Agenda and minutes

To receive details of any Member nominated to attend the meeting in place of a Member of the Committee.

Councillor Barnes for Councillor Scott, Councillor Collier for Councillor Stephen, Councillor Kimberley for Councillor Gregson, Councillor Lamb for Councillor Norfolk, Councillor Lawrance for Councillor Jagger, Councillor Murray for Councillor Allcott.

To receive any declarations of interest.

The following declarations of interest were made:

Councillors Barnes, Denham and Holmes – The Hopmarket (Minute 50) – As Hopmarket Trustees

Councillor Round – Future High Street Fund - Programme Update (Minute 57) and Scala Arts Centre - Approval of Business Plan and Operating Model (Minute 58) – A family member is a former City Council employee

Councillor Mace – Scala Arts Centre - Approval of Business Plan and Operating Model (Minute 58) – As a member of the Regal Cinema, Evesham

Councillor Riaz – Scala Arts Centre - Approval of Business Plan and Operating Model (Minute 58) – As Chair of Worcester Mela.

The Committee is invited to pass the following resolution:-

That under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of information as defined in Schedule 12A of the said Act.

RESOLVED: That under Section 100A (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following two items of business on the grounds that they involve the likely disclosure of information as defined in Schedule 12A of the said Act.

To receive a report on the Hopmarket building.

The Committee considered a report on the Hopmarket building and agreed a preferred option for progression of the issues identified in the report. The report was considered in private on the basis of commercial sensitivity and legal privilege.

That the Committee:

1.     Approves the tendering of 2 new measured term contracts in respect of Building Maintenance and Minor Works, and Electrical Services;

2.     Approves the outline award criteria for these contracts as set out in the report; and

3.     Delegates approval of the award of each contract to the Corporate Director - Finance and Resources.

The Committee approved the tendering of 2 new measured term contracts, in respect of Building Maintenance and Minor Works, and Electrical Services. The Committee agreed the outline award criteria for these contracts and agreed to delegate approval of the award of each contract to the Corporate Director - Finance and Resources. The report was considered in private on the basis of commercial sensitivity.

THE MEETING RESUMED IN PUBLIC FOLLOWING CONSIDERATION OF THIS ITEM

Up to a total of fifteen minutes can be allowed, with each speaker being allocated a maximum of five minutes, for members of the public to present a petition, ask a question or comment on any matter on the Agenda or within the remit of the Committee.

None.

Of the meeting held on 21^st May 2024 to be approved and signed.

RESOLVED: That the minutes of the meeting held on 21^st May 2024 be approved as a correct record and signed by the Chair.

That the Committee:

1.      Notes the financial monitoring details including budget variances and performance indicators for the 4^th quarter ended 31 March 2024;

2.      Approves the write-offs of Council Tax and Business Rates for the quarter ended 31 March 2024;

3.       Agrees the balances on earmarked reserves at 31 March 2024; and

4.       That the Committee considers officer recommendations on the allocation of the 2023/24 budget surplus as detailed in paragraph 9.5 of this report.

The Committee considered the annual and quarter 4 performance report. The Head of Finance presented the report and highlighted the main points, including budget variances and performance indicators.

In summary, the year-end performance at Q4 showed a budget surplus of £0.978m. However, the budget approved by Council in February 2023 assumed a draw on reserves of £1.706m. The year-end surplus therefore only represented a lesser draw from those reserves.

The revised capital programme forecast was £20.471m, with a year-end actual of £11.081m. The original budget was £22.968m and the report explained the reasons for the decrease.

The net position on Treasury Management and Earmarked Reserves was also summarised in the report. For Q4 the report recommended £133k of write-offs of Council Tax and Business Rates.

The 2024/25 budget report to the Committee in February 2024 identified a number of challenges and risks that the Council faces for which there was currently no revenue budget, including:

·        Ash dieback contingency

·        Scala Theatre – potential revenue subsidy for a period once it has opened

·        Air Quality Action Plan

·        Crematorium refurbishment

·        Food waste collection

The report proposed that the budget surplus be transferred to the Transformation Reserve to provide potential funding for these items.

Officers responded to questions and comments from Committee Members. Support was expressed for the transfer of the budget surplus.

RESOLVED: That the Committee agree:

1.    to note the financial monitoring details including budget variances and performance indicators for the 4th quarter ended 31 March 2024

2.    to approve the write-offs of Council Tax and Business Rates for the quarter ended 31 March 2024

3.    the balances on earmarked reserves at 31 March 2024.

4.    the Officer recommendations on the allocation of the 2023/24 budget surplus as detailed in paragraph 9.5 of this report.

That the Committee:

1.     Agrees the principle of a Community Asset Transfer of The Swan Theatre to Worcester Theatres Charitable Trust Ltd;

2.     Agrees the grant of a 99-year peppercorn lease to Worcester Theatres on the Heads of Terms attached to this report;

3.     Agrees that, in consideration of the value of the asset transfer, the Council will give no guarantee of annual grant subsidy to Worcester Theatres beyond the financial year 2024/25; and

4.     Delegates authority to the Corporate Director - Planning and Governance and Head of Property to complete the negotiations and legal agreements.

