Agenda, decisions and minutes

Previously circulated.

The minutes of the meeting held on 22 October 2014 were submitted and approved and the chairman was authorised to sign them as a correct record.

Declarations of disclosable pecuniary interests (DPIs) by members as required under Section 31 of the Localism Act and of other interests as required by the Code of Conduct and regulation 12(2)(d) of the 2012 Access to Information Regulations.  (Please see note at end of agenda).

Declarations of disclosable pecuniary interests (DPIs) by members as required under section 31 of the Localism Act and other interests as required by the council’s code of conduct and regulation 12(2)(d) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.

Councillor Tester declared a personal interest in minute 46 (internal drainage boards) as an owner and occupier of a property within the area of the proposed board.  He remained and participated as the interest was not one that was any greater than that of the majority of other residents in his ward.

41.1 The Chair reported the results of the 4th edition of the Alliance of Liberals and Democrats for Europe LeaDeR awards which had been announced earlier in the day in Brussels at a ceremony held in the EU's Committee of the Regions. 

41.2 The 2014 LeaDeR in the category of achievement in government was awarded to councillor David Tutt, Eastbourne council leader.  The citation was “… for his visible leadership in having put core liberal values of innovation, forward-thinking and opportunity into action in transforming what was officially the worst Council in the south-east of England into one widely recognised as among the very best in the country.”

41.3 Cabinet congratulated councillor Tutt on his receipt of the award.

Report of Chief Finance Officer and Head of Corporate Development.

Cabinet lead members:  Councillors Gill Mattock and Troy Tester.

(1) Performance,general fund,  housing revenue account and collection fund financial performance for quarter ended September 2014 agreed.

(2) Any nationally agreed pay award to be applied across all staff in the organisation in paragraph 3.4 of report.

(3) Virements and transfer to and from reserves in appendix 3 to report approved.

(4) Amended capital programme in appendix 4 to report agreed.

(5) Treasury management performance in section 7 of report agreed.

42.1 Cabinet considered the report of the chief finance officer and head of corporate development reviewing the council’s performance against corporate plan priority indicators and action targets; financial performance of general fund revenue expenditure, housing revenue account and capital programme; and treasury management activities for the first quarter of 2014/15. 

42.2 Appendix 1 gave detailed information on non-financial performance.  A number of services were highlighted including improved performance in dealing with missed refuse collections, increased visitor numbers at theatres, Bandstand and the Redoubt, low sickness absence levels, reduction in the vacancy rate of town centre business premises and improved housing benefit processing time and telephone abandonment rate.  Appreciation was also recorded for the efforts of the neighbourhood first team in dealing promptly with instances of fly-tipping and to staff handling homelessness cases  and the award of grant money to support provision of accommodation.

42.3 The general fund position to end of September showed a variance of £77,000 on net expenditure which was a movement of £60,000 compared to the position reported at the end of the first quarter in June.  Service expenditure had a variance of £113,000 mainly as a result of one-off backdated rental income (£35,000), development control legal and consultants’ fees (£40,000), Downland water supply new contract (£33,000) and Dotto Train (£65,000). An element of this service overspend would be off-set by the saving on the contingency fund.  The contingency allowance currently stood at £161,050 and as a consequence there would be no funding available for any future unforeseen one-off areas of expenditure during the remainder of the year.

42.4 A new 2-year pay award had been agreed by the National Joint Council for Local Government Services (NJC) and employee organisations based on a 2.2% increase from 1 January 2015 plus one off lump sum payments. However, staff outside NJC pay scales or who were above SCP 49 would not receive the pay award.  The cost of this pay award would be met within existing budgets.

42.4 Housing revenue account performance was currently above target due to a number of factors including underspending on council tax for void properties, new insurance contract and reduction in provision for bad debts required.  The detailed capital programme was shown at appendix 4.  Actual expenditure was low compared to the budget, due to delays in the start dates of housing major projects, sheltered accommodation remodelling projects and several general fund projects.  Expenditure was expected to increase as schemes progressed however the spending patterns would be reviewed at quarter 3 and re-profiled into the 2015/16 year where appropriate.

