Agenda and minutes

            The minutes of the meeting of 17th October were taken as read and signed as correct.  It was reported that those minutes had been adopted by the Council at its meeting on 3rd November. 

            No declarations of interest were reported.

            The Committee was reminded that, at its meeting on 17th October, it had deferred consideration of a request for financial assistance from the Ulster Orchestra.  That request, which had been for an amount of £500,000, had been to assist the Orchestra to address an operating deficit of £400,000 in 2014/2015, which had arisen due to cuts in funding, primarily by the Arts Council and the BBC. The Committee had taken that decision to clarify the Council’s legal powers to meet such a request, to enable further information to be obtained and to receive a deputation from representatives of the Board of the Ulster Orchestra.

            The Chief Executive reminded the Committee that there had been two elements to the Ulster Orchestra’s request, the second aspect being that the Council would consider providing the Orchestra with a rent-free period of five years for the use of the Ulster and Waterfront Halls. Given that such a decision would affect the Councilpost-2015, she pointed out that that element of the request would be considered by the Shadow Strategic Policy and Resources Committee at its meeting on 28th November.

            Accordingly, the Deputy Chairman welcomed to the meeting Professor G. Bain, Executive Chairman of the Board of the Ulster Orchestra, together with Ms. A. Sands, Ms. B. McKinley and Mr. T. Green, representing the senior management team of the Orchestra.

            Professor Bain outlined the extent of the Orchestra’s operating deficit and the factors which had contributed to it. He stressed that any financial contribution which the Council might make would assist the Orchestra in its attempt to lever additional funding from the Department of Culture, Arts and Leisure. He outlined the principal aspects of a revised business model which had been formulated for the Orchestra and indicated that the Board would be seeking to attract additional funding from the private sector. He concluded by stressing that the Orchestra had established a five-year plan to enhance its future viability and sustainability and appealed to the Committee to look favourably upon the request as submitted.

            In response to a number of Members’ questions, Professor Bain outlined the range of measures which the Orchestra would explore to attract additional private funding. He confirmed that he did not anticipate that a further request for direct Council support would be submitted in future years.  In addition, Ms. Sands provided an overview of the enhanced community outreach programme which would be introduced. The representatives of the Ulster Orchestra then left the meeting.

            After discussion, it was

            Moved by Councillor McVeigh,

            Seconded by Alderman Robinson and

      Resolved – That the Committee agrees, in principle, to contribute a sum of £100,000 to the Ulster Orchestra, subject to that body securing additional funding to meet its operating deficit for 2014/2015, and subject to the Council being satisfied with the longer-term financial viability of the Orchestra and to the receipt of assurances from auditors that the Orchestra was considered to be a going concern.

            The Committee considered the undernoted update report on the work of the Council’s Area-Based Working Groups:

         South AWG -  Local Intervention  

2.1    The South AWG made a recommendation for the consideration of the SP&R Committee in relation to Gilpins project which is an emerging BIF project. Members noted that it was highlighted that there was a need to build capacity in relation to this project – however although this is an emerging BIF proposal there is no funding available under BIF for this type of project development activity.  Capacity building would be a matter for the Development Committee to consider as and when it has the budget and resources to do so. 

         North AWG

2.2    The North AWG made the following recommendations for the consideration of the SP&R Committee in relation to their Local Investment Fund

         Following the above decision the North AWG still has approximately £300,000 of unallocated LIF funding. Given realistic concerns that this money could potentially be subsumed into general Council budgets as the new organisation establishes itself amidst very difficult financial circumstances the North AWG held a special meeting to agree allocation of the £300,000.

         Officers were not invited to this meeting but have since been provided with a list of ‘projects’ totalling over £280,000.  The estimates against these ‘projects’ are entirely notional as officers have had no input as yet and we do not know what or where some of these projects are. 

         More importantly a number of these ideas do not fit within the eligibility criteria for LIF funding.  Even if Committee was minded to change the rules around LIF for some of these ideas this may cause audit, legal and reputational issues for Councillors and the Council and potentially jeopardise future funding of this type. 

         The list of ideas include straightforward top ups of exiting LIF schemes but then move to feasibility studies, expenditure on Council assets, small revenue amounts and areas outside the vires of Council and potentially illegal. 

         Rather than debate these individually at Committee it is proposed that:

(i)    A decision is made by Committee and the Shadow SP&R to ring fence the unallocated LIF monies to give the AWG time to think things through.

