Agenda, decisions and minutes

To take any questions from members of the Public

Please Note: Members of the Public are requested to inform the Democratic Services Officer before the meeting begins if they wish to ask a verbal question at the meeting

No questions were asked or had been submitted by members of the public.

No questions were asked or had been submitted by members of the public.

Members are asked to declare the existence and nature of any Disclosable Pecuniary Interests in respect of any item of business to be considered at the meeting.

No declarations of interest were made by councillors regarding items on the Agenda.

No declarations of interest were made by councillors regarding items on the Agenda.

This report provides an update of the work the Council’s External Auditors are carrying out and identifies emerging issues for Committee to note.

The Committee:-

(1)          Received the External Audit Progress Report

(2)          Received the Annual Audit Letter

The Committee received and considered a report that provided an update on the work that the Council’s External Auditors were carrying out.

Mr. Ade Oyerinde, Audit Manager, Grant Thornton UK LLP was in attendance. Mr. Oyerinde reported that Elizabeth Jackson was currently on maternity leave and the role of Engagement Lead was being covered by Sarah Ironmonger.

Mr. Oyerinde reminded the Committee that the closure of accounts had been brought forward and the financial statement audit would be scheduled for June 2018. In relation to technical matters, Mr. Oyerinde did not anticipate any significant impact on the Council resulting from the forthcoming changes in IFRS 9 and 15.  Further guidance would follow. In respect of certification of the Council’s Housing Benefit subsidy claim for 2016/17 Mr. Oyrinde confirmed that work was now complete and that the claim had been certified without amendment or qualification.

Mr. Oyerinde reported no issues he wished to highlight in respect of the Annual Audit Letter.

The Committee:-

(1)          Received the External Audit Progress Report

(2)          Received the Annual Audit Letter

This report provides an overview of the proposed new Pay & Performance scheme for Epsom & Ewell Borough Council to be implemented in April 2018.

The Committee:

(1)          Approved and adopted the proposed new Pay & Performance scheme set out in Annexe 4 for implementation from April 2018;

(2)          Agreed that the proposed new Pay & Performance scheme be phased in over two financial years as follows:

a)            No cost of living increase across the board or performance pay to be made in 2018/19 and

b)            the Bonus A scheme be discontinued from the end of 2017/18 financial year;

Annual Progression on a 9 point scale be introduced in 2018/19 with assimilation from 20 Market Anchors to 12 Market Anchors;

c)            All employees on SCP 9 be awarded a one off 1% (consolidated) plus a one off 1% non-consolidated payment in April 2018;

d)            1% be paid across the board to all employees in 2019/20 (an increase from the proposed 0.5%)

(3)          the National Joint Council (NJC), Local Government Single Status job evaluation scheme (Green Book) be adopted.

(4)          the additional £64k for 2018/19 and £78k for 2019/20 to be found from within existing budgets

Note: Councillor Hannah Dalton in the Chair

The Committee received and considered a report that provided an overview of the proposed new Pay and Performance Scheme for the Council and which set out the recommendations of the Human Resources Panel in relation to the new scheme.

It was noted that the Panel had taken into consideration feedback from a staff survey and consultation undertaken by the Staff Consultative Group.  Whilst recognising the financial constraints on the Council, the Panel recommended an improved settlement of 1%, rather than 0.5%, to be paid across the board to all employees in 2019/20.

The report highlighted that the Medium Term Financial Strategy (MTFS) submitted to Council in February 2017 had included provision of £182k for an increase in the pay bill for 2018/19. A similar amount had been included for 2019/20.

The proposed settlement for 2018/19 was likely to cost £246k – an increase in the expected cost of pay of £64k and  the report highlighted that, if approved, the additional cost of the proposed new scheme would need to be found from additional savings or income incorporated into the 2018/19 budget.

The proposed settlement for 2019/20 was expected to cost £260k. This was also in excess of that anticipated within the MTFS (£78k) and would again need to be found from within existing budgets or from additional income.