42.5 Council tax is collection rates were currently showing a £172,950 surplus, due to higher than budgeted number of chargeable properties and a reduction in the number of single person discounts awarded.  The business rates deficit of £1,314,414 was as a result of a bigger than anticipated provision made in 2013/14 for outstanding appeals, giving rise to a higher than budgeted for balance carried forward as at 1 April 2014. Currently there were 93 properties  ...  view the full minutes text for item 42.

Report of Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

(1) Draft budget proposals agreed for consultation.

(2) Approach to dealing with changes in the expected resources available for the 2015/16 budget detailed in paragraph 5.3 of report agreed.

(3) Subject to there being no material change in the government settlement, Cabinet minded to propose a council tax freeze for 2015/16.

43.1 Councillor Elkin addressed the cabinet.  He welcomed the administration’s current proposals for a zero increase in council tax and asked members to provide additional staff resources to deal with an increase in the number of attacks by dogs on people and other dogs.  Councillor Tester commented that the transition in the council’s working practices (as reported in minute 45 below) would result in the enlargement of the neighbourhood first teams who were tasked with dealing with these maters.

43.2 Cabinet considered the report of the chief finance officer summarising the main elements of the emerging 2015/16 revenue budget and capital programme that had arisen from the corporate and service financial planning process to date.  Each year the council consulted a range of stakeholders on its detailed draft budget proposals for the following financial year.  This followed consultation on the corporate plan and medium term financial strategy (MTFS), which had been carried out over the summer and autumn.  Cabinet was asked to give initial responses to the consultations at this meeting and finally on 4 February 2015 in order to recommend a final budget and additions to the existing capital programme for 2015/16 to the council on 18 February 2015.

43.3 The process of service and financial planning was an integral part of the corporate planning cycle that looked over a medium term horizon. The corporate change programmes under the council’s DRIVE programme picked up the challenge of the MTFS.

43.4 The MTFS agreed in July 2014 modelled the overall reduction in government support by 40% in cash terms over the whole comprehensive spending review (CSR) period (2013/17) which equated to around 50% in real terms at past and projected levels of inflation.  At the time of writing the report, the chancellor’s autumn statement was not known, however last year the government signalled a further 5 years of reductions in public spending over the life of the next parliament. Although there is an election next year all the main political parties are working on similar deficit reduction plans.

43.5 In addition to changes in the amount of funding for local government, there were two significant changes that came into force in 2013/14 that gave a greater volatility to local government finance over the medium term.  These changes were the retention of a proportion business rates and the localisation of council tax support.  The council had applied with other East Sussex authorities to be part of a single business rates pool which could see the Council increase its business rates retention increase by around £200,000 in 2015/16.

43.6 The current strategy set out a rolling three year plan to:

• Deal with the anticipated reduction in the government support of a further 40% from the 2014/15 level.
• Integrate fully the service and financial planning process with the main change programmes under DRIVE.
• Work with clearly defined medium term efficiency targets to the corporate transformation programmes and allow services to put forward savings proposals in addition.
• Deal with the continued economic downturn and  ...  view the full minutes text for item 43.

Report of Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

(1) Provisional council tax base figure of 32,558.9 for 2015/16 agreed.

(2) Provisional retained business rates income amount of £34.8m for 2015/16 agreed.

(3) Chief Finance Officer, in consultation with lead Cabinet member for finance, authorised to determine the final amounts for the council tax base and retained business rates income for 2015/16.

44.1 Cabinet considered the report of the chief finance officer.  The council was required to set its council tax base and the expected business rate income for the forthcoming year.  These calculations were used as the basis for the amount of income the council will precept from the collection fund.

44.2 The council tax base for Eastbourne was calculated by multiplying the ‘relevant amount’ by the ‘collection rate’.  The relevant amount was the estimated full year equivalent number of chargeable dwellings within the borough.  This was expressed as the equivalent number of ‘band D’ dwellings with 2 or more liable adults.  The relevant amount had increased by 358 (1.32%) band D equivalent dwellings from 2014/15.  This reflected an increase in the number of taxable properties and a reduction in the number of single person discounts awarded. The effect of these changes has resulted in an increase to the total number of chargeable dwellings of 459.

44.3 The collection rate was the council's estimate of the proportion of the overall council tax collectable for 2015/16 that would ultimately be collected. This was expressed as a percentage.  Given the current level of council tax collection and the forecast of a small surplus balance on the collection fund there was the opportunity to set the collection rate at 97.75% for 2015/16, an increase of 0.25% over 2014/15.  Taking the relevant amount of 33,308.3 and applying a collection rate of 97.75% produced a council tax base for 2015/16 of 32,558.90.

