Meeting documents

To approve as a correct record the Minutes of the meeting held on 12 November, 2019, copy attached as an appendix.

RESOLVED –

That the Minutes of 12 November 2019 be approved as a correct record.

Cabinet Member for Finance and Resources

Councillor Mordue

To consider the attached report

Contact Officer:  Tamsin Ireland (01296) 585004

(a)          Decision(s)

Having made a number of general comments, including those referred to below Cabinet noted the reports on finance, performance, the risk register:-

·        The need to ensure harmonisation of the risk register with those of the other authorities that would make up the new Buckinghamshire authority.

·        To include reference in the risk register to the improvement notice served on a particular property in Aylesbury (in the wake of the Grenfell fire).

·        To remove reference to SEMLEP, given the move to a unitary authority.

·        To note that the Bucks Growth Board was still in its infancy.

·        To amend the wording in item 5 relating to growth to make it clear that there was clarity around the planning issues impacting the Vale.

·        The need to continue contingency planning for a "no deal" Brexit.

·        In relation to the Corporate Plan, to ensure that the importance of Aylesbury Vale as the birth place of the Paralympics was brought to the attention of the new Buckinghamshire Council and to promote to that authority the need to continue funding the Flame Lighting Ceremony and other community events which had been successfully promoted by AVDC.

·        The need for clarity around the data relating to the delivery of affordable homes.

·        To ensure the continuance of the programme of review of Conservation Areas.

(b)          Reason(s) for Decision(s)

To allow Cabinet to review the overall position and comment on progress and targets.

(c) Alternative Options Considered

None

(c)          Relevant Scrutiny Committee

Finance and Services.  That Committee received a similar report on 11 November and noted the position.

(d)          Conflicts of Interest / Dispensation(s)

None.

Cabinet received a report presenting the financial digest, the Corporate Plan progress against targets and the Corporate Risk Register, which was available to view in full on the Council’s web site.  A similar report had been submitted to the Finance and Services Scrutiny Committee on 11 November, 2019.

Members commented generally as follows:-

·         Members felt there was a need to ensure harmonisation of the risk register with those of the other authorities that would make up the new Buckinghamshire authority.  Officers confirmed that this was in progress, particularly with regard to performance indicators.

·        It was considered that reference should be made in the risk register to the improvement notice served on an Aylesbury property (in the wake of the Grenfell fire).

·        The reference to SEMLEP should be removed from the section on growth.

·        It was noted that the Bucks Growth Board, established as part of the transition to a unitary authority, was still in its infancy.

·        It was felt that the wording in item 5 relating to growth should be amended to make it clear that there was clarity around engagement with communities in relation to planning issues impacting the Vale.

·        There was a need to continue with the contingency planning for a "no deal" Brexit.

·        In relation to the Corporate Plan, it was felt imperative that the importance of Aylesbury Vale as the birth place of the Paralympics should be emphasised to the new unitary authority as was the need to promote to that authority the importance of continuing with funding the Flame Lighting Ceremony and all other events which set Aylesbury Vale apart from other authorities in terms of community functions.

·        There was a need for clarity around the data relating to the delivery of affordable homes.

·        It was important to continue with the programme of review of Conservation Areas, within the context of the transition to a unitary authority.

With regard to the key financial management messages for the organisation for the remainder of the financial year, based upon the year to date financial position as set out in the latest financial digest:-

·        The need to reduce agency spend and dependency on temporary staffing solutions.

·        The identification of where services could be provided more efficiently and at reduced cost.

·        The maximisation of opportunities to increase income.

·        The reduction of spend on non pay items where possible.

·        The management of financial uncertainties arising from external factors and in particularly the unitary decision.

RESOLVED –

That subject to the comments referred to above, the reports on finance, performace and the risk register/corporate plan, be noted.

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development

To consider the attached report.

Contact Officer:  Teresa Lane (01296) 585006

(a)          Decision(s)

(1)          That it be noted that on 1 April, 2020 the AVDC shareholding in AVE LLP would transfer to the new Buckinghamshire Council alongside the Members’ Agreement and Loan Agreement, which together set out how the joint vehicle operated.

