Agenda and decisions

Cabinet
Tuesday, 10th March, 2020 12.00 pm

Venue: Executive Meeting Room - The Guildhall - Floor 3

Contact: Joanne Wildsmith, Democratic Services Tel 9283 4057  Email: joanne.wildsmith@portsmouthcc.gov.uk

Webcast: View the webcast

Items
No. Item

1.

Apologies for Absence

2.

Declarations of Interests

3.

Record of Previous Decision Meeting - 4 February 2020 pdf icon PDF 398 KB

A copy of the record of the previous decisions taken at Cabinet on 4 February 2020 are attached.

 

RECOMMENDED that the record of decisions of the Cabinet meeting held on 4 February 2020 be approved as a correct record and signed by the Leader.

 

Additional documents:

4.

Draft Private Rental Sector Strategy for Portsmouth pdf icon PDF 178 KB

The purpose of the report by the Director of Housing, Neighbourhoods and Building Services is to present the Council's draft strategy for the Private Rental Sector (PRS) in the city. The following report provides an executive summary, objectives, and actions as outlined in the draft strategy document.

 

RECOMMENDED:

(1)     That the Cabinet approve the draft Private Rental Sector strategy for Portsmouth (Appendix 1).

(2)     That officers immediately begin to implement the actions within the strategy that do not require any further permissions, budget or resources, as identified in section 6 of this report.

(3)     That the Cabinet authorises officers to undertake a consultation on this draft strategy.

(4)     That officers bring back to Cabinet the results of the consultation, along with a final strategy and action plan for approval and identify any additional decisions required to implement the strategy.

Additional documents:

Decision:

(1)       The Cabinet approved the draft Private Rental Sector strategy for Portsmouth (Appendix 1).

(2)       That officers will immediately begin to implement the actions within the strategy that do not require any further permissions, budget or resources, as identified in section 6 of this report.

(3)       The Cabinet authorised officers to undertake a consultation on this draft strategy.

(4)       That officers bring back to Cabinet the results of the consultation, along with a final strategy and action plan for approval and identify any additional decisions required to implement the strategy.

5.

Home Energy and Water Strategy pdf icon PDF 2 MB

The purpose of the report by the Director of Housing, Neighbourhood and Building Services is to bring the finalised Energy and Water at Home Strategy to Cabinet which was approved in draft form on 5th November 2019. This includes reporting the key findings of the consultation and a number of changes made to the strategy itself as a result of this exercise. This report also highlights work undertaken to respond to decisions made in the November Cabinet to:

a)      Develop a detailed action plan to achieve the strategic objectives set down in the report

b)      Develop a marketing and communication strategy to reach and engage all residents in the City

 

RECOMMENDED that Cabinet:

(1)  notes the extensive consultation undertaken with key partners and the wider public; and that the response of the consultation was overwhelmingly positive and in agreement with the objectives laid out in the draft strategy.

(2)   approves the final strategy for publication. 

(3)  notes the development of a detailed action plan which will help to expand the scope and scale of the help currently offered by the authority; whilst acknowledging that this is a live document which will be subject to further development.

(4)  notes the development of a marketing and communication strategy which will reach and engage every household in Portsmouth; whilst acknowledging that this is a live document which will be subject to further development.

Decision:

The Cabinet:

(1)       noted the extensive consultation undertaken with key partners and the wider public; and that the response of the consultation was overwhelmingly positive and in agreement with the objectives laid out in the draft strategy.

(2)       approved the final strategy for publication. 

(3)       noted the development of a detailed action plan which will help to expand the scope and scale of the help currently offered by the authority; whilst acknowledging that this is a live document which will be subject to further development.

(4)       noted the development of a marketing and communication strategy which will reach and engage every household in Portsmouth; whilst acknowledging that this is a live document which will be subject to further development.

6.

Mainstreaming Proceeds of Crime pdf icon PDF 426 KB

The report by the Director of Culture, Leisure and Regulatory Services seeks to provide a strategic overview of how the Local Authority through Regulatory Services shall implement a framework designed to deliver, embed, and review the implications of the acquisition of the powers contained within the Proceeds of Crime Act 2002 (POCA).

