Agenda and decisions

A copy of the record of the previous decisions taken at the Cabinet meetings on 14 February 2022 and 8 March 2022 are attached.

Purpose

1.    The Leader of the Council has requested that officers review Portsmouth City Council's gas contract that it holds with Gazprom Energy, in order to determine whether the contract can be terminated sooner than the contract end date. 

2.    This paper sets out the background, recommendations, key considerations and financial and legal risk of early termination of this contract.

RECOMMENDED that the Cabinet

1.    Consider the content of the report and the option available to terminate the contract with Gazprom in compliance with the contract conditions referencing termination.

2.    Determine if they wish to exercise the option to terminate the contract with Gazprom in compliance with the contract conditions referencing termination; and if so;

3.    Instructs officers to serve notice to terminate the Gazprom contract effective from 30 June 2022 to end the contract on 30 September 2022

4.    Delegates authority to the Director of Housing, Neighbourhoods and Building Services (in consultation with the Section 151 Officer and the City Solicitor) the authority to terminate the contract with Gazprom in compliance with the contract conditions referencing termination.

5.    Delegates authority to the Director of Housing, Neighbourhoods and Building Services (in consultation with the Section 151 Officer and the City Solicitor) to commence a procurement exercise to confirm a new supplier from 1st October 2022; focussing on sourcing routes that allow for the lawful exclusion of Gazprom from bidding for the contract 

6.    Asks officers to continue to work with external partners from government, the Local Government Association (LGA), brokers and peer authorities to highlight issues and suggest remedies to the situation that this and other councils find themselves in with regards to Gazprom contracts

7.    Request a paper be put to Cabinet at the next available meeting in the new municipal year to provide an update and to detail the total known costs of exiting the Gazprom contract ahead of its full term; reflecting market conditions and the costs which will only be clear at the point of formal termination

8.    Note that the events in Ukraine and the conditions of the gas commodity market remain extremely fluid and note the availability of the Chief Executive's emergency powers to be used, should matters change materially in coming weeks

9.    Following the Full Council meeting on 15th March 2022, and the discussion on this matter arising from an emergency Members' question. The Leader is asked to write to the energy broker to ask that they waive their fees associated with this contract termination, or that they consider donating the fee to an appropriate charity supporting the crisis in the Ukraine

1.    Considered the content of the report and the option available to terminate the contract with Gazprom in compliance with the contract conditions referencing termination.

2.    Determined if they wish to exercise the option to terminate the contract with Gazprom in compliance with the contract conditions referencing termination; and so;

3.    Instructed officers to serve notice to terminate the Gazprom contract effective from 30 June 2022 to end the contract on 30 September 2022.

4.    Delegated authority to the Director of Housing, Neighbourhoods and Building Services (in consultation with the Section 151 Officer and the City Solicitor) the authority to terminate the contract with Gazprom in compliance with the contract conditions referencing termination.

5.    Delegated authority to the Director of Housing, Neighbourhoods and Building Services (in consultation with the Section 151 Officer and the City Solicitor) to commence a procurement exercise to confirm a new supplier from 1 October 2022; focussing on sourcing routes that allow for the lawful exclusion of Gazprom from bidding for the contract. 

6.    Asked officers to continue to work with external partners from government, the Local Government Association (LGA), brokers and peer authorities to highlight issues and suggest remedies to the situation that this and other councils find themselves in with regards to Gazprom contracts.

7.    Requested a paper be put to Cabinet at the next available meeting in the new municipal year to provide an update and to detail the total known costs of exiting the Gazprom contract ahead of its full term; reflecting market conditions and the costs which will only be clear at the point of formal termination.

8.    Noted that the events in Ukraine and the conditions of the gas commodity market remain extremely fluid and note the availability of the Chief Executive's emergency powers to be used, should matters change materially in coming weeks.

9.    Following the Full Council meeting on 15 March 2022, and the discussion on this matter arising from an emergency Members' question, the Leader is asked to write to the energy broker to ask that they waive their fees associated with this contract termination, or that they consider donating the fee to an appropriate charity supporting the crisis in the Ukraine.

Purpose

To request Cabinet approval for the renewal of the Armed Forces Covenant by Portsmouth City Council.

RECOMMENDED that the Cabinet approves the signing of the Armed Forces Covenant and that the Leader of the Council be given delegated authority to effect the signing.

Approved the signing of the Armed Forces covenant and that the Leader of the Council be given delegated authority to effect the signing.