44.4 The Local Government Finance Act 2012 had introduced a new system for the local retention of business rates. This meant that the Council was required to formally approve the expected business rate income for the forthcoming year. The estimate for the 2015/16 financial year must be approved by 31 January 2015.  The report described how the net rate income for 2015/16 would be calculated.  The actual ‘NNDR1’ form for 2015/16 had not yet been received but the provisional figures based on the 2014/15 form plus known changes had been calculated and indicated a net yield of £38,804,000.  The allocation would be in the proportion of:

• 50% to central government
• 40% to the local billing authority (this council)
• 10% to the other precepting authorities (9% to the county and 1% to the fire authority)

44.5 As some local authorities collected more business rates than they currently received in formula grant (which was based on relative need and resources), whilst others were lower the government would rebalance to ensure that no local authority was worse off as a result of it business rates at the outset of the scheme though a system of tariffs and top ups.  Tariff and top ups would be self funding and fixed in real terms (i.e. only up rated by RPI in future years) ensuring that changes in retained income were driven by business rate growth.  This authority had a business rate baseline higher than its baseline funding level and thus was due to make a tariff payment.  ...  view the full minutes text for item 44.

Report of Senior Head of Infrastructure. 

Cabinet lead member:  Councillor Troy Tester.

(1) Principles of draft target operating model, as detailed in report, b approved in order to enable consultation to begin.

(2) Chief Executive given delegated authority to approve any necessary changes to the target operating model that arise from consultation.

45.1 Cabinet considered the report of the senior head of infrastructure updating members on the progress made within the SSDS programme, with particular reference to the draft target operating model (TOM) for phase 2 of the future model implementation.  In July 2013 cabinet approved the adoption and implementation of phase 2 of the programme and delegated authority to the DRIVE programme board to run the programme within the allocated resources.  The programme aimed to improve service delivery whilst delivering savings estimated at £1.7m to £2m across the council and Eastbourne Homes Ltd (EHL). The current phase, phase 2, was estimated to save between £1.2m and £1.5m.

45.2  In October 2014 cabinet received an update on the status of the programme. The key milestones had not changed since that update and the council was on target to meet those milestones.  At that meeting, cabinet approved the new structure for the council’s corporate management team (CMT) which would generate additional savings of £200,000 in addition to the aggregate savings of £500,000 that had been achieved since 2009.  These savings were anticipated as part of the phase 2 business case.  Cabinet delegated authority to the chief executive to progress formal consultation with current CMT officers and then appoint to those roles in line with standard human resources policies and procedures. That consultation process was currently underway.  Cabinet had been advised that the next key programme milestone would be the publication of the draft TOM for consultation with council and EHL staff, council members, EHL board members and Unison.

45.3 The TOM would detail how roles and responsibilities for housing management would be aligned between the council and Eastbourne Homes Ltd. in order to maximise efficiencies, create improved customer journeys and yet ensure that the benefits of having a dedicated housing management organisation were retained.  It also included the expansion of the customer first structure that had been created in phase 1, the creation of a number of additional service delivery units and the strategic core of the organisation, referred to as strategy and commissioning.  The TOM would consist of a full set of role descriptions, job descriptions and person specifications which had been evaluated through the council’s corporate job evaluation scheme.  Appendices to the report illustrated the strategy and commissioning roles and their alignment to the different CMT roles (figure 1), the relationship between CMT roles and delivery units (figure 2), key EHL functions and roles (figure 3), customer contact roles (figure 4), case and account management roles (figures 5 and 6), neighbourhood first (figure 7).and specialist advisors (figure 8).

45.4 As was the case with phase 1, the projected reduction in full-time staff equivalents (FTEs) as a result of phase 2 would be approximately 20%, equivalent to 35-40 FTEs.  The draft TOM would be subject to consultation until late January.  A comprehensive consultation pack was being produced which included an overview of the structures, the post details and the proposed recruitment process.  A number of staff briefings were programmed to be delivered  ...  view the full minutes text for item 45.

Report of Senior Head of Infrastructure

Cabinet lead member:  Councillor Steve Wallis.

