to the Chief Executive, the Deputy Chief Executive or the Accounts and Governance Committee, if they have any concerns about suppression of audit evidence, or the conduct of the Director of Finance.
7.8 Those functions of an audit committee relating to Internal Audit shall be undertaken by the Accounts and Governance Committee. These responsibilities are:
a) to consider the Strategic Internal Audit Plan report. - Tthis shall be submitted each year after consideration by the Council's Management Team. This will also consider the adequacy of audit resources;
b) to consider internal audit reports. - sSummaries of individual audit reports are to be submitted after agreement of the final report with
Page 26 management. This will also detail any recommendations rejected and any failure to implement recommendations from the previous audit;
c) to consider the annual Internal Audit report and annual Internal Audit Opinion. - to These shall be submitted within three months of the end of each financial year;
d) to monitor the implementation of agreed audit recommendations. Such monitoring shall - to be reported to each meeting;
e) to consider any other audit and financial investigation reports;
f) to approve the Internal Audit Charter. – tThis shall be submitted each year after consideration by the Council’s Management Team. The Internal Audit Charter is a formal document that defines Internal Audit’s purpose, authority and responsibility. Key requirements of the Charter are included in these Rules;
g) to receive reports on the results of external and periodic internal assessments of the Internal Audit service.
7.9 The Council's Deputy Directors/(Assistant) DirectorsSenior Managers are responsible for ensuring that appropriate and adequate internal controls exist, independently of any Internal Audit activity. Deputy Directors/(Assistant) DirectorsSenior Managers must establish sound arrangements for planning, appraising, authorising and controlling their operations in order to achieve continuous improvement, economy, efficiency and effectiveness and for achieving their financial performance targets.
7.10 When an Internal Audit report is issued, it is for management to decide whether to accept and implement audit findings and recommendations. Any decision to reject a formal recommendation must be justified, in writing, on the Schedule of Recommendations issued by Internal Audit within the audit report at the end of each audit assignment. It is the Head of Internal Audit's duty to consider taking matters to a higher level of management, or to the Accounts and Governance Committee, if non-acceptance of a recommendation would lead to an unacceptably high risk.
7.11 The Director of Finance and all Internal Audit staff shall have authority at all reasonable times to:
a) enter lawfully on any Council premises or land;
b) have access to all records, documents and correspondence relating to any financial or other transactions of the Council;
c) require and receive such explanations from all officers and Members of the Council as deemed necessary concerning any matter under examination; and
d) require any officer or Member of the Council to produce cash, stores, or any other Council property under his or her control.
Page 27 7.12 Whenever any matter arises which involves, or is thought to involve, irregularities concerning cash, stores, or other property of the Council, or any suspected financial irregularity in the exercise of the functions of the Council, the Deputy Director/(Assistant) DirectorSenior Manager concerned shall, forthwith, notify the Director of Finance, or Internal Audit, who shall ensure that such steps have been, or are taken, as he / she considers necessary, by way of investigation and report. The Director of Finance will keep the Deputy Director/(Assistant) Directorrelevant aSenior Manager appropriately informed of any matter under investigation.
7.13 Internal Audit has the right to report directly to the Chief Executive, the Deputy Chief Executive, external audit, the Accounts and Governance Committee, or the Leader of the Council, if warranted by the circumstances.
7.14 An internal and external protocol shall co-ordinate its work with the appointed external auditor for the benefit of the Council and to avoid duplication of effort. An Internal Audit protocol shall be maintained to set out the basis for the managed audit arrangements between the Council's Internal Audit service and the external auditor.
7.15 The performance of Internal Audit will be monitored on an ongoing basis as part of the routine policies and practices used to manage the activity. Periodic assessments will be conducted to evaluate conformance with the Definition of Internal Auditing, the Code of Ethics and the Standards contained within the PSIAS.
7.16 External assessments of the Internal Audit service must be conducted at least once every five years by a qualified, independent assessor, or assessment team from outside the Council. This assessment may take the form of a full external assessment or a self-assessment with independent external validation.
7.17 Internal Audit will co-ordinate the Council's response to the National Fraud Initiative and investigate a sample of returned matches, in particular, ‘key' and ‘recommended’ matches. Matches will also be investigated by other sections with responsibility for their associated match categories.
7.18 Deputy Directors/(Assistant) DirectorsSenior Managers or other managers entering into agreements with third parties should shall include a requirement that the Council's Internal Audit Section has a right of access to all documentation and records in which the Council has a financial interest.
8. Banking Arrangements, Cheques and BACS
8.1 All arrangements with the Council's bankers shall be made by the Director of Finance, who shall be authorised to operate such banking accounts as he may consider necessary.
Page 28 8.2 All cheques shall be ordered only on the authority of the Director of Finance, who shall make proper arrangements for their safe custody.
8.3 Cheques on the Council's main banking accounts shall be signed by the Director of Finance, or other officer authorised to do so. All cheques drawn for an amount in excess of £10,000 or more shall be countersigned by an authorised officer of the Director of Finance's Department.
8.4 The use of BACS should be maximised both for payments and income.
9. Contracts for Building, Construction, Engineering, or Consultancy Work
9.1 These Rules apply to the accounting treatment of contracts after they have been awarded. (The tendering and award of contracts for building, construction, engineering, or consultancy work, is covered by the Procurement Rules). Nothing in these Rules shall detract from duties or responsibilities of the officers, or consultant, as specified in the contract.
9.2 A written agreement specifying conditions of engagement, including the basis of remuneration, shall be entered into with every consultant appointed for the purpose of any contract work. The agreement shall specify that any consultant engaged by the Council will be subject to the requirements of these Rules.
9.3 Where contracts provide for payment to be made by instalments, the officer responsible for the contract shall maintain a record of the state of account of the contract. Once the final account is agreed, the Director of Finance should be notified.
9.4 Payments to contractors on account of contracts for works shall be made only on a certificate issued by the Deputy Director/(Assistant) Directorrelevant Senior Manager of the department concerned, officer, or consultant engaged by the Council, as may be appropriate. Each certificate shall show as follows:
a) the amount of the contract; b) the value of the work executed to date; c) the total amount previously certified; d) the retention money; and e) the amount to be certified for payment. All certificates shall be issued and payments on account to contractors shall be made promptly.
9.5 a) Ssubject to the provisions of the contract, in each case, every extra provision or variation shall, unless otherwise evidenced to his or her satisfaction, be authorised in writing by the Deputy Director/(Assistant) Director of the department concerned, officer, or consultantrelevant Senior Manager,.
Page 29 9.6b) The relevant Senior Manager the officer in charge of the contract may issue variations for constructional reasons and those arising from unforeseen circumstances occurring during the period of the contract, from errors in the preparation of contract documents, or from subsequent legislation, provided that any extras provisions or variations which, together with previously approved extra provisions or variations, will cause the contract sum to be exceeded by 10%, or £50,000, whichever is the lower, shall be reported to the appropriate Executive Member, as soon as is practicable. The report should shall also show the cumulative effect of approved extras provisions and variations on the original tender figure; 9.7c) Vvariations not covered by paragraph 9.65(b) above, for example, improved finishes, specifications, services, or extra accommodation, and so on, may be issued by the officer in charge of the contractrelevant Senior Manager in respect of any variation which involves additional expenditure and the estimated cost of which exceeds 5% of the contract sum, or £5,000, whichever is the higher, provided that such variation shall be reported to the appropriate Executive Member as soon as practicable.
9.86 In any contract where price fluctuations are a contractual commitment, the following shall apply:
a) when tenders are reported, an estimate of total price fluctuations shall be included in the report so that the Executive Member may have a realistic assessment of the final cost; and b) during the contract, actual and estimated price fluctuations shall be monitored regularly.
9.97 Deputy Directors/(Assistant) DirectorsSenior Managers responsible for contracts must ensure that suitable procedures are followed in their departments for the effective cost control of all contracts. A cost statement shall be prepared quarterly for each contract exceeding £50,000 in value, taking into account all known factors, for example, variations, adjustment of prime cost sums, provisional sums and other items.
9.108 The Director of Finance shall have the opportunity to examine the final measurement and valuation of all relevant documents prior to issue of the final certificate by an officer or consultant appointed by the Council. The officer or consultantrelevant Senior Manager in charge of the contract shall ensure that adequate site records relating to items, such as day works and instructions to the contractor, are maintained.
9.911 The Director of Finance shall, to the extent he / she considers necessary, examine final accounts for contracts and he / she shall be entitled to make all such enquiries and receive such information and explanations as he / she may require in order to satisfy himself as to the accuracy of the accounts.
Page 30 9.120 Where the completion of the contract is likely to be delayed, it shall be the duty of the appropriate relevant Deputy Director/(Assistant) DirectorSenior Manager to take any necessary action and to report to the Executive Member concerned.
9.131 Disputed or contentious claims not clearly within the terms of the contract shall be referred to the Deputy Chief Executive for consideration of the Council's legal liability, and to the Director of Finance for financial consideration, before a settlement is reached. Any such settlement shall be reported to the appropriate Executive Member.
9.142 Every three months the Executive Member will receive a 'contracts' report. This will detail progress, including financial, on each contract within his/her portfolio.
10. Land and Property
10.1 The Deputy Chief Executive shall maintain a terrier of all land and property owned or controlled by the Council, recording the holding portfolio, purpose for which held, location, extent and plan reference, purchase details, particulars of nature of interest and rents payable and particulars of tenancies granted.
10.2 The Deputy Chief Executive shall notify the Chief Executive, the Director of Finance and all Deputy Directors/(Assistant) DirectorsManagement Team of details of rights and liabilities in respect of properties coming into the ownership or control of the Council. The Deputy Chief Executive shall also notify the Chief Executive, Director of Finance and all other Deputy Directors/(Assistant) DirectorsManagement Team of the disposal of properties.
10.3 The Deputy Chief Executive shall keep all title deeds securely.
10.4 The Director of Finance shall maintain a register of all of the Council's assets, in compliance with the requirements of CIPFA. This is to include any plant and machinery over of a value of £510,000 or more.
11. Income
11.1 The collection of all money due to the Council shall be under arrangements approved by the Director of Finance.
11.2 Each Deputy Director/(Assistant) DirectorSenior Manager shall furnish the Director of Finance with details of work done, goods supplied, or services rendered, to enable him / her to record correctly all sums due to the Council and to ensure that invoices are sent out expeditiously.
11.3 Except where the Director of Finance has otherwise agreed, all receipt forms, books, tickets and other similar items (including electronic formats) shall be
Page 31 ordered and supplied to departments by the Director of Finance, who shall satisfy himself / herself as to the arrangements for their control.
11.4 All monies received by an officer on behalf of the Council shall be paid promptly to the Director of Finance, or to the Council's bank account. No deduction may be made from such money, save to the extent that the Director of Finance may specifically authorise.
11.5 Personal cheques shall not be cashed out of the money held on behalf of the Council.
11.6 Every transfer of Imprest, petty cash, and so on, from one member of staff to another, shall be evidenced in the records of the departments concerned, by the signature of the receiving officer.
11.7 The Director of Finance shall, in conjunction with the Deputy Director/(Assistant) DirectorSenior Manager concerned, submit to the relevant Executive Member, as part of the annual budget cycle, a report on fees and charges for the forthcoming year, except where setting charges has been delegated to him. Non-delegated fees and charges are:
Communities Portfolio Holder: - Leisure Charges Services Portfolio Holder: - Cemetery Charges Economic DevelopmentServices Portfolio Holder: - Car Parking Charges 12. Insurances
12.1 The Director of Finance shall arrange all insurance cover and negotiate all claims in consultation with other officers where necessary.
12.2 Deputy Directors/(Assistant) DirectorsSenior Managers shall give prompt notification to the Director of Finance of all new risks and the acquisition of properties, vehicles, plant and equipment which require to be insured and of any alterations affecting existing insurances.
12.3 Deputy Directors/(Assistant) DirectorsSenior Managers shall immediately notify the Director of Finance and then confirm in writing any loss, liability, or damage, or any event likely to lead to a claim, and inform the Police where necessary.
12.4 The Director of Finance shall, annually, or at such other shorter period as he may consider necessary, review all insurances in consultation with other Deputy Directors/(Assistant) DirectorsSenior Managers as appropriate.
12.5 Deputy Directors/(Assistant) DirectorsSenior Managers shall consult the Director of Finance and the Deputy Chief Executive in respect of the terms of any financial indemnity which the Council is requested to give.
13. Inventories
Page 32 13.1 Inventories shall be maintained by all departments of all items of office furniture, fittings and equipment with a purchase value of over £250 or over. The form in which the inventories shall be kept shall be determined by the Director of Finance.
13.2 A register of IT equipment, including personal computers, will be maintained by the shared IT Services Manager.
13.3 Each Senior Manager Deputy Director/(Assistant) Director shall be responsible for maintainingcarry out an annual check of all items on the inventory, for taking action in relation to disposals, or obsolete equipment, and amending the inventory accordingly. Any disposals must be in accordance with the guidelines published on SharePoint.
13.4 The Council's Insurance Officer will annually ask departments for an updated copy of the inventory lists.
13.5 The Council's property shall not be removed, otherwise than in accordance with the ordinary course of the Council's business, or used otherwise than for the Council's purposes.
14. Write-Offs and Losses
14.1 A Deputy Director/(Assistant) DirectorEach Senior Manager shall inform the Director of Finance, in writing, of proposed write-offs and losses of any assets (stock, equipment, and so on).
15. Investments, Borrowings and Trust Funds
15.1 All investments and borrowing must be in compliance with the Council’s Treasury Management Strategy (see also section 23).
15.2 All investments of the Council's money shall be made in the name of the Council by the Director of Finance.
15.3 All negotiable instruments, bonds and securities in the name of the Council, or its nominees, shall be held in custody of the Director of Finance.
15.4 All borrowings shall be effected in the name of the Council, by the Director of Finance, in accordance with the statutory requirements in force at the time of the borrowing.
15.5 The Director of Finance shall be the Council's registrar of stocks, bonds and mortgages and shall maintain records of all borrowing of money by the Council.
15.6 All trust funds shall, wherever possible, be in the name of the Council.
16. Payment of Accounts
Page 33 16.1 The Director of Finance shall be responsible for making all payments of monies due from the Council, with the exception of payments from approved petty cash or advance accounts, or approved corporate credit/procurement cards. This section includesrequirement relates to supplier invoices, Housing Benefit, Council Tax and National Non-Domestic Rates refunds.
16.2 The Deputy Director/(Assistant) DirectorSenior Manager issuing the order shall be responsible for examining, verifying and certifying the related invoice(s). A list of officers authorised by each Deputy Director/(Assistant) DirectorSenior Manager to raise orders and authorise invoices, claim forms and other vouchers on his behalf, shall be agreed by Management Team on an annual basis.
16.3 Before authorising an invoice, the authorising officer shall have satisfied himself that:
a) the work, goods or services to which the account relates have been received, carried out, examined and approved; b) the prices, calculations, discounts, other allowances, credits and tax are correct; c) the relevant expenditure has been properly incurred, is within the relevant estimate provision and is correctly coded; d) appropriate entries have been made in inventories, stores, records or stock books as required; and e) the account has not been previously passed for payment and is a proper liability of the Council.
16.4 Accounts should shall be authorised on the electronic creditors’ system, without delay. The certification details must shall be fully completed in line with the electronic creditors’ system. The ‘description of work’ field should shall include a readily understood description. This is part of the information required by the Code of Data Transparency and is published on the Internet.
16.5 Any amendment to an account shall be made through the electronic creditors’ system, stating briefly the reasons where they are not self-evident. VAT tax invoices may not be amended.: aAdjustments to any invoice must be made by the issue of a credit note or supplementary invoice and require tomust be agreed with the supplier.
16.6 Each Deputy Director/(Assistant) DirectorSenior Manager shall, on request, notify the Director of Finance of all outstanding expenditure relating to the previous financial year.
16.7 A list of all authorised signatories will be maintained by the Financial Services Section and approved by Management Team annually.
17. Lost Property
Page 34 17.1 The Director of Finance shall determine how lost property is dealt with. Detailed guidance is available on the Corporate Section of SharePoint.
17.2 Private property is not covered by the Council's insurance.
18. Salaries
18.1 The payment of all salaries, compensation and other emoluments to all employees, or former employees of the Council, shall be made by the Director of Finance, or under arrangements approved and controlled by him / her.
18.2 Each Deputy Director/(Assistant) DirectorSenior Manager shall inform the Human Resources Section, in the prescribed form, of all matters affecting the payment of such emoluments and in particular:
a) appointments, resignations, dismissals, redundancies, retirements, deaths, suspensions, secondments and transfers; b) absences from duty for sickness, or other reason, apart from approved leave; c) changes in remuneration, other than normal increments and pay awards and agreements of general application; and d) information necessary to maintain records of service for superannuation, income tax, national insurance, statutory sick pay, and so on; and. e) engagement of any temporary staff.
18.3 The Human Resources Section will pass the above information referred to in 18.2 to the Financial Services Section. If this is received by the seventh day of the month, it will be paid in that month.
18.43 Appointments of all employees shall be made in accordance with the Council's approved establishment and its Pay Policy.
18.54 All time records or other pay documents shall be in a form prescribed or approved by the Director of Finance, authorised by the Deputy Director/(Assistant) Director Senior Manager of the department concerned. The names of officers authorised to sign such records shall be sent to the Financial Services Section by each Deputy Director/(Assistant) DirectorSenior Manager.
18.6 Whenre temporary staff are engaged, prior to any payment being made, a completed IR35 assessment will be forwarded to finance confirming whether the engagement will be on or off payroll. This applies equally to engagement of non-temporary staff through third party companies.
19. Security
Page 35 19.1 Each Deputy Director/(Assistant) DirectorSenior Manager is responsible for maintaining proper security, at all times, for all buildings, stocks, stores, furniture, equipment, cash and all things under his or her control. The Director of Finance shall be consulted in any case where security in regard to cash or financial arrangements is thought to be defective, or needing special security arrangements. Deputy Director/(Assistant) DirectorsRelevant Senior Managers shall also inform the Chief Executive of the existence of any special security risks, or the need for improvement in security arrangements.
