Agenda, decisions and minutes

To confirm the Minutes of the Meeting held on 4 October 2022.

The Minutes of the Meeting held on 4 October 2022 were confirmed and signed as a correct record.

To receive from members, declarations of interest in relation to any items included on the agenda for this meeting, in accordance with the Waverley Code of Local Government Conduct.

There were no declarations of interest raised under this heading.

The Chairman to respond to any questions received from members of the public for which notice has been given in accordance with Procedure Rule 10.

The deadline for receipt of questions is 5pm on Tuesday 25 October 2022.

The Executive received the following questions in accordance with Procedure Rule 10:

1.          From Mr Richard Benson

Godalming Regeneration Project webinar 19th October.

Subject  : Cost of heating the Burys Office Accommodation

During the webinar Cllr Merryweather made the following points:

·             9mins 33secs : "The amount it costs to heat this building is astronomical"

·             40mins 34 secs:  "and with our energy bills...we're looking at hundreds of thousands of pounds...two to three hundred thousand pounds a year just to try and heat the building".

The cost of gas to heat the Burys office accommodation in 20/21 was £23,733 and in 21/22 was £33,438. The year on increase was £9,705 or 41%.  The cost of gas for the first quarter 22/23 was £10,871, which when annualised would give a cost of £43,484. (source: Payments to suppliers over £500).

If the Q1 22/23 cost of £10,871 was annualised and then doubled, it would still only amount to £87,000. 

Questions:

a.          Do the Executive agree that my figures are correct?

b.          Do the Executive agree that the claim, “the cost of £200,000 to £300,000 just to try and heat the building”, is not correct? 

c.           What is the Executive Committees revised estimate for the cost of heating the Burys Office accommodation for 22/23?

Response from Councillor Mark Merryweather, Portfolio Holder for Finance, Commercial and Assets:

“Specific just to the cost of gas, those on the payments database for F20/21 and F21/22 are by definition historic and as Mr Benson says they showed a 41% increase even before the more recent acceleration in inflation.  For completeness I should note that the payments database is not structured on an accruals basis, and one of the two bills recorded in the first quarter F22/23 actually relates to March in F21/22, and so the actual cost for the first quarter – again just for gas - was £10,724.51 which if annualised would equate to £42,898.04.  The first quarter is a lower cost quarter in the year and costs are continuing to increase, but our base case forecast for this year F22/23 is actually slightly lower than Mr Benson’s estimate at around £69,000 with full years from F23/24 running at about £75,900 annually just for gas.  That’s an annual increase of over 300%, or nearly £50,000 over the F20/21 baseline, equivalent to nearly £500,000 over the same 10 year horizon that’s used for the maintenance programme.

But, the figures just for gas exclude the direct financial cost of securing a serviceable boiler itself and the other direct and indirect costs - financial and environmental - of the status quo, and which include not just building maintenance backlog but also just for one other example our other energy cost – electricity - too, which include for other non-gas heating, ventilating and air conditioning and cooling systems and appliances.

Our baseline electricity cost in F19/20 was £76,832 which we expect to increase to around £167,000 just for this year F22/23 and £183,700 for the full years from F23/24 – an  ...  view the full minutes text for item EXE 46/22

The Chairman to respond to any questions received from Members in accordance with Procedure Rule 11.

The deadline for receipt of questions is 5pm on Tuesday 25 October 2022.

There were no questions submitted from Members of the Council.

The Leader and Portfolio Holders gave brief updates on current issues not reported elsewhere on the agenda:

·        The Leader invited Councillor Williams and the Executive Head of Environmental Services to give a presentation on the Waste and Street Cleaning Contract industrial action which was due to commence on 3 November.  The presentation outlined the planning and priorities; the legal and financial implications; and communication and operational issues.  The Leader then invited non-Executive members present both in person and on Zoom to ask questions of the Portfolio Holder and Executive Head of Service.  Councillors Cosser, Munro, Reed, Gale, Heagin, Peter Marriott and Seaborne all spoke on this item.  The Leader thanked all those present for their contributions and the officers involved for their work.

·        Councillor Liz Townsend provided an update on the Local Plan Part 2 examination and the advice received from the Inspector that no additional modifications would be required other than those identified through the course of the examination, and no additional sites would need to be identified, in order to make the plan sound and legally compliant.  It was hoped that Local Plan Part 2 would proceed to adoption in early 2023.  The Leader thanked the officers for their work.

·        Councillor Merryweather advised that the next Resources Overview and Scrutiny Committee would be considering an update on the MTFP for the current financial year and encouraged all to read.  Assumptions had been adjusted to take into account inflation, which was expected to peak at a higher level.  The change added £5m over the MTFP period and the unresolved budget shortfall was now almost twice the value anticipated in February 2022.

