Agenda and draft minutes

To consider the admission of any items of urgent business.  New items of urgent business will considered under Item 4 below.

There were no items of urgent business.

(Report of the Director of Regeneration, Planning and Development). The report seeks approval for the Council to purchase the freehold interest in Munro Works, as outlined in the report and agreement that the Director of Regeneration, Planning and Development Reduction be authorised to agree the final terms of the acquisition.

Exempt information pertaining to the report is set out under Item 6 below.

The Leader of the Council considered a report, previously circulated, which sought approval to purchase the freehold interest in Munro Works for a consideration not exceeding the purchase price detailed in the exempt part of the report. The report also sought agreement for the additional capital cost of the purchase and any associated cost of refurbishment, as outlined in the report, to be added to the Council’s Capital Programme.

Exempt information pertaining to the report was considered under Item 6 below.

RESOLVED:

      i.        That the current onerous leasing arrangement of Munro Works and ongoing annual cost to the Council be noted.

    ii.        That the opportunity to reduce the financial liability of Munro Works to the Council via the purchase of the freehold interest of the estate in accordance with the option to purchase contained within the head leasehold interest be noted.

   iii.        That approval be granted for the Council to purchase the freehold interest in the Munro Works as outlined in Option 1 below (shown edged red on the plan attached) for a consideration not exceeding the purchase price detailed in the exempt section, Part B, of this report with delegated authority for the Section 151 Officer and the Director of Regeneration, Planning and Development Reduction to agree the final terms of the acquisition, after consultation with the Cabinet Member for Finance, Employment and Carbon Reduction.

   iv.        That it be agreed that the addition of the capital cost of the purchase and any associated costs of refurbishment, as outlined in this report, be added to the Council’s capital programme.

       v.            That it be noted that the funding for the purchase cost is to be met from the future rental income to be generated from commercial letting of the site.

Alternative Options Considered

Asset Management has approached the freeholders in the past with regard to relaxing the sub-letting and rent review provisions within the head-lease for Munro Works so that vacant units might be let to applicants for commercial tenancies.  Further information on the options appraised is included in part B of this report.

Aside from the financial business case for options, other non economic factors and benefits have been considered such as the potential to support regeneration.

Option 1 - Pursuing the Option to Purchase that is included in the Head Lease.

The option to purchase the freehold interest is perceived as the only viable way forward in view of the financial outcomes of the other options addressed below.  Financial modelling indicates that this is a financially better option for the Council than either continuing to manage and maintain the current situation [Option 2 below] or to make radical changes in tenant structure in order to comply with existing lease terms [Option 3 below] or to in order to move forward with a modern lease structure that benefits both the freeholders and the Council [Option 4].

The price is to be the current open market value of the premises.

The option to purchase is exercised by serving six months’ notice  ...  view the full minutes text for item 75.

(Report of the Interim Chief Operating Officer). The report seeks approval to accept the proposal, outlined in the report, for varying and extending the contract for an additional three years until 2019, to secure a reduced unit cost for transactions and for the contract itself.

Exempt information pertaining to the report is set out under Item 7 below.

The Leader of the Council considered a report, previously circulated, which sought approval to accept a proposal to vary and extend the contract for the provision of the payment transaction processing system, for an additional three years until 2019. 

Exempt information pertaining to the report was considered under Item 7 below.

RESOLVED:

That the proposal for varying and extending the contract for an additional three years until 2019, to secure a reduced unit cost for transactions and for the contract itself, achieving value for money, as outlined in the report, be approved.

Alternative options considered

If nothing was done the contract would continue to run until 2016 and the charges will increase further as Customer Services Transformation activities encourage greater usage of online payment methods.

At current levels of usage, the Council will incur an additional £50,000 per annum if the recommendation is not accepted. The proposed extension of a further three years reduces the impact of this increase by at least £14,000 per annum.

The contract would be competed in 2015 to allow for a potential migration when the contract expires in 2016. There will be a cost for any potential migration for implementation and licenses and this would coincide with activities under the Customer Transformation Program.

Extension of the contract for five years – this would attract additional reductions in the increase – at least £28,500 per annum at current volumes compared to doing nothing. However, due to the longer contractual commitment this term was felt to be too long.

Reasons for decision

Extending the contract for the payment processing system will secure the services for a further period at a reduced price, reducing the impact on the Council and providing value for money.

To consider any new items of urgent business admitted under Item 1 above.

There were no new items of urgent business.

Note from the Head of Local Democracy and Member Services

Items 6 and 7 allow for the consideration of exempt information in relation to Items 2 and 3 above.

RESOLVED:

That the press and public be excluded from the remainder of the meeting as the items below contain exempt information, as defined under paragraph 3, Part 1, schedule 12A of the Local Government Act 1972.

RESOLVED:

That the press and public be excluded from the remainder of the meeting as the items below contain exempt information, as defined under paragraph 3, Part 1, schedule 12A of the Local Government Act 1972.

To consider exempt information pertaining to Item 2 above.

Exempt information pertaining to Item 2 above was considered.

To consider exempt information pertaining to Item 3 above.

Exempt information pertaining to Item 3 above was considered.