Accordingly, the Committee:

(1)          Approved and adopted the proposed new Pay & Performance scheme set out in Annexe 4 for implementation from April 2018;

(2)          Agreed that the proposed new Pay & Performance scheme be phased in over two financial years as follows:

a)            No cost of living increase across the board or performance pay to be made in 2018/19 and

b)            the Bonus A scheme be discontinued from the end of 2017/18 financial year;

c)            Annual Progression on a 9 point scale be introduced in 2018/19 with assimilation from 20 Market Anchors to 12 Market Anchors;

d)            All employees on SCP 9 be awarded a one off 1% (consolidated) plus a one off 1% non-consolidated payment in April 2018;

e)            1% be paid across the board to all employees in 2019/20 (an increase from the proposed 0.5%)

(3)          the National Joint Council (NJC), Local Government Single Status job evaluation scheme (Green Book) be adopted.

(4)               the additional £64k for 2018/19 and £78k for 2019/20 to be found from within existing budgets

This report sets out the benefits of producing the Council's magazine Borough Insight for our community. It seeks approval from the Committee to continue with the production of the magazine in the current formats and frequency.

The Committee agreed that:

(1)          Borough Insight should continue as a printed magazine delivered to households and venues in the Borough three times a year.

(2)          The Council continues to produce e-Borough Insight in-house and continues to endeavour to increase views and subscription numbers.

(3)          The above to be produced within an annual budget of £27,000

Note: Councillor Hannah Dalton in the Chair

A report setting out the benefits of producing Borough Insight, the Council’s magazine, was presented to the Committee, seeking approval to continue with its production at its current frequency and in its current formats.

The Committee concurred with the view that it was important to offer a number of channels to deliver the Council’s messages.  It was recognised that the digital medium was the way forward and was a means of accessing information that was and would continue to be actively promoted.  However, customer feedback indicated that there was still a demand for hardcopy. The County Council had recently ceased production of its hard copy magazine and this Council, on the County Council’s behalf, continued to promote matters of significant interest in print.

Accordingly, the Committee agreed that:

(1)          Borough Insight should continue as a printed magazine delivered to households and venues in the Borough three times a year.

(2)          The Council continues to produce e-Borough Insight in-house and continues to endeavour to increase views and subscription numbers.

(3)          The above to be produced within an annual budget of £27,000

The report reviews progress and changes to the planned maintenance programme at mid-year and advises of changes made under delegated authority.

The Committee:

(1)          Received the current position and progress on the planned maintenance programme;

(2)          Noted changes made to the programme under delegated authority.

Note: Councillor Eber Kington resumed Chairmanship for the remainder of the meeting.

The Committee received a report reviewing progress and changes to the planned maintenance programme at mid-year. The report also advised members of changes made to the agreed programme in accordance with authority delegated to Officers.

Progress on the current programme was noted as follows:

The Committee noted that he following changes had been made to the approved programme in accordance with authority delegated to Officers:

a)            Additional spend on Bourne Hall Lodge to carry out repairs and redecorations as a result of water damage to the kitchen (£2,350);

b)            Additional spend on re-surfacing Ewell High Street Car Park following tender process (£2,546);

c)            Additional spend on Longmead Depot toilet refurbishment as a result in a change to the scope of works and resultant tender process (£6,000)

d)            Energy efficiency works necessitated by failure of old energy meters (£6,083)

These works did not result in an additional cost to the programme.  It was noted that the Ashley Centre Car Park health and safety repairs (£20K) was now a capital bid.

The budget at this stage appeared to cover the completed and intended works for 2017/18.  The property reserve held at 1 April 2017 was £402k.  This balance was forecast to reduce to £297k as at 31 March 2018 following the use of reserves in 2017/18. The report highlighted that beyond 2017/18, the existing budget of £210k would be insufficient to continue to maintain Council buildings and assets. A budget increase would be considered in the revised Asset Management Plan to be proposed by the Head of Property at a later date.

Accordingly, the Committee:

(1)          Received the current position and progress on the planned maintenance programme;

(2)          Noted changes made to the programme under delegated authority.

