Corporate Policy and Scrutiny
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Corporate Policy and Scrutiny Committee Room 1 Tuesday, 29 10:30 County Hall, January 2019 Chelmsford, CM1 1QH For information about the meeting please ask for: Richard Buttress, Member Enquiries Manager Telephone: 07809 314835 Email: [email protected] Pages 1 Membership, Apologies and Declarations 4 - 4 To be reported by the Member Enquiries Manager. 2 Minutes of previous meeting 5 - 11 To note and approve the minutes of the meeting held on Tuesday 27 November 2018. 3 Questions from the Public A period of up to 15 minutes will be allowed for members of the public to ask questions or make representations on any item on the agenda for this meeting. On arrival, and before the start of the meeting, please register with the Committee Officer. 4 Joint Task and Finish Group - Ringway Jacobs 12 - 17 To note report CPSC/01/19. 5 Essex County Council Reserves 18 - 29 To consider report CPSC/02/19. 6 Provisional Settlement 30 - 32 To consider report CPSC/03/19. Page 1 of 61 7 2018/19 Financial Overview as at the Third Quarter 33 - 56 Stage To consider report CPSC/04/19. 8 Work Programme 57 - 61 To note the current position regarding the committee's work programme. 9 Date of Next Meeting To note that the next meeting of the committee will be held on Tuesday 26 February 2019. 10 Urgent Business To consider any matter which in the opinion of the Chairman should be considered in public by reason of special circumstances (to be specified) as a matter of urgency. Exempt Items (During consideration of these items the meeting is not likely to be open to the press and public) To consider whether the press and public should be excluded from the meeting during consideration of an agenda item on the grounds that it involves the likely disclosure of exempt information as specified in Part I of Schedule 12A of the Local Government Act 1972 or it being confidential for the purposes of Section 100A(2) of that Act. In each case, Members are asked to decide whether, in all the circumstances, the public interest in maintaining the exemption (and discussing the matter in private) outweighs the public interest in disclosing the information. 11 Urgent Exempt Business To consider in private any other matter which in the opinion of the Chairman should be considered by reason of special circumstances (to be specified) as a matter of urgency. Essex County Council and Committees Information All Council and Committee Meetings are held in public unless the business is exempt Page 2 of 61 in accordance with the requirements of the Local Government Act 1972. If there is exempted business, it will be clearly marked as an Exempt Item on the agenda and members of the public and any representatives of the media will be asked to leave the meeting room for that item. The agenda is available on the Essex County Council website, https://www.essex.gov.uk. From the Home Page, click on ‘Your Council’, then on ‘Meetings and Agendas’. Finally, select the relevant committee from the calendar of meetings. Attendance at meetings Most meetings are held at County Hall, Chelmsford, CM1 1LX. A map and directions to County Hall can be found at the following address on the Council’s website: http://www.essex.gov.uk/Your-Council/Local-Government-Essex/Pages/Visit-County- Hall.aspx Access to the meeting and reasonable adjustments County Hall is accessible via ramped access to the building for people with physical disabilities. The Council Chamber and Committee Rooms are accessible by lift and are located on the first and second floors of County Hall. Induction loop facilities are available in most Meeting Rooms. Specialist headsets are available from Reception. With sufficient notice, documents can be made available in alternative formats, for further information about this or about the meeting in general please contact the named officer on the agenda pack or email [email protected] Audio recording of meetings Please note that in the interests of improving access to the Council’s meetings, a sound recording is made of the public parts of many of the Council’s Committees. The Chairman will make an announcement at the start of the meeting if it is being recorded. If you are unable to attend and wish to see if the recording is available you can visit this link https://cmis.essexcc.gov.uk/Essexcmis5/CalendarofMeetings any time after the meeting starts. Any audio available can be accessed via the ‘On air now!’ box in the centre of the page, or the links immediately below it. Should you wish to record the meeting, please contact the officer shown on the agenda front page Page 3 of 61 Agenda item 1 Committee: Corporate Policy and Scrutiny Committee Enquiries to: Richard Buttress, Member Enquiries Manager Membership, Apologies, Substitutions and Declarations of Interest Recommendations: To note 1. Membership as shown below 