To inform Members of the approach by National Corp Limited to sell the freehold of Wyatts Close Godalming to Waverley Borough Council (the Council).

The Council currently holds 1 to 32 Wyatts Close on a long leasehold within the housing revenue account.  National Corp Limited are looking to divest the properties.  Following negotiation an agreed sum has been reached to buy the properties and the wider site.

This report seeks to inform Members of the reason why acquisition is deemed appropriate and asks for authority to proceed with the purchase.

Recommendation

The February 2022 Council approved that the Executive has delegated authority for the financial year 2022/23 to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m.

It is recommended:

2.1.    that the Executive use their delegated authority to approve the purchase of the unencumbered freehold interest of 1 to 32 Wyatts Close and wider site for the total costs of £1,236,000 to be funded from the Housing Revenue Account.

2.2.    that the Executive receive the background documents to the enfranchisement:

§  Opinion Letter from Bishop & Sewell LLP dated 28 September 2022 [Annexe One]

§  Valuation Report from Perry Hill dated 19 October 2022 [Annexe Two]

§  Settlement Agreement dated 28 September 2022 [Annexe Three]

§  Draft Agreement for Sale National Corp Limited (1) and Waverley Borough Council (2) [Annexe Four]

§  Transfer of Part (TP1) SY788504 £1,015,000 (freehold to houses at 1-32 Wyatts Close) [Annexe Five]

§  Transfer of Part (TP1) SY788504 £10,000 (roadways, verges and remainder of site) [Annexe Six]

2.3.    and upon having considered matters in light of advice received from its advisors the Executive approves to:

i.       ratify the settlement agreement entered into between National Corp Limited and the Council on 28 September 2022, and

ii.      approve the budget virements schedule as at Annexe Seven

2.4.    The Executive approve:

iii.    the purchase of additional land;

iv.    to exchange and complete the statutory contract for the purchase of the freehold to the houses in accordance with the provisions of the Leasehold Reform Act 1967; and

v.     to authorise the Interim Executive Head of Legal and Democratic Services to enter into any documentation required to effect the transaction.

Both steps being simultaneous as set out in the draft Settlement Agreement.

RESOLVED

1.               That the Executive use its delegated authority to approve the purchase of the unencumbered freehold interest of 1 to 32 Wyatts Close and wider site for the total costs of £1,236,000 to be funded from the Housing Revenue Account.

2.               that the Executive receive the background documents to the enfranchisement:

§  Opinion Letter from Bishop & Sewell LLP dated 28 September 2022 [Annexe One]

§  Valuation Report from Perry Hill dated 19 October 2022 [Annexe Two]

§  Settlement Agreement dated 28 September 2022 [Annexe Three]

§  Draft Agreement for Sale National Corp Limited (1) and Waverley Borough Council (2) [Annexe Four]

§  Transfer of Part (TP1) SY788504 £1,015,000 (freehold to houses at 1-32 Wyatts Close) [Annexe Five]

§  Transfer of Part (TP1) SY788504 £10,000 (roadways, verges and remainder of site) [Annexe Six]

3.               and upon having considered matters in light of advice received from its advisors the Executive approves to:

i        ratify the settlement agreement entered into between National Corp Limited and the Council on 28 September 2022, and

ii       approve the budget virements schedule as at Annexe Seven

4.               The Executive approve:

iii     the purchase of additional land;

iv     to exchange and complete the statutory contract for the purchase of the freehold to the houses in accordance with the provisions of the Leasehold Reform Act 1967; and

v       to authorise the Interim Executive Head of Legal and Democratic Services to enter into any documentation required to effect the transaction.

Both steps being simultaneous as set out in the draft Settlement Agreement.

Reason

The Council in securing the freehold of this site will consolidate its holding in this site, to provide social housing and secure control for the future and the ability of considering it in combination with nearby holdings.

[This decision was taken under the urgency procedures set out in Part 4.5 of the Council’s Constitution and is therefore not subject to call-in]

Councillor Paul Rivers, Co-Portfolio Holder for Housing (Operations) introduced the report which sought approval for the purchase of the freehold of 1-32 Wyatts Close, Godalming for the provision of secure social housing.

Councillor Heagin spoke in support of the recommendations, however expressed concern over the omissions in the governance route which had resulted in the item being taken under urgency procedures and highlighted the need for a more robust project and programme management system to avoid the situation arising again.

The Leader advised that the Executive had also raised concerns with officers over the governance route and was assured that those issues had now been addressed.