 

RECOMMENDED that the Cabinet approves the actions as set out within Section 8 of the report, namely the:

 

           development of Council wide processes, guidance and templates for the comprehensive implementation of POCA frameworks across all PCC services;

 

           use of risk assessed POCA interventions wherever possible;

 

           setting up of a £50,000 reserve to offset against costs incurred during the process of pursuing actions via the Courts in respect to criminal proceedings and POCA activities.

Additional documents:

Decision:

The Cabinet

(1)  approved the actions as set out within Section 8 of the report, namely the:

 

development of Council wide processes, guidance and templates for the comprehensive implementation of POCA frameworks across all PCC services;

 

use of risk assessed POCA interventions wherever possible;

 

• setting up of a £50,000 reserve to offset against costs incurred during the process of pursuing actions via the Courts in respect to criminal proceedings and POCA activities.

 

(2)  Asked that regular update reports be brought to the Cabinet Member for Community Safety's decision meetings.

7.

Administration fees for Appointeeship Services pdf icon PDF 574 KB

The report by the Director of Finance seeks approval to introduce administration fees from Monday 06 July 2020 for clients in receipt of Appointeeship services provided by the City Council.

 

The rationale for proposed introduction of these fees, is to ensure that the service will be available to support future vulnerable adults requiring our services. Without introducing the proposed charges, there is a risk that the service would not be able to continue to support the growing number of clients.

 

RECOMMENDED that the Cabinet:

 

(1)  Agrees to introduce administration fees for Appointeeship services from Monday 06 July 2020.

 

(2)  Agrees to set the weekly fees at the following rates for the financial year 2020-21 from the above date:

 

For clients in residential care     £4.00

For clients in community based care   £10.00

 

(3)  Agrees to the mitigation arrangements in the case of hardship as set out in paragraphs 5.20 and 5.21.

 

(4)  Agree that the proposed fee rates above, will be inflated annually in line with the inflation rate applied to the Adult Social Care fees and charges from the financial year 2021-22.

 

(5)  Notes the proposed community support and engagement process as detailed in section 7 of the report.

Additional documents:

Decision:

The Cabinet:

 

(1)       Agreed to introduce administration fees for Appointeeship services from Monday 06 July 2020.

 

(2)       Agreed to set the weekly fees at the following rates for the financial year 2020-21 from the above date:

 

For clients in residential care - £4.00

For clients in community based care - £10.00

 

(3)       Agreed to the mitigation arrangements in the case of hardship as set out in paragraphs 5.20 and 5.21.

 

(4)       Agreed that the proposed fee rates above, will be inflated annually in line with the inflation rate applied to the Adult Social Care fees and charges from the financial year 2021-22.

 

(5)       Noted the proposed community support and engagement process as detailed in section 7 of the report.

8.

Greening Portsmouth Strategy pdf icon PDF 225 KB

Report by the Corporate Performance Manager on behalf of the Chief Executive.   The report sets out a Greening Portsmouth Strategy for the City.

 

RECOMMENDED that Cabinet approve the Greening Portsmouth Strategy (set out at Appendix A to the report).

Additional documents:

Decision:

Cabinet approved the Greening Portsmouth Strategy (set out at Appendix A to the report).

9.

Forward Plan Omission re Annual Capital Strategy

The Forward Plan published on 18 February 2020 included the Annual Capital Strategy which allows the necessary 28 day notice for the Council meeting, but not 28 days for Cabinet (so is an omission from the Forward Plan published on 10 February). The Chair of the City Council's Scrutiny Management Panel has been notified and a public notice published.

 

RECOMMENDED that Cabinet note:

 

(1)       the omission to the Forward Plan for March 2020;

(2)       the publication of the omission notice.

 

Decision:

Cabinet noted:

 

(1)       the omission to the Forward Plan for March 2020;

(2)       the publication of the omission notice.

 

(This information item is not subject to call-in)

10.