The Community Infrastructure Levy (CIL) Regulations encourage collecting authorities without parish councils areas (such as Epsom & Ewell) to spend a portion of their CIL receipts on projects identified or being brought forward by local communities.  We have yet to identify a mechanism for discharging this requirement.  The Borough Council’s CIL Joint Infrastructure Group (JIG) proposes two separate approaches, which would be run in parallel that would allow for a proportion of CIL monies to be allocated to locally identified projects.

This item was withdrawn

This item was withdrawn in view of a number of comments and suggestions that required further consideration.

This report sets out the Council’s current VAT position and suggests how to mitigate the risk of having to repay to HMRC VAT recovered on expenditure relating to exempt income.

The Committee:

(1)          Noted the implications of the Council’s limited VAT recovery position.

(2)          Agreed to the recommendations 1-3 at paragraph 4.9 of this report to mitigate the risk of having to repay in excess of £176,468 of recovered VAT to HMRC.

(3)          Noted that officers will investigate and report back on further actions that may be required at other buildings to improve the Council’s VAT position and mitigate the risk of future repayments. 

A comprehensive report was presented to Committee that set out the complex issues surrounding the Council’s current VAT position and suggestions as to how the Council might mitigate the risk of having to repay the Her Majesty’s Revenue and Customs (HMRC) VAT recovered on expenditure relating to exempt income.

The Committee was assured that nothing in the report committed the Council to a particular course of action if a solution could be found to the problem.  However, the implementation of some or all of the proposals set out in the report would demonstrate to the HMRC that the Council was committed to achieve the forecast percentages and stay within the 5% recovery over the seven-year period. The timing, location and extent of proposed capital projects and revenue works on properties such as Bourne Hall, the Playhouse and Parks Pavilions would need to be carefully considered, being mindful of the Council’s statutory obligations on the services it provided.

In order to mitigate the risk of having to repay VAT recovered from HMRC in 2016/17 totalling £176,468, plus any Capital Goods Scheme adjustments that might be required, the following action was necessary:

·                     Postponement of the renovation works on the two residential flats in South Street until after March 2019. In the meantime, expert VAT advice would be sought;

·                     Disposal of the Ebbisham Centre by March 2018 without any interim non-essential works;

·                     Review of the private sector leasing scheme & Council temporary owned accommodation to ensure that exempt income was avoided.

Accordingly, The Committee:

(1)          Noted the implications of the Council’s limited VAT recovery position.

(2)          Agreed to the actions summarised above and set out in more detail in paragraph 4.9 of the report to mitigate the risk of having to repay in excess of £176,468 of recovered VAT to HMRC.

(3)          Noted that officers would investigate and report back on further actions that might be required at other buildings to improve the Council’s VAT position and mitigate the risk of future repayments. 

To consider the principle of acquiring the flexible use of 24 units of accommodation at Defoe Court, East Street, Epsom as additional in-borough Temporary Accommodation, subject to negotiation with Sanctuary Housing Association

The Committee agreed:

(1)          That the Council should acquire the use of 24 additional units at Defoe Court, 87 East Street from Sanctuary Housing Association for use as temporary accommodation subject to negotiation and the identification of savings in the annual cost of nightly paid emergency temporary accommodation;

(2)          That the method of acquiring the units and negotiating the cost including the management of the units and any service charge be delegated to the Head of Housing and Community in consultation with the Chairman of the Strategy and Resources Committee and the Section 151 Officer, Head of Property and Regeneration and the Chief Legal Officer.

The Committee received and considered a report regarding the principle of acquiring the use of 24 units of accommodation at Defoe Court, East Street, Epsom as additional in-borough temporary accommodation.

The report highlighted that, as expenditure on these units was being incurred to discharge the Council’s statutory homelessness duties, there would be no impact on the Council’s VAT position.

The acquisition of these units would reduce the reliance on out-of-borough nightly paid accommodation and could result in further direct reductions in temporary accommodation costs.