RESOLVED

1.               That the Executive use its delegated authority to approve the purchase of the unencumbered freehold interest of 1 to 32 Wyatts Close and wider site for the total costs of £1,236,000 to be funded from the Housing Revenue Account.

2.               that the Executive receive the background documents to the enfranchisement:

§  Opinion Letter from Bishop & Sewell LLP dated 28 September 2022 [Annexe One]

§  Valuation Report from Perry Hill dated 19 October 2022 [Annexe Two]

§  Settlement Agreement dated 28 September 2022 [Annexe Three]

§  Draft Agreement for Sale National Corp Limited (1) and Waverley Borough Council (2) [Annexe Four]

§  Transfer of Part (TP1) SY788504 £1,015,000 (freehold to houses at 1-32 Wyatts Close) [Annexe Five]

§  Transfer of Part (TP1) SY788504 £10,000 (roadways, verges and remainder of site) [Annexe Six]

3.               and upon having considered matters in light of advice received from its advisors the Executive approves to:

i        ratify the settlement agreement entered into between National Corp Limited and the Council on 28 September 2022, and

ii       approve the budget virements schedule as at Annexe Seven

4.               The Executive approve:

iii     the purchase of additional land;

iv     to exchange and complete the statutory contract for the purchase of the freehold to the houses in accordance with the provisions of the Leasehold Reform Act 1967; and

v       to authorise the Interim Executive Head of Legal and Democratic Services to enter into any documentation required to effect the transaction.

Both steps being simultaneous as set out in the draft Settlement Agreement.

Reason:

The Council in securing the freehold of this site will consolidate its holding in this site, to provide social housing and secure control for the future and the ability of considering it in combination with nearby holdings.

To inform the Executive committee that following feedback and comment from the Services Overview & Scrutiny Committee the Biodiversity Policy and Action Plan has been further revised.

The Biodiversity Policy and Action Plan is now ready to be adopted by the council.

Recommendation

That the Executive committee adopts the Biodiversity Policy and Action Plan as council policy.     

RESOLVED

That the Biodiversity Policy and Action Plan be adopted as council policy.

Reason

Public, Government and industry awareness of Climate change and the fragile state of our environments, local, national, and international have never been higher or the importance of action so urgent.  As a responsible leading local Authority, it is our duty to lead from the front and demonstrate real commitment to recognising the great important of our natural environment and our extreme reliance we place upon it in terms of financial activity, mental health, and wellbeing.

There is a need for a consistent and a comprehensive approach to the Councils management of habitats and wildlife in order that biodiversity is enhanced and increased wherever possible in the borough.

The Council needs a policy that puts the environment into the heart of everything we do, embeds new Legislation such as the Environment Act 2021, and take steps to protect our environments for our future generations.

This Biodiversity policy (Annexe 1) provides the central structure to support the Councils staff and ensure that biodiversity implications are considered central to decision making.

The new Environment Act introduces the requirement for Biodiversity reports, Local Nature Recovery Strategies and the examination and approval of biodiversity gain plans.

[Services Overview and Scrutiny Committee]

Councillor Liz Townsend, Portfolio Holder for Planning and Economic Development presented the report which set out a draft Biodiversity Policy and Action Plan, created following considerable research by officers working with the Surrey Wildlife Trust.  This would ensure that the Council’s open spaces were managed in a way to maximise biodiversity and provide access to diverse open spaces for residents.

Councillor Williams spoke in support of the draft Policy, which was part of a suite of policies, and had been through a lengthy consultation process with input from Overview and Scrutiny.  The Policy was aligned to the corporate commitment to biodiversity and tackling the climate and ecological emergency.

The Leader thanked the Portfolio Holders and hoped that secondary legislation would be forthcoming from the Government to help local authorities implement the provisions of the Environment Act. 

RESOLVED

That the Biodiversity Policy and Action Plan be adopted as council policy.

Reason

Public, Government and industry awareness of Climate change and the fragile state of our environments, local, national, and international have never been higher or the importance of action so urgent.  As a responsible leading local Authority, it is our duty to lead from the front and demonstrate real commitment to recognising the great important of our natural environment and our extreme reliance we place upon it in terms of financial activity, mental health, and wellbeing.

There is a need for a consistent and a comprehensive approach to the Councils management of habitats and wildlife in order that biodiversity is enhanced and increased wherever possible in the borough.

The Council needs a policy that puts the environment into the heart of everything we do, embeds new Legislation such as the Environment Act 2021, and take steps to protect our environments for our future generations.

This Biodiversity policy (Annexe 1) provides the central structure to support the Councils staff and ensure that biodiversity implications are considered central to decision making.

The new Environment Act introduces the requirement for Biodiversity reports, Local Nature Recovery Strategies and the examination and approval of biodiversity gain plans.