19.2 Keys to safes and similar receptacles are to be either carried on the person of those responsible, or secured in a locked key cupboard. The loss of any such keys shall be reported to the relevant Deputy Director/(Assistant)Senior Manager Director forthwith.
19.3 Each Deputy Director/(Assistant) DirectorSenior Manager shall be responsible for maintaining proper security and privacy of all personal information held within his or her department.
20. Stocks and Stores
20.1 Each Deputy Director/(Assistant) DirectorSenior Manager is shall be responsible for the care and custody of the stocks and stores in his or her department.
20.2 Stocks shall not be in excess of normal requirements.
20.3 Deputy Director/(Assistant) DirectorsSenior Managers shall arrange for periodical examinations of stocks and shall ensure that all stocks are checked at least once in every year.
20.4 The Director of Finance shall be entitled to receive from each Deputy Director/(Assistant) DirectorSenior Manager such information as he / she requires in relation to stores for the accounting, costing and financial records, including a certificate signed by an Deputy Director/(Assistant) DirectorSenior Manager as to the level of stocks and stores under his or her control. Any surplus requirements shall be disposed of.
21. Travelling and Subsistence Allowances
21.1 As far as possible, all claims for payment of car allowances, travelling, subsistence and incidental expenses, shall be submitted electronically via the Transfare system by the deadline date which is posted on the Transfare system each month. Any claims submitted on paper claims to be submitted by the seventh of the month for payment in that particular month. All claims, either electronic or manual, shall be authorised by an authorised officer.
21.2 The certification by, or on behalf of the Deputy Director/(Assistant) Directorrelevant Senior Manager, shall be taken to mean that the certifying officer is satisfied that the journeys were authorised, the expenses properly
Page 36 and necessarily incurred and that the allowances are properly payable by the Council.
21.3 Subject to 21.4 Cclaims by Deputy Directors/(Assistant) DirectorsSenior Managers (other than the Chief Executive) shall be authorised by another Senior Manager with more seniority. another Deputy Director/(Assistant) Director.
21.4 Claims by the Chief Executive shall be certified by the Deputy Chief Executive. Claims by the Director of Finance shall be certified by the Chief Executive or Deputy Chief Executive. Claims by the Deputy Chief Executive shall be certified by the Cchief Executive or Director of Finance.
21.54 Officers' claims submitted more than three months after the expenses were incurred will be paid only with the express approval of the Director of Finance.
22. Agency Services
22.1 These Rules shall apply to services carried out by the Council on behalf of another public body, except where the body concerned has financial regulations in force which apply to the works or services carried out on its behalf.
23. Code for Treasury Management
23.1 This Council has adopteds the key recommendations of CIPFA’s Treasury Management in the Public Services: Code of Practice (the Code), as described in Section 5 of the Code:
23.2 a) Tthis Council will create and maintain as the cornerstones for effective treasury management: a) a Treasury Management Policy Statement, stating the policies, objectives and approaches to risk management of its treasury management activities; and b) suitable Treasury Management Practices (TMPs), setting out the manner in which the Council will seek to achieve those policies and objectives and prescribing how it will manage and control those activities. 23.3 The content of the Treasury Management Policy Statement and TMPs will follow the recommendations contained in Sections 6 and 7 of the Code, subject only to amendment, where necessary, to reflect the particular circumstances of this Council. Such amendments will not result in the Council materially deviating from the Code’s key principles; b)23.4 The Council will receive reports on its treasury management policies, practices and activities, including, as a minimum, an annual Strategy and Plan
Page 37 in advance of the year, a mid-year review and an annual report after its close, in the form prescribed in its TMPs;
c)23.5 Tthe Council delegates responsibility for the implementation and regular monitoring of its treasury management policies and practices to the Scrutiny Co-ordinating Board. andThe Council delegates responsibility for the execution and administration of treasury management decisions to the Director of Finance, who will act in accordance with the Council’s Treasury Management Policy Statement and TMPs and CIPFA’s Standard of Professional Practice on Treasury Management.; and
d)23.6 Tthe Council nominates the Scrutiny Co-ordinating Board to be responsible for ensuring effective scrutiny of the Treasury Management Strategy and polices.
23.72 The Treasury Management Policy Statement will set out how the Council guards against Money Laundering.
23.83 This Council (full Council)Full Council will biannually review its treasury management policies and practices twice a year. This Council delegates responsibility for the implementation and the execution and administration of treasury management decisions to the Director of Finance, who will act in accordance with the organisation’s Treasury Management Policy Statement and TMPs and, if he or she is a CIPFA member, CIPFA’s ‘Standard of Professional Practice on Treasury Management’.
23.94 The Council will consider an annual Strategy and Plan in advance of the year, reviewed after six months and an annual report after its close in the form prescribed in its TMPs. The Scrutiny Co-ordinating Board will review the Council’s treasury investmentscash deposits at each of its scheduled meetings.
24. Determination of Borrowing Requirement
24.1 Under the CIPFA Prudential Code for Capital Accounting (which is an approved practice under the Local Government Act, 2003), the Council is required to determine its borrowing each year. The Director of Finance will include this as part of the annual update of the Treasury Management Strategy. This is shall be taken to Council annually.
25. Reporting of Fraud, Theft and Corruption
25.1 Whenever any matter arises which involves, or is thought to involve, fraud, theft or corruption, the matter is toshall be reported immediately (via the relevant Deputy Director/(Assistant) DirectorSenior Manager if preferred) to the Director of Finance or, in his / her absence, the Senior Auditor, who shall take such steps as he / she considers necessary by way of investigation and report, as detailed, in the Anti-Fraud, Theft, Bribery and Corruption Strategy (this is available on Corporate Centre page of SharePoint).
Page 38 Deputy Directors/(Assistant) DirectorsSenior Managers shall, meanwhile, take any appropriate action to prevent further loss and secure records and documentation against removal or alteration. Definitions are given below as a guide:
Theft Dishonestly appropriating property belonging to another, with the intention of permanently depriving them
Fraud The intentional distortion of financial statements, or other records, by persons, internal or external to the organisation, carried out to conceal the misappropriation of assets, or otherwise, for gain
Corruption The offering, giving, soliciting, or acceptance of an inducement, favour or reward, which may influence the actions taken by the Council, its Members, or officers. It also includes using personal relationships to influence actions
Bribery Bribery is tThe offering, promising, or giving of a financial or other advantage, to a person with the intention of bringing about another’s improper performance of an activity, or rewarding such improper performance. Bribery can arise where the acceptance of an advantage, in the knowledge that it is offered, promised, or given, constitutes an improper performance of an activity.
26. Management of Partnerships
26.1 The Council has a Protocol for Partnership Arrangements. This can be found on the Corporate Centre page of SharePoint. Any officer considering entering into any partnership should shall comply with the Protocol.
26.2 Prior to entering into any formal partnership arrangements, the Director of Finance and the Deputy Chief Executive shall be consulted.
26.3 The Director of Finance will maintain a database of all partnerships that have either a significant legal or financial commitment. This will be updated on an annual basis.
27. Emergency Events
27.1 In an emergency, it is important to balance the need to respond promptly and the need to retain accountability. Part of properly dealing with financial matters is to ensure that the appropriate organisation pays for goods and services in the first instance and that records are such as to enable the billing of third parties and the claiming of Government emergency funds, and so on.
a) Budgeting for, and Committing of, Expenditure
Page 39 27.2 In the initial stages of an emergency there may be a need to commit expenditure very rapidly. The Director of Finance, or if he/she is unavailable, any other Deputy Director/(Assistant) DirectorSenior Manager, or the Assistant Director Financial Services, can authorise any reasonable expenditure.
As soon as possible, the Director of Finance, or the Assistant Director Financial Services, will liaise with the Chief Executive of the Deputy Chief Executive (or, if unavailable, any other member of Management Team) and the Leader (or, if unavailable, the Deputy Leader or any other Executive Member) to agree:
a) an initial emergency budget; and
b) an emergency scheme of budget delegation: the normal delegated levels may not give the required level of flexibility in responding to any emergency. Any such emergency delegation scheme should be for a limited life. The Eden Emergency Response Plan sets out a pro-forma delegation which should be followed.
27.3 Unless anticipated gross expenditure is in excess of £500,000, the budgets and expenditure against them will be reported to the next normal meeting of the Executive, or Council, whichever comes first.
27.4 If the anticipated gross expenditure is in excess of £500,000, a special Council will be convened, as soon as practicable, to agree the budgets set up and the financial implications of the emergency.
b) Accounting
27.5 The detailed codes set up by the Financial Services Section should be used for all expenditure and income associated with the emergency.
c) Orders
27.6 iIf the Financial Management System is available, orders should be placed using the system. However, if speed is of the essence, orders may be placed by telephone, with the Financial Management System being used as a confirmation; and
27.7 iIf the Financial Management System is not available, telephone orders can be made, with an appropriate note being sent through to the Financial Services Section.
28. Annual Revision
28.1 These Accounting and Audit Rules shallould be reviewed annually by the Deputy Chief Executive and the Director of Finance as part of the annual review of the Constitution.
Page 40 29. Effective Date
29.1 This revision is effective from 1 August 201720 April 2018.
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Rule Page No
1. General ...... 247
2. Orders for all Work ...... 248
3. Procurement Exercises under £60,000 ...... 248
4. Procurement Exercises s of £60,000 or more ...... 249
5. Procurement Guidance for Officers ...... 257
6. Diversity ...... 257
7. Emergency Situations ...... 258
8. Conflict of Interest ...... 258
9. Annual Revision ...... 258
10. Effective Date ...... 258
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Page 44 H Procurement Rules 20182017 1. General
1.1 The Rules, in conjunction with the Accounting and Audit Rules, comply with the requirements for Standing Orders under S135 of the Local Government Act 1972.
1.2 Procurement is the process by which the Council manages the acquisition of all its goods, services and works: land acquisition and disposal are excluded.
1.3 These Procurement Rules provide a corporate framework for the procurement of all goods, services and works for the Council. The Rules are designed to ensure that: all procurement activity is conducted with openness, probity and accountability; and the Council obtains value for money and the required level of quality and performance in all its procurement.
1.4 In these Rules the following definitions apply:
Deputy Directors/(Assistant) Chief Executive, Deputy Chief Executive, Deputy Director Directors and all Assistant Directors Authorised Officer Any officer who, by the nature of his or her job, or as directed by a manager, is authorised to undertake procurement activity Chief Officer One of the following: Chief Executive, Deputy Chief Executive, Director of Finance Contract Any form of contract, agreement, or other arrangement, for the supply of goods, services, or works Director of Finance Includes the Director’s deputy, the Assistant Director Financial Services Executive Member A Member of the Council’s Executive Goods All supplies and materials that the Council purchases, or obtains Guidance The Council’s Procurement Guidance for Officers Leader The Leader of the Council, as appointed by full Council Management Team The Chief Executive, Deputy Chief Executive, Director of Finance, Deputy Directors Technical and Environmental Services and Assistant Director Commercial Services and Assistant Director Organisational Developments
Page 45 Senior Manager Any officer who is part of Management Team and the Assistant Director Legal Services, Assistant Director Financial Services, Assistant Director Revenues and Benefits and the Assistant Director Customer Services and Transformation Senior Auditor The Council’s in-house Internal Auditor Services Includes all services which the Council purchases, or obtains, including advice, specialist consultancy work, agency staff, and so on Works Covers all construction and property-related procurement
1.5 All values referred to in the Rules are exclusive of VAT.
1.6 Throughout these Rules the Director of Finance shall deputise for the Senior Auditor in his absence, and vice versa.
1.7 Every procurement made by, or on behalf of the Council, shall comply with these Rules and no exception from any of the provisions is allowed, except by agreement of:
a) procurements exercises less than £60,000 - the relevant Deputy Director/(Assistant) Director and the Director of Finance; b) procurements exercises of £60,000 or more, but less that than £100,000 - the Executive; and c) procurements exercises of £100,000 or more - Council.
1.8 The specified limits apply to contracts with a fixed or known value.
2. Orders for all Work, Goods and Services
2.1 Official orders shall be in the manner approved by the Director of Finance and shall be issued only by authorised officers. A list of authorised officers shall be submitted by each Deputy Director/(Assistant) Director,Senior Manager to the Director of Finance, on an annual basis.
2.2 Official orders shall be issued for all work, goods, or services to be supplied to the Council, except for supplies of public utility services, periodical payments, such as rents or rates, petty cash purposes, or where a formal contract is entered into, or such other exceptions as the Director of Finance may approve.
2.3 No order shall be issued for work, goods, or services, unless the cost is covered by an approved budget, or by special financial provision. Under no circumstances should shall personal goods/requirements be ordered via an official Council order.
Page 46 3. Procurements Procurement Exercises Under £60,000
3.1 The following apply where any individual purchase or contract is less than £60,000 in total. Artificial breaking down of any procurement exercise so that individual elements are less than this limit is not permitted.
3.2 Purchases of less than £5,000 do not require competitive quotes. However, officers are encouraged to obtain comparisons and should be satisfied that the purchase gains value for money for the Council. This can be done by contacting suppliers directly and using catalogues, or various internet sites. Other relevant sources are trade magazines and recommendations from other staff/councils. It is suggested that, where the value of the procurement exercise is greater than £500, a record is made of why the supplier was chosen.
3.3 Chief Officers should shall obtain at least two competitive quotations where the estimated cost of the goods or services exceeds £5,000, but is less than £10,000.
3.4 From £10,000 toFor procurement exercises of a value from £10,000 or more but less than £60,000, a minimum of three quotations should preferably be sought. Where the opportunity is advertised it should shall be published on both The Chest and the Council’s website. Less than three quotations may be sought in special circumstances where it is not practicable to do otherwise. In such cases, the Deputy Director/(Assistant) Directorrelevant Senior Manager shall keep a written record detailing the reasons for waiving the rules. For quotes of £5,000 or more, use of The Chest is considered best practice (see 4.6.1.2 below).
3.5 An exception to the above is where use is made of a framework arrangement or Cumbria County Council’s CorporateStrategic Commercial Procurement and Contract Management TeamUnit (the County Council's purchasing organisation). In such cases, while no further quotes are required, the Authorised Officer should be satisfied and able to demonstrate that they are achieving value for money. The use of frameworks is another means of securing procurement. Where suppliers are part of a framework, then only these suppliers need be contacted.
3.6 In general, where it is a price only tender, the lowest price should be accepted. It is assumed that the quotation process will have been clear on setting out the required specification. However, each Deputy Director/(Assistant) DirectorSenior Manager can approve a written request from an Authorised Officer, with stated reason, to accept a quotation other than the lowest, where there is good reason to do so. Such approved requests should shall be recorded and all relevant documents and correspondence retained by the Deputy Director/(Assistant) Director concernedrelevant Senior Manager.
3.7 Procurement (corporate credit) cards can be used for purchases. All procurement cards must be specific to individual officers, with an individual
Page 47 total credit limit, as authorised by the Director of Finance. Advice on the use of procurement cards is set out in the Procurement Guidance for Officers.
3.8 Any purchase of goods, works, or services which requires the Council to enter into a formal written agreement with the supplier, shall not take place until the terms of that agreement have been referred to the Deputy Chief Executive and approved by him/her.
4. Procurements Exercises of £60,000 or more
4.1 When the estimated value of the goods, works, or services to be procured exceeds is £60,000 or more, the relevant Senior Manager Deputy Director/(Assistant) Director shall invite competitive tenders on the following basis:
Numbers of Tenders to be Sought
The following should normally be the minimum number of tenders sought:
Tender Value Number of Tenders £ To Be Sought Minimum More than £60,000 -but less than £100,000 3
£100,000 or more+ 4
The Deputy Director/(Assistant) Directorrelevant Senior Manager shall have authority to accept a tender and direct that a contract be entered into on the basis set out in paragraphs 4.10 and 4.11 below.
4.2 The Deputy Director/(Assistant) Directorrelevant Senior Manager shall determine which one of the following tender procedures is adopted:
a) Open Tendering At least fourteen days’ notice is to be given on the Council’s website and The Chest stating the nature, purpose and extent of the proposed contracts, inviting tenders and stating the date by which tenders must be received. Information published on the Council’s website shall direct external parties to The Chest. If considered appropriate, the Deputy Director/(Assistant) Directorrelevant Senior Manager may consider giving similar notice in appropriate publications. b) Restricted Tendering This procedure should be used where a large volume of interest is expected, or specialist expertise is necessary to fulfil the requirement.
Page 48 At least fourteen days’ notice is to be given on the Council’s website and The Chest inviting suppliers to complete a Pre-Qualification Questionnaire. The Procuring Officer shall select no less than 3 organisations (4 where the value is over £100,000 or more) to tender. bc) Special List In special circumstances the Deputy Director/(Assistant) Directorrelevant Senior Manager may compile a Special List of tenderers for the procurement of works, goods or services, provided that: i. the estimated value of the works, or the supply of goods or services, does not exceed £100,000; ii. the tenderers shall be persons who, in the professional judgement of the Deputy Director/(Assistant) Directorrelevant Senior Manager, have the skills and capacity to efficiently complete the work, the goods, or services; and iii. prior to the invitation to tender, the Deputy Director/(Assistant) Directorrelevant Senior Manager shall have recorded the list of tenderers, together with his/her reasons for using a Special List and inclusion of specific tenderers thereon and shall have such action approved by the Director of Finance. Whenere a Deputy Director/(Assistant) DirectorSenior Manager considers that a Special List would be appropriate for the carrying out of works, goods, or services, but the estimated value is £100,000 or more, such a Special List can be approved by Council, or the Executive (if less than £500,000).
4.3 Sub-Contracts and Nominated Suppliers
The Deputy Director/(Assistant) Directorrelevant Senior Manager shall have authority to include sub-contractors and/or nominated suppliers within a larger overall contract, providing that the selection, tender and subsequent award have been in accordance with these Rules.
