Agenda, decisions and minutes

Online Meeting, Response and Recovery Committee
Thursday 26 November 2020 7:30 pm

You can view the individual reports for this meeting by selecting the headings from the numbered list of items at the bottom of this page. Alternatively you can view the entire agenda by selecting 'Agenda Reports Pack' below.

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Venue: PLEASE NOTE: This meeting will be livestreamed on the Council's YOUTUBE CHANNEL

Contact: Fiona Cotter, Democratic Services Team Leader  Tel: 0208 547 4607/email  fiona.cotter@kingston.gov.uk

Items
No. Item

67.

Procedure Rule 27

Minutes:

 

The Chair informed members that she had asked Councillors Davey and White to attend to attend to present items 7 (nightly paid accommodation)  and 9 (school sites) relevant to their Portfolios and had also received a request from Councillor Falchikov-Sumner to speak on items 5 (CRE Phase 1 Funding Strategy) and  8 (Town Centre Development and Renewal).

 

Resolved, that Councillors Davey, White and Falchikov-Sumner be permitted to speak on agenda items 7, 9, 5 and 8 respectively.

 

Voting: Unanimous.

 

68.

Public Question Time

A period of up to 30 minutes during which any resident of the Borough or representative of organisations operating within the Borough (other than members of the Council) may ask questions on matters relevant to the Committee.

 

Questions must be submitted in writing to democratic services@kingston.gov.uk by 10am on the working day prior to the meeting (Wednesday 25 November)

 

Minutes:

No questions had been submitted by members of the publilc.

69.

Apologies for Absence and Attendance of Substitute Members

Minutes:

There were no apologies for absence.

70.

Declarations of Interest

Members of the Committee are invited to declare any pecuniary interests and any non-pecuniary (personal interests) relevant to items on the agenda.

Minutes:

Councillor Dunstone declared an interest in item 5 (Cambridge Road Estate Phase 1 Funding) as a Director of the Cambridge Road Estate Joint Venture Board and indicated that she would withdraw from the meeting during consideration of that item.

71.

Minutes

To confirm as a true record the Minutes of the Meeting held on 29 October 2020 and to authorise the Chair to sign them.

Minutes:

The Minutes of the Meeting of the Response and Recovery Committee held on 29 October 2020 were confirmed as a true record.

 

72.

Cambridge Road Estate Phase 1 Funding Strategy pdf icon PDF 123 KB

Further to approval of the principles of the Cambridge Road Estate (CRE) funding strategy by this Committee at its meeting on 24 September 2020, this report seeks approval of the funding strategy in relation to phase 1 of the Cambridge Road Estate regeneration.

Additional documents:

Decision:

RESOLVED that:

 

1)    the principles of the Council’s Cambridge Road Estate (CRE) funding strategy (Key Point B), previously approved by the Response and Recovery Committee on 24 September 2020, be noted;

 

2)    the full cash flow model as described in confidential annex 3 which details the Council’s peak loan note C debt funding requirement in 2024 (highlighted in yellow in Column Q) be approved;

 

3)    borrowing authority be delegated to the S151 officer over the period of phase 1 in line with the Council’s approved Treasury Management Strategy .

 

4)    the risk and issues associated with Cambridge Road Estate set out in paragraph 31 to this report be noted;

 

5)    the inclusion of the detailed strategy for funding Cambridge Road Estate within the Council’s Annual Treasury Management Strategy be noted, which will include all the appropriate Prudential Indicators, and any changes to Minimum Revenue Provision (MRP) as part of the Budget approved annually by Finance and Regeneration Committee and Full Council and which will be reported to the Audit Governance and Standards Committee as part of the treasury management updates.

Minutes:

(Note: Councillor Dunstone withdrew from the meeting at this point and took no part in the deliberations on this item)

 

Further to approval of the principles of the Cambridge Road Estate (CRE) funding strategy by this Committee at its meeting on 24 September 2020, the Committee received and considered a report and associated detailed confidential annexes which sought approval of the funding strategy in relation to phase 1 of the Cambridge Road Estate regeneration.

 

Phase 1 of the development would construct 449 homes during the period June 2021 to May 2025 and would provide a mix of private, Council and affordable homes. Council homes built in Phase 1 would be built to meet identified housing needs of residents currently living in demolition Phases 1 and 2. This approach supported one of the key aims of the project which was to limit the number of residents who required a temporary move before moving into their new permanent home.