Purpose

1.    To examine the need for additional licensing controls of Houses in Multiple Occupation (HMOs) in the city.

2.    If a need is determined, to outline the process for undertaking a consultation on the formal introduction of such a scheme.

RECOMMENDED that Cabinet approves

1.    That Cabinet decide if the evidence presented is strong enough for the city council to undertake a consultation on the introduction of additional licencing scheme for HMOs.

2.    Subject to recommendation 2.1, a proposed designation for additional licensing must be agreed and consulted upon. It is recommended that the basis for introduction of additional licensing would be in relation to the impacts to tenants of poor living conditions and poor management practices, as indicated by the evidence from the current Mandatory Licensing scheme. The designation should therefore seek to scale up the licensing of HMOs to provide inclusion for all tenants living in HMOs with a City wide designation.

3.    Subject to recommendation 1, that the consultation starts on 23rd May 2022, as outlined within section 10 of this report.

4.    Subject to recommendation 1, that the consultation includes the information outlined within sections 5, 6, 7 & 8 of this report.

5.    Subject to recommendation 1, that following the completion of the consultation, officers return with a report which summarises the responses to enable a final decision on the implementation of a new additional licencing scheme.

6.    In the event that Cabinet do not proceed with a consultation on the introduction of an additional licencing scheme for HMOs, a consultation should be held to introduce the proposed updated Space Standards document (Appendix 5) and the proposed updated enforcement policy (Appendix 6). This consultation should commence on 23^rd May 2022.

1.    Agreed that the city council will start the consultation process on the introduction of an additional licensing scheme for HMOs.

2.    Subject to recommendation 1, a proposed designation for additional licensing must be agreed and consulted upon. It is recommended that the basis for introduction of additional licensing would be in relation to the impacts to tenants of poor living conditions and poor management practices, as indicated by the evidence from the current Mandatory Licensing scheme. The designation should therefore seek to scale up the licensing of HMOs to provide inclusion for all tenants living in HMOs with a City wide designation.

3.    Subject to recommendation 1, that the consultation starts on 23rd May 2022, as outlined within section 10 of this report.

4.    Subject to recommendation 1, that the consultation includes the information outlined within sections 5, 6, 7 & 8 of this report.

5.    Subject to recommendation 1, that following the completion of the consultation, officers return with a report which summarises the responses to enable a final decision on the implementation of a new additional licencing scheme.

6.    In the event that Cabinet do not proceed with a consultation on the introduction of an additional licencing scheme for HMOs, a consultation should be held to introduce the proposed updated Space Standards document (Appendix 5) and the proposed updated enforcement policy (Appendix 6). The consultation will start on 23 May 2022 with any drafting changes delegated to the Director of Housing, Neighbourhoods & Building Services in consultation with the Cabinet Member for Housing & Preventing Homelessness.

Purpose

1.    To provide an update on rough sleeping services in the city.

2.    To provide an update of the Street Homelessness & Rough Sleeping Partnership strategy 2018 - 2020.

3.    To provide an update on bids for Rough Sleeping Initiative funding for services for the period 2022-2025.

The Cabinet noted the report which is for information only and is not subject to call-in.

Purpose

1.    To provide Cabinet with a progress update including:

·         Deconstruction

·         Community Engagement

·         Homes England Funding

·         Development

2.    Inform the decisions required to progress the development delivery of the site currently occupied by the moribund Horatia and Leamington House towers.

2.1Set out the delivery model to take forward the development

2.2 To seek permission from Cabinet to tender and appoint a design & build contractor to build out the HRA Affordable Housing scheme element of the master plan so that works can start subject to planning approval

RECOMMENDED that the Cabinet

1.    Approve that the development scheme is now considered as two separate schemes and that the Affordable Housing Scheme is taken forward with a scheme budget of £98.1m and note that this remains within the overall funding approved by cabinet and full council at Cabinet dated 15th September 2020 and Full Council 13th October 2020 for the whole development scheme

2.    Approve in principle the disposal of land, from the HRA & General Funds as indicated by block B in 4.14 below for the development by a third party which would include PCC own housing development company. Disposal of land (HRA& General fund) uses the existing delegations for the Director of Housing, Neighbourhood and Building Services and Director of Regeneration, in consultation with the Cabinet Member for Housing and Preventing Homelessness and Leader. The land disposal would be defined by a red book valuation and the capital receipt used to support the development.