4.4 Work, Goods, or Services Undertaken by Consultants
Any architect, engineer, surveyor, or other consultant (not being an officer of the Council), who is appointed by the Council for the purchase or carrying out any work, or the provision of goods, or services, shall ensure throughout the appointment that he / she shall: a) comply with these Rules; b) at any time during the carrying out of the contract, produce to the Deputy Director/(Assistant) Directorrelevant Senior Manager, or his/her
Page 49 representative, on request, all the records maintained by him in relation to the contract; and c) on completion of a contract, transmit all such records, as requested, to the Deputy Director/(Assistant) Directorrelevant Senior Manager.
4.5 Exceptional Cases
4.5.1 The Executive may decide that only one tender shall be sought where the goods, works, or services to be executed:
a) constitute an extension of the existing contract, provided that the Deputy Director/(Assistant) Directorrelevant Senior Manager may authorise an extension to a cost up to 10% above the approved allocation, or £100,000, whichever is the lesser; or b) constitute the continuation of a programme of works commenced by a contractor and the Deputy Director/(Assistant) Directorrelevant Senior Manager certifies that there are exceptional circumstances why he/she should seek, or negotiate, a tender from that contractor only.
4.5.2 More than one tender need not be sought where:
a) the goods to be supplied are proprietary articles, or are sold only at a fixed price and no satisfactory alternative is available; or b) the Deputy Director/(Assistant) Directorrelevant Senior Manager certifies that the works to be executed, or the goods to be supplied, are required so urgently as not to permit the invitation of more than one tender; or c) the works to be executed, or the goods to be supplied, consist of repairs to, or the supply of parts of, existing proprietary machinery or plant.
4.5.3 Procurement can be made using a framework agreement, or Cumbria County Council’s Corporate Strategic and Commercial Procurement and Contract Management TeamUnit (the County Council's purchasing organisation).
4.6 Forms of Tendering
4.6.1 Electronic Tendering
4.6.1.1 Electronic tendering is the Council's preferred method of advertising, issuing and receiving tenders. This should be made clear to all prospective
Page 50 tenderers. All procurement processes must be conducted electronically, either via e-mail or through the
4.6.1.2 The Council’s electronic tender system is the North West e-Tendering portal, ‘The Chest’. Detailed guidance is available in the Procurement Guidance for Officers.
4.6.1.23 Any invitation to quote or tender should include a Specification detailing the Council’s requirements to be published on the system.
4.6.1.34 Use of The Chest prevents tenders being opened until after the expiry of the published closing date. When a procurement exercise is being carried out via The Chest, tenders submitted by any other means and opened prior to the return deadline will be excluded from the process.
4.6.2 Hard Copy Tenders
4.6.2.1 Hard copy tenders are strongly discouraged and only considered in exceptional circumstances. However, if it is decided that a hard copy tender is unavoidable: a) such tenders shall be returned in one of the Council's pre-printed standard envelopes, or in a plain envelope, which shall be securely sealed and shall bear the word 'TENDER', followed by the subject to which the tender relates; b) the tender envelope shall not bear any distinguishing matter or mark by the tenderer to indicate its identity. The Council reserves the right to disqualify any such tender so marked, at the absolute discretion of the Senior Auditor; c) if a tender envelope bears any distinguishing matter or mark indicating the identity of the tenderer, immediately upon its receipt at the offices of the Council, the receiving officer shall place it in a plain envelope bearing the word 'TENDER', followed by the subject to which the tender relates. The officer shall sign, date and time such action upon the envelope after sealing it securely; and d) where a tender does bear some distinguishing matter or mark and is not disqualified, this shall be noted on the List of Tenders. The circumstances and the awarding of the contract shall be notified to the next Member meeting.
4.6.23 Opening of Tenders
Page 51 4.6.3.1 Hard copy tenders shall be opened in the presence of the relevant Deputy Director/(Assistant) DirectorManagement Team Officer, or his nominated representative, and the Senior Auditor.
4.6.3.2 The tender envelopes referred to above shall be addressed impersonally to the Chief Executive and, until the opening time, remain in the custody of the Chief Executive.
4.6.23.13 Electronic tenders shall be released by the appointed verifier. Appointed verifiers are allocated the responsibility by the system.
4.7 Tenders
4.7.1 Where the tenders are received electronically via The Chest, all relevant detail will be recorded on the portal using the system’s comprehensive audit trail. A record of tenders received should be made as soon as they have been opened. This record should be in a form agreed by the Director of Finance (see Guidance), signed by those present and filed in the Tendering Opening File which is kept in the safe and a copy retained by the relevant Deputy Director/(Assistant) DirectorSenior Manager.
4.8 Late Tenders
4.8.1 Any tender submitted in competition received after the specified time may be viewed to ascertain the name of the tenderer, but no details of the tender shall be disclosed. The tenderer shall be notified that the Council will be unable to accept the late submission.
4.8.2 Notwithstanding these provisions, the Senior Auditor and the appropriate Deputy Director/(Assistant) Directorrelevant Senior Manager shall have discretion to determine that any such tender can be considered if:
a) there is evidence of submitting in time for delivery by the due date in the normal course of delivery; or
b) in special circumstances, the reason presented is viewed as legitimate by the Senior Auditor and appropriate Deputy Director/(Assistant) Directorrelevant Senior Manager; and
c) that, in their opinion, the late tender has not prejudiced the tendering process.
providing always that the other tenders have not then been opened and the circumstances justifying any such acceptance reported by them to the next available Member meeting.
4.9 Errors
4.9.1 Where examination of tenders reveals errors or discrepancies which would affect the tender evaluation in an otherwise successful tender, the
Page 52 tenderers shall be given the details of such errors and discrepancies and afforded an opportunity of confirming or withdrawing the offer. If the tenderer withdraws, the next tender in competitive order shall be examined and dealt with in the same way. Any exception to this procedure may be authorised only by, or on behalf of the Executive or Council, after consideration of a report by the Deputy Director/(Assistant) Director of the department concernedrelevant Senior Manager.
4.10 Basis of Acceptance
4.10.1 Tenders should be sought on one of two bases:
a) Mmost Eeconomically Aadvantageous Ttender (MEAT); or
b) the lowest price.
The basis of any criteria for acceptance must be made clear in the tender documentation.
4.10.2 In general, MEAT is likely to be the more appropriate basis. An award on the basis of lowest price should be reserved for commodities such as gas, paper, where it is possible to precisely specify the good, or supply, to be procured.
4.10.3 If the basis is MEAT, the assessment of how this will be done should be set out in the tender documents. This should state:
a) the categories of assessment;
b) any weighting for each category; and
c) how the assessment is to be carried out.
4.10.4 Further detail on this method of assessment is set out in the Procurement Guidance for Officers.
4.10.5 Unless there are exceptional reasons, the weighting given to price should be between 6070% and 1090%. A figure lower than 670% will require the approval of the appropriate Executive Member.
4.11 Acceptance
4.11.1 Tenders sought in accordance with these Rules may be accepted by the Deputy Director/(Assistant) Director of the department concernedrelevant Senior Manager, subject to:
a) the works or goods being included in an approved revenue or capital programme;
Page 53 b) the tender to be accepted not exceeding (as opened) by more than 10%, the cost figure approved by the appropriate committeeMember for the works, goods, or services;
c) if the budget is exceeded, the excess can be met by virement through the procedures laid down by the Accounting and Audit Rules: the Deputy Director/(Assistant) Directorrelevant Senior Manager should shall formally record the virement by filling in a virement request form; and
d) where the accepted sum is over £100,000 or more, the acceptance shall be reported to the appropriate Executive Member.
4.11.2 The proposed acceptance of any tender not in accordance with this section shall be referred for consideration by the Executive (if less than £500,000), or Council. The provisions above also apply where goods, or the rights to operate income-generating services, are being sold.
4.12 Form of Contract
4.12.1 A contract shall be drawn up in writing in a form approved by the Deputy Chief Executive and shall specify:
a) the goods or services to be procured (including any appropriate technical specification(s));
b) the price to be paid, with a statement of discounts, or other deductions;
c) the times, or times at, or by which, the contract is to be performed; and
d) all other material items.
4.13 Assignment
4.13.1 In every written contract for the execution of the work, or the supply of goods or materials, the following clause shall be inserted:
'The contractor shall not transfer or assign, directly or indirectly, to any other person, any part of this contract without the express written permission of the Council. A sub-letting of any part(s) of the contract, except to the extent permitted in writing by the Council officer concerned, is prohibited'.
4.14 Liquidated Damages
4.14.1 Liquidated damages are a pre-estimate of the loss that may arise if the contractual provisions of a contract are not met. It may be appropriate to include liquidated damages in some contracts. The amount to be specified
Page 54 in each such contract shall be determined by the Deputy Director/(Assistant) Directorrelevant Senior Manager of the department concerned.
4.15 Performance Bonds
4.15.1 Where a contract is for the execution of the works or is estimated to be £100,000 or more in value or amount, the Deputy Director/(Assistant) Directorrelevant Senior Manager shall consider whether the Council should require security for its due performance and shall either certify that no such security is necessary or, in consultation with the Director of Finance, shall specify in the conditions of tender the nature and amount of the security to be given. In the latter event, the Council shall require and take a bond or other sufficient security for the due performance of the contract.
4.16 Specifications and Standards
4.16.1 All tenders shall include a written specification of the proposed works, goods, or services.
4.16.2 Where an appropriate standard, as formulated by a European Standards body and implemented by a British Standard specification, (BS/EN) is current, all goods and materials used or supplied and workmanship shall be required to conform with that standard, or other equivalent European Standard, as a minimum requirement.
4.17 Cancellation
4.17.1 In every written contract, a clause shall be inserted to secure that "the Council shall be entitled to cancel the contract and to recover from the contractor the amount of any loss resulting from such cancellation if the contractor shall have offered, or given, or agreed to give to any person, any gift or consideration of any kind, as an inducement or reward for doing, or forbearing to do, or for having done or forborne to do, any act in relation to obtaining, or the execution of the contract, or any other contract with the Council, for the showing or forbearing to show, favour or disfavour to any person in relation to the contract, or any other contract with the Council, or if the like acts shall have been done by any person employed by him or acting on his behalf (whether with or without the knowledge of the contractor) or, if in relation to any contract with the Council, the contractor or any person employed by him, or acting on his behalf, shall have committed any act of dishonesty or corruption."
4.18 Health and Safety
4.18.1 All contracts entered into shallould comply with the provisions within the Council's General Health and Safety Policy and procedures in relation to contracts and contractors.
Page 55 4.19 Public Procurement Requirements
4.19.1 On procurement exercisess over the European Union financial thresholds, the Public Procurement Regulations may apply and must always be followed. The current thresholds for specified categories of goods and services are set out in the Procurement Guidance for Officers.
4.19.2 The Public Procurement Regulations shallould also be considered and the principles used as guidance for procurement exercisess under the European Union financial thresholds.
4.19.3 For procurement exercises above European Union financial thresholds, under UK law the opportunity must be advertised on the UK Government Contracts Finder system.
4.20 Project Management Arrangements
4.20.1 All procurement exercisess with an expected lifetime cost in excess of £1,000,000, or involving substantial organisational change, must be conducted in accordance with PRINCE II (see Guidance) and both the project mandate and the project brief must be agreed by Management Team.
5. Procurement Guidance for Officers
5.1 The detailed implementation of these rules is supported by Guidance which is available in the Procurement section of SharePoint. All officers undertaking procurement exercises should be familiar with the Procurement Guidance for Officers.
6. Diversity
6.1 All procurement exercises shallould be undertaken in a non-discriminatory way and promote equality of opportunity.
6.2 Supporting detail on achieving diversity is set out in the Procurement Guidance for Officers.
7. Emergency Situations
7.1 In the acute phase of an emergency, goods and services may be procured on the process that best fits the situation. As far as possible, the approval of the Director of Finance, Chief Executive, Deputy Chief Executive or Emergency Co-ordinator (under the Eden Emergency Response Plan), shallould be obtained. A note shallould be kept of the procurement basis and sent at a convenient time to Financial Services.
7.2 After the acute phase is over, Procurement Rules should be followed wherever practicable. If this is not considered appropriate in particular instances, dispensation can be obtained from the Director of Finance, or the
Page 56 Chief Executive, or Deputy Chief Executive. They will forward details to Financial Services for record purposes. Dispensations from Procurement Rules will be reported to the next Executive meeting.
8. Conflict of Interest
8.1 If it comes to the knowledge of a Member or an employee of the Council that a contract in which he or she has a disclosable pecuniary interest has been, or is proposed to be entered into by the Council, he or she shall immediately give written notice to the Council's Deputy Chief Executive. The Deputy Chief Executive shall report any such declarations to the Executive and Accounts and Governance Committee.
9. Annual Revision
9.1 These Procurement Rules shallould be reviewed annually by the Assistant Director Financial ServicesDirector of Finance and Deputy Chief Executive as part of the annual review of the Constitution.
10. Effective Date
10.1 This revision is effective from 1 August 201720 April 2018.
Page 57 This page is intentionally left blank Agenda Item 10
Report No: G45/18 Eden District Council Council 19 April 2018 Scrutiny Structures Review Portfolio: Not applicable Report from: Deputy Chief Executive Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To update Members in relation to the scrutiny structures review and to enable consideration to be given to postponement of the review to a later date. 2 Recommendation It is recommended that 1. the Scrutiny Structure Review be postponed; and
2. the Working Group be requested to re-convene in October 2018 with a view to making recommendations to Council regarding the introduction of any new structure for scrutiny at the commencement of the 2019- 2020 municipal year. 3 Report Details 3.1 On 20 April 2017 Council considered structural changes to the Environment and Economy Scrutiny Committee and the Housing and Community Scrutiny Committee resulting in all the Scrutiny Committees having a membership of nine. Members also approved a change to the means by which Scrutiny reviews are selected. The proposals set out within that report arose from an informal working group of Members which took place on 15 December 2016. 3.2 On 15 December 2017 a meeting took place attended by the Deputy Chief Executive, Member Services Team Leader, Chairman and Vice Chairman of three Scrutiny Committees and Group Leaders. The purpose of the meeting was to seek Members’ views on the means by which improved engagement on a pro-active basis by Scrutiny could be achieved as from the start of the new municipal year for 2018/19. 3.3 On 8 March 2018 Council considered a report seeking approval for amendments to the structure of Scrutiny and the re-introduction of a Forward Plan of Key Decisions. A number of questions were brought up at the meeting of Council and it was resolved ‘that the report be deferred and referred back to the Scrutiny Review Working Group for further consultation, with a report brought back to full Council at the April meeting.’
Page 59 3.4 The Scrutiny Structures Working Group met on 27 March 2018 to consider the questions arising from Council. The following points were raised: There would be a number of Constitutional changes required in response to any new model for scrutiny. However it would not be a good use of resources to undertake a whole raft of constitutional changes in circumstances in which the general tenor of the proposals put to Council in March would be likely not to gain all party support at Council in April. The Centre for Public Scrutiny could be contacted, and their assistance requested in working with the Council to enable recommendations to be made for a robust scrutiny structure to be developed in accordance with national best practice. The Ministry for Housing, Communities and Local Government Select Committee had recently undertaken work regarding the effectiveness of Scrutiny in Local Government. The Government had given an initial response, but it was felt that it would be worthwhile to wait until the full guidance had been released, allowing that to be fed into the Working Group It would be better to take the time, and implement any structural changes in time for the 2019-2020 municipal Council year. The Working Group meeting would recommence in October 2018, after the current Community Governance Review completion. It is possible that there could be a session with the Centre of Public Scrutiny prior to the summer holidays or on or after October 2018. There was scope for the service reviews and reviews of contracts to be introduced in Scrutiny this year, and could be discussed at the work programme planning session prior to the first meeting of Scrutiny Co- ordinating Board in May 2018. 3.5 A copy of the notes of the meeting along with the recommendations of the Scrutiny Structures Working Group held on 27 March 2018 are attached as Appendix 1 to this report. 3.6 Members are therefore recommended to agree to a deferral of the work on the review of scrutiny until October 2018 as set out in the recommendation. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 This report meets the Quality Council corporate priority 5 Consultation 5.1 The working group is the relevant consultation body for the purposes of this report.
Page 60 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 There may be a modest but not yet quantified cost of inviting the Centre for Public Scrutiny to attend a session with the working group. Such costs will be borne out of existing budgets. 6.2 Legal 6.2.1 Council’s operating Executive arrangements are required to create at least one Overview and Scrutiny Committee which is composed of Councillors who are not on the Executive. Overview and Scrutiny Committees are required to meet the rules on proportionality defined in the Local Government and Housing Act 1989. There is however no national standard as to the precise Committee structure that Councils should adopt to satisfy these legislative requirements. 6.3 Human Resources 6.3.1 There are no human resources issues arising out of the proposals set out within this report. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity There are no implications arising out of the proposals set out within the report. Health, Social The impact of the proposals within this report in Environmental and terms of health, social environmental and Economic Impact economic impact depend largely upon the effectiveness of the scrutiny function. Crime and Disorder There are no implications arising out of the proposals set out within the report. Children and There are no implications arising out of the Safeguarding proposals set out within the report. 6.5 Risk Management Risk Consequence Controls Required There is insufficient Quality of decision Regular review of the engagement relying on making may suffer in scrutiny function. The decisions made by the the absence of proposals within this Executive. appropriate scrutiny and report will enable such non-Executive review to take place Members. within a generous timescale.
Page 61 7 Other Options Considered 7.1 There are a myriad of different ways in which the scrutiny function can be delivered. It is considered that the proposals within this report set out the best options given current timescales. 8 Reasons for the Decision/Recommendation 8.1 To enable consideration to be given to the most appropriate way to proceed with a review of the structure for scrutiny.
Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 9 April 2018 Monitoring Officer (or Deputy) 6 April 2018 Relevant Assistant Director 10 April 2018 Background Papers: Appendices: Appendix 1 - Notes of the Meeting of the Scrutiny Structures Working Group held on 27 March 2018 Contact Officer: Mr Matthew Neal, Deputy Chief Executive Telephone 01768 212237
Page 62 Appendix 1
Scrutiny Structure Working Group Meeting
on 27 March 2018 at 6pm
In attendance: Cllr Banks (Chairman of Scrutiny Co-Board and Independent Group Leader), Cllr Taylor (Liberal Democrats Group Leader), Cllr Connell (Liberal Democrat Representative), Cllr Raine (Housing and Communities Chairman), Cllr Sealby (Housing and Communities Vice-Chairman), Cllr Chambers (Environment and Economy Scrutiny Chairman and Conservative Group Leader), Matthew Neal (Deputy Chief Executive), Vivien Little (Member Services Team Leader) Apologies: Cllr Thompson
The Deputy Chief Executive reminded members about the task for the Working Group given that Council had resolved to request another report in April 2018. The Working Group needed to make recommendations to Council with a view to seeking proposals which would be likely to gain cross party support. He raised a concern that to prepare everything necessary to reach the April report deadlines would be a rush. A discussion took place regarding the questions that had been raised by members at the March meeting and the following points were raised:
There would be a number of Constitutional changes required in response to any new model for scrutiny. However it would not be a good use of resources to undertake a whole raft of constitutional changes in circumstances in which the general tenor of the proposals put to Council in March would be likely not to gain all party support at Council In April. The Centre for Public Scrutiny could be contacted, and their assistance requested in working with the Council to enable recommendations to be made for a robust scrutiny structure to be developed in accordance with national best practice. The Ministry for Housing, Communities and Local Government Select Committee had recently undertaken work regarding the effectiveness of Scrutiny in Local Government. The Government had given an initial response, but it was felt that it would be worthwhile to wait until the full guidance had been released, allowing that to be fed into the Working Group It would be better to take the time, and implement Any structure changes in time for the 2019-2020 municipal Council year. The Working Group meeting would recommence in October 2018, after the current Community Governance Review completion. It is possible that there could be a session with the Centre of Public Scrutiny prior to the summer holidays or on or after October 2018. There was scope for the service reviews and reviews of contracts to be introduced in Scrutiny this year, and could be discussed at the work
Page 63 programme planning session prior to the first meeting of Scrutiny Co- ordinating Board in May 2018.
AGREED that the Deputy Chief Executive be requested to draw up a report for full Council on 19 April 2018, with the recommendation of the Scrutiny Structures Working Group being that:
1. the Scrutiny Structure Review should be postponed; 2. the Working Group should re-convene in October 2018 with a view to introducing any new structure at the commencement of the 2019-2020 municipal year.
Meeting closed at 6.27pm
Page 64 Agenda Item 11
Report No: G31/18 Eden District Council Council 19 April 2018 Proposed Calendar of Ordinary Meetings 2018-2019 Portfolio: Report from: Deputy Chief Executive Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To request Members’ provisional approval of a calendar of meetings for the 2018-2019 municipal year. 2 Recommendation 2.1 The draft calendar of ordinary meetings at Appendix A for 2018-2019 be approved subject to final agreement by Council in May 2018; 2.2 All Members and Standing Deputies of the Planning, Licensing and Accounts and Governance Committees be required to undertake full training prior to the first meeting of the respective committees; and 2.3 That the definitive Calendar of ordinary meetings, together with dates for Portfolio meetings, be presented to the Annual Meeting of Council in May 2018 for verification. 3 Report Details 3.1 At its meeting of 15 February 2018 Council resolved to defer any agreement of the draft calendar of meetings to the March Council meeting as it was concerned about occasions where two meetings were held on the same day. Below is a table of the number of meetings to be schedule within a Council year, taking into account any Constitutional requirement and Members’ preferences.
Meeting Frequency per Annum Council At least 6 times per year (plus AGM and budget) Executive At least 12 times per year Portfolio Holder meetings 12 Scrutiny Co-ordinating Board At least quarterly Environment and Economy Scrutiny At least quarterly Committee Housing and Communities Scrutiny At least quarterly Committee Scrutiny Review Groups As required Accounts and Governance Committee At least 4 times per year
Page 65 Planning Committee Monthly Planning Committee Site Visits As required Licensing Committee As required Human Resources and Appeals Committee As required 3.2 At the meeting of Council on 8 March 2018 it was decided to defer the decision to decide regarding the introduction of the new Scrutiny Structure to allow further work to be undertaken by the Working Group. A number of questions were raised by Members which were requested to be looked into. As such the decision regarding the Calendar of Meetings for 2018-2019 was also deferred until the meeting of full Council on 19 April 2018. 3.3 At a meeting of the Scrutiny Structures Working Group held on 27 March 2018 it was unanimously decided to defer the introduction of any new structure until the 2019-2020 municipal year, to allow proper consideration of the questions Members had raised at Council. Work on this will begin in October 2018, to allow time for all options to be fully explored. 3.4 Two meetings of the Executive are scheduled in December 2018 as part of the budget cycle to consider a draft and then final budget recommendation to Council. Likewise an additional meeting of a Scrutiny Committee will be scheduled for January 2019 to enable the work of the annual Budget Scrutiny Group to be considered before being submitted to the Executive. 3.5 In order to accord to the previously expressed preferences of Members regarding the timings of meetings, ordinarily the day and time of meetings will be as follows: 1. Council is scheduled to take place on a Thursday evening commencing at 6.45pm; 2. the Executive is scheduled to take place on a Tuesday evening commencing at 6.00pm; 3. Scrutiny Committees are currently scheduled to take place on a Thursday evening commencing at 6.45pm, Scrutiny Review Group meetings will take place at times and venues to be agreed by the Group; 4. Accounts and Governance Committee is scheduled to take place on a Thursday evening commencing at 6.45pm; 5. Planning Committee is scheduled to meet on a Thursday morning at 9.30am whilst Planning Site Visit meetings are scheduled to take place on a Thursday with the time and venue being agreed at the preceding full Planning Committee meeting; 6. Licensing Committee will meet, when required and as far as possible, on the first Wednesday of the month, in the morning commencing at 9.30am; 7. Human Resources and Appeals Committees and Sub-Committees will be convened as and when required; and 8. Portfolio Holder meetings are scheduled to take place during a set week every month so that reports can go forward to other Committees and Council if required. A convenient date and time during the
Page 66 prescribed weeks have provisionally been arranged with the Portfolio Holder. These dates and times will be finalised on the final calendar that is ratified at the Annual Meeting. 3.6 Unlike in previous years, no meetings of the Council have been scheduled to take place away from the Town Hall. However there remains scope for meetings to be organised at alternative locations within the District should the need arise. 3.7 Members have expressed a preference to avoid evening meetings where possible on days when the Planning Committee have met earlier in the day. This preference has been adhered to where possible. However for some meetings, for instance, the Planning Committee meeting in February 2019, alongside the Council budget meeting, this clash is unavoidable. Efforts will be made to avoid an overly long agenda for the Planning Committee meeting. 3.8 There is scope for additional ‘Special’ meetings of the Council, its committees or the Executive to be arranged should the need arise 3.9 All members of the Planning, Licensing and Accounts and Governance Committees must undertake full training prior to taking any decisions at the first meeting in the municipal year. The dates of training sessions will be communicated by officers in advance. 3.10 The Calendar will be formally approved at the Annual Meeting of Council, as required by the Constitution. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 This report meets Quality Council corporate priority 5 Consultation 5.1 Members have been consulted on numerous occasions regarding the setting of the Council calendar. This report is a result of Members wishing further information at the Council meeting on 15 February 2018, and also as a result of the decision for the current Scrutiny Structure to remain in place for another year. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 This report contains provision for holding meetings such as the Executive and Planning Committee Site Visits, at locations other than Council owned premises.
Page 67 6.1.3 This will incur costs associated with the hiring of venues to conduct meetings. These costs will vary depending on the location of the venue. 6.1.4 All such costs will be met from existing budgets 6.2 Legal 6.2.1 There are no direct legal implications arising from this report. 6.3 Human Resources 6.3.1 There are no human resources implications. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity The report contains provision for the Council to conduct meetings in the community where appropriate. Health, Social No implications arising from this report Environmental and Economic Impact Crime and Disorder No implications arising from this report Children and No implications arising from this report Safeguarding 6.5 Risk Management Risk Consequence Controls Required If the Council does not May cause harm to the To publically publish set a Calendar of Council’s reputation. the Council’s Calendar Meetings there is a risk of Ordinary Meetings that business is not concluded and that Members, Officers and the public are unaware of when meetings are due to take place 7 Other Options Considered 7.1 No other options considered. 8 Reasons for the Decision/Recommendation 8.1 To set a calendar of meetings for the 2018-2019 municipal year which can be published for all to see.
Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 9 April 2018
Page 68 Monitoring Officer (or Deputy) 10 April 2018 Relevant Assistant Director n/a Background Papers: None Appendices: Draft Calendar of Ordinary Meetings 2018-2019 Contact Officer: Vivien Little, Member Services Team Leader
Page 69 This page is intentionally left blank EDEN DISTRICT COUNCIL – DRAFT CALENDAR OF MEETINGS 2018– 2019
COUNCIL EXECUTIVE SCRUTINY HOUSING & ENVIRONMENT & ACCOUNTS AND LICENSING PLANNING Planning CO- COMMUNITY ECONOMY GOVERNANCE CTTEE CTTEE Committee 2018 ORDINATING SCRUTINY SCRUTINY COMMITTEE (Provisional Site BOARD COMMITTEE COMMITTEE Visit dates)
6.45pm 6.00pm 6.45pm 6.45pm 6.45pm 6.45PM 9.30 am 9.30am Various
MAY 10 24 17 31 (Annual Meeting) JUNE 5 21 28 6 14 28
JULY 12 3 19 5 26 4 19
AUGUST 16 2 30 SEPTEMBER 6 4 20 27 5 13 27
OCTOBER 2 11 25 3 18
NOVEMBER 8 6 15 22 29 7 15 1 29 DECEMBER 4 6 5 13 11 (Budget) 2019 JANUARY 10 22 3 24 9 17 3 (Budget) 31 FEBRUARY 14 5 7 21 6 14 28 (Budget) MARCH 7 5 21 6 14 28
APRIL 11 2 4 25 18 3 18
MAY 2 Page 71 Page This page is intentionally left blank Agenda Item 12
Report No: G42/18 Eden District Council Council 19 April 2018 Commercial Plan Update Portfolio: Commercial Services Report from: Assistant Director Commercial Services Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 This report sets out progress against the Annual Delivery Plan of the Council’s first Commercial Plan that has been in place since 2017 and covers the period 2017 - 2020. The overriding aim of the Commercial Plan is to set out the intention of the Council to strive towards achieving savings/income of £1 million by 2020/2021. The finance generated or saved will be used to maintain and develop services for the residents, businesses and visitors of the District. The Annual Delivery Plan contained as Appendix 1, is the mechanism for how this will be achieved and monitored. 2 Recommendation Progress against the Council’s Annual Delivery Plan covering the period 2017/18 is noted. 3 Report Details 3.1 In March 2017, Council agreed the Commercial Plan 2017-2020 and approved that it be adopted as part of the Council’s Policy Framework within the Constitution. It is set out within the Commercial Plan that each year the Council will produce an Annual Delivery Plan which will provide more specific detail on initiatives that will produce additional income or savings. Due to the nature of the activities within the Annual Delivery Plan, many of the activities span multiple years and do not sit within any one financial year neatly. The Annual Delivery Plan will therefore be a document that is regularly updated, reviewed and reported on but will not be consigned to a single financial year timeline. 3.2 As highlighted in the Commercial Plan, the Annual Delivery Plan is confidential due to the commercially sensitive nature of many of the initiatives. To this effect, the attached Annual Delivery Plan contained within Appendix 1 provides an overview of various projects and initiatives with indicative savings and additional income.
Page 73 3.3 A more detailed Annual Delivery Plan is considered on a regular basis by Management Team in order to ensure the effective delivery and implementation of the Commercial Plan. When specific projects or initiatives require authorisation from the Council or the Executive, full financial details will be provided for Members to consider and these will be contained within Part II reports which would be exempt from publication. 3.4 The content of the Annual Delivery Plan identifies over £1million of additional income and savings. A number of the areas for additional income and savings will span the entire length of the Commercial Plan’s term as they will take a number of years to achieve. It should be noted that it is highly unlikely that all of the streams for additional income and savings that have been identified will be achieved due to a variety of factors. This means that it is imperative that more ideas and solutions come forward from both Members and officers to ensure the £1 million target is achieved by the 2020/2021 financial year. 3.5 In a number of Committee reports there has been reference to setting aside the finance raised from the sale of Council assets and interests to enable the reinvestment of the finance into other areas that will generate an ongoing income. When the Council’s Commercial Plan was agreed in 2017, contained within the Plan was reference to the creating of an ‘Invest to Earn Fund’. An approach to establishing an Invest to Earn Fund will be brought before Members at a future date for consideration in more detail. 4 Consultation 4.1 The Commercial Services Portfolio Holder is briefed on a regular basis of progress against projects which form part of the Annual Delivery Plan.
5 Implications 5.1 Financial and Resources 5.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015.
5.1.2 The report highlights how the Council is progressing with the target of increasing income/achieving savings of £1million by 2020/21 which is set out in the Council’s Commercial Plan 2017-2020 and highlighted as a strategic action under the Quality Council priority in the Council Plan. Additional income/savings will be used to address the possible Council budget deficit of over £1million by 2020/21 if grants such as the New Homes Bonus and Rural Services Delivery Grant do not continue. There is also the possibility that the income received from Cumbria County Council from Council Tax on second homes in the district will cease from 1 April 2019.
Page 74 6.2 Legal 6.2.1 There are no legal implications arising from this report. 6.3 Human Resources 6.3.1 Monitoring the progress of the Annual Delivery Plan has limited implications for officer time and the production of such reports is fully in keeping with the Council’s desire to be transparent in its endeavours.
6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity There are no equality and diversity implications arising from the report. Health, Social If the Council does not succeed in delivering the Environmental and aims of the Commercial Plan then there will be Economic Impact potentially adverse Health, Social Environmental and Economic implications for the residents of Eden by having to reduce service provision with Eden. Close monitoring of the Annual Delivery Plan is required to provide the highest likelihood of success. Crime and Disorder There are no crime and disorder implications arising from the report. Children and There are no children and safeguarding Safeguarding implications arising from the report.
6.5 Risk Management Risk Consequence Controls Required The Council does not Potential reduction in Close and regular deliver on its aim to service provision in monitoring of the increase revenue/make Eden. Annual Delivery Plan savings of £1m before by Management Team 2020/21. who will then report to Executive and full Council. 7 Other Options Considered 7.1 No other options have been considered as it has been previously agreed by Council that an Annual Delivery Plan should be developed and monitored. 8 Reasons for the Decision/Recommendation 8.1 To allow Members of the Council the opportunity to monitor the progress of the Commercial Plan and its Annual Delivery Plan.