(ii)   The Committee asks the AWG to meet with the Directors of Legal Services, Finance and Resources and Property and Projects to refine the current ideas into eligible areas of expenditure. 

         East AWG

2.3    The East AWG made the following recommendations for the consideration of the SP&R Committee  ...  view the full minutes text for item 4a

            The Committee considered the undernoted report:

“1     Relevant Background Information

1.1    Members will be aware that on 31 March 2014, Belfast City Council received a Letter of Offer from the Northern Ireland Tourist Board offering £18.6m towards the construction of new conference and exhibition facilities at the Belfast Waterfront Hall.

1.2    The Letter of Offer contains a number of conditions which must be fulfilled in order for the Council to secure payment of the funds by NITB. These conditions include the following:

-  Belfast City Council shall have implemented arrangements for the operation and management of the project going forward which are in substance and in form acceptable to NITB and shall have provided copies of the management contracts for the project to NITB and those contracts are acceptable to NITB.

-  Belfast City Council will fully test a range of operating options for the project to ensure the operating model deployed gives the greatest return to the economy in line with the targets outlined within the approved business case. These options are to include (but not limited to):

i)     The review and potential enhancement of the current status quo operating model

ii)    Outsourcing the operation to an established private sector operator

iii)   The creation of an arms length company/non profit distributing organisation wholly owned by Belfast City Council (NDPO/Mutual Company)

1.3    The objectives which the project is required to deliver are as follows:

-  Provision of an integrated conference/convention centre by 2015

-  A minimum of 2000sq metres exhibition space across one level

-  Banqueting space for a minimum of 750 people

-  Attract 50,000 annual conference delegates to the city by 2020

-  To attract 35,000 (of the 50,000) out of state conference delegates by 2020

2       Key Issues

2.1    On 25 April 2014, the Strategic Policy & Resources Committee approved the procurement of consultants to undertake an options analysis for the future operation of the Waterfront Hall, as required by the conditions in NITB’s Letter of Offer set out in paragraph 1.2 of this report.

2.2    Following a tender exercise, RSM McClure Watters was appointed to undertake the appraisal. Following agreement of the Strategic Policy & Resources Committee at its meeting on 22 August 2014, a series of Party Briefings took place in October to make Members aware of the proposed options to be considered along with the assessment criteria to be used.

2.3    There was general consensus at Party Group Briefings that the following options be considered within the options analysis for the future management of the Waterfront Hall: 

a)    Do nothing

b)    An enhanced in-house management model

c)    An arm’s length company wholly owned by BCC

d)    A Trust

e)    A Mutual

f)     A joint venture and;

g)    A fully outsourced operation

2.4    There was also broad agreement that the options should be assessed against the following criteria:

     Purpose - will the option be able to provide what is required from the venue? e.g. economic impact, surplus, prestige and publicity

     Strategy - will the  ...  view the full minutes text for item 4b

            The Committee endorsed the following requests for the use of the City Hall and the provision of hospitality:

            The Committee approved and adopted the minutes of the meeting of the Audit Panel of 21st October.

            The Committee considered the undernoted report:

“1.0    Relevant Background Information

1.1    This report presents the financial performance of the Council for the period 1 April 2014 to 30 Sept 2014. As well as reporting the in-year financial performance of the Council, consideration of the Quarter 2 report by the Strategic Policy and Resources Committee forms one of the key stages in the 2015/16 rate setting process agreed by Members in August 2014 as it provides the Committee the opportunity to consider the prioritisation and allocation of any forecast in year under spend to proposals for non recurring expenditure developed as part of the service convergence stage of the revenue estimates.

2.0    Key Issues

2.1    Current and Forecast financial Position 2014/15

         The financial position for Quarter 2 is a net departmental under-spend of £1.16m (2.0%). The forecast year end departmental position is an under-spend of £1.42m (1.2%). The major reasons for the variance in the year end forecast, relate to reduced expenditure in corporate pension and invest to save budgets as well as additional income in Digital Services, and Building Control.

2.2    Capital Financing

         The capital financing budget is £13.37m. This budget is forecast to break even and will be used to finance the capital programme and feasibility work to support the Investment Programme. A detailed Quarter 2 half year capital programme report will be presented to SP&R in December 2014.

2.3    Rate Income

         The quarter 2 forecast by LPS is a positive rate settlement of £2.9m. The assumptions around this forecast will form part of the analysis of the 2015/16 EPP for the new Council.

2.4    Investment Programme

         Committed expenditure approved by the Strategic Policy and Resources Committee for the 3 year Capital Programme stands at £30.10m, leaving £44.90m of schemes within the 3 year programme at the uncommitted or emerging project stage.