3.    Note that should the development of the land indicated by block B in 4.14 require funding from the Council, for example, through Portsmouth City Councils own housing development company, Ravelin, and the funding requirement exceeds the £145m overall funding approved by cabinet and full council at Cabinet dated 15th September 2020 and Full Council 13th October 2020, additional spending would be subject to a cabinet and full council report.

4.    Note the scope of the development scheme to include the Horatia and Leamington footprint, Melbourne Place car park, Gibson Centre and the delivery of wider public realm improvements identified in 4.12.

5.    Delegate authority to the Director of Housing, Neighbourhood and Building Services and the Section 151 Officer to tender and enter into contract with the preferred bidder for the design and build work following full evaluation of the tender.

6.    Delegate authority to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to amend the composition, design standard and spending profile of the proposed scheme in order to meet planning and design requirements whilst ensuring that the scheme remains financially viable following any necessary changes.

7.    Delegate the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to apply for any grant funding to support the scheme.

8.    Place on record a note of thanks to the local community and stakeholders who have engaged in the project and particularly those involved directly in the work of the community panel. The contributions and input have been invaluable in directing the project and supporting the design team to create an exciting new beginning for this part of Somerstown.

1.    Approved that the development scheme is now considered as two separate schemes and that the Affordable Housing Scheme is taken forward with a scheme budget of £98.1m and note that this remains within the overall funding approved by cabinet and full council at Cabinet dated 15 September 2020 and Full Council 13 October 2020 for the whole development scheme

2.      Approved in principle the disposal of land, from the HRA and General Funds as indicated by block B in 4.14 below for the development by a third party which would include PCC own housing development company. Cabinet requests that a report to agree the disposal of this land is brought back to it. The land disposal would be defined by a red book valuation and the capital receipt is used to support the HRA development.

3.    Cabinet noted that should the development of the land indicated by block B in 4.14 require funding from the Council, for example, through Portsmouth City Councils own housing development company, Ravelin, and the funding requirement exceeds the £145m overall funding approved by cabinet and full council at Cabinet dated 15 September 2020 and Full Council 13 October 2020, additional spending would be subject to a cabinet and full council report.

4.    Noted the scope of the development scheme to include the Horatia and Leamington footprint, Melbourne Place car park, Gibson Centre and the delivery of wider public realm improvements identified in 4.12.

5.    Delegated authority to the Director of Housing, Neighbourhood and Building Services and the Section 151 Officer to tender and enter into contract with the preferred bidder for the design and build work following full evaluation of the tender.

6.    Delegated authority to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to amend the composition, design standard and spending profile of the proposed scheme in order to meet planning and design requirements whilst ensuring that the scheme remains financially viable following any necessary changes.

7.    Delegated the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to apply for any grant funding to support the scheme.

8.    Placed on record a note of thanks to the local community and stakeholders who have engaged in the project and particularly those involved directly in the work of the community panel. The contributions and input have been invaluable in directing the project and supporting the design team to create an exciting new beginning for this part of Somerstown.

Purpose

To seek approval for Portsmouth City Council to submit a Draft Enhanced Partnership Plan and Scheme in accordance with the requirements set out in the Government's National Bus Strategy - Bus Back Better.

RECOMMENDED that the Cabinet

1.    Approves the Draft Portsmouth Enhanced Partnership Plan and Scheme, for submission to the Department for Transport by 29 April 2022;

2.    Delegates authority to the Cabinet Member for Traffic and Transportation in consultation with the Director of Regeneration and the Section 151 Officer to agree any minor amendments to the Enhanced Partnership Plan and Scheme that may be required to take account of future funding changes and policy announcements;

3.    Notes that the Enhanced Partnership Plan and Scheme will be monitored through the Enhanced Partnership Board.

1.    Approved the Draft Portsmouth Enhanced Partnership Plan and Scheme, for submission to the Department for Transport by 29 April 2022;

2.    Delegated authority to the Cabinet Member for Traffic and Transportation in consultation with the Director of Regeneration and the Section 151 Officer to agree any minor amendments to the Enhanced Partnership Plan and Scheme that may be required to take account of future funding changes and policy announcements;

3.    Noted that the Enhanced Partnership Plan and Scheme will be monitored through the Enhanced Partnership Board.

Purpose 

To update Cabinet on the city council's current use of pesticides, approach to reducing and minimising use and the trialling and practical implications of alternative methods.

The Cabinet noted the report which is for information only and not subject to call-in.

Purpose

To inform Cabinet of the Southsea Coastal Scheme (the Scheme) plans for memorial benches affected by the project along the Southsea seafront and to update on communication with bench owners to date in relation to sub-frontage 4 around Southsea Castle.