Page 75 Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 28 March 2018 Monitoring Officer (or Deputy) 5 April 2018 Relevant Assistant Director 6 April 2018 Background Papers: Report No G29/17, Council Commercial Plan 2017-2020 Appendices: Appendix 1 – Annual Delivery Plan Summary
Contact Officer: Oliver Shimell, Assistant Director Commercial Services 01768 212143
Page 76 N.B. The Annual Delivery Plan is the supporting documentation of how the Council will achieve savings/income of £1 million by 2020/2021 in support of the Council’s Commercial Plan aims. Area of Responsible Timescale Expected Savings/Income Comment/Achieved? Income/Saving Officer Devolution of services Devolution Circa £350,000 per annum £8,000 per annum Deputy Director to Parish and Town complete by Technical Councils 2022 Services Sell some parcels of Short/Medium One off capital return for sale of An Invest to Earn Protocol is to be Deputy Director unusable council land, Term land and interest will be set aside presented for consideration by the Technical ring fence finance to within the Invest to Earn Fund. Council prior to Summer 2018. A Services / be invested in income Income generating budget will be agreed as a starting Assistant generating asset. assets/interests must have a point to commence investments. Director minimum return of 3% as per Commercial Commercial Plan Invest to Earn Services Protocol. The £1m investment in Short/Medium Expected £50,000 annual income Commenced acquiring properties Senior Legal Heart of Cumbria Term to the Council for affordable rental. Advisor Developing programme of other investment options around commercial investments. Water Service Savings Achieved £50,000 in Year 1 and £11,000 £50,000 one off Deputy Director 2017/18 per annum thereafter then £11,000 per annum Technical Services Invest in affordable Long Term £4,000 net each per annum is the Commenced acquiring properties Deputy Director housing to rent out target per property. for affordable rental. If all 87 Technical through the Council’s properties were let this would Services / wholly owned generate £348,000 per annum. Assistant company. Heart of Cumbria are undertaking Director Commercial
Page 77 Page procurement process, with technical support provided by Services Council Officers. Page 78 Page
Area of Responsible Timescale Expected Savings/Income Comment/Achieved? Income/Saving Officer Retail opportunity in Short/Medium Gross - £520,000 per annum, the Not taken forward – shaded to Assistant Penrith Term figure will reduce dependent upon indicate so. The independent Director borrowing costs and valuation did not provide the Commercial management costs. vendor with an acceptable sale Services price. Heat incentive scheme Long Term TBC TBC Deputy Director Technical and Outline Feasibility Environmental Studies completed. Consideration Services being given by Council with regards to the most appropriate Governance and Project Management arrangements for next stage of project: Commercialisation and Final Business Case. Redhills development Medium Term This will depend on whether there Redhills land has gone live on the Assistant annual lease charge is interest in the site and if there open market to test the appetite for Director is, whether the Council chooses development, interest has already Commercial to sell the land or enter into a been shown in the land at an early Services development agreement to stage of marketing. generate an ongoing income. Employment units at Medium Term Circa £40,000 per annum if the Plans and development of the site Assistant London Road depot desired number of units can be have been costed for the building Director built. of much needed light industrial Commercial units. Awaiting outcome of further Services / land studies in order to put in a Deputy Director detailed planning application. Open Technical public meeting held to field Services questions about the development. Area of Responsible Timescale Expected Savings/Income Comment/Achieved? Income/Saving Officer Environmental health Medium Term Income £30,000 per annum Extra resources committed to Deputy Director water supplies Private Water Supply duties. Environmental Review to be taken in new financial Services year to assess increase in income and projection for 2018-2019 Planning income Medium Term Income £40,000 per annum An accurate figure will be provided Deputy Director increase once a full year of the new charges Technical being in place has elapsed. Services Potential shared Medium Term TBC TBC Chief Executive services income Corney Square Short Term £7,000 per annum or apply for Achieved, both units let generating Assistant properties planning permission for an income of £7,000 per year with Director conversion to flats and utilise the tenants proving a popular draw Commercial capital receipt to invest in income with the Town. Services generating property. Possible increase in Short Term TBC An increase to fees and charges Director of fees and charges was proposed during the last Finance budget round but Members decided not to pursue this option at the time. An example of this was to consider increasing car parking charges where they have remained at the same level for five years. Investigate alternative Short Term/ Staff are researching alternative TBC Director of investment options to Medium Term investment options to cash Finance banking deposits deposits while ensuring security of the principal is guaranteed. Page 79 Page Page 80 Page
Area of Responsible Timescale Expected Savings/Income Comment/Achieved? Income/Saving Officer Pursue devolution of Short Term/ £220,000 savings per annum. TBC Deputy Director all Public Medium Term £14,000 agreed so far in 2017/18. Technical Conveniences to Services Parish Councils or other organisation. Single Site Developed Medium Term Limited savings are possible but it Members due to consider options Management is more likely a cost neutral for single site imminently. Team approach will be sought. Delivery of Green Bin Medium Term Potential £150,000 income per TBC Deputy Director Collections annum Technical Services Delivery of domestic Medium to long £120,000 per annum savings TBC Deputy Director waste collections term Technical Services Reduce paper copy Short £20,000 Town and Parish Councils have Deputy Director printing on planning Term/Medium been equipped with technology to Technical applications Term reduce the need to use printed Services planning applications. Specific levels of savings will be calculated after a full year of the initiative has elapsed. Penrith Leisure Centre Medium Term A piece of work to be undertaken Meetings have commenced. Deputy Director investment options. to look at limiting the future Technical contract costs for the Leisure Services / Service is to be undertaken. Assistant Director Commercial Services Area of Responsible Timescale Expected Savings/Income Comment/Achieved? Income/Saving Officer Requests for relaxation Short term Two requests received. Negotiation took place with one of Assistant of the covenants on the requesters which led to a Director Eden Business Park partial relaxation of one of the Commercial covenants and this led to a Services, Deputy £45,000 payment to the Council. A Director full release of the covenant has Technical also been requested and this is Services likely to lead to a payment of at least the same. The second request was not followed through by the interested party. These are one off receipts and the finance will need to be reinvested. Develop Short Term/ TBC Consultation undertaken, report Information Environmental Medium Term requires some final amendments Governance Information and will be considered at an Manager Regulations (EIR) Executive meeting in the near Charging Policy future. Once the Policy has been in place for a year, a report will be brought before Members outlining how much finance has been generated. Education centre Medium/Long TBC Work is ongoing with Newton Rigg Assistant investment opportunity Term to consider how a partnership Director arrangement could lead to the joint Commercial funding of much needed new Services student accommodation whereby the Council takes the role of Page 81 Page investment partner. This page is intentionally left blank Agenda Item 13
Report No. F25/18
Eden District Council
Council
19 April 2018
Related Party Transactions and Members’ Interests
Portfolio: Resources Report from: Director of Finance Wards: All Wards OPEN PUBLIC ITEM
1. Purpose 1.1 This report reminds Members of the approach for gathering the information required for the ‘Related Party Transactions’ note in the annual accounts. 2. Recommendation 1. The disclosures in the accounts regarding Interests and Related Party Transactions for Members be extracted from their Registers of Interests.
2. Members continue to be required to keep up-to-date their Interests in the Registers of Interests. 3. Report Details
3.1 The annual accounts have to include a number of prescribed ‘disclosure’ notes. The purpose of the notes is to increase the transparency of the accounts and the Council’s business.
3.2 A note is required to disclose any transactions involving the Council and related parties. Related parties include Members and senior officers. There is no reason why such transactions should not exist, but they must be properly recorded and disclosed in accordance with the accepted guidance on preparation of the accounts. The disclosure note from last year’s accounts is attached for information (see Appendix A).
3.3 If the Members’ Register of Interests is kept up-to-date by Members, this will provide the required base data from which the related party note can be drawn up. So, for example, if a Member sits on a third party body which had financial transactions with the Council, the disclosure note will include a summary reference to these. If Members make the appropriate disclosure in the Register of Interests (as required by the Members’ Code of Conduct), these will be quantified by Financial Services where a transaction took place and included in the note.
3.4 The Director of Finance and the external auditor’s Audit Manager agreed on an approach, which is the one currently used. However, for the process to work, it is essential that Members keep the record of their interests up-to-date.
1 Page 83 3.5 By letter dated 23 March 2018, the Deputy Chief Executive contacted all Members to stress the importance of Members keeping their entries in the Register of Interests up- to-date (see Appendix B). Revisions will be made in the light of any responses received.
3.6 Given that the related party disclosure note in the accounts relies on the Register, it is vital that entries are regularly reviewed and updated.
4 Policy Framework
4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council
4.2 The proposals within this report are relevant to the Quality Council corporate priority. 5 Consultation 5.1 There is no further consultation required by the report. 6. Implications
6.1 Financial and Resources
6.1.1 Any decision to reduce or increase resources must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-2019, as agreed at Council on 17 September 2015.
6.1.2 There are no proposals in this report that would reduce or increase resources.
6.2 Legal
6.2.1 Declarations of interests are governed by the Members’ Code of Conduct, which is part of the Constitution. A Member must provide written notification of any change in the Register of Interests, or of the receipt of any gift, or hospitality, within twenty-eight days. The notification must be sent to the Council’s Monitoring Officer.
6.2.2 Full and transparent disclosure of interests is an important part of the Council’s governance arrangements, which help to ensure the legality of the Council’s business.
6.2.3 Members’ declarations must include details relating to spouses and partners.
6.3 Human Resources 6.3.1 There are no Human Resources implications.
Page 84 2 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity No implications Health, Social Environmental and Economic Impact No implications Crime and Disorder No implications Children and Safeguarding No implications 6.5 Risk Management Risk Consequence Controls Required An interest is not declared in The disclosures in the Regular review of the the Register in a timely accounts may be under or register of interests by fashion or Members disclose overstated. Members. ‘interests’ that are not declarable interests.
7. Other Options Considered
7.1 No other options have been considered.
8 Reasons for Decisions/Recommendations
8.1 The regular updating of interests in the Members’ Register of Interests is an important part of the Members’ Code of Conduct. Timely updating will ensure that the disclosure note on Related Party Transactions is accurate in relation to Members.
Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 3 April 2018 Monitoring Officer (or Deputy) 3 April 2018 Assistant Director Not applicable
Background Papers: Register of Members’ Interests available via the Council’s website: https://www.eden.gov.uk/your-council/councillors-and-committees/councillors-register-of- interests/
Appendices:
Appendix A Copy of related party disclosures from the 2016-2017 accounts.
Appendix B Copy of correspondence from the Deputy Chief Executive to all Members 23 March 2018.
3 Page 85 Contact Officer: Pete Notley, Assistant Director Financial Services Telephone Number: 01768 212209
Page 86 4 Appendix A The purpose of this appendix is to set out the Related Party Disclosures from the 2016-2017 Accounts
Related Party Transactions The Council is required to disclose material transactions with related parties. Related parties are bodies or individuals that have the potential to control or influence the Council, or to be controlled or influenced by the Council. Disclosure of these transactions allows readers to assess the extent to which the Council might have been constrained in its ability to operate independently, or might have secured the ability to limit another party’s ability to bargain freely with the Council.
Central Government Central Government has effective control over the general operations of the Council. It is responsible for providing the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the Council has with other parties. Details of transactions with Government departments are set out below.
Members Members of the Council have direct control over the Council’s financial and operating policies. During 2016-2017, no works and services (2015-2016: £0) were commissioned from organisations in which (2014-2015: 0) Members had an interest. All contracts are entered into in full compliance with the Council’s Procurement Rules. All interests are recorded in the Register of Members’ Interests. The interests of serving Councillors are recorded in the Register of Members’ Interests, which can be viewed on the Council’s web site from the Home Page under https://www.eden.gov.uk/your-council/councillors-and-committees/councillors- register-of-interests/
Officers From 1 January 2012 onwards, Enterprise Prospects Limited has provided the services of Dr Robin Hooper to fill the post of Chief Executive. This arrangement was agreed by the Council on 29 September 2011. The Council’s Director of Corporate and Legal Services oversees the agreement. Dr Hooper is a Director of Enterprise Prospects Limited. In 2016-2017, the Council paid Enterprise Prospects Limited £83,059 (2015-2016: £68,619). During the year other transactions with related parties arose as follows:
Summary of related party transactions for 2016/17:
2015-2016 2016-2017
5 Page 87 Income Expend DR/CR (-) Income Expend DR/CR (-) £'000 £'000 £’000 £'000 £'000 £’000 Central Government 214 -214 NNDR Transition Grant/Payment 111 -111 703 57 NNDR Section 31 Grants 36 105 6,415 NNDR Tariff 6468
1,323 Revenue Support Grant 708 Other Government Grants 204 -265 Council Tax Discounts Grant - Flooding 205 -80 9,445 -109 Housing Benefit Subsidy 8,952 -12 41 Council Tax Benefit Administration Subsidy 47 144 Housing Benefit Administration Subsidy 114 209 Capital Grants 373 10,807 820 NNDR Share Payable 9,709 1,562 Precepting Authorities 25,828 13 Cumbria County Council - Precepts 24,791 362 7,466 -157 Cumbria County Council – NNDR Income 1,942 -237 4,247 -28 Cumbria Police and Crime Commissioner - Precept 4,361 7 Other Cumbria County Council Superannuation Fund 675 -73 Payment of employer's superannuation contributions 719 -64 in respect of employees Cumbria County Council 613 73 Other – mainly recycling subsidy 655 85 200 Payment of grant in respect of Council Tax on 210 Second Homes Heart of Cumbria 10
Page 88 6 Appendix B
Copy of communication to all Members on 23 March 2018
Your Reference: Our Reference: MN/KE/C18/4 Enquiries to: Mr M Neal Direct Dial: (01768) 212237 Email: [email protected] Date: 23 March 2018 Town Hall, Penrith, Cumbria CA11 7QF Tel: 01768 817817 To all Councillors by email
Dear Councillor
Code of Conduct
I do review the Register of Interests which is publicly available from time to time. I am aware that Members do make revisions to their declarations when the need arises. I would wish to remind everyone, however, that a Member must provide a written notification to me of any change to his or her interests within twenty-eight days of becoming aware of those changes.
In addition the Declaration of Interests must include the receipt of any gift or hospitality over the value of £25. If you have received a gift or hospitality in excess of £25 or if you have any changes to your declared interests would you let me know.
Yours sincerely
M Neal
Matthew Neal Solicitor www.eden.gov.uk Deputy Chief Executive (Monitoring Officer)
7 Page 89 This page is intentionally left blank Agenda Item 14
Report No: F24/18 Eden District Council Executive 3 April 2018 Council 19 April 2018 Carry Forward of Revenue Budgets Portfolio: Resources Report from: Director of Finance Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To secure Members' approval of the carry forward of a number of individual unused 2017-2018 budgets into 2018-2019. 2 Recommendation Executive The budgets set out in Appendix A are carried forward from 2017-2018 to 2018-2019 and that a supplementary estimate of up to £416,583 is recommended to fund this. There is a corresponding underspend in 2017-2018. Council The recommendation from Executive is agreed. 3 Report Details 3.1 The Council sets its revenue budgets on an annual basis and there is no automatic carry over of unused budgets into the following year. However, circumstances sometimes arise beyond the control of the budget holder, where expenditure slips from the planned year to the next. Such occasions should be rare. This should clearly arise where the need for expenditure has been delayed from one year to the next, for example, planned maintenance work delayed from March to April because of bad weather. 3.2 Where such occasions involve significant budgets, it can be appropriate for them to be carried forward to the next year. The mechanism to achieve this is to agree a supplementary estimate in the following year to be funded from the underspend in the current year. This is not a means of carrying forward any unspent money from one year to the next. 3.3 A de-minimis figure of £500 has been used, so budget amounts below £500 will not be carried forward. 3.4 Members will recall report F55/15 considered by Executive at its meeting on 28 July 2015. This changed the carry forward process and worked well in 2016 and 2017. It has therefore been used again in 2018. Briefly, budgets recommended for roll forward were considered by Portfolio Holders as part of the formal business. The budgets agreed for recommending roll forward to Executive and Council are shown at Appendix A.
1 Page 91 3.5 General Fund 3.5.1 The proposed carry forwards are shown in detail at Appendix A and total £416,583. Portfolio Holder approval has been obtained for all items for presentation to Executive. It is possible that some further spend may occur up to the financial year end. Where this occurs, the relevant carry forward will be adjusted down. £416,583 is the maximum amount that will be carried forward. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 The Council’s budgets form a major part of the Council’s Policy Framework. There are no relevant applicable policies relating to the carry forward of underspent budgets. 5 Consultation 5.1 No Ward Councillors or Portfolio Holders or other agencies have been consulted. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-2019 as agreed at Council on 17 September 2015. 6.2.2 There is no effect on overall finances. 6.2 Legal 6.2.1 Any supplementary estimate of £50,000 or more requires approval by Council under the Accounting and Audit Rules. 6.3 Human Resources 6.3.1 There are no Human Resources implications. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity There are no implications on diversity of equality Health, Social Environmental There are no health, social or environmental impacts. and Economic Impact Crime and Disorder There are no crime and disorder implications Children and Safeguarding There are no implications for children 6.5 Risk Management Risk Consequence Controls Required Finance is not available to Work will not take place. An underspend on the undertake work. budget has occurred.
2 Page 92 7 Other Options Considered 7.1 No other options have been considered. 8 Reasons for the Decision/Recommendation 8.1 To allow specific revenue expenditure/projects which have not been undertaken during 2017-2018 to be funded and undertaken during 2018-2019. Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 12 March 2018 Monitoring Officer (or Deputy) 13 March 2018 Relevant Assistant Director 6 March 2018 Background Papers: Report F14/18 - Approved Budget 2017-2018 March 2018 Portfolio agendas and minutes Report F55/15 - Amendment to Procedure for Approval and Carry Forward of Revenue Budgets Appendices: Appendix A - Revenue Roll Forwards 2017-2018 to 2018-2019 Contact Officer: Pete Notley, Assistant Director Financial Services 01768 212209
3 Page 93 Intentionally Blank
4 Page 94 Appendix A
Revenue Roll Forwards 2017-2018 to 2018-2019 Portfolio Code Description Service Current Amount Roll Forward Approved Description of Roll Forward Budget Previously Leader 01063 Civic Hospitality Civic Duties 1,010 816 No 15/02/2018 Rolling the budget forward will allow the Chairman to have her final 'Chairman's Event' which will raise funds for her charities on 4 May 2018 before her term in office ends at the Annual Council meeting in mid-May. 01074 Chairman's Allowance Civic Duties 100 357 No 15/02/2018 This is the money raised from the Chairman's Carol Service held in December 2017 which was extra income on top of the £100 budget. The Chairman has other events planned before her term in office ends in May and would like to split the proceeds between her two chosen charities at the end of her term in office, along with any other money she raises before then. Commercial 02300 Food and Farming Economic 13,230 5,840 Yes 12/02/18 This budget is external funding that the Council was successful Enterprise zone Development in bidding for. The timescales for its spend are dependent upon putting in place Local Development Orders (Food Enterprise Zones) rather than being attached to any particular budget period. DEFRA awarded £50,000 to Eden District Council to become a pathfinder for Food Enterprise Zones. The majority of the funding has so far been spent on developing the Local Development Orders which will be recommended for formal adoption by the Executive in March 2018. The remaining funding will need to be spent on marketing of the Food Enterprise Zones once they have been adopted. This money is ring-fenced for spending only on this project. 02003 Economic Promotion - Economic 72,570 25,000 Yes 12/02/18 The Business Rate Retention Scheme budget is a one-off fund BRRS Development which was always anticipated to run over a number of years to deliver long term economic development projects. 02393 Employment Sites Economic 55,000 45,600 No 3/04/18 The Council has appointed external specialists to assist with Development the development of light industrial units on Old London Road and market the Council’s site adjacent to Rheged. The finance to be carried forward relates to these two pieces of work. The land adjacent to Rheged has been successfully put out to the open market. The land at Old London Road is taking longer than expected to be subject to a Planning Application due to various issues around agreeing an access to the site due to historic uses of the land. This has meant that not as much finance has been expended in this financial year. The figure Page 95 Page expended was unknown until the middle of March which meant it didn’t fit with the original timescales of the roll forwards requests. Once the access issues to the site have been
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overcome it is expected that the specialists will draw down the majority of finance in the site preparation and development stage.
Eden 02020 Eden Business Park Economic 1,940 1,940 Yes 21/02/18 Funding for professional services for the adoption of roads in Development Phase 2 Development Eden Business Park. In 2017 a number of roads were adopted and Promotion but there are still lengths of highway to be adopted as the site develops. 03004 Eden Local Plan Local Plans 35,000 35,000 Yes 21/02/18 Continuing work involved with the production and adoption of and Policy the Eden Local Plan. 03091 Penrith Vision Master Plan Local Plans 45,000 45,000 No 21/02/18 Following going out to tender before Christmas, consultants and Policy were only appointed on 26/01/2018. There will be a first inception meeting on 02/02/2018. Their timescale for the conclusion and sign off of the work is intended by mid May 2018.