 

The CRE regeneration project was to be funded and approved phase by phase on a 50:50 basis by the Partners. A series of Loan Notes would govern the Council and Countryside's land and cash investments into the CRE project as set out in the LLP Members Agreement. The report highlighted that the following loan notes were expected to be required:

 

·         Loan Note A – the value of the Council’s landholding being transferred into the LLP;

 

·         Loan Note B – Countryside’s match of the Council’s land value;

 

Loan notes A and B are considered as equity investment.

 

·         Loan Note C – the Council’s share (50%) of the amount of loan note funding required by the CRE Business Plan above the value of loan notes A and B;

 

·         Loan Note D – Countryside’s share (50%) of the amount of loan note funding required by the Business Plan above the value of loan notes A and B;

 

·         Loan Note E – Where the amount attributable to the value of the land (Loan Note A) was in excess of 50% of the required equity for that phase of the development (or where one party agrees to commit an unmatched amount);

 

·         The GLA Loan Note – the Housing Zones Loan

 

On the 24 September 2020, the Response and Recovery Committee had approved the following principles in relation to the Cambridge Road Estate funding strategy and noted that the final detailed financial model would be presented to the relevant Council committee for approval in November 2020:

 

·         The Council would provide loan financing from the General Fund to the LLP at a rate which is compliant with State Aid regulation. The loan financing will fund Loan Note C and will be calculated as follows:

 

o   50% of the total cost of developing phase 1 above the value of the Council’s land (Loan note A) and Countryside’s match funding (Loan note B). Countryside will fund the other 50% of phase 1.

 

·         The Council funding (other than that of senior debt) would be on the terms of loan note instruments issued by  ...  view the full minutes text for item 72.

73.

Revenue and Capital Budget Monitoring 2020/21 - Month 6 pdf icon PDF 181 KB

To report the revenue and capital monitoring forecast outturn positions for 2020/21, including an updated financial impact of COVID-19 and note the way in which this will impact on the delivery of the Medium Term Financial Strategy and the setting of next year’s budget.

Additional documents:

Decision:

RESOLVED that:

 

1)    the forecast outturn position in respect of the General Fund for 2020/21 be noted;

 

2)    the 2020/21 forecast outturn position on the Housing Revenue Account be noted;

 

3)    the forecast in respect of the Schools Budget and the Dedicated Schools Grant (DSG) for 2020/21 be noted;

 

4)    the forecast outturn position in respect of the capital programme for 2020/21 to 2023/24 be noted; 5. the additions and changes to the capital programme set out in paragraphs 79 to 81 be approved;

Minutes:

(Note: Councillor Dunstone rejoined the meeting at this point)

 

A report was presented to committee reporting on the revenue and capital monitoring forecast outturn positions for 2020/21 based on monitoring at month 6, which included an update on the financial impact of COVID-19 and noted the way in which this would impact on the delivery of the Medium Term Financial Strategy and the setting of next year’s budget.

 

The impact of the pandemic and response to it on both the community and the Council’s financial position was not yet known. There remained a high level of uncertainty on how and at what rate the economy and society could return to a “new normal“ and the extent of the adverse impact on the economy and the knock on impact on the Council. Therefore it was difficult to forecast the impact on the Council’s in-year finances or medium term strategy.

 

The estimated financial impact of Covid-19 on the Council’s financial sustainability had been reported to the Response and Recovery Committee in June 2020 and this had been updated in a further monitoring report to this Committee on 27 August 2020. Since month 3 there had been additional funding for local government resulting in £1.764m extra unrestricted funding for Kingston. A claim had been submitted to the Ministry of Housing, Communities and Local Government  (MHCLG) for loss of fees and charges income for April to July totalling £3.4m and an estimate for the full year has been included of £4.7m (although this was subject to change with the impact of the second national lockdown currently underway).

 

The impact of Covid-19 on the Council’s future income sources was profound and would lead to a deficit in the Council Collection fund which would need to be provided for from the general fund. The MHCLG had issued details on how the collection fund deficits would be spread over the next three years: the estimated deficit in relation to 2020/21 had to be apportioned equally into 2021/22, 2022/23 and 2023/24. The Council therefore had to set aside money in the General Fund to repay its share of the deficit into the Collection Fund over this time frame. At present, Kingston’s share of the losses would be £1.4m for business rates and £4.6m for Council Tax.

 

The forecast revenue outturn position at month 6 was a nil variance, having made significant improvements since the forecast overspend of £9.604m had been reported at month 3. Service forecast overspends had reduced by £4.372m. This was mainly a combination of the impact of expenditure restraint and the implementation of a package of in- year savings. In addition the forecast resources had increased by £5.232m following the claim to MHCLG for the loss of fees and charges income and the 4th tranche of Covid funding.