Accordingly, the Committee agreed:

(1)          That the Council should acquire the use of 24 additional units at Defoe Court, 87 East Street from Sanctuary Housing Association for use as temporary accommodation subject to negotiation and the identification of savings in the annual cost of nightly paid emergency temporary accommodation;

(2)          That the method of acquiring the units and negotiating the cost including the management of the units and any service charge be delegated to the Head of Housing and Community in consultation with the Chairman of the Strategy and Resources Committee and the Section 151 Officer, Head of Property and Regeneration and the Chief Legal Officer.

This report asks the Committee to consider the report of the Independent Remuneration Panel and to make recommendations to Council on the Council’s Scheme for Members’ Allowances.

The Committee recommended that the Council consider the report of the Independent Remuneration Panel.

The Committee was asked to consider the report of the Independent Remuneration Panel and to make recommendations to Council on its Scheme for Members’ Allowances.

The report highlighted that regulations required councils to establish and maintain an Independent Remuneration Panel that had the function of providing the local authority with advice on its allowances scheme, the amounts to be paid and the pensionability of allowances, were relevant.  Whilst local authorities had to have regard to the advice of the Panel, it was for each council to decide its allowances scheme and the amount paid under that scheme.

The Committee reflected a variety of opinions on elements of the Panel’s recommendations and the recommended scheme in general.  Following defeat of the proposal that this Committee recommend that the Council accept the recommendations of the Independent Remuneration Panel, it was decided that Council be requested to consider the report of the Independent Remuneration Panel and make the final determination on the matter.

A report seeking to write-off sums invoiced pursuant to a section 106 Agreement in relation to a development at Linton’s Lane, Epsom.

The Committee agreed to write off the sum of £374,498.27

A report was presented to the Committee that sought to write-off sums invoiced pursuant to a Section 106 Agreement in relation to a development at Linton’s Lane, Epsom.

The report highlighted that it had to be recognised that the sums invoiced, totalling £374,498.27, were no longer recoverable and therefore it was recommended that the sum be written off.

Accordingly, the Committee agreed to write off the sum of £374,498.27.

This report seeks approval to write off a debt of over £20,000.

The Committee agreed to write off a debt totalling £21,254.67 in relation to Business Rates.

It was with a certain amount of frustration with the current legal framework that the Committee had to agree to write off a debt totalling £21,254.67 in relation to Business Rates.

The Committee is asked to confirm as a true record the Minutes of the Special and Ordinary meetings of the Strategy and Resources Committee held on 19 September 2017 and 26 September 2017 respectively and to authorise the Chairman to sign them.

The Minutes of the Meetings of the Special and Ordinary Meetings of the Strategy and Resources Committee held on 19 September 2017 and 26 September 2017 respectively were agreed as a true record and signed by the Chairman.

The Minutes of the Meetings of the Special and Ordinary Meetings of the Strategy and Resources Committee held on 19 September 2017 and 26 September 2017 respectively were agreed as a true record and signed by the Chairman.

The Committee is asked to consider whether it wishes to pass a resolution to exclude the Press and Public from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 on the grounds that the business involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act (as amended) and that pursuant to paragraph 10 of Part 2 of the said Schedule 12A the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee resolved to exclude the Press and Public from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 on the grounds that the business involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act (as amended) and that pursuant to paragraph 10 of Part 2 of the said Schedule 12A the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee resolved to exclude the Press and Public from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 on the grounds that the business involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act (as amended) and that pursuant to paragraph 10 of Part 2 of the said Schedule 12A the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

This report has not been published because the meeting is likely to be closed to the press and public in view of the nature of the business to be transacted/nature of the proceedings.  The report deals with information relating to the business affairs of the Council and the public interest in maintaining the exemption currently outweighs the public interest in disclosing the information.

The Committee agreed a way forward as set out in the Minutes.

Note:  The details are considered officially sensitive at this time and the Minute for this item will be exempt from publication.

The Committee agreed a way forward as set out in the Minutes.

Note:  The details are considered officially sensitive at this time and the Minute for this item will be exempt from publication.