The Cabinet noted the report which is for information only and not subject to call-in.

Purpose

To update Cabinet on the work of Member Champions during the 2021/22 municipal year.

The Cabinet noted the report which is for information only and is not subject to call-in.

Purpose

To provide an update on the review of Adaptive Lighting profile.

The Cabinet noted the report which is for information only and is not subject to call-in.

Purpose

To update the Cabinet on the impact of COVID-19, Brexit and other factors impacting construction costs relating to Capital Schemes contained with the report Portsmouth City Council Budget & Council Tax & Medium Term Budget Forecast 2023/24 to 2025/26 approved by City Council 15^th February 2022.

The Cabinet noted the report which is for information only and is not subject to call-in.

Purpose

To update members on the current Revenue Budgetposition of the Council as at the end of the third quarter for 2021/22 in accordancewith the proposals set out in the “Portsmouth City Council - Budget & Council Tax2022/23 & Medium Term Budget Forecast 2023/24 to 2025/26” report approved bythe City Councilon 15February 2022.

RECOMMENDED that the Cabinet

1.    TheGeneral FundForecast Outturnfor 2021/22(as at30 December2021) ofan overallnet overspend of£802,700 benoted; this isanalysed asfollows:

2.    The forecast additionalspending andforgone incomeas consequenceof theCovid-19 Pandemictotalling £10.28mbe noted

3.    Members note that the financial consequences arising during 2021/22 fromthe Covid-19pandemic willbe metfrom theprovision heldwithin theCouncil's Corporate Contingency which was set aside specifically for this purpose asapproved by City Councilon 15February 2022.

4.    Membersnotethatinaccordancewith approvedpolicy asdescribed inSection 8, any actual non Covid-19 overspend at year end will in the first instance bededucted from any Portfolio Reserve balance and once depleted then bededucted fromthe 2022/23 CashLimit.

5.    Inaccordance with(iv) aboveand therequirement thatin thefirst instanceany Portfoliooverspending mustbe metfrom thePortfolio Reserve,that £1,354,400 hasbeen withdrawnfrom theCabinet PortfolioReserve tofund         currentforecast overspendings, leavinga nil balance.

6.    Directors, in consultationwith the appropriateCabinet Member, consider optionsthat seekto minimiseany forecastnon Covid-19overspending presentlybeing reportedand preparestrategies outlininghow anyconsequent reduction to the 2022/23 Portfolio cash limit will be managed to avoid furtheroverspending during 2022/23.

1.    Noted the General FundForecast Outturnfor 2021/22(as at30 December 2021)   of anoverall netoverspend of £802,700;this is analysedas follows:

2.    Noted the forecastadditional spendingand forgoneincome asconsequence ofthe       Covid-19Pandemic totalling£10.28m.

3.    Noted that the financial consequences arising during 2021/22 fromthe Covid-19pandemic willbe metfrom theprovision heldwithin theCouncil's Corporate Contingency which was set aside specifically for this purpose asapproved by City Councilon 15February 2022.

4.    Notedthatinaccordancewith approvedpolicy asdescribed inSection             8, any actual non Covid-19 overspend at year end will in the first instance bededucted from any Portfolio Reserve balance and once depleted then bededucted fromthe 2022/23 CashLimit.

5.      Noted that in accordance with(iv) aboveand therequirement thatin thefirst instanceany Portfoliooverspending mustbe metfrom thePortfolio Reserve,that £1,354,400 has beenwithdrawn fromthe CabinetPortfolio Reserveto fundcurrent forecastoverspendings, leaving a nilbalance.

6.      Noted that Directors, in consultationwith the appropriateCabinet Member, consider optionsthat seekto minimiseany forecastnon Covid-19overspending presentlybeing reportedand preparestrategies outlininghow anyconsequent reduction to the 2022/23 Portfolio cash limit will be managed to avoid furtheroverspending during 2022/23.

Purpose

To provide Cabinet with an update on current proposals for events and projects as part of Portsmouth’s Armed Forces support with commemorations for the 40^th anniversary of the Falklands conflict and Armed Forces Day in 2022.

RECOMMENDED that the Cabinet

1.    Continue to engage with stakeholders about plans for 2022.

2.    Develop a programme of events and activities that puts Portsmouth at the centre of the Falklands commemorations in 2022.