2. Apologies and substitutions 3. Declarations of interest to be made by Members in accordance with the Members' Code of Conduct Membership (Quorum 4) Councillor M Mackrory (Chairman) Councillor I Henderson (Vice-Chairman) Councillor V Metcalfe (Vice-Chair) Councillor J Abbott Councillor J Beavis Councillor M Buckley Councillor M Garnett Councillor M Hardware Councillor J Moran Councillor R Pratt Councillor W Schmitt Councillor A Sheldon Councillor M Steptoe Councillor A Turrell Apologies Councillor M Garnett – substituted by Councillor J Aldridge Councillor J Beavis – substituted by Councillor I Grundy Councillor W Schmitt Page 4 of 61 Minutes of the meeting of the Corporate Policy and Scrutiny Committee, held in Committee Room 1 County Hall, Chelmsford, CM1 1QH on Tuesday 27 November 2018 Present Cllr M Mackrory (Chairman) Cllr M Hardware Cllr I Henderson (Vice-Chairman) Cllr I Grundy (substitute) Cllr V Metcalfe (Vice- Chairman) Cllr J Moran Cllr A Turrell Cllr R Pratt Cllr J Beavis Cllr A Sheldon Cllr M Garnett Cllr J Aldridge (substitute) Apologies Cllr W Schmitt Cllr J Abbott Cllr M Steptoe Cllr M Buckley Cllr S Barker and Cllr D Finch were present for items five and one to seven respectively. Joanna Boaler, Head of Democracy and Transparency and Jasmine Carswell, Democratic Services Officer, were in attendance to support the meeting. 1. Membership, apologies and declarations Apologies were received from Cllr J Abbott, Cllr W Schmitt, Cllr M Buckley and Cllr M Steptoe. Cllr I Grundy was the substitute for Cllr W Schmitt and Cllr J Aldridge for Cllr M Buckley. No declarations of interests were received. 2. Minutes of previous meeting The minutes of the meeting held on Tuesday 31 October 2018 were agreed as an accurate record of the meeting, pending one alteration relating to a grammatical error on page four and the spelling of Cllr J Abbott’s name. 3. Questions from the public There were no public questions. 4. Commercial Property Investment The Committee considered the report updating the Committee on the progress made in the Commercial Property Investment. Nicole Wood, Director, Finance and Page 5 of 61 Procurement and Robert Manning, Head of Financial Strategy and Analysis, joined the meeting to introduce the item and respond to questions. The purpose of the item was to outline the progress made to-date with the Commercial Property Fund since its inauguration in October 2017 and its adherence to the criteria set out in the Cabinet Report. Nicole and Rob set out the context and background; in July 2017 Cabinet approved the creation of a £50m fund for Essex County Council (the Council) to purchase Commercial Property, working in partnership with the specialist advisors Lambert Smith Hampton Investment Management (LSHIM) and the investment criteria was reviewed by the Corporate Policy and Scrutiny Committee in October 2017. The Council have invested c. £34m to date from the initial £50m fund approved by Cabinet in July 2017, purchasing an office block in Watford (November 2017), a retail park in Keighley, Yorkshire (March 2018) and an industrial site in Guildford, Surrey (July 2018). All purchases have followed the strict investment guidelines put in place in the original fund through a risk-based approach in partnership with LSHIM advisors. During the discussion, a number of questions were asked by members, the questions and responses are as follows: It was confirmed that all decisions made on the property portfolio are on a commercial basis and not related to social value or return, the purpose being to generate income. It was confirmed that LSHIM are paid on a retainer basis which is paid quarterly. The retainer is paid to LSHIM for their management of properties, investigation into asset improvements and investigation into potential investments. LSHIM also receive a payment when ECC purchase a property. It was confirmed that the £50m fund covers additional one-off costs, legal, land and purchase fees. The ongoing revenue is taken from the net profit. Members of the Committee discussed property investment within Essex and the risks associated with this, there is greater risk in terms of business failure when investing in Essex. This is based on advice given by LSHIM and in accordance with the investment criteria, which was approved in July 2017. It was confirmed that the Council has received advice from an independent advisor (Hymans Robertson) that until the outcome and therefore impact of Brexit is known, the commercial property programme should not be expanded. This decision will be reviewed further in the summer of 2019, along with a review of the portfolio split to assess whether the approach needs to be altered. It was reiterated how important the geographical spread of investment is to mitigate risks to the Council, there is a reserve of £1million to provide resilience should there be any severe fluctuations within the portfolio.