Agenda and minutes

Resources and Performance Select Committee - Friday, 18 October 2024 10.00 am

Venue: Council Chamber, Woodhatch Place, Reigate

Contact: Jake Chambers, Scrutiny Officer

Media

Items
No.	Item
29/24	APOLOGIES FOR ABSENCE AND SUBSTITUTIONS Share this item Purpose of the item: To receive any apologies for absence and substitutions. Additional documents: Webcast for 29/24 Minutes: Apologies had been received from Cllr John O’Reilly.
30/24	MINUTES OF THE PREVIOUS MEETINGS: 18 JULY 2024 PDF 380 KB Share this item Purpose of the item: To agree the minutes of the Resources and Performance Select Committee held on 18 July 2024 as a true and accurate record of proceedings. Additional documents: Webcast for 30/24 Minutes: The committee AGREED the minutes as a true and accurate record of the meeting.
31/24	DECLARATIONS OF INTEREST Share this item All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES: · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest · As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner) · Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial. Additional documents: Webcast for 31/24 Minutes: None declared.
32/24	QUESTIONS AND PETITIONS PDF 81 KB Share this item Purpose of the item: To receive any questions or petitions. NOTES: 1. The deadline for Members’ questions is 12:00pm four working days before the meeting (Friday 12 October 2024). 2. The deadline for public questions is seven days before the meeting (Thursday 11 October 2024). 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received. Additional documents: Webcast for 32/24 Minutes: One public question was received in advance of the meeting and was published as a supplement to the agenda. The Chairman noted that the answer was circulated before the meeting.
33/24	CABINET RESPONSE TO THE DB&I RECOMMENDATIONS PDF 88 KB Share this item Purpose of the item: For the Committee to consider the response of Cabinet to the recommendations of this select committee’s Digital Business & Insights (DB&I) Task Group report. Additional documents: Appendix 1 - DB&I Report recommendations , item 33/24 PDF 86 KB Appendix 2 - Cabinet response to RPSC Task Group Recommendations , item 33/24 PDF 386 KB Webcast for 33/24 Minutes: Witnesses: Cllr Bob Hughes, Chairman Cllr Steven McCormick, Vice-Chairman Key points raised during the discussion: 1. The Chairman stated that all 18 recommendations had been accepted by Cabinet. 2. The Cabinet member for Finance outlined that he had emphasised to officers that the recommendations would be used as a checklist for future projects. 3. A Vice-Chairman explained that the task group’s intention was to make the recommendations tangible and workable within the organisation, as well as a learning tool for other organisations. The Vice-Chairman suggested the monitoring of the recommendations’ progress should be added to the Committee’s Forward Work Programme. The Cabinet Member for Finance and Resources suggested the committee not look at the stabilisation work too early, noting the intention to complete the work by the end of March 2025. The Committee NOTED the responses to the recommendations. Actions/requests for further information: The Scrutiny Officer is to ensure that any updates on the implementation of the DB&I report’s recommendations are added to the FWP for after March 2025.
34/24	STRATEGIC INVESTMENT BOARD (SIB) ANNUAL REPORT PDF 120 KB Share this item Purpose of the item: The report is due to be considered by the Strategic Investment Board at its meeting in December 2024. As part of good governance, it has previously been agreed to have the annual and mid-year reports scrutinised in advance by the Resource & Performance Select Committee. Additional documents: SIB Annual Report 23-24 Investments Overview - Pt1 - for SIB - final AV , item 34/24 PDF 645 KB Webcast for 34/24 Minutes: Witnesses: David Lewis, Cabinet Member for Finance and Resources Andy Brown, Deputy Chief Executive & Executive Director Finance & Corporate Services (Section 151 Officer) Diane Wilding, Director - Land and Property Charles Maxlow-Tomlinson, Managing Director - Halsey Garton Property Neil Jarvey, Strategic Finance Business Partner - Commercial Bill Harrow, Senior Finance Business Partner - Commercial Key points raised during the discussion: Prior to the discussion, Cllr Edward Hawkins noted he was previously, but no longer, a council appointed governor for Halsey Garton Properties (HGP). The Strategic Finance Business Partner - Commercial provided a brief introduction to the report. The Chairman outlined the report’s statement that unaudited pre-tax net profits of £1.3m were achieved this year, a reduction of £1.1 million (m) on the £2.4m achieved last year. The Chairman asked if an explanation could be given about the property disposal and bad debt provision that preceded this. The Strategic Finance Business Partner - Commercial explained that the £1.1m drop mainly related to Halsey Garton Property (HGP). The disposal of Melksham contributed to this, which was a positive outcome for the Council as it had an element of long-term risk and was sold at a profit. Melksham was disposed of part way through the year which resulted in no ongoing rent, a loss of £0.7m, offset by £0.5m of additional interest. The £0.8m rental incentive for Melksham, originally expected to be amortised over the lease term, had a £0.8m impact due to its disposal. There was a £400,000 annual difference due to bad debt, and a one-off benefit where a debtor paid off their debt in 2022/23 which was accumulated in the Covid-19 pandemic and a benefit from having lower voids through less vacancies around HGP. Overall, HGP had undergone a £0.7m annual profit reduction, due to items related to one-off events or Melksham’s disposal. There was a further £0.4m drop in Hendeca due to one-off items and a change in the mix of