Annual Capital Strategy - 2020/21 - 2029/30 pdf icon PDF 484 KB

The report by the Director of Finance & Resources seeks to:

           enable the City Council to adopt a long term Capital Strategy from 2020/21 onwards

           inform members and the wider community of the Council's Capital Strategy 

           ensure that Members are aware of the overall strategy, governance procedures and risk appetite

           highlight the business planning inter-relationship between the Capital Strategy, Capital Programme, the Revenue Budget, the Medium Term Financial Strategy and Treasury Management

 

RECOMMENDED

(1)     That Part I of the Capital Strategy (Capital Expenditure and Aspirations) be approved including:

a)      The Short / Medium / Long-term Aspirations set out in Appendix 1

 

(2) That Part II of the Capital Strategy (Borrowing and Investing in Property) be approved including:

a)      The Minimum Revenue Provision (MRP) for Debt Repayment Policy (Part II, (paragraph 1.5)

b)      The investment indicators in Part II - Appendix 2 (part II, paragraph 2.5)

c )     That the Director of Finance and Resources (Section 151 Officer) will bring a report to the next Cabinet and City Council if (part II, paragraph 2.5):

(i)      The Council's gross General Fund (GF) debt exceeds 400% of GF net service expenditure or;

(ii)     Overall investment income from investment properties and long term treasury management investments exceeds 7.9% of GF net service expenditure

Additional documents:

Decision:

RECOMMENDED to Council:

(1)       That Part I of the Capital Strategy (Capital Expenditure and Aspirations) be approved including:

a)         The Short / Medium / Long-term Aspirations set out in Appendix 1

 

(2) That Part II of the Capital Strategy (Borrowing and Investing in Property) be approved including:

a)         The Minimum Revenue Provision (MRP) for Debt Repayment Policy (Part II, (paragraph 1.5)

b)         The investment indicators in Part II - Appendix 2 (part II, paragraph 2.5)

c )        That the Director of Finance and Resources (Section 151 Officer) will bring a report to the next Cabinet and City Council if (part II, paragraph 2.5):

(i)         The Council's gross General Fund (GF) debt exceeds 400% of GF net service expenditure or;

(ii)        Overall investment income from investment properties and long term treasury management investments exceeds 7.9% of GF net service expenditure.

 

(This is referred to Council and is not subject to call-in)

11.

Treasury Management Policy 2020/21 pdf icon PDF 241 KB

The purpose of the report by the Director of Finance and Resources is to obtain the Council’s approval of the updated Treasury Management Policy Statement (attached) which includes the Annual Investment Strategy.

 

RECOMMENDED (for Council):

 

(a) that the upper limit for principal sums invested for longer than 365 days contained in paragraph 4.7 of the attached Treasury Management Policy Statement be approved;

(b) that the upper and lower limits on the maturity structure of borrowing contained in appendix 5.1 of the attached Treasury Management Policy Statement be approved;

(c) that the attached Treasury Management Policy Statement including the Treasury Management Strategy and Annual Investment Strategy for 2020/21 be approved;

(d) That the Council will where it is financially responsible to do so, give preference to investments that improve the environment, bring wider social benefits, and are with organisations with good governance. In particular the Council will:

(i) Avoid investments in fossil fuel extraction unless they are making substantial investment into renewable energy technologies as part of a strategy to become a clean energy supplier;

(ii) Consider the environmental, social and governance elements of credit ratings in making investment decisions, provided that the overall risk profile of the investment portfolio (including liquidity risk) and returns are not compromised;

that rated building societies be given the same lending limits as banks;

(f) that the Council will only lend to housing associations if they have a viability rating of V1 and a Governance rating of G1 from Homes England;

(g) that lending to Hampshire Community Bank (HCB) will be secured on loans made by HCB to small and medium sized enterprises (SMEs) of the highest credit quality which may not in turn be secured on tangible fixed assets;

(h) that the maximum duration of loans to HCB be reduced from 10 years to 5 years;

(i) As set out in paragraph 1.4 of the Treasury Management Policy Statement, the Director of Finance and Resources (Section 151 Officer) and officers nominated by him have delegated authority to:

(i) invest surplus funds in accordance with the approved Annual Investment Strategy;

(ii) borrow to finance short term cash deficits and capital payments from any reputable source within the authorised limit for external debt of £883m approved by the City Council on 11th February 2020;

(iii) reschedule debt in order to even the maturity profile or to achieve revenue savings;

(iv) to buy and sell foreign currency, and to purchase hedging instruments including forward purchases, forward options and foreign exchange rate swaps to mitigate the foreign exchange risks associated with some contracts that are either priced in foreign currencies or where the price is indexed against foreign currency exchange rates;

(j) that the Director of Finance and Resources (Section 151 Officer) has the power to delegate treasury management operations to relevant staff;

(k) that the Chief Executive, the Leader of the City Council and the Chair of the Governance and Audit and Standards Committee be informed of any variances from the Treasury Management Policy when they become apparent, and that the Leader of the City Council be consulted on remedial action (paragraph 1.2.2 of Treasury Management Policy Statement).