 

Details of key areas of overspend and underspend were detailed in the body of this report. There were emerging pressures within all Service Directorates.

 

The Council’s General Fund balance was held to mitigate against the financial risks  ...  view the full minutes text for item 73.

74.

Framework Agreement for the Provision of Nightly Paid Accommodation pdf icon PDF 102 KB

The purpose of this report is to seek approval from the Response and Recovery Committee to set up a framework agreement from which the Council may procure nightly paid accommodation on a call-off basis.

Decision:

RESOLVED that:

 

The proposed procurement strategy to establish a framework for the provision of Nightly Paid Accommodation (NPA) for a term of 4 years at an average value of £3.9m per annum; and a total of £15.9m throughout the four year framework term commencing on June 2021 and ending in May 2025 be approved.

Minutes:

 

The Committee received and considered a detailed report which sought approval to set up a framework agreement from which the Council could procure nightly paid accommodation on a call-off basis.

 

Nightly Paid Accommodation (NPA) had historically been procured using a range of providers. The creation of the framework would help the Council increase choice and access to quality assured NPA providers and deliver value for money through competitive tendering. It would also improve the Council’s ability to monitor the quality of the accommodation and the providers’ performance by ensuring only providers meeting the agreed service specification and quality standards were successful in making it onto the Framework.

 

It was therefore proposed is to run a competitive tender exercise in adherence with the Public Contract Regulations 2015 to select a number of providers to supply Nighty Paid Accommodation (NPA) on a call-off basis to meet the Council’s requirements over a period of four (4) years.

 

RESOLVED that:

 

The proposed procurement strategy to establish a framework for the provision of Nightly Paid Accommodation (NPA) for a term of 4 years at an average value of £3.9m per annum; and a total of £15.9m throughout the four year framework term commencing in June 2021 and ending in May 2025 be approved.

 

Voting: Unanimous

75.

Town Centre Development and Renewal pdf icon PDF 676 KB

Following the decision of the Response and Recovery Committee on 29 October, to set out the opportunity for a strategic programme approach to comprehensive repurposing or redevelopment of a number of the Council's assets, including the Kingfisher Centre and Cattle Market Car Park, to support the recovery of the town centre economy, place making potential, increasing sustainability and unlocking of value.

Additional documents:

Decision:

RESOLVED that:

 

1)    the Council embark on the assessment of a business case to strategically plan the repurposing and comprehensive redevelopment of:

 

·         Kingfisher Leisure Centre and Cattle Market Car Park; and

 

·         The Guildhall Complex (Guildhall, Guildhall 1 and Guildhall 2)

 

2)    Other existing projects, such as the Cocks Crescent redevelopment (including the New Malden Leisure Centre) be drawn into a cohesive Development Strategy;

 

3)    the redevelopment of the two Leisure Centres as the first priority in developing the Council’s ultimate development delivery strategy be noted;

 

4)    the allocation of capital of £914,000 to support the feasibility assessment up to RIBA Stage 1 (as set out in Confidential Annex 1 & 2 to the report) be agreed to inform the creation of a business case to be presented back to Committee in Spring 2021 outlining the options for delivery;

Minutes:

 

Following the decision of this Committee on 29 October 2020, a report was presented to the Committee which set out the opportunity for a strategic programme approach to comprehensive repurposing or redevelopment of a number of the Council's assets, including the Kingfisher Centre and Cattle Market Car Park, to support the recovery of the town centre economy, place making potential, increasing sustainability and unlocking of value.

 

 

Since the report to the Response and Recovery Committee on 29 October 2020 outlining the proposed redevelopment of Kingfisher Leisure Centre and Cattle Market Car Park, the Council had further considered its options to incorporate assets into a development strategy.  Given the scale of the impact of COVID-19 on the town centre economy and the long term sustainability of the Council’s corporate estate at the Guildhall site, a proposal had been developed to explore how to comprehensively and strategically plan any proposed redevelopment of the sites, taking a programme approach.

 

In addition to providing place making value to the collective sites, the opportunity also aligned to supporting the financial viability of social infrastructure such as leisure centres, which were of the most paramount importance to communities.

 

As with all programmes, some sites, such as the Kingfisher Leisure Centre & Cocks Crescent redevelopment, remained the first priority for delivery and would progress immediately whereas others needed more time to be sufficiently planned. However, having taken a collective view of the opportunities and having looked at the sites strategically meant chances to add value were not lost.