3.    Confer Freedom of the City to:

a.    Falklands Veterans

b.    Royal Naval Association

c.    Association of Wrens

d.    Royal Marines Association

4.    Note that budget provision has been set aside for these events.

1.    Agreed to continue to engage with stakeholders about plans for 2022.

2.    Agreed to develop a programme of events and activities that puts Portsmouth at the centre of the Falklands commemorations in 2022.

3.    Agreed to confer Freedom of the City to:

                                                  i.        Falklands Veterans

                                                ii.        Royal Naval Association

                                               iii.        Association of Wrens

                                               iv.        Royal Marines Association

4.    Noted that budget provision has been set aside for these events.

Purpose

The purpose of this report is to (a) provide an update on the arrangements for COVID-19 testing in Portsmouth from April 2022 following the recent government announcements, and (b) to set out the options available for supporting continued testing arrangements within Portsmouth.

RECOMMENDED that the Cabinet

1.    Consider support for an extension of testing for three months - April - June 2022, (recognising the financial, legal and public health risks and implications outlined below) and select a preferred option from:

Option A: Maintain the status quo - from 01 April, testing will reduce in line with current government plans

Option B: Retain testing capacity to provide tests for vulnerable people, those caring for and living and working with vulnerable people, outbreak and surge capacity testing

Option C: Option B plus the provision of home test kits to households until either:

·         A 3 month period commencing April 2022 has elapsed or;

·         A maximum of 30,000 home test kits have been provided which is equivalent to an uptake of approximately 10% of households (subject to a final cap of £200,000 (exclusive of VAT))

2.    Delegate to the Director of Public Health, and the S.151 Officer, after consultation with the Leader of the Council, to amend the delivery of the above selected options if there is a change in government policy or local context impacting the Public Health requirement to mitigate or manage COVID-19 infection rates.

3.    Note that an additional report will be presented to Cabinet, if further proposals for testing arrangements within Portsmouth are to be considered.

1.    Considered support for an extension of testing for three months - April - June 2022, (recognising the financial, legal and public health risks and implications outlined below) and select a preferred option from:

Option A: Maintain the status quo - from 01 April, testing will reduce in line with current government plans

Option B: Retain testing capacity to provide tests for vulnerable people, those caring for and living and working with vulnerable people, outbreak and surge capacity testing

Option C: Option B plus the provision of home test kits to households until either:

·           A 3 month period commencing April 2022 has elapsed or;

·           A maximum of 30,000 home test kits have been provided which is equivalent to an uptake of approximately 10% of households (subject to a final cap of £200,000 (exclusive of VAT))

2.    Delegated to the Director of Public Health, and the S.151 Officer, after consultation with the Leader of the Council, to amend the delivery of the above selected options if there is a change in government policy or local context impacting the Public Health requirement to mitigate or manage COVID-19 infection rates.

3.    Noted that an additional report will be presented to Cabinet, if further proposals for testing arrangements within Portsmouth are to be considered.

Purpose

To provide information to the Council on the approach of the Climate Change Strategy; information on 'carbon budgets' and actions that will be pursued to achieve the necessary carbon savings.

RECOMMENDED that the Cabinet

1.    Note the contents of this report

2.    Agree proposals for monitoring set out in section 14 of the report.

1.     Noted the contents of this report

2.     Agreed proposals for monitoring set out in section 14 of the report.

“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.)

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

The confidentiality of Appendix A only, relating to contract renegotiations, was upheld.

The Renegotiated sports and leisure facilities management contract by the Director of Culture, Leisure & Regulatory Services was omitted from the Forward Plan covering 15 February to 15 May 2022. The Chair of the City Council's Scrutiny Management Panel has been notified and a public notice published.

1.    Noted the omission for the Forward Plan for 15 February to 15 May 2022.

2.    Noted the publication of the notice.

Purpose

To provide the Cabinet with a summary of the contractual negotiations with BH Live, which have now concluded; and to seek Cabinet's approval to vary the existing sports and leisure facilities management contract with BH Live, on the basis that this is a key decision.

RECOMMENDED that the Cabinet That the Cabinet authorises the Director for Culture Leisure and Regulatory Services to agree a contract variation to the existing sports and leisure facilities management contract, and for the Council's legal services to execute the variation as a deed.

Authorised the Director for Culture Leisure and Regulatory Services to agree a contract variation to the existing sports and leisure facilities management contract, and for the Council's legal services to execute the variation as a deed.

“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.)

Provision of Waste Collection Service - fully exempt - (Information relating to the financial or business affairs of any particular person (including the authority holding that information).

The confidentiality of the full report was upheld.

Agreed to defer the item for more consideration and extend the contract and consider further direct award extension.