(1) Option 3, formation of a new internal drainage board to include  the Pevensey Levels, approved, and officers authorised to commence planning work with key partners.

(2) Delegated authority given to the Senior Head of Infrastructure, in consultation with Leader of the Council, to take all necessary steps to contribute to the setting up of a new board.

46.1 Cabinet considered the report of the senior head of infrastructure on the options appraisal regarding the creation of a new internal drainage board (IDB) for Pevensey Levels, following the proposed Environment Agency dissolution of the existing East Sussex IDD.  The EA had asked the East Sussex local authorities for their views and the options for the future management of these drainage areas.  The report explored the risks involved and summarised the options appraisal, with a recommendation that there should be a new IDB to include the Pevensey Levels.

46.2 Historically, the Environment Agency (EA) had acted as the internal drainage board (IDB) for a number of internal drainage districts (IDDs) in the South East.  In 2011, the EA confirmed their intention to dissolve internally administered IDDs due to the view that arrangements for drainage districts should have a greater degree of local accountability.  There were three EA-administered IDDs in East Sussex: Pevensey Levels, Ouse and Cuckmere.  Part of Eastbourne sat within the Pevensey Levels IDD.  There were 15,486 residential properties and 533 businesses within the Pevensey Levels IDD, and under current IDD management the majority were at a 1:200 or less risk of flooding (from the main river).  700 of the residential dwellings in the Langney area were at significant risk of surface water flooding.  Whilst IDBs were not responsible for main rivers (the EA retained management of these), IDBs paid annual precepts to the EA as a contribution to work on main rivers from which the IDD(s) benefited . Thus, in the 2013/14, the East Sussex IDB paid the EA £109,370 for maintenance of main rivers. 

46.3  The options available were, one, if no local authority consensus a likelihood that the government would impose an IDB; two, reversion to land-owner control or alternatively some form of community led water level management; and three, a new independent board.  An East Sussex IDD steering group with members from local authorities, the EA and stakeholders, had been meeting regularly to gather information and discuss the issues regarding the EA’s proposal to dissolve their responsibility of the East Sussex IDD.  A small officer working group led by officers from Eastbourne Borough Council and Wealden District Council had been meeting to prepare an options appraisal. This had identified the known costs, opportunities, and risks for each of the 3 options. A risk assessment had then been undertaken based on the information available. The options appraisal, which was appended to the report, had concluded that option 3 had the lowest risk and this option was also supported by East Sussex County Council (ESCC) and the National Farmers Union. 

46.4 The expenses of an independent IDB were predominantly funded by the local beneficiaries of the water level management work they provided.  The Land Drainage Act 1991 determined that the expenses of an IDB should be met by drainage rates collected from agricultural land and buildings within the IDD; special Levies issued on district and unitary authorities within the IDD; and contributions from the EA.  The  ...  view the full minutes text for item 46.

Report of Senior Head of Development.

Cabinet lead member:  Councillor Steve Wallis.

(1) Proposed submission employment land local plan approved for publication for an 8 week period to receive representations on issues of soundness.

(2) Delegated authority given to the Senior Head of Development, in consultation with lead Cabinet member, to make minor amendments before commencement of representation period.

(3) Following the end of the representation period, Senior Head of Development given delegated authority, in consultation with Local Plan Steering Group, to submit the employment land local plan to secretary of state for public examination.

47.1 Cabinet considered the report of the senior head of development.  In May 2012, the Eastbourne Core Strategy Local Plan had been subject to public examination by a planning inspector. The Inspector had expressed concerns over the evidence that supported core strategy policy D2: economy, particularly relating to the employment land supply.  In order to address this issue without delaying the adoption of the core strategy, the inspector had recommended that policy D2 be the subject of an early review, leading to its replacement with an additional local plan to deal specifically with the employment land supply.  The plan would guide job growth and economic development in Eastbourne up to 2027 by identifying an appropriate supply of land for future employment development, in order to achieve a sustainable economy and make Eastbourne a town where people want to live and work.

47.2 A proposed draft ELLP was approved Cabinet on 14 December 2013 and published for a 12 week public consultation with the community and stakeholders ending 14 March 2014.  The representations received during the consultation have been taken into account in revising the ELLP.  In order to progress the ELLP toward adoption, a proposed submission version now needed to be published to allow for representations to be made on issues of soundness.