 

 

 

RESOLVED that:

 

1)    the Council embark on the assessment of a business case to strategically plan the repurposing and comprehensive redevelopment of:

 

·         Kingfisher Leisure Centre and Cattle Market Car Park; and

 

·         The Guildhall Complex (Guildhall, Guildhall 1 and Guildhall 2)

 

2)    Other existing projects, such as the Cocks Crescent redevelopment (including the New Malden Leisure Centre) be drawn into a cohesive Development Strategy;

 

3)    the redevelopment of the two Leisure Centres as the first priority in developing the Council’s ultimate development delivery strategy be noted;

 

4)    the allocation of capital of £914,000 to support the feasibility assessment up to RIBA Stage 1 (as set out in Confidential Annex 1 & 2 to the report) be agreed to inform the creation of a business case to be presented back to Committee in Spring 2021 outlining the options for delivery.

 

Voting:

 

For:

Councillors Beynon, Cobbett, Dunstone, Durrant, Goodship, Lidbetter, Kerr, Kirsch and Sweeney (9)

 

Against:

 

Councillors Bass and Davis (2)

 

Abstain:

 

None (0)

 

 

 

76.

School Sites Update pdf icon PDF 147 KB

This report seeks approval for further work to be undertaken, and revenue funding to be provided, to further the aim of formally allocating land at Kingsmeadow in Norbiton and Moor Lane in Chessington for the development of a new voluntary-aided secondary school and a new special free school in the Borough, and seeks approval for additional funding for the new build required to implement the expansion of Burlington Junior School from four to five forms of entry.

Decision:

RESOLVED that:

 

1)    further due diligence be undertaken, and revenue funding provided for that purpose, towards a formal allocation of land at Kingsmeadow as the site for a new voluntary-aided 900-place (180 per year) 11-16 Church of England secondary school to be provided by the Diocese of Southwark.

 

2)    further due diligence bs undertaken, and revenue funding provided for that purpose, towards a formal allocation of land at the Moor Lane Centre site for a new 4-19 90-place special free school to be provided by Ambitious About Autism.

 

3)    funding be allocated for the new build required to implement the expansion of Burlington Junior School from four to five forms of entry and to maintain the school’s existing ‘CLASP’ building until the new accommodation can, subject to planning permission, be built.

Minutes:

The Committee received and considered a report which sought approval for further work to be undertaken, and revenue funding to be provided, to further the aim of formally allocating land at Kingsmeadow in Norbiton and Moor Lane in Chessington for the development of a new voluntary-aided secondary school and a new special free school in the Borough respectively. The report also sought approval for additional funding for the new build required to implement the expansion of Burlington Junior School from four to five forms of entry.

 

The Council would be required, by the terms of the agreement with the Department for Education, to provide 10% of the capital costs of the proposed voluntary-aided Church of England secondary school. These were currently estimated at £2.5m. The unallocated Basic Needs budget of £5.125m (over two years) could be used to fund this project but this could only be used once and would therefore not be available for the other projects which were the subject of the report or other school capital projects.

 

The Council would need to invest up to £13.1m to take forward the proposed design and build scheme for Burlington Junior School, of which £7.9m had already been committed from the basic need grant allocation. The shortfall of £5.1m could be met in part from the remaining unallocated Basic Needs funding (after allowing £2.5m for the new voluntary-aided Church of England secondary school), but the remaining £2.5m would need to be funded from borrowing. Additional borrowing would create an additional revenue cost in the region of £125,000 in interest and minimum revenue provision which would need to be included in the Council’s medium term financial plan.

 

A sum estimated at £50,000 of capital would also be needed to undertake feasibility and initial work required to make the CLASP building at Burlington School safe to occupy until the next section was completed, as it had become apparent that further remedial work was needed to ensure that it continued to provide a safe and suitable learning environment until the new accommodation had been built and could be occupied. This would also need to be financed from borrowing.

 

The report also highlighted that, upon expansion of a school to meet a basic need for places, revenue funding, currently £54,664 per school year, was provided to pay for the costs of seven-twelfths of the annual salaries of a teacher and teaching assistant, plus some other additional resources, for the period between September, when the additional class was admitted, and April, when the per-pupil funding for those children kicked in retrospectively, based upon the October pupil census figures. That funding would be required for the four years of Burlington Junior School’s expansion and would be sourced from the ‘Growth Fund’ element of the Dedicated Schools Grant School Block, subject to annual agreement by Schools’ Forum.

 

Revenue funding would be required for the Kingsmeadow and Moor Lane Centre Sites. This was needed for the due diligence legal work to be undertaken towards the formal allocation. There  ...  view the full minutes text for item 76.

77.

Urgent Items Authorised by the Chair

Minutes:

There were no urgent items.