Additional documents:

Decision:

RECOMMENDED to Council:

(a) that the upper limit for principal sums invested for longer than 365 days contained in paragraph 4.7 of the attached Treasury Management Policy Statement be approved;

(b) that the upper and lower limits on the maturity structure of borrowing contained in appendix 5.1 of the attached Treasury Management Policy Statement be approved;

(c) that the attached Treasury Management Policy Statement including the Treasury Management Strategy and Annual Investment Strategy for 2020/21 be approved;

(d) That the Council will where it is financially responsible to do so, give preference to investments that improve the environment, bring wider social benefits, and are with organisations with good governance. In particular the Council will:

(i) Avoid investments in fossil fuel extraction unless they are making substantial investment into renewable energy technologies as part of a strategy to become a clean energy supplier;

(ii) Consider the environmental, social and governance elements of credit ratings in making investment decisions, provided that the overall risk profile of the investment portfolio (including liquidity risk) and returns are not compromised;

(e) that rated building societies be given the same lending limits as banks;

(f) that the Council will only lend to housing associations if they have a viability rating of V1 and a Governance rating of G1 from Homes England;

(g) (i)   that lending to Hampshire Community Bank (HCB) will be secured on loans made by HCB to small and medium sized enterprises (SMEs) of the highest credit quality which may not in turn be secured on tangible fixed assets;

(ii)        That loan advances to HCB in accordance with (g) (i) above will be subject to individual approval by Cabinet

(h) that the maximum duration of loans to HCB be reduced from 10 years to 5 years;

(i) As set out in paragraph 1.4 of the Treasury Management Policy Statement, the Director of Finance and Resources (Section 151 Officer) and officers nominated by him have delegated authority to:

(i) invest surplus funds in accordance with the approved Annual Investment Strategy;

(ii) borrow to finance short term cash deficits and capital payments from any reputable source within the authorised limit for external debt of £883m approved by the City Council on 11th February 2020;

(iii) reschedule debt in order to even the maturity profile or to achieve revenue savings;

(iv) to buy and sell foreign currency, and to purchase hedging instruments including forward purchases, forward options and foreign exchange rate swaps to mitigate the foreign exchange risks associated with some contracts that are either priced in foreign currencies or where the price is indexed against foreign currency exchange rates;

(j) that the Director of Finance and Resources (Section 151 Officer) has the power to delegate treasury management operations to relevant staff;

(k) that the Chief Executive, the Leader of the City Council and the Chair of the Governance and Audit and Standards Committee be informed of any variances from the Treasury Management Policy when they become apparent, and that the Leader of the City Council be consulted on remedial action (paragraph 1.2.2 of Treasury Management Policy Statement).

 

(This is referred to Council and is not subject to call-in)

12.

Revenue Budget Monitoring 2019/20 (Third Quarter) to end December 2019 pdf icon PDF 397 KB

The purpose of the report by the Director of Finance and Resources is to update members on the current Revenue Budget position of the Council as at the end of the third quarter for 2019/20 in accordance with the proposals set out in the “Portsmouth City Council - Budget & Council Tax 2020/21 & Medium Term Budget Forecast 2021/22 to 2023/24” report approved by the City Council on the 11th February 2020.

 

RECOMMENDED that

(i) Members note:

(a) An overspend of £667,900 before further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve

 

(b) An underspend of £625,200 after further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve.

 

(c) That any actual overspend at year end will in the first instance be

deducted from any Portfolio Specific Reserve balance and once

depleted then be deducted from the 2020/21 Cash Limit.

 

(d) That on 11th February 2020 City Council approved that any

underspending for 2019/20 arising at year-end outside of those made

by Portfolio's be transferred to Capital resources.

 

(ii) Directors, in consultation with the appropriate Cabinet Member, consider options that seek to minimise any forecast overspend presently being reported and prepare strategies outlining how any consequent reduction to the 2020/21 Portfolio cash limit will be managed to avoid further overspending during 2020/21.

Additional documents:

Decision:

(i) Members noted:

(a) An overspend of £667,900 before further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve

 

(b) An underspend of £625,200 after further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve.