47.3 The evidence supporting the ELLP showed that there was a requirement to provide 43,000 sq.m. of employment (Class B) floor-space between 2012 and 2027.  This would result in the creation of 1,263 new jobs.  In order to deliver the employment floor-space requirement, the ELLP proposed the intensification of land within the existing industrial estates to provide 20,000 sq.m. of industrial and warehouse space, and the development of new office space in the Town Centre (3,000 sq.m.) and Sovereign Harbour (20,000 sq.m.).

47.4 A total of 30 representations had been received from 10 organisations during the consultation on the proposed draft ELLP. There were five main issues raised through consultation:

·         The amount of office space allocated in Town Centre.

·         The viability of employment development at Sovereign Harbour.

·         The density assumptions used to calculate how much floorspace will be required.

·         Protection of existing employment sites and restrictions on non-employment development within industrial estates.

·         The non-allocation of land north west of Hammonds Drive off Lottbridge Drove for employment development.

A summary of representations and the full responses to those representations was provided in appendix 1 to the report.

47.5 Additional evidence had been prepared in order to take account of these representations and provide further information as to whether or not changes were required to the ELLP.  This additional evidence had backed up the original position, and no fundamental changes to the ELLP were proposed as a result of these representations.  As the evidence supported the original position, there were few recommended changes to the ELLP.  There are some minor amendments to various parts of the ELLP for clarification purposes.  A schedule of changes made to the ELLP was provided in appendix 2 to the  ...  view the full minutes text for item 47.

Report of Senior Head of Community.

Cabinet lead member:  Councillor Margaret Bannister.

Policy be adopted.

48.1 Cabinet considered the report of the senior head of community.  Section 13(A)1(c) of the Local Government Finance Act 1992 provided the council with additional statutory powers to enable it to reduce the council tax liability of council taxpayers.  These discretionary awards could be given to individual council taxpayers, groups of council taxpayers, Council taxpayers within a defined area; or all council taxpayers in the council’s area.  The provision allowed the council the discretion to provide assistance to taxpayers where either the existing legislation did not provide a discount or exemption or in such circumstances where the council felt that the level of discount, exemption or reduction was insufficient given the circumstances of the taxpayer.

48.2 A recent valuation tribunal ruling made clear the need for all councils to have in place a policy in respect of the exercise of such discretions.  Councils across East Sussex had collaborated in the preparation of a policy and a copy was appended to the report.  The proposed policy referred to 3 categories of taxpayer for whom a discretionary reduction might be appropriate. Those categories were exceptional financial hardship, crisis, for example fire or flood, and other circumstances.

48.3 The policy set out the process through which a taxpayer must go in applying for a reduction and laid some responsibility on the taxpayer to manage their finances by, for example:

·         Ensuring that they had applied for any council tax discounts, exemptions or reduction that might be applicable.

·         If appropriate, accepted assistance to enable them to manage their finances effectively.

·         Maximised their income through applying for welfare benefits and the cancellation of any non-essential contract.

48.4 Any appeals would, in the first instance, be dealt with by the revenues and benefits manager. If the taxpayer does not agree with the decision, they have a further right of appeal to the Valuation Tribunal.

48.5 Resolved (key decision): That the policy be adopted.

Report of Head of Corporate Development. 

Cabinet lead member:  Councillor Troy Tester.

Full Council recommended to adopt policy.

49.1 Cabinet considered the report of the head of corporate development.  The council’s human resources policies and procedures were currently being reviewed.  This report proposed a new redundancy and redeployment policy to replace the existing alternative employment procedure (AEP).  It was believed that the AEP did not adequately reflect the process to follow in cases of restructuring and redundancy, and was not clear about the support mechanisms in place for staff.  Both these aspects had been considered in the drafting of the new policy, along with updated legislative requirements which were largely around statutory consultation requirements.  The new policy would also give clearer advice about the process for voluntary redundancy and the parameters within which it would be offered. 

49.2 Full discussions had taken place with Unison who had made some helpful and positive contributions to the policy being presented to cabinet and had indicated their agreement to the content.

*49.3  Resolved (policy framework): That full council be recommended to adopt the redundancy and re-deployment policy as a replacement to the alternative employment procedure.