Revenue Roll Forwards 2017-2018 to 2018-2019 Portfolio Code Description Service Current Amount Roll Forward Approved Description of Roll Forward Budget Previously Eden 03010 Development Control and Development 37,655 24,750 No 21/02/18 Funding to cover the cost of Wind Farm appeals. Development Enforcement Control and Enforcement Communities 02386 Castle Park Development Leisure 23,640 23,640 Yes 22/02/18 This funding was secured for works to Penrith Castle Park. The funds have not been spent within the current financial year as the available funding forms part of the large scale project to improve Penrith Castle Park. The options for spending the funds are linked to the outcome of an application to the Heritage Lottery Fund. The funding is still required if the bid is successful or not. However, the detail of how this funding is to be spent is dependent on the outcome of the bid. The outcome will be forthcoming in June/July 2018. 02097 Penrith Leisure Centre Leisure 15,000 14,150 No Awaiting Essential maintenance on Penrith Leisure Centre has been Centres Portfolio delayed because of contractor difficulties. approval Services 01124 Cumbria Association of Community 35,000 15,293 No 15/02/2018 This funding is to support the devolution process. The work by Local Councils 2H Development CALC will continue throughout 2018-2019. and Engagement 02167 Vehicle Parking Vehicle 13,610 6,477 No 15/02/2018 Works were planned to resurface Alston Front Street Car Park Parking Off in 2016-2017, but there has been ongoing works with the gas Street on the main street. The local community have asked that the work be delayed. It also would fit in better with County Council work planned in the area.
6 03011 Environmental Environmental 2,500 2,500 No 15/02/2018 The Conservation Officer post was only filled in late 2017 and Enhancement and Enhancement is only now progressing work on the Appleby HAZ and a review Conversation and of Conservation Appraisals throughout Eden. The Conversation Conservation Officer will, in future, be involved in advertising and presentations to progress this work where such costs will be involved. 02143 Play Areas Parks and 34,140 32,973 No 15/02/2018 Funding through Historic England has had to be agreed by the Open Spaces Council for the St Lawrence railings project, which has caused a delay to the works. This budget is to pay partway towards the project. Page 97 Page
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Revenue Roll Forwards 2017-2018 to 2018-2019 Portfolio Code Description Service Current Amount Roll Forward Approved Description of Roll Forward Budget Previously Resources 00202 Corporate Services Corporate 21,030 8,000 Yes 22/02/18 These monies are to support the promotion of the Council's Services new digital services and citizen account, the My Eden Account. The development and deployment of this has not happened in this year (as originally planned) and so the funds will now be required in 2018-2019 to support this vital activity. 00201 Legal Services Legal 9,630 9,630 No 22/02/18 This budget is used to provide for Legal Services. There has Services been an unprecedented underspend this financial year. This is the case with a number of the Committee and Member budgets too (as set out below). The money requested to be rolled forward is intended to be used to procure and implement an electronic Case Management System (CMS) which is sought to streamline the Legal Services’ filing system and enable more efficient working. Legal Services has been seeking an electronic CMS for some time now. Some officers have used them previously and they are extremely effective at increasing efficiency and allowing the Department to organise their work. The benefits of having a CMS include: Increased Efficiency; Better organisation of files; Ability to time record on matters; Ability to produce reports on various matters including work capacity; Productivity; Costs; Time; Potential to go paperlite on file, which in turn reduces printing costs and storage area needed. By using the identified monies it negates the need to request the monies from capital. 01075 Scrutiny Committee 5,050 4,900 No 22/02/18 This budget is used to provide for Member and Committee and Member Services. There has been an unprecedented underspend this financial year. This is the case with a number of the Committee and Member budgets too (as set out below). The money requested to be rolled forward is intended to be used to procure and implement an electronic Case Management System (CMS) system which is sought to streamline the Legal Services’ filing system and enable more efficient working. Legal Services has been seeking an electronic CMS for some time now. Some officers have used them previously and they are extremely effective at increasing efficiency and allowing the Department to organise their work. The benefits of having a CMS include: Increased Efficiency, Better organisation of files; Ability to time record on matters; Ability to produce reports on various matters including work capacity; Productivity; Costs; Time; Potential to go paperlite on file, which in turn reduces printing costs and storage area needed. By using the identified monies it negates the need to request the monies from capital.
8 Revenue Roll Forwards 2017-2018 to 2018-2019 Portfolio Code Description Service Current Amount Roll Forward Approved Description of Roll Forward Budget Previously Resources 01078 Servicing Committees Committee 930 800 No 22/02/18 This budget is used to provide for Member & Committee and Member Services. There has been an unprecedented underspend this financial year. This is the case with a number of the Committee and Member budgets too (as set out below). The money requested to be rolled forward is intended to be used to procure and implement an electronic case management system which is sought to streamline legal services’ filing system and enable more efficient working. Legal Services has been seeking an electronic Case Management System for some time now. Some officers have used them previously and they are extremely effective at increasing efficiency and allowing the department to organise their work. The benefits of having a CMS include: Increased Efficiency; Better organisation of files; Ability to time record on matters; Ability to produce reports on various matters including work capacity; p Productivity; Costs; Time; Potential to go paperlite on file, which in turn reduces printing costs and storage area needed. By using the identified monies it negates the need to request the monies from capital. 01080 Miscellaneous Member Committee 1,780 500 No 22/02/18 This budget is used to provide for Member & Committee Costs and Member Services. There has been an unprecedented underspend this financial year. This is the case with a number of the Committee and Member budgets too (as set out below). The money requested to be rolled forward is intended to be used to procure and implement an electronic case management system which is sought to streamline legal services’ filing system and enable more efficient working. Legal Services has been seeking an electronic Case Management System for some time now. Some officers have used them previously and they are extremely effective at increasing efficiency and allowing the department to organise their work. The benefits of having a CMS include: Increased Efficiency; Better organisation of files; Ability to time record on matters; Ability to produce reports on various matters including work capacity, productivity; Costs; Time; Potential to go paperlite on file, which in turn reduces printing costs and storage area needed. By using the identified monies it negates the need to request the monies from capital. Page 99 Page
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Revenue Roll Forwards 2017-2018 to 2018-2019 Portfolio Code Description Service Current Amount Roll Forward Approved Description of Roll Forward Budget Previously Resources 01081 Member IT Costs Committee 11,030 4,000 No 22/02/18 This budget is used to provide for Member and Committee and Member Services. There has been an unprecedented underspend this financial year. This is the case with a number of the Committee and Member budgets too. The money requested to be rolled forward is intended to be used to procure and implement an electronic Case Management System (CMS) which is sought to streamline the Legal Services’ filing system and enable more efficient working. Legal Services has been seeking an electronic CMS for some time now. Some officers have used them previously and they are extremely effective at increasing efficiency and allowing the Department to organise their work. The benefits of having a CMS include: Increased Efficiency; Better organisation of files; Ability to time record on matters; Ability to produce reports on various matters including work capacity; Productivity; Costs; Time; Potential to go paperlite on file, which in turn reduces printing costs and storage area needed. By using the identified monies it negates the need to request the monies from capital. Housing and 02296 Homelessness Grant Fund Homelessness 24,280 7,747 No 16/3/2018 Funding is required to purchase an IT software package, Health Locata, which will comply with the requirements of the Homelessness Reduction Act. The procurement of the IT package is due to complete in early March, with training arranged for colleagues on the 15 March and a go live date of 3 April 2018. 00303 Environmental Services Environmental 500 114 No 16/3/2018 Student training costs for the two graduate officers continue Services and the roll forward of funds is requested to cover training expenses for the two graduates. 03090 Heat Network Funding Housing 101,556 101,556 Yes 16/3/2018 This funding was received by Government to support work to Delivery deliver Heat Networks in Eden. The work required has been commissioned and is ongoing. This funding will be required in 2018-2019 to pay for invoices that will be received. This will allow the next stage of project to proceed. 416,583
10 Agenda Item 15
Report No: CE10/18 Eden District Council Council 19 April 2018 Penrith Master Plan Portfolio: Eden Development Report from: Chief Executive Wards: Penrith North, Penrith East, Penrith Carleton, Penrith West, Penrith Pategill, Penrith South, Langwathby, Eamont and Kirkby Thore OPEN PUBLIC ITEM 1 Purpose 1.1 To consider the use of the £250,000 received from Government to support multi-authority working on reviewing the infrastructure and associated issues to determine the planning principles for land to the East of Penrith. 2 Recommendation It is recommended that: 1. the £250,000 grant which has been awarded to support the work from Government be welcomed; 2. it be noted the Council Officers are working with officers from Cumbria County Council on the appropriate way to deal with assembling the necessary information to support the assessment of future housing and employment growth options as part of the Master Plan work which is presently being undertaken; 3. the Deputy Director Technical Services be given delegated authority to spend the £250,000 on those infrastructure studies required to support the Master Plan proposals and such other professional development work including project management, consultation, supporting the production of a draft Section 106 Planning Obligation and other legal agreements if required. This is in order that the vision in the Master Plan as it emerges, could be taken forward as a planning application which would facilitate wide consultation; 4. the Deputy Director Technical Services, following consultation with the Leader be given authority to determine in particular cases that exceptional circumstances arise, enabling a contract to be awarded in relation to one or multiple suppliers in order to deliver this programme of work.
Page 101 3 Report Details 3.1 In January 2018, the Government invited Councils to bid for funding to support multi Council working where such working may result in providing clarity for future growth opportunities, particularly for housing developments. The Council received confirmation in February 2018 that its bid has been successful. The Council in the summer of 2016 had given consideration informally to the potential to put in place a vision for the future growth of Penrith which would identify where such growth may be over the period to 2050. From that date, there have been meetings and discussions with Highways England, Transport for the North, Cumbria Local Enterprise Partnership (“Cumbria LEP”), Cumbria County Council, Penrith Town Council, Penrith Chamber of Trade and local landowners as well as other local stakeholders over the outline plan for development of land to the East of Penrith. 3.2 Over this period of discussions and publicity through that time which was given to the illustrative plan, it became clear that there were few objections to the direction of growth and instead there was local support for the concept of having such a long term vision. During this period, the Local Plan was also going through phases of consultation. Feedback from some parts of the District was that there was a wish that more development for housing should take place in Penrith rather than in other communities compared to the levels proposed in the Local Plan now and certainly for the future as well. 3.3 The Government was during this time also giving consideration to the necessary improvements to the A66 from the East to West Coast, although the initial report of Highways Agency appointed consultants issued in the winter of 2016/17 was only looking at design solutions and options to the A66/A6 junction at Kemplay Bank. This provided not only for no link to junction 40 on the M6 but proposed a fly over option for Kemplay Bank which all the stakeholders in the Cumbria area and in particular in Penrith were vehemently opposed to. A motion on notice in relation to this matter is set out separately on the agenda for this meeting. 3.4 The discussions on the need to improve junction 40 on the M6 to accommodate existing as well as increased traffic with its link to the Kemplay Bank roundabout, also meant that other options could be considered. At that time this appeared to provide the right opportunity to look to the illustrative plan for the East of Penrith to be able to deliver a solution whereby a link could be provided from the A66 at an appropriate point between Temple Sowerby and Penrith with Junction 41 of the M6. The greater majority of HGV and other business traffic using the A66 to travel north to Scotland and from a return journey would also come the other way. The alternative route would enhance air quality in the Penrith area as well as lead to additional highway capacity being made available for future housing growth. 3.5 On 7 December 2012, Eden District Council, Carlisle City Council and South Lakeland District Council with the three Members of Parliament for the three constituencies pledged to work together to enable and support economic growth on employment sites along the M6 in Cumbria. In doing this it was further agreed to support economic growth and work with the Cumbria LEP and Cumbria County Council.
Page 102 3.6 Since that date the four Councils have worked with the Cumbria LEP and as a result one of the key themes for the Cumbria LEP strategy is to promote within and outside of Cumbria, the M6 Corridor for both employment and housing. The five organisations then worked together in 2016 to produce a marketing proposition identifying for each of the three Districts the opportunities that existed for both housing and employment at each of the motorway junctions. It is with this background that there has also been support for the proposals in the Penrith Vision now emerging as the Penrith Master Plan. 3.7 In turn the Government has now provided: a) financial support to Carlisle through designating a development area as a Garden Village; b) £250,000 to Eden to promote the work required for it to bring forward development to the East of Penrith; and c) finance to support initiatives for the Borderlands between Cumbria and Scotland. 3.8 This strategic consistency of approach is now emerging for Eden in prospects for physical delivery. The Government’s desire is to see more housing growth to meet housing needs for today and the future. Along with that there is also the need for employment so that Eden can achieve higher paid jobs to support the existing and future workforces in the area which in turn provides aspiration and opportunity for the young people of Eden to stay both for their further and higher education as well as future employment. 3.9 Penrith is at the northern crossroads for the country with its links as well to Scotland. It is uniquely placed to deliver tangible benefits for the country as well as for the local community. The bid for finance, a copy of which is set out at Appendix A to this report, clearly evidences the benefits of this. 3.10 Clearly, there is a need for the Council to invest the Government money wisely to secure the outcomes intended by both the application for money which was made and for the approval given to it by Government. Eden was one of a few local authorities which was given the award such is the importance of which is proposed. The Council is working with Cumbria County Council in this regard. Some of the work that will need to be carried out includes: Review of existing highway network and what improvements will need to be made in order to support the growth intentions; Review of the environmental issues that may need more detailed assessment as development proposals for individual sites in the future; Production of transport impact assessments and environmental impact assessments; Carrying out a review of the strategic options for a strategic link between a point on the A66 between Temple Sowerby and Junction 41 of the M6 thereby relieving Kemplay Bank and Junction 40 of traffic to support local traffic movements today and for future growth; Having some project management and/or development advice in place to deliver the Penrith Vision;
Page 103 Preparation of a potential outline planning application. A further report in this regard will be brought to members by July 2018 upon receipt of the consultants’ report who are currently working on the Penrith Vision; Drafting of the Section 106 Planning Obligation and such if any other legal documents that may be required; and Other supporting consultancy work required to support the process. 3.11 The Council already has a contract in place with a consultancy to support the Master Plan process. It is possible that company will be able to provide support in some of these areas. It is also possible that the County Council will be able to supply some of the highway expertise such that the work required in those areas could be paid for from the monies available in this budget. In relation to the development, project management and other work it will be necessary for consideration to be given to the most effective use of available resources and skill set to undertake this. For example, it may be appropriate to extend existing contracts or vary existing contracts with suppliers of services so that the most effective use of time is provided for and more importantly with the specific knowledge already acquired by those companies. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 This report meets all four corporate priorities. 5 Consultation 5.1 Consultation has been taking place with members of the Council, Group Leaders, stakeholders, land owners, Cumbria County Council and Penrith Town Council. The results of this to date, is that there is support for progressing with the work for the Master Plan. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 This is grant money. However, to spend it does require a Council decision. Spending will be monitored to ensure no more than the £250,000 awarded is used. 6.2 Legal 6.2.1 The Council’s Procurement Rules provide at paragraph 1.7 that: “Every procurement made by, or on behalf of the Council, shall comply with these Rules and no exception from any of the provisions is allowed, except by agreement of:
Page 104 a) procurement exercises less than £60,000 - the relevant Deputy Director/(Assistant) Director and the Director of Finance; b) procurement exercises of £60,000 or more, but less than £100,000 - the Executive; and c) procurement exercises of £100,000 or more - Council.” 6.2.2 Given that collectively the proposals within this report propose expenditure arising from a grant of £250,000 it is within the powers of Council to authorise the Deputy Director to have delegated authority to appoint contractors and commission studies as envisaged by recommendation 3 of this report. 6.3 Human Resources 6.3.1 There are no human resource issues arising from this report. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity None Health, Social Clearly the Penrith Vision and any future Environmental and development proposals which arise from the Economic Impact vision will need to be subject to planning applications which will be assessed having regard to the health, social environmental and economic impact. Crime and Disorder None Children and None Safeguarding 6.5 Risk Management Risk Consequence Controls Required Not having a five year Council could lose its Having a plan which land supply planning powers in identifies land for whole or part housing for a long period mitigates the risk 7 Other Options Considered 7.1 None.
8 Reasons for the Decision/Recommendation 8.1 To progress with the production and implementation as appropriate of the Penrith Master Plan.