2.5    Committed expenditure on LIF projects currently stands at £4.75m, with 50 projects worth £4.06m having been through the Council’s due diligence process. Actual payments of worth £1.047m have been made to date.

2.6    The amount of levered external funding for the Investment Programme which has been agreed in principal is £69.415m, with £50.290m of these funds confirmed through letters of offer.

2.7    Actual capital expenditure for the period was £4.85m, while non-recurring expenditure was £257k.

2.8    Other Financial Indicators

         The percentage of average for debt under 90 days old decreased during the quarter to 53.7% which was below the target of 65%. This mainly related to one significant debt which has since been settled. The percentage of debt collected in 30 days improved to 56.4% against a target of 60%.

2.9    The average number of creditors paid within 28 days for quarter 2 was 84.5%, compared to a target of 85%.

3.0    Resource Implications

         Committed Non Recurring Funding Available

3.1    Table 1 below shows the total forecast outturn which the Committee can use to finance one-off expenditure taking into consideration decisions already taken by the Committee to realign under spends at quarter 1.

Table 1  ...  view the full minutes text for item 6b

            The Committee was advised that a request for financial assistance had been received from the City of Belfast Youth Orchestra towards the cost of undertaking a tour of the United States, which would coincide with the Orchestra’s 60th anniversary.

            The Director of Finance and Resources explained that, under Section 37 of the Local Government Finance Act (Northern Ireland) 2011, the Council had a discretionary power to consider exceptional requests for financial assistance.  A special expenditure budget (Grants and Subscriptions) which existed within the Finance and Resources Department made provision for such requests providing that the Council had the statutory authority to make such payments, provided that assistance was not available under the remit of another Committee.  He pointed out that the request met the criteria agreed previously.

            Accordingly, it was

      Resolved – That expenditure of £5,000 in respect of the aforementioned request be approved under Section 37 of the Local Government Finance Act (Northern Ireland) 2011, it being the opinion of the Committee that the expenditure would be in the interest of, and would bring direct benefit to, the District and its inhabitants, with the Committee being satisfied that the direct benefits so accruing would be commensurate with the payment to be made.

            The Committee was reminded that the Development Committee, at its meeting on 16th September, had agreed to recommend to the Strategic Policy and Resources Committee that it approve funding of £13,909 to Belfast City Centre Management to enable that body to meet the costs associated with an increase in staff salary costs. It was suggested that the request should be treated on a discretionary and one-off basis.

      Resolved – That the Committee endorses the recommendation of the Development Committee and agrees to allocate £13,909, from within the Council’s budgetary underspend for 2014/2015, to Belfast City Centre Management to enable it to meet the increase in its staff salary costs as outlined.

            The Director of Finance and Resources provided an update on the non-domestic revaluation exercise and advised the Committee that Land and Property Services had published a draft revaluation list. He added that Land and Property Services had provided detailed information to the Council on the impact of the revaluation of over 16,500 non-domestic properties, which was being assessed currently by staff within the Finance and Resources Department.  He indicated that a full report in this regard would be considered by the Shadow Strategic Policy and Resources Committee at its meeting on 28th November.

Noted.

            The Committee was reminded that a number of Council properties, such as the Gate Lodge at the Botanic Gardens, were leased to permanent staff across the Council.  Those agreements were subject to the tenant remaining as a Council employee and, in certain cases, assuming responsibilities for the opening and closing of gates, reporting antisocial behaviour and maintaining associated gardens.

            The Chief Executive pointed out that the aforementioned Gate Lodge was occupied currently by a member of staff from the Parks and Leisure Services Department. However, that employee would be transferring from the Council to Greenwich Leisure Limited as part of the Leisure Transformation Programme. Such a move would, therefore, impact directly upon the tenancy agreement.

            Accordingly, the Committee was informed that it was proposed that the Council would exercise its discretion with a view to drafting a new tenancy agreement to accommodate the tenant’s continued occupation of the property. Such an agreement would be dependent upon an enhanced caretaking arrangement and the tenant remaining in the employment of any strategic operating partner responsible for the delivery of the Council’s leisure services.  She therefore sought the Committee’s authority to amend the tenancy agreement as outlined.

            The Committee adopted the recommendation, subject to the drawing up of an appropriate legal agreement.

            The Committee considered an update report in relation to the proposed replacement of the Lord Mayor’s official vehicle which outlined in detail a number of options which might be explored further by the Council in this regard.