The Committee considered a report on the principle of a Community Asset Transfer of The Swan Theatre to Worcester Theatres Charitable Trust Ltd. The Head of Property and Asset Management presented the report and explained that, since the Committee’s decision on the Scala and Corn Exchange in July 2023, negotiations with Worcester Theatres had reopened for the grant of a new long-term lease, without any landlord’s right to terminate.

The principle of a Community Asset Transfer had provisionally been agreed with the Trustees of Worcester Theatres, subject to this Committee’s approval.  The report set out the basis of the CAT, as well as the financial and legal implications.

There was no commitment in the proposed agreement to extend the annual grant from the Council to Worcester Theatres beyond 31 March 2025. This arrangement was in recognition of the Council’s effective transfer of a valuable property for nil monetary consideration. It had been approved by the Worcester Theatres Board.

Officers responded to questions and comments from Committee Members. There was support for the proposal, on the basis that it accords with the Committee’s decision of 25 July 2023, it is supported by the Trustees of Worcester Theatres, and it is intended to secure the longevity of the Swan Theatre.

The annual subsidy was raised and the Chair asked that this be kept under review as part of the budget setting for 2025/26. The Corporate Director – Finance and Resources stated that there will be reference to this in a forthcoming report to the Committee on grants arrangements.

RESOLVED: That the Committee agree:

1.    the principle of a Community Asset Transfer of The Swan Theatre to Worcester Theatres Charitable Trust Ltd;

2.    the grant of a 99-year peppercorn lease to Worcester Theatres on the Heads of Terms attached to this report;

3.    that, in consideration of the value of the asset transfer, the Council will give no guarantee of annual grant subsidy to Worcester Theatres beyond the financial year 2024/25; and

4.    to delegate authority to the Corporate Director - Planning and Governance and Head of Property to complete the negotiations and legal agreements.

THERE WAS A 15 MINUTE BREAK FOLLOWING THIS ITEM

That the Committee confirms the appointments to outside bodies for 2024-25.

The Committee considered nominations from Group Leaders for appointments to various outside bodies. A schedule setting out details of the nominations was shared at the meeting.

RESOLVED: That the Committee confirm the appointments to outside bodies for 2024-25 as set out in the schedule appended to the minutes.

That the Committee:

1.      Notes the updates provided on the Future High Street programme and the monitoring and evaluation outputs available so far;

2.      In relation to the main works contract for the Scala and Corn Exchange, authorises additional expenditure of £75,000 to meet Pre-contract Service Agreement (PCSA) costs as detailed in this report; and

3.      Notes that a further report will be brought to Committee in September with fully costed proposals for the main works contract for the Scala and Corn Exchange.

The Committee considered an update report on the Future High Street programme. The report covered the Scala Theatre and Corn Exchange, Property Enhancement Scheme, Angel Place and Public Realm improvements. The Scala and Corn Exchange element included design/contractor update, catering contract and operating model. The Managing Director presented the report and highlighted the main points.

With regard to the Scala/Corn Exchange construction contract, the report explained that in February 2024 the Committee had approved a budget of £100,000 towards enabling works to be undertaken as part of the Pre-Construction Service Agreement (PCSA). This budget was estimated at RIBA Stage 3.  As the design work had advance to RIBA Stage 4 (technical design) these costs had been itemised more accurately and the PCSA budget was now estimated to total £175,000.  It was therefore proposed that a further £75,000 is budgeted towards the PSCA contract costs. These costs will be chargeable to the contract, once let, and funded from capital funds, including the FHSF grant. There were therefore no direct financial implications for the Council. 

It was also noted that a full building contract including pricing and detailed construction timetables will be presented to this Committee in September 2024.

Officers responded to questions and comments from Committee Members.

Members expressed support for the proposed additional expenditure.

RESOLVED: That the Committee agree:

1.    to note the updates provided on the Future High Street programme and the monitoring and evaluation outputs available so far;

2.   in relation to the main works contract for the Scala and Corn Exchange, to authorise additional expenditure of £75,000 to meet Pre-contract Service Agreement (PCSA) costs as detailed in this report; and

3.   to note that a further report will be brought to Committee in September with fully-costed proposals for the main works contract for the Scala and Corn Exchange.

That the Committee:

1.      Approves the first Business Plan for Scala Arts Centre as set out in Appendix 1;

2.      Approves the principle that a new charitable incorporated organisation (“CIO”) should be established to manage Scala Arts Centre and delegates authority to the Corporate Director-Planning and Governance, in consultation with Chair and Vice Chairs of Committee, to take all necessary steps to establish the Scala CIO and secure the appointment of the founding group of trustees;

3.      Notes the planned actions to establish the operating model during the construction period until the buildings can be opened and agrees to allocate funding in the sum of £300,000 from the 2023/24 outturn surplus into a reserve to be drawn down to fund these actions;

4.      Agrees to allocate annual funding in the sum of £150,000 in the Council’s Medium Term Financial Plan as a core grant to the Scala CIO in support of Scala Arts Centre once operational, with effect from April 2026;

5.      Delegates authority to the Corporate Director- Planning and Governance and Corporate Director- Finance and Resources, in consultation with the Chair and Vice Chairs of Policy and Resources Committee, to establish detailed terms for legal agreements between the Council and the Scala CIO to secure funding and property commitments; and

6.      Notes that decisions on the construction contract for Scala and Corn Exchange are yet to be made and will be brought to Committee in September.

The Committee considered a report on the proposed operating model and business plan for the Scala Arts Centre. The Corporate Director – Planning and Governance presented the report. A copy of the business plan was appended to the report. The business plan set out the proposed operating model for the Scala as a charitable incorporated organisation (CIO). External legal advice on the governance model was also appended. The details of how the CIO will operate were set out in the business plan.

Members were advised that the construction programme and budget will be considered by the Committee in September. Procurement for an external catering operator for the Corn Exchange was currently live and confidential negotiations with bidders were underway. No announcement had yet been made by Government about the Council’s Levelling Up Fund bid, which includes a proposal to develop the mezzanine in the Corn Exchange.

The business plan included reference to potential start-up capital to establish the enterprise prior to it becoming fully operational, estimated at £300,000. It also envisaged an ongoing contribution of £150,000 from the Council as the primary sponsoring body. These sums were dependent on the availability of funding from other sources. The Council’s Medium Term Financial Plan will need to be adjusted to reflect this as an annual pressure from 2026/27 on the assumption that the start date for the Scala is as presumed in the business plan. A number of the assumptions will need to be reviewed once the centre is closer to being fully operational.

There was a lengthy debate and the Corporate Director and other officers responded to questions and comments from Members. Several Members made reference to the initial funding agreement and the Council’s ongoing contribution. Officers explained the mechanism in place to ensure this project is kept under review by Members. The role of the Major Programmes Member Reference Group was highlighted. Budget information is shared at that forum monthly. Officers can bring a report back to Committee in 12 months’ time regarding the funding position and the Council’s revenue commitment. The funding will be a consideration in the budget setting cycle and also part of the annual review of grants to external bodies.

The Corporate Director advised that it is important to differentiate between the Creative Consortium and the CIO. The Council will need to enter into a legally binding funding agreement with the new charity to ensure that Scala is brought into operation and delivers the outcomes set out in the business plan.

Members were supportive of the proposals and welcomed the progress which has been made.

RESOLVED: That the Committee agree to:

1.    approve the first Business Plan for Scala Arts Centre as set out in Appendix 1;

2.    approve the principle that a new charitable incorporated organisation (“CIO”) should be established to manage Scala Arts Centre and delegates authority to the Corporate Director-Planning and Governance, in consultation with Chair and Vice Chairs of Committee, to take all necessary steps to establish the Scala CIO and secure  ...  view the full minutes text for item 58.

That the Committee approves the use of the Council’s annual Better Care Fund allocation to fund the Council’s annual contribution to the PIL Service Contract for the period 2025/26 – 2029-30.

The Committee considered a referral report from Communities Committee on use of the Council’s Better Care Fund allocation. The Corporate Director – Finance and Resources explained that at its meeting on 4^th July 2024, the Committee had considered a report on the recommissioning of the Promoting Independent Living (PIL) contract by each of the commissioning authorities. The Committee agreed to the Council being a party in the procurement of a Worcestershire Home Improvement Agency to deliver a contract covering the period 2025 - 2029.

Worcester’s contribution to the service is wholly funded through an annual allocation from the Better Care Fund. A pooled Better Care Fund allocation is paid annually by Government to Worcestershire County Council and is automatically transferred to districts. The level of district funding received is calculated by Government using a set formula. The allocation for Worcester for 2024/25 had been confirmed as £851,026.

The Committee supported the proposal. The matter had been referred to this Committee because, in accordance with the Constitution, virement between budgets for events greater than £100,000 should be approved by Policy and Resources Committee.

RESOLVED: That the Committee approve the use of the Council’s annual Better Care Fund allocation to fund the Council’s annual contribution to the PIL Service Contract for the period 2025/26 – 2029-30.

That the Committee:

1.       Notes the outcome of the process for renewing the Council’s insurance contract; and

2.       Approves a supplementary estimate of £36,942 for the financial year 2024/25.

The Committee considered a report on the outcome of the process for renewing the Council’s insurance contract. The Corporate Director – Finance and Resources presented the report and explained that it had been agreed at the last meeting to bring back a report on the outcome of the tender exercise.

The overall impact of the tendering exercise was an increase of insurance premiums of 17%, which had a financial implication of £36,942.83 for the current financial year. For future years, the revised premiums will be included in budget preparation.

RESOLVED: That the Committee:

1.    agree to note the outcome of the process for renewing the Council’s insurance contract; and

2.    approve a supplementary estimate of £36,942 for the financial year 2024/25.

Which in the opinion of the Chair is of sufficient urgency as to warrant consideration.

None.