Page 105 Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 4 April 2018 Monitoring Officer (or Deputy) 3 April 2018 Relevant Assistant Director N/A Background Papers: Appendices: Appendix A – Bid Document Contact Officer: Robin Hooper, Chief Executive
Page 106 Appendix A Annex A. Joint Working Fund (Expression of Interest Template)
Lead authority Eden District Council
Partners involved Cumbria County Council
Transport for the North
Highways England
Cumbria Local Enterprise Partnership
Senior sign-off Dr Robin Hooper Chief Executive Eden District Council
Funding being 2017-18 2018-19 applied for £100,000 £150,000
Summary of proposal (please describe the relevant geographical area, nature of joint working proposed, the strategic planning issues to be addressed, scale of ambition and how this award will help you to achieve it.) The relevant geographical area is on the edge of the existing Town of Penrith to the east and runs from junction 41 on the M6 to the north to the East of the Town and around it to the A66. The joint working proposed is to facilitate the employment of consultants to evaluate the options for delivery leading to the construction of a strategic by-pass to Penrith linking the A66 with junction 41 thereby avoiding the A6 Kemply Bank junction with the A66 and also junction 40, which will improve traffic movement including journey times for logistics between Scotland and the East and South East of England. This will then provide sites within the bypass route to deliver 10,000 dwellings, 500 acres of employment land, land for recreation and strategic water holding facilities thereby reducing the impact of flooding on residential communities in Cumbria. The joint working will bring together Cumbria County Council, the Cumbria Local Enterprise Partnership, Transport for the North, Highways England, Homes and Communities Agency with Eden District Council to identify the route for the bypass and in turn the sites and development programme to deliver the objectives of the Plan. The strategic planning issues to be addressed will include how the road will function in meeting the strategic and national needs for transport serving Scotland with the East of England, dealing with the environmental and ecology issues and provide options for solutions for delivering the objectives. The scale of the ambition is that through the award the line of the bypass will be determined and how the local highway and other infrastructure in the control of the Cumbria County Council will work facilitating early implementation of future growth of
Page 107 housing and employment of up to 10,000 dwellings and of 500 acres of land for employment. The Award will help deliver a programme of action and a plan to be implemented supporting the work already being undertaken in upgrading the A66 from Scotch Corner in a more timely fashion which also will bring forward additional sites for employment and residential development. The requirement for the employment and residential development comes from the need generated by the development of the West Coast for nuclear and the supply chain industries that will need to be centrally located in an area protected by distance in the event of an emergency at the Plants yet also close enough to operate effectively on a daily basis. [max 500 words]
Specific activities and timetables (including a breakdown of activities, milestones and profile of expenditure) The activities that will be carried out include: Engagement of consultants to evaluate the geography and geology of the land where the bypass and road junctions can go. Engagement of consultants to undertake assessments of environmental and ecology considerations to facilitate solutions to where residential and employment development can take place. Engagement of consultants to verify locations for water storage areas to manage flood water and also provide options for water storage at other times for use for recreation and other purposes. The outcomes will be focussed reports upon which planning decisions can then be taken to implement the proposals. It is proposed that in terms of milestones the consultants will be appointed by early March 2018 and then will commence their work of evaluation of the relevant issues. The tendering for the consultations has already started but their full commission will only be given if the Award is received. The estimated profile of expenditure is that upon the appointment there will be an amount of table top research based on existing known information through March hence a figure of £100,000 across the consultancies has been identified for that. From April through to December 2018 it is anticipated that the various ecology reports and investigations can take place and then the findings evaluated with the reports written. Other assessments on geology etc not otherwise known will likewise take place during this 9 month period. A plan of action then will be produced including producing a draft planning policy document for public consultation in December 2018 to January 2019. The final determination will be taken in April 2019. The spend anticipated in 2018/2019 is £200,000. The award sought is for £150,000 making the total award sought being the maximum £250,000. [max 500 words]
Page 108 Impacts expected from funding (including description of outputs and outcomes you expect to achieve, and how they will be measured) The outcome expected to be achieved will be the production of a draft planning supplementary policy document upon which consultation will take place. The responses to that will be considered then the policy document amended as appropriate to reflect the outcome from that. All partners will be involved during the process. The policy document will outline the works to be undertaken within the policy framework and which partners will need to undertake which piece of work. It is anticipated that a planning delivery agreement between landowners will also be produced which will support planning applications and ensuring public benefits being delivered as well as equalisations of value between landowners as development commences through to completion. The ultimate outcome will be development taking place of the road, employment and residential with associated uses in the area to meet the needs of the new communities. The measurement of the outcomes will be as set out above. The timetable for delivery is set out in an earlier section but in short will be the production of the local supplementary planning policy document by April 2019. [max 500 words]
Assurance that there is strong commitment to joint working, and that any award will be spend in accordance with the award profile (please outline joint working arrangements in place, or envisaged, and confirm how you will ensure the money is spend as outlined) There already exists within Cumbria a commitment to develop the M6 Corridor. It is part of the LEP Strategy document which has been accepted by the Secretary of State. Also the Cumbria County Council along with Carlisle City Council, South Lakeland District Council and Eden District Council with the LEP have adopted a marketing brief produced in January 2017 advocating the development proposed by this namely the Penrith By pass from A66 to Junction 41 delivering land for housing and employment as well as the countrywide benefits for transport and business nationally. The engagement of consultants to undertake the initial appraisal has been the subject of discussion and agreement between the Chairman of the Eden Local Committee of Cumbria County Council with Eden District Council and supported by the Cumbria LEP. Additional resources are required to assist though in the delivery of the wider package that is needed in a quicker period of time than otherwise would happen. Eden District Council will coordinate the spend of the money and will continue to engage the County Council and the Cumbria LEP with the other partners in this. [max 250 words]
Assessment of risks to achieving the objectives of the proposal (please list your top three risks and mitigating actions) 1. That the Cumbria County Council was not supportive – mitigated by discussions and agreement with the County Council local Eden Committee Chairman and senior officer over how the project would be managed. The discussions and rapor already in place will be nurtured further over the forthcoming months in order to secure this stays in place.
Page 109 2. That the consultants are unable to deliver – Prince 2 project methodology will be used with a critical path analysis timeline agreed and contracted to with the supplier of the services and there will be regular reporting on the work undertaken and assurance will be sought through that on the actions taken and those to be taken with key milestones laid out to be adhered to. 3. That key personnel in Eden District Council leave – The Council has put in place management of succession principles so that for every officer there are people being trained and developed in the work that is being carried out thereby de-risking the potential of key personnel leaving without the individuals available to undertake that which is required. [max 250 words]
Does your bid rely on, or align with, other funding or initiatives from Government? For example, are you part of housing deal negotiations, or have bid for Housing Infrastructure Fund money? There is no reliance on other Government monies at this time. [max 250 words]
Page 110 Agenda Item 16
Report No: TES22/18 Eden District Council Council 19 April 2018 Council Accommodation Portfolio: Eden Development and Resources Report from: Deputy Director Technical Services and Assistant Director Organisational Development Wards: All Wards OPEN PUBLIC ITEM 1 Purpose 1.1 To report on the outcome of the cross party Accommodation Working Group and recommend the best option to enable the Council to provide accommodation which is fit for purpose, meets legislative requirements and supports accessibility for all, for both service users and staff. 2 Recommendation 1. To fund the design and build of additional accommodation at the Town Hall to provide a centralised site for key Council services and to re- develop the Mansion House to provide for economic development opportunities and some affordable housing; 2. The Director of Finance is given delegated powers to agree the details of any loan finance; 3. Funding will be by way of a 50 year from the Public Works Loans Board at the prevailing rate (currently 2.9%) or other suitable means of funding with the overriding provision being that the final funding model is cost neutral or near cost neutral; 4. A provisional capital budget of £2.3m to undertake the works for the additional accommodation and re-development be approved and included in the 2018/19 capital programme, 5. It be noted that commencement of works will be subject to a full business case demonstrating that the scheme is affordable over its life. If in the circumstance where the scheme does not demonstrate that it is achievable at cost neutral or near cost neutral basis further Council approval will be sought. 6. That it be noted that the Accommodation Working Group will; a. be consulted on the final specification for the works; and b. will nominate members to sit on the tender assessment panel. 7. The Deputy Director Technical Services be authorised to seek competitive tenders from relevant suppliers to complete works for the selected option
Page 111 and a supplementary budget of £10,000 be approved to support this in 2018/19 funded from revenue balances; 3 Background 3.1 The issue regarding office accommodation has been considered for a number of years. In 2011 the Executive considered a report on office accommodation and reception points to meet modern requirements and to support efficiency and as a result the principal of a single site was incorporated in to the Council’s corporate priorities on 16 June 2011. In February 2016 the proposals for a single site were placed on hold. 3.2 The Council’s principal offices are the Town Hall, Mansion House and the Annex to the rear of the Town Hall. 3.3 Whilst consideration has been being given to the potential options for a single site over the last few years, there has been limited investment in refurbishment at either the Mansion House or the Town Hall site. This was considered a prudent approach in the circumstances. The situation is that both the Town Hall and particularly the Mansion House are now in need of significant refurbishment and repair. The estimated costs for this are detailed later in this report. 3.4 The current accommodation, particularly at the Mansion House is inadequate in terms of both customer access and in enabling the Council to provide satisfactory accommodation to its employees. Both buildings and in particular Mansion House have a layout and design which makes it difficult to make reasonable adjustments in order to enable people to take up or remain in employment. Further there are significant issues in terms of providing and maintaining reasonable working environment temperatures in both locations and particularly at the Mansion House site. The lack of suitable modern office accommodation for staff has a direct impact on health and well-being and productivity. 3.5 To support the local and national health agenda employers are encouraged to consider providing the following facilities: flexible working to support caring responsibilities (now extending to parental care as well as child care); facilities which enable staff to eat away from their desks; facilities to support and encourage pre work or lunch time exercise such as the provision of showers or changing rooms; provision of a safe and secure environment for staff and service users. 3.6 The Town Hall and Annex currently accommodate around 90 staff and the Mansion House site accommodates around 100 staff. The main customer reception is at the Town Hall. 3.7 The Human Resources and Appeals Committee has visited and toured the Mansion House site. The feedback from Members was that the accommodation does not provide a suitable working environment for modern working practices.
Page 112 3.8 The Mansion House cannot be readily adapted to provide appropriate support to staff or customers with mobility issues. The Town Hall has better facilities, however the facilities make access to public meetings difficult, albeit reasonable adjustments are made to enable access. Both the Town Hall and Mansion House service desks are struggling to meet demand at present. Customers have also provided feedback that better facilities for discussions in private are needed. There are current risks of lone working which increases with numerous low occupancy rooms particularly at the beginning and end of the working day. 3.9 The issue of Council accommodation has been considered regularly over a number of years. It is clear given the level of investment which may be required that this is an emotive issue and there are a wide ranging number of matters which need to be and can be considered most particularly in terms of judging future needs. Clarity is required on this matter to enable the Council to plan its accommodation needs in a structured way in order to positively address future needs and to ensure that the best overall investment decision is made taking consideration of all the facts. 3.10 In response to the resolutions of Council on 11 January 2018 a cross party working group was convened to consider the way forward in respect to the matter of accommodation. The group included members of the Executive, Group Leaders and the Chairman of the Council. The working group considered a number of key points from which the recommendations for this report have been derived. 3.11 Two main options were considered which are outlined below. Option A: To centralise accommodation at the Town Hall location and to redevelop the Mansion House site. 3.12 The potential benefits of one site at the Town Hall are that the accommodation would: enable there to be a multi-agency civic centre where other agencies can share front line facilities at the Town Hall eg CAB, Eden Credit Union if so desired; provide ground floor access to both public meetings and customer services; improve customer access to services through one single point of contact with the Council, an improved reception area and provide unfettered and safe disabled access to all public areas of the Council; facilitate better self-service in the reception area along with the ability to educate the public on access to services digitally which will ultimately may improve their access to services and reduce operating costs; continue to provide assisted access to services for those customers / service users who are not able to access services digitally; provide improved privacy for customers and enable improved formal interviewing;
Page 113 enable safer staff working by ensuring members of the public do not have to access safe staff areas to reach meeting rooms; reduce the need to transport mail and other paper documents between the two sites and eliminate staff time travelling between the two sites for meetings and training; enable a greater use of the existing Council Chamber space as a training facility, meeting room and possible overflow office area; improve the working environment for staff particularly in terms of facilities such as kitchen and washrooms, temperature of the office during winter months and lighting generally; reduces the risk considerably in relation to lone working; harmonise working practices across the Council’s staff. Having all staff on one site will improve staff knowledge and understanding of each other’s service needs with service teams more closely located; improve overall communication due to proximity of staff from other services; improve IT functionality as the IT link including Wi-Fi can be problematic; address some of the weaknesses and problems using the Council Chamber as follows: o The current lay out limits participation and public engagement; o The available space for press and public is limited; o The projector screen cannot always be easily viewed; o Its use as a general meeting room is limited due to its size and furniture; o Disabled access is only available via the secure office area of the building; 3.13 All of the above advantages should provide cost savings and improvements in operational efficiency. There are also possible environmental benefits. Benefits of redeveloping the Mansion House 3.14 The Mansion House site could be redeveloped to support the overall investment strategy in the district on the following basis: The rear and front car parking could be used to meet parking needs for the people who work in Penrith, through extending the season parking ticket scheme and also providing parking for the public. To lose the parking would be of detriment to that part of the town; The two ‘wings’ at the front area of the Mansion House could be converted to housing/flats and be made available to meet local housing needs, subject to planning permission being granted; There are a number of options in terms of how the main core of the building could be re-developed. Options include use as a commercial employment centre to support local business and start-ups or as a new
Page 114 site for the Museum or to meet some other social/community need. If the recommendation is to redevelop the Mansion House then a feasibility study should be undertaken to inform Members of the options which may be available for the use of the main building. 3.15 For the purposes of this report, cost projections are based on the scenario of providing retail office space. Further feasibility work would be required to identify the best available option for future use. See Appendix A. Option B: Refurbish both the Mansion House and Town Hall 3.16 The issues with accommodation which existed in 2011 still apply now. Mansion House currently has no room to accommodate any additional staff and is already in a position where in some service areas, teams or managers and teams are split into different rooms on different floors or in different wings of the building. It is neither efficient nor productive to have teams that are undertaking the same or similar work split across locations. 3.17 Mansion House (including some specific features) is statutorily listed grade II and lies within the Penrith Conservation Area. Whilst it is a building of historical and architectural interest the grade II listing means that it is difficult and costly to undertake significant alterations. The rooms tend to be small in size and not suitable to ever changing accommodation needs. 3.18 The Council recently recruited an additional 8 members of staff who are located at the Mansion House. In the situation where the Council were to retain the Mansion House and the Town Hall as staff accommodation (rather than a single site at the Town Hall location) an extension of some sort would be required to properly accommodate the current number of staff. 3.19 The Council is currently working towards further digitisation of its services with ongoing projects to replace and improve customer access to services. Whilst much of the focus is on increasing customer use of the online service facilities, significant work will be required to enable customers to self-serve. It is envisaged that this will be supported by customer services staff demonstrating the new online facilities to customers. In addition to this it is planned that the Council will support improved access to electronic planning files and other publicly available electronic files. This would likely be best facilitated by a customer services officer and would require a dedicated area in or near the reception area, with some large screen IT facilities. This will require some re-design of the current facilities at the Town Hall as this is likely to be impractical to achieve at the Mansion House. 3.20 If the refurbishment option were to be taken forward the proposal should include relocating the Council Chamber to the ground floor (into the area which currently houses the Revenue and Benefits section). This will require significant refurbishment to alter the current accommodation to be fit for purpose including the provision of a Committee Room and a kitchen for hospitality needs. 3.21 The cost to bring both sites up to a reasonable standard and provide for an extension to properly accommodate staff and provide improved access for customers is believed to be in the region of £980,000 dependent on how far any renovation was to be taken. The reception centre would still require significant alteration to make it fit for purpose.
Page 115 3.22 The cost above includes provision of a single level building at the Mansion House site. Planning permission and listed building consent will be required for all new buildings including any temporary accommodation to the rear of Mansion House. There is no guarantee that planning permission would be granted for the current design (see Appendix B). Member Working Group 3.23 The Member Working Group considered the options available in respect to the facilities and accommodation which the Council has for both staff and customer access. After much discussion and careful consideration the group reached the conclusion that the recommendation to Council should be to invest in the building of an extension to the Town Hall to provide a single site for key Council services and to re-develop Mansion House. 3.24 At £980,000 the cost of refurbishment is a significant investment with limited overall return. The basic flaws which exist in the accommodation design would only partially be addressed. The significant issues that have been highlighted within this report would not be resolved. 3.25 The funding structure for the larger investment for centralised Council accommodation at the Town Hall location was considered affordable by borrowing the monies over 50 years at a rate of 2.9% or lower and further the Council should achieve overall savings in terms of expenditure on accommodation over the term of the borrowing. This option would also allow the Council to support a wider investment strategy in terms of housing and economic development by converting some areas of the Mansion House into housing and providing valuable additional parking during the week. Furthermore the conversion of the main building into an alternative use (as determined through a feasibility study) would provide for additional footfall at that part of the town. 3.26 The Accommodation Working Group recommends that the investment in a new centralised accommodation represents the best return on investment for the people of Eden. Significantly it was noted that there would be no requirement to increase council tax to fund this overall investment strategy. 3.27 The funding structure for both options considered by the Accommodation Working Group is set out in the financial section of this report. The prime objective is that the build should be cost effective and it was recommended that in order to best manage costs that a tender should be undertaken for a design and build contract for the site. 3.28 The invitation to tender should set out the key requirements and set the budget at a realistic and affordable price. It should set out the information on the site available including the buildings at Corney Square and information on any easements. It would be up to the consultants tendering as to whether the design can or should incorporate those buildings. 3.29 The working group considered that Members should be involved to input to the tender specification for the design and build of the centralised site. There were a number of key points which it was thought should be considered as part of the design of the new site including amongst others:
Page 116 accessibility is a key consideration. Whilst the Town Hall building and Mansion House are compliant in terms of disability access they are difficult buildings to provide high standards of accessibility. The building should support accessibility for all and include an area to drop off and pick up at the entrance to the building; provision of a modern meeting space on the ground floor where people with mobility issues can get easy access to both public meetings and services is something which the Council should have as a priority; good audio and visual facilities are a priority in these areas to ensure accessibility; any new Council Chamber should be a multi-function room to support various activities including internal and external meetings and community group events; meeting rooms and spaces need to be multi-functional and support the needs of the Council and enable access to the various services which the Council provides; the building should provide flexible working space to support the future shape of work in whatever form that may take. Careful consideration needs to be given to the impact of open plan office working and document storage. The design should incorporate facilities which support health and well-being such as providing areas to eat away from desks and shower facilities; any extension could incorporate the opportunity to showcase Eden including bringing the Tourist Information Centre into the site (which is currently in a separate building) and providing exhibition space; concerns which would need to be overcome including reviewing the suitability of ‘hot-desking’, working in open plan offices and provision of enough meeting rooms to meet needs. 4 Policy Framework 4.1 The Council has four corporate priorities which are: Decent Homes for All; Strong Economy, Rich Environment; Thriving Communities; and Quality Council 4.2 This proposal supports all of the above corporate priorities in some way and in particular supports Quality Council. 5 Consultation 5.1 In response to the resolutions of Council of 11 January 2018 a cross party working group was held to consider the way forward in respect to the matter of accommodation. The group included members of the Executive, Party Leaders and the current Chairperson of the Council. The working group considered a number of key points from which the recommendations for this report have been derived.