 

(c) That any actual overspend at year end will in the first instance be

deducted from any Portfolio Specific Reserve balance and once

depleted then be deducted from the 2020/21 Cash Limit.

 

(d) That on 11th February 2020 City Council approved that any

underspending for 2019/20 arising at year-end outside of those made

by Portfolio's be transferred to Capital resources.

 

(ii) Directors, in consultation with the appropriate Cabinet Member, will consider options that seek to minimise any forecast overspend presently being reported and prepare strategies outlining how any consequent reduction to the 2020/21 Portfolio cash limit will be managed to avoid further overspending during 2020/21.

13.

Local Transport Plan 4 Development pdf icon PDF 739 KB

The report by the Director of Regeneration, seeks approval of the draft vision and objectives for Portsmouth's Local Transport Plan 4 and outline the direction the draft strategy will take.

 

RECOMMENDED that Cabinet

 

(1)  approves the draft vision and policy objectives for the Local Transport Plan 4        

           

(2)  agrees the continued development of the draft strategy in accordance with the vision and policy objectives

 

(3)  brings the strategy back to Cabinet and Full Council for approval to consult in June.

Additional documents:

Decision:

The Cabinet:

 

(1)       approved the draft vision and policy objectives for the Local Transport Plan 4       

           

(2)       agreed the continued development of the draft strategy in accordance with the vision and policy objectives

 

(3)       agreed that the strategy be brought back to Cabinet and Full Council for approval to consult in June.

14.

Exclusion of Press and Public

RECOMMENDED that Cabinet adopt the following motion:

 

“That, under the provisions of Section 100A of the Local Government Act, 1972 as amended by the Local Government (Access to Information) Act, 1985, the press and public be excluded for the consideration of the following item on the grounds that the report(s) contain information defined as exempt in Part 1 of Schedule 12A to the Local Government Act, 1972”.

 

The public interest in maintaining the exemption must outweigh the public interest in disclosing the information.

 

Under the Local Authorities (Executive Arrangements) (Meetings and Access to Information) England Regulations 2012, regulation 5, the reasons for exemption of the listed item is shown below.

 

Members of the public may make representation as to why the item should be held in open session.  A statement of the Council’s response to representations received will be given at the meeting so that this can be taken into account when members decide whether or not to deal with the item under exempt business.

 

(NB     The exempt/confidential committee papers on the agenda will contain information which is commercially, legally or personally sensitive and should not be divulged to third parties.  Members are reminded of standing order restrictions on the disclosure of exempt information and are invited to return their exempt documentation to the Local Democracy Officer at the conclusion of the meeting for shredding.)

 

Item

 

Social Value (appendix B only)

 

 

Para 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Paragraph

 

3

 

 

 

           

 

 

Decision:

The confidential version of Social Value (appendix B only) was confirmed as exempt information (and an open version had been made available).

15.

Social Value - a rent subsidy model pdf icon PDF 146 KB

The report by the Director of Regeneration forms part of the Property & Investment Team's response to PCC's current priorities and seeks to:

 

·         recognise financially the current level of commercial support provided by PCC to a number of charitable or not-for-profit organisations;

 

·         set out to councillors a new framework for which social value and / or impact provided by third-party organisations can be valued to enable transparency in decisions regarding occupation of council-owned property by way of rent subsidy;

 

·         ensure and record that where discounts to these organisations are in place, the Directorates within the Council recognise the lost income and are in agreement that it represents best value for the Council.

 

RECOMMENDED

(1)       That Cabinet approve a property valuation framework where social value can be taken into account when PCC is looking to rent out property to third parties where their aims coincide with the objectives of the Council;

 

(2)       That Cabinet Members acknowledge that the service areas that benefit from the third-party support recognise the discounted income in their Portfolio cash limits and that equivalent savings may be necessary to accommodate any reduced income

Additional documents:

Decision:

(1)       Cabinet approved a property valuation framework where social value can be taken into account when PCC is looking to rent out property to third parties where their aims coincide with the objectives of the Council;

 

(2)       Cabinet Members acknowledged that the service areas that benefit from the third-party support recognise the discounted income in their Portfolio cash limits and that equivalent savings may be necessary to accommodate any reduced income.

 

(3) Cabinet requested a report back in 6 months' time regarding the implementation and consultation with the voluntary sector to show how this model is working.