business. A Vice-Chairman asked for clarification on an apparent disparity in HGP’s interest payments to the Council which was quoted on page 62 of the agenda as £14.3m and £14.8m on page 49 of the agenda. The Strategic Finance Business Partner - Commercial clarified that the £14.3m related to HGP and the £14.8m referred to all the subsidiaries including around £0.4m from Halsey Garton Residential (HGR) and around £0.1m from Surrey Choices. In response to the Vice-Chairman’s query regarding what trend was exhibited in the £14.8m of interest paid to the council, the Strategic Finance Business Partner - Commercial explained those were longer-term loans expected to continue annually. HGP has a fixed rate of interest of around 6%, which would return £14.3m of interest annually for the duration of the loans, while HGR’s was an annuity loan with a slight difference between the principal and interest each year, for example £0.1m relating to Surrey Choices ran until 2029 and reduced annually because Surrey Choices paid principal. The Vice-Chairman asked if there was an upward trend in the interest received ... view the full minutes text for item 34/24
35/24	EXCLUSION OF THE PUBLIC Share this item Recommendation: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act. PART TWO - IN PRIVATE Additional documents: Webcast for 35/24 Minutes: RESOLVED: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act. The committee went in Part 2 at 11.00am
36/24	STRATEGIC INVESTMENT BOARD ANNUAL REPORT 2023/24 - SCC PROPERTY PORTFOLIO Share this item View the reasons why item 36/24 is restricted Purpose of the item: To consider exempt papers containing financial detail of Surrey County Council’s property portfolio of directly-owned investment properties. Minutes: Witnesses: David Lewis, Cabinet Member for Finance and Resources Andy Brown, Deputy Chief Executive & Executive Director Finance & Corporate Services (Section 151 Officer) Diane Wilding, Director - Land and Property Charles Maxlow-Tomlinson, Managing Director - Halsey Garton Property Neil Jarvey, Strategic Finance Business Partner - Commercial Bill Harrow, Senior Finance Business Partner – Commercial Key points raised during the discussion: See Exempt Minute E-24-24 RESOLVED: 1. The select committee notes the report and recommends that a risk profile of capital expenditure and forecasts come back before this select committee for further oversight and scrutiny. 2. Recommends that the select committee receive a further update on the leasing strategy in relation to letting premises within the Landlord and Tenant Act 1954 (as amended). 3. Recommends that the select committee receive an overview of the asset management strategy for properties owned by the council and Hasley Garton Property Ltd. 4. Recommends that the Resources and Performance Select Committee receive an update on the capital investment in the Brightwells Regeneration Scheme at Farnham, with reference to the Economic Prosperity Strategy. Actions/requests for further information: The Scrutiny Officer and Managing Director of Halsey Garten Property to investigate potential scrutiny consideration of the council’s ownership of Park Lodge, prior to this report going to the Strategic Investment Board, as well as a report regarding Ranger House, subject to what is appropriate under present delegated authorities. The Strategic Finance Business Partner – Commercial is to report to the committee on current policies and practices concerning any sub-contracting in the council’s Local Authority Trading Companies.
37/24	STRATEGIC INVESTMENT BOARD ANNUAL REPORT 2023/24 - HALSEY GARTON PROPERTY PORTFOLIO Share this item View the reasons why item 37/24 is restricted Purpose of the item: To consider exempt papers containing financial detail of Halsey Garton Property’s portfolio of investment properties. Minutes: Witnesses: David Lewis, Cabinet Member for Finance and Resources Andy Brown, Deputy Chief Executive & Executive Director Finance & Corporate Services (Section 151 Officer) Diane Wilding, Director - Land and Property Charles Maxlow-Tomlinson, Managing Director - Halsey Garton Property Neil Jarvey, Strategic Finance Business Partner - Commercial Bill Harrow, Senior Finance Business Partner – Commercial Key points raised during the discussion: See Exempt Minutes E-25-24. RESOLVED: The select committee notes the report, and recommends that this committee receives further updates on any financing requirements of Halsey Garton Property LTD after consideration by the Halsey Garton board and by the council’s Shareholder Investment Panel (SHIP). Actions/requests for further information: The Scrutiny Officer is to consult with officers about adding an item on the long-term financial plans of the Strategic Investment Board to the select committee’s work programme.
38/24	PERFORMANCE MONITORING SESSION NOTES - 19 SEPTEMBER 2024 PDF 193 KB Share this item Purpose of the item: To publish the notes of the Performance Monitoring session that took place on Thursday 19 September 2024. Additional documents: Webcast for 38/24 Minutes: The committee AGREED the performance monitoring session notes.
39/24	FORWARD WORK PROGRAMME AND RECOMMENDATION TRACKER PDF 156 KB Share this item Purpose of the item: For the Select Committee to review the attached Forward Work Programme and Recommendation Tracker, making suggestions for additions or amendments as appropriate. Additional documents: RPSC Recommendations and Action Tracker October 2024 , item 39/24 PDF 186 KB Webcast for 39/24 Minutes: The committee NOTED the forward work programme and recommendation tracker.
40/24	DATE OF THE NEXT MEETING Share this item The next meeting of the Resources and Performance Select Committee will be held on Friday 6 December at 10:00am. Additional documents: Webcast for 40/24 Minutes: The Committee NOTED the date of the next meeting on 6 December 2024.