(2)          That, subject to any views the Economy and Business Development Committee may have, the draft business plan (set out in detail in the confidential section of the Cabinet agenda) for the period 2020 – 2023 be approved.

(3)          That the views of the Economy and Business Development Scrutiny Committee be sought formally at its meeting on 21 January 2020 and that these be reported back to Cabinet at its February meeting.

(b)          Reason(s) for Decision(s)

To  inform Cabinet of the future of AVE LLP following the coming into being of the new unitary authority and to enable the draft business plan to be reviewed in accordance with the Agreement with AVE, and pass comments to the asset managers. It was appreciated that there would need to be a similar report in due course to the new unitary authority.

Although approving the business plan, Cabinet commented on a number of specific issues, and in particular the propensity of AVE to dispose of assets for generating capital receipts as opposed to taking more opportunities to invest in on-going income generation.

(c) Alternative Options Considered

None

(c)          Relevant Scrutiny Committee

Economy and Business Development.  That Committee would receive a similar report at its meeting in January 2020.

(d)          Conflicts of Interest / Dispensation(s)

As Directors on the Board of AVE, Councillor Mrs Ward and The Assistant Director responsible for property and regeneration each declared a prejudicial interest in this item and having remained to answer technical and general questions in relation to the Company’s activities, they left the meeting whilst Cabinet considered this matter.

AVDC currently owned 50% of Aylesbury Vale Estates LLP (AVE).  The other 50% was owned by private investors.  On 31 March 2020, AVDC would cease to exist and on 1 April the new Buckinghamshire Council would come into being.  In order for AVE to continue, AVDC’s interest in the joint venture would transfer to the new authority  How the joint venture operated was enshrined in a Members’ Agreement together with a Loan Agreement.  AVDC was currently represented on the AVE Board by two Members and an Officer.  From 1 April 2020, it would be for the new authority to decide upon representation.

Cabinet received a high level summary of the AVE Draft Business Plan for the period 2020 to 2023.  The full Business Plan which included the cash flows was attached to the confidential section of the agenda.  In order to consider the financials, it was necessary to resolve to exclude the public from that part of the meeting under section 100(A)(4) of the Local Government Act, 1972 (Paragraph 3 of Schedule 12A of the Act).

Representatives from Akeman Asset Management attended the meeting and gave a presentation on the highlights of the draft Business Plan.  The Business Plan provided the framework within which the AVE Board would operate.  The Council’s approval to the Business Plan was required.

A summary of the key issues in the Plan was given:-

Strategy

The strategy to achieve the core aims was as follows:-

·         Sale of high value land with low income.

·         Improved planning consents to maximise land value of low income sites, for either redevelopment or reinvestment.

·         Pay off expensive debt in order to reduce the cost of finance and de-risk the portfolio.

·         Reduce amortisation, which soaked up surplus income.

·         Target a distribution of £600,000 p.a.

·         Maintain high levels of occupancy in the industrial portfolio, maintain current tenants at Hale Leys, let vacant units and improve income streams.

Sale of high value land with low income

·         The long awaited sale to Lidl of part of the Stocklake site had been completed in April 2019.

·         After vacation by the scouts, Adams Close, Buckingham had been sold and was being developed with 4 three bedroomed houses.

·         Contracts for the sale of the Gateway phase two site had been exchanged subject to detailed planning permission.  Anticipated completion was January 2020.

Distributions

·         The timing of the distribution for 2019/20 and the amount included in the cash flow for each partner was dependent on the delivery of a number of asset management initiatives.  AVDC had included in its own revenue budget a more cautious forecast dividend.  The timing of the distribution was likely to be in the last quarter of the 2019/20 year.

Occupancy Levels

·         The multi-let industrial estate had seen unprecedented demand for units and as at the end of September the vacancy level was 2%.  Various asset management initiatives to improve the estate ranging from new signage, new quarterly tenants’ meetings and refurbishment works had continued to contribute to the demand for units.  Eleven new leases  ...  view the full minutes text for item 3.