Page 117 5.2 The Human Resources and Appeals Committee considered the matter of office accommodation in July and November 2018. Members of the Human Resources and Appeals Committee toured both locations as part of that review. It was noted that the Mansion House was in significant need of investment. 6 Implications 6.1 Financial and Resources 6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015. 6.1.2 The proposed capital expenditure is unfinanced. This means that there is no grant, capital receipt or other existing reserve or revenue stream being used to meet the expenditure. Local Authorities have the power to invest in unfinanced capital expenditure as long as this can be demonstrated to be prudent. This is in line with the prudential code. The key mechanism for this is the setting aside of sufficient revenue budget each year so that the expenditure is recovered over the life of the expected life of the asset to be financed. This is called the Minimum Revenue Provision. This element of capital financing relates to the impact on the Council’s reserves. This is distinct from the Council’s cash, investments and borrowing position. 6.1.3 Overall there are annual savings to be made in moving away from Mansion House to a purpose built centralised site at the Town Hall location. Savings realised are over and above the monies which would be needed to repay the capital used to finance the build (as set out in the business case). 6.1.4 The report considered by Council 11 January 2018 (CI/81/01/18) included an assumption that the scheme would be funded through an external loan from the Public Works Loans Board (PWLB), over 50 years at 2.9%. Where a Council incurs unfinanced capital expenditure, it does not necessarily need to borrow externally. This may be the case where a Council has sufficient investment balances to make an internal loan using such balances. 6.1.5 This has several advantages. The first is that it limits counterparty risk in that the Council is reducing the amount of cash it has to deposit with third parties and so removes the risk of a potential default. The second is that there will be a reduction, at least in the medium term, on the interest costs payable. By avoiding external borrowing, the interest payable is saved; there is however a cost of interest earned forgone on investments. This is due to having lower investment balances. For example, as the average rate of return on the Council’s investment portfolio is around 1.5%, the forgone interest earned would be out-weighed by the saving on interest payable with the margin being 1.4% or £32,200 based on the £2.3m scheme cost. There is a risk that as interest rates move over time, this margin could reduce (or increase). Should the Council decide in the future that economic conditions warrant taking on an external loan, it would still have the power to do so. There is a risk that this could be at a higher (or lower) rate than currently available. 6.1.6 On balance, given the Council’s currently strong cash position, it is judged that if circumstances remain as they are that the benefits out-weigh the costs
Page 118 and so internal loan finance would be the proposed way to support the scheme. 6.2 Legal 6.2.1 Parts of Mansion House and the Town Hall are not readily accessible, to a person with a mobility disability. Reasonable adjustments have been made to the buildings over time to make them more accessible taking account of the nature of the building and their listed status. The buildings do not meet the current standards which would be required if the properties were to be constructed now. 6.3 Human Resources 6.3.1 The quality of facilities available to employees by an employer has a direct impact on the effectiveness and productiveness of that organisation. Further as the overall population ages so too does the age of the workforce at the Council. It is likely that the need by Council to provide for accessible accommodation will increase as a result of that. 6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity The current accommodation does not actively support access to services or democracy for customers with disabilities particularly those with mobility issues. Due to the restrictions which there are in terms of the age of the building and the listing of the buildings the Council has provided as much in terms of reasonable adjustments as it is able to do. Although legally compliant the standard of access is current standards which would be required if the properties were to be constructed now. Health, Social The decision which is reached has a direct impact Environmental and on the Health and Wellbeing of employees, Economic Impact Economic development in the area and in the Council’s responsibilities towards its customers. Crime and Disorder There are no direct implications on Crime and Disorder. Children and There are no direct implication on Children and Safeguarding Safeguarding. 6.5 Risk Management Risk Consequence Controls Required The Council needs to Inability to meet the Investigation into current maintain and develop Council’s objectives and future accommodation a workforce which is and statutory needs and implementation able to meet the obligations. of measures to improve the demands which will level and standard of be placed upon it in accommodation.
Page 119 Risk Consequence Controls Required the future including being able to carry out the requirements of the Council in pursuing its objectives and statutory obligations. There is a risk that as The value for money Monitoring of interest rates interest rates move aspects of an internal and delegation to the over time, the margin loan may become Director of Finance to alter could reduce (or more or less the loan arrangements if increase) on any necessary. internal borrowing. 7 Other Options Considered 7.1 As highlighted earlier in this report (section 3.23), the Member Working Group considered the options available in respect to the facilities and accommodation which the Council has for both staff and customer access. After much discussion and careful consideration the group reached the conclusion that the recommendation to Council should be to invest in the building of an extension to the Town Hall to provide a single site for key Council services and to re-develop Mansion House. At £980,000 the cost of refurbishment is a significant investment with limited overall return. The basic flaws which exist in the accommodation design would only partially be addressed. The significant issues that have been highlighted within this report would not be resolved. 7.2 The working group considered the option of selling the Mansion House to generate a capital receipt to offset the cost of the extension and refurbishment of the Town Hall. There is an offer of £750,000 available for the Mansion House site including the car parks at both the front and rear of the building. The buyer has been approached and indicated that they are not interested in purchasing the site without the land currently allocated for parking. The loss of parking facility at that area of the town would likely be detrimental to nearby businesses. There is no suitable alternative land to provide parking facilities in or around this area. On the basis of the above this option has not been recommended by the working group. 7.3 The working group considered the potential impact of flexible working which could lead to a reduction in the requirement for the overall number of desks. In particular it considered the current investment in a new digital platform which will bring efficiencies and different means of accessing services. It was considered that it is difficult to measure the impact at the current time. Efficiencies will become more apparent over the next 3 to 5 years as the new digital platform is embedded in the day to day activity of the Council. It was agreed that there would likely be an overall reduction in the requirement for accommodation based on current service provision. However the Council has significant ambition in terms of growth in terms of homes and employment sites having regard to the Penrith) and therefore the accommodation would
Page 120 need to be flexible enough to provide for growth to enable the Council to deliver services to new residents and businesses. . Further if the need does become less the Council can rent out surplus space based on this being a consideration of the overall design. 8 Reasons for the Decision/Recommendation 8.1 To implement an investment strategy which should support economic development through the provision of additional parking and footfall in the town; supports the Council’s overall housing strategy and also addresses the significant issues which there are in terms of the Council’s accommodation, in a way which is financially sustainable.
Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 10 April 2018 Monitoring Officer (or Deputy) 10 April 2018 Relevant Assistant Director 09 April 2018 Background Papers: Reports in relation to Single Site since 2011 CE11/11 - Office Accommodation - Executive 28 June 2011 https://democracy.eden.gov.uk/Data/Executive/20110628/Agenda/26149.pdf CE2/12 – Single Public Offices Site for Penrith – Executive 10 January 2012, Special Council 19 January 2012 https://democracy.eden.gov.uk/Data/Executive/20120110/Agenda/27526.pdf CLS61/12 – Single Site Scrutiny review Final Report – Scrutiny Co-ordinating Board 12 July 2012, Council 26 July 2012 https://democracy.eden.gov.uk/Data/Scrutiny%20Co- ordinating%20Board/20120712/Agenda/29017.pdf Appendix https://democracy.eden.gov.uk/Data/Scrutiny%20Co- ordinating%20Board/20120712/Agenda/29018.pdf CLS62/12 - Single Site Scrutiny Review - Options Report – Executive 3 July 2012 https://democracy.eden.gov.uk/Data/Executive/20120703/Agenda/28964.pdf Appendix https://democracy.eden.gov.uk/Data/Executive/20120703/Agenda/28965.pdf CLS64/12 – The Single Site Project – Council 26 July 2012 https://democracy.eden.gov.uk/Data/Council/20120726/Agenda/29176.pdf Also available Part II Appendix (please ask if copy required) CD130/12 - Civic Site Project Report - Executive 11 December 2012 https://democracy.eden.gov.uk/Data/Executive/20121211/Agenda/30055.pdf
Page 121 CE5/13 – Single Site Project – Council 18 July 2013 https://democracy.eden.gov.uk/Data/Council/20130718/Agenda/31787.pdf Also available Part II addendum (please ask if copy required) CLS73/13 – Single Site Update – Council 10 October 2013 https://democracy.eden.gov.uk/Data/Council/20131010/Agenda/38670.pdf CE1/15 – One Site Project: Extension to the Town Hall – Executive 10 March 2015 https://democracy.eden.gov.uk/Data/Executive/20150310/Agenda/47708.pdf CLS65/15 – The Single Site Project – Executive 1 September 2015 https://democracy.eden.gov.uk/documents/s2202/07_Exec_1Sept15_SingleSite.pdf CLS69/15 - Scrutiny Review of the Single Site Project – Scrutiny Co-ordinating Board 10 September 2015 https://democracy.eden.gov.uk/documents/s2274/09_SCb_10Sept15_SSR_ToR.pdf CE16/15 – The Single Site Project – Council 3 December 2015 https://democracy.eden.gov.uk/documents/s3236/CE16- 16_SingleSiteProject_FullReport.pdf CLS16/16 - Single Site - Progress Report on Land Transactions – Council 18 February 2016 This report is Part II (please ask if copy required) CE4/16 – Single Site – Council 14 April 2016 https://democracy.eden.gov.uk/documents/s4227/09_Cl_14Apr16_SingleSite.pdf Also available Part II Appendix (please ask if copy required) CD46/17 - Office Accommodation – HR & Appeals 13 July 2017 https://democracy.eden.gov.uk/documents/s8053/AccommodationReport_July17_V4 mn.pdf CD70/17 – Office Accommodation – HR & Appeals 23 November 2017 https://democracy.eden.gov.uk/documents/s8663/CD70_17_OfficeAccommodation.p df CE3/18 – Office Accommodation – Council 11 January 2018 https://democracy.eden.gov.uk/documents/s8890/08aCE3- 18_OfficeAccommodation_withAppendices.pdf Also available Part II Appendix E (please ask if copy required) CE8/18 – Office Accommodation – Council 8 March 2018 https://democracy.eden.gov.uk/documents/s9295/15_CE8_18_OfficeAccommodatio n.pdf
Page 122 Appendices: Appendix A: Costings for Option A Appendix B: Costings for Option B Contact Officers: Jane Langston, Deputy Director Technical Services (01768) 212448 Bibian McRoy, Assistant Director Organisational Development (01768) 212243
Page 123 Appendix A – Provide a Single site at the Town Hall and development of Mansion House site. Single Site 1.1 In November 2014 planning approval was granted for an extension to the Town Hall and listed building consent followed in January 2015. This was to provide general Council office accommodation with a glazed link to the existing building. This was an amended proposal with the Planning Committee minded to refuse the original proposals for a more contemporary building. The amended proposal includes for the principal elevation to have the appearance facing towards Corney Square of a two storey natural stone building with string courses, cornices and parapets drawn from the Town Hall and with a naturally slated dual pitch roof. The proposed extension provides accommodation of three floors and is designed to accommodate 94 persons. It would be possible to reduce the available space allocated to each person and increase the occupancy figures to 119. There are currently 87 work stations in Mansion House. 1.2 At the time the total construction costs were estimated as shown in table 1 below:
New 3 storey extension £1,305,000
New 2 storey link £24,000
Alterations to existing building £50,000
Preliminaries £200,000
Contingencies £161,000
Price increase to 4th Quarter 2016 £14,000
Total Construction cost £1,755,000
1.3 There would additional professional costs of around £60,000 in compiling tender documents and managing the work on site. These costs are included in the overall financial analysis. 1.4 In August 2017 the Council purchased 4 and 4a Corney Square providing an opportunity to look at a different configuration for an extension to the Town Hall or consider a new building or group of buildings with greater civic and townscape presence and much improved flexibility. 1.5 Consideration can been given to keeping or demolishing some of the buildings at Corney Square. Demolition of the buildings would allow the construction of a more contextual and flexible purpose designed building providing full public access. 1.6 The Council’s Conservation Officer has noted that the proposals for development are located within the setting of the grade II listed Penrith Town Hall. This setting comprises of a mixture of densely built terraced housing, road infrastructure and car parking areas. There are also a number of
Page 124 traditional buildings which are characteristic of Penrith Conservation Area. The proposed location for construction of a new office building and Council Chamber has a ‘back-lands’ character, occupied by buildings of poor quality design and materials, and large area of hardstanding for car parking. 1.7 Furthermore a demolition of No.5 Corney Square is considered to result in considerable harm to the character of the conservation area and setting of a number of listed buildings. However demolition of No.4 and 4A Corney Square is considered to result in a less than substantial harm to the significance of the Conservation Area and listed buildings. A new single storey building for Council Chambers and meeting rooms would be easily accessible to all members of the public. To accord with policies in the NPPF the public benefit of this new space would be assessed against any potential harm caused by demolition of the non-designated buildings and construction of new buildings, to the significance of the conservation area. 1.8 These points would be considered in determining the design for a new office building. 1.9 Should this option be approved the work would be procured through a design and build tender. Development of Mansion House 2.1 A plan showing the proposals for the development of Mansion House is attached to this Appendix and the costs for this containing the financial analysis. Business case 3.1 The business case for a single site was set out in the report to Council 11 January 2018. The figures have been further tested to provide assurance that the business case is robust, as set out below. Over the lifetime of the scheme, there should be a saving overall including repayment of the capital invested: Reported to Revised Council Jan March Comments
2018 2018 Capital Costs £ Costs of construction and other Estimate subject to tender, as set out 1,755,000 1,755,000 works budget above Preparation of tender documents £10k for tender preparation, £50k for 0 60,000 and project management PM Conversion of West Wing of Mansion Conversion costs £35k-£40k as per 40,000 40,000 House surveyor estimate Conversion of East Wing of Mansion Conversion costs £35k-£40k/unit as per 60,000 80,000 House surveyor estimate Refurbishment of remainder of £110k relates to boiler for central part 150,000 150,000 Mansion House (MH) of M. £40k for other elements. Other items/ contingencies 195,000 208,500 Based on 10% Estimated costs, subject to full Total Capital Cost 2,200,000 2,293,500 competitive tender exercise.
Page 125 Revenue Costs £
PWLB at 2.83%. (or internal loan at Interest 64000 64,906 1.5%), cost reducing over life of funding as capital is repaid. MRP 44000 45,870 Repayment of £2.2m over 50 years. Estimate based on previous scheme, Town Hall running costs 95000 95,000 current Town Hall costs are £140k so allows for significant increase in cost. Drovers Lane and Mansion House car Foregone car parking income 12150 12,150 parks 2018-19 budgets Total revenue costs 215,150 217,926
Revenue Income £
As per 18/19 budgets, assumes costs Saving on Mansion House Running -135200 -135,200 passed on to tenants through service Costs charges; Assumed when single site previously Saving of 1FTS customer service staff -22010 -22,010 considered, based on Grade E inc on costs Assumed net income from contract Mansion house rear car park -20000 -17,850 parking, circa £350/annum/space 2 bed town house, £6,500 gross less West Wing MH rental -5000 -4,000 £1,500 management etc; allow £1k pa maintenance. 2 x 2 bed flat, £11,000 gross income East Wing MH rental -10000 -6,000 less £3,000 management, £2k pa maintenance Based on use as local enterprise hub, Businesses income from MH -25000 -15,000 similar Cumbrian town facility nets 7.5k pa but half the size. Total revenue income -217,210 -200,060
Year 1, interest costs will reduce to 0 Net revenue cost/saving +/- -2,060 17,866 over 50 year life.
Savings generated over life of scheme, Lifetime, simple cash flow -1,703,000 -729,349 including impact of reducing interest
Page 126 Appendix B: Refurbishment of both Mansion House and the Town Hall Cost of Refurbishment of Mansion House 1.1 Mansion House has been for some time in need of repairs and refurbishment. This work was put on hold whilst different option for a single site were considered. A schedule of work to be undertaken is as table 1 below. Table 1 – Refurbishment of Mansion House Reconfiguration of Reception Conversion of current Customer Services into Meeting Room Alterations to meeting rooms Refurbishment of Ladies, Gents and Accessible toilets Refurbishment Staff Kitchen Provision of a unisex Shower Room Replacing gas fired boilers main building and wings Replacing carpets Other urgent maintenance work External redecorations including roof repairs, wall repairs, timber window repairs, patch repairs to car park Total including contingencies and £530,000 preliminaries 1.2 It is proposed that as part of the refurbishment of Mansion House a bespoke/pre-fabricated building is introduced, located adjacent to the boundary wall of de Whelpdale Lane. This building would provide accommodation for between 18 to 24 staff and mean the loss of 8 car parking spaces. See figure 1. 1.3 The building would be designed to meet the Council’s requirements with a permanent build on site. The building would then be delivered in sections and assembled on site. 1.4 The cost of this would be in the region of £150,000. 1.5 Total cost of works to the Mansion House site is £680K.
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Figure 1 – Proposal for extension to accommodation at Mansion House
Cost of Refurbishment of Town Hall 2.1 The Town Hall will require refurbishment and redevelopment including moving the Council Chamber to the Ground floor plus provision of a ground floor Committee room and hospitality and also reconfiguration of the reception area, meeting rooms and interview rooms. Moving the Council Chamber to the ground floor would require the displacement of staff and the changes would reduce the available office accommodation. A schedule of work to be undertaken is as table 2 below. Table – Refurbishment and Redevelopment of the Town Hall Reconfiguration of Reception Moving of staff into the existing Council Chamber and Committee Room and refurbishment to office space. Refurbishment of the Revenue and Benefits and Financial Services offices to accommodate a ground floor Council Chamber, Committee room and supporting facilities. Refurbishment of kitchen area in the Town Hall and The Annex Replacing gas fired boiler Total including contingencies and preliminaries £300,000 2.2 Business case The total costs for refurbishments to the Mansion House (£530K) plus the new building (£150k) and the cost of refurbishments to the Town Hall (£300k) are around £980k. 2.3 These are one off costs that would result in additional revenue costs for repayment of the principal (Minimum Revenue Provision) and the interest on any amount borrowed. 2.4 There would not be any saving in the current running costs. 2.5 The estimated annual cost of borrowing would be circa £34.3k (£19.6k MRP over a 50 year life, £14.7k in interest based on an internal loan at 1.5%), dropping to £27k by year 25 and £19.6k by year 50 as the interest reduces in line with repayment of the loan.
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