Agenda and minutes

Members and officers must declare any pecuniary or personalinterest in any business on the agenda. They should also make declarations at any stage such an interest becomes apparent during the meeting. Consideration should be given to leaving the meeting if the nature of the interest warrants it.  If in doubt please contact Democratic Services before the meeting.

60.1 Dr Walsh declared the following personal interests: in relation to the Budget Update, Total Performance Monitor (schools performance), and One Public Estate items as an Arun District Councillor; and in relation to the One Public Estate item as a Littlehampton Town Councillor involved in the discussions regarding projects within Littlehampton.

60.2 Mr Edwards declared a personal interest in relation to One Public Estate as an Arun District Councillor.

60.3 Mr Lea declared a personal interest in relation to the Budget Update item as a Mid Sussex District Councillor.

60.4 Mr Smytherman declared a personal interest in relation to the Total Performance Monitor (Alternative Provision Units) and Capital Programme Quarter 2 Performance report (Alternative Provision Units) as a local authority Governor of Alternative Provision College for West Sussex, and in relation to the Total Performance Monitor (Workforce) and One Public Estate (Centenary House Worthing) as a Trustee of Coastal West Sussex MIND.

60.5 Mrs Dennis declared a personal interest in relation to the Total Performance Monitor (schools performance) as a governor of Gattons Infant School and Twineham CE Primary School.

The Committee is asked to agree the minutes of the meeting held on 5 October 2018 (cream paper).

61.1 The Chairman requested in relation to 50.5 recommendation 5, that the language be clarified to read “to help devise questions” in order to reflect the Committee’s role in the proposed Task and Finish Group.

61.2 Resolved – That subject to the above amendment, the Minutes of the Performance and Finance Select Committee held on 5 October 2018 be approved as a correct record and that they be signed by the Chairman.

Items not on the agenda which the Chairman of the meeting is of the opinion should be considered as a matter of urgency by reason of special circumstances, including cases where the Committee needs to be informed of budgetary or performance issues affecting matters within its terms of reference, which have emerged since the publication of the agenda.

62.1 The Committee agreed that a verbal update be given by the Cabinet Member for Finance and Resources on the proposed development site at Angel’s Nursery Barnham. This update took place under the Part II