            The Committee authorised officers to assess further the cost-effectiveness of the Council entering into an agreement for the acquisition of a replacement vehicle on either a sponsored or a part-subsidised basis. It was noted that the Committee would, at the end of that process, evaluate the full range of options which were available for the replacement of the Lord Mayor’s vehicle.

            The Committee deferred consideration of a report which provided an overview of the Council’s future options for the use and management of the City Hall.  It was noted that a further report would be submitted for the Committee’s consideration which would outline in detail the full range of options available to the Council should it wish to promote and enhance the commercial use of the City Hall.

            The Committee was advised that a request to host a cultural event in the grounds of the City Hall on 24th October, 2015, had been received from ArtsEkta.  The Director of Property and Projects explained that the festival, known as Navratri, was the principal cultural festival as celebrated by the Indian community and, if permitted, would involve approximately 800 participants. 

            The Director reviewed the event programme and indicated that it would attract approximately 14,000 visitors during the day. He indicated that a detailed event management plan had been submitted to the Council, together with a risk assessment and health and safety plan, and that full consultations would be undertaken with the organisers.  Accordingly, he recommended that the Committee accede to the request to host the cultural event in the grounds on 24th October, 2015. In addition, he requested that the organisers be permitted the use of a number of rooms within the City Hall during the event.  It was noted that parts of the grounds would, to enable the set up and dismantling of the stages, be out of limits to the general public prior to and after the event.

            The Committee adopted the recommendations.

            The Committee considered the undernoted report:

“1        Relevant Background Information

            This purpose of this report is to update Members on work to ensure the organisation is fit for purpose for its new roles and responsibilities. In particular, the report provides an update on the processes and timeframes for the previously agreed Peer Review and Decision Making and Accountability processes and highlights some immediate organisational development considerations.

2          Key Issues

2.1       Approach to organisation development and design

            Members previously agreed that the Local Government Association (LGA) would help with two key strands of our work to redesign the organisation (the corporate peer challenge process and an analysis of decision making and accountability (DMA)) to ensure it has the capacity to deliver Members’ priorities and ambitions. 

            An update on each of these processes is set out below.

2.2       Corporate Peer Challenge

            The LGA corporate peer challenge involves a team of external peers who will draw on their experience of local government to provide observations and feedback on our plans and proposals for the future. The review will consider core components and areas that are fundamental to councils’ future performance and improvement and exploring them will help provide an indication about the organisation’s ability and capacity to deliver on its future plans, proposals and ambitions.

2.3       Peer team make-up and roles

            The peer team will comprise two elected members, (still to be confirmed) and the following senior local government officers:

            Nicola Yates OBE – City Director, Bristol City Council: Ms Yates was appointed City Director in May 2013 and was previously Chief Executive at Hull City Council between 2009-2012.   Prior to that she held the roles of Deputy Chief Executive (2008-09) at Hull and Chief Executive of North Shropshire Council (2005-08).  Ms Yates’ professional background is within the housing sector and she has contributed both operationally and academically to the landscape of social housing today. 

            Sarah Reed – Assistant Chief Executive, Sunderland City Council: Ms Reed’s background is in organisation development and management services. She has been Assistant Chief Executive since 2010, and prior to that she was Head of Strategy, Policy and Performance Improvement. In these roles Ms Reed has led on developing the new operating model for the council and helped to make this happen by re-designing the focus of the council as a community leadership council. 

2.4       Neil Hanratty - Director for Economic Development, City of Cardiff Council: Mr Hanratty has worked in the regeneration and inward investment fields for over 20 years, mainly in local government and with public private partnerships throughout the UK.  He is currently responsible for Economic Development, Regeneration, Major Projects and Property at City of Cardiff.  He has a strong interest in sustainable urban development and economic growth, particularly the opportunities to develop smart cities to attract sustainable inward investment. 

2.5       Dates of the peer challenge

            The peer challenge team will be onsite at Belfast City Council on 27,28,29,30 January 2015.

2.6       Members’ briefing

            Political and stakeholder buy-in is crucial to a successful peer  ...  view the full minutes text for item 7e

            It was reported that, in accordance with Standing Order 55 and the authority delegated to him, the Director of Finance and Resources had authorised the appointment of members of staff who were related to existing officers of the Council.

Noted.

            The Committee approved and adopted the minutes of the Good Relations Partnership of 10th November.

            The Committee approved the use of ‘Bell’s Theorem Crescent’ for a street situated off the Queen’s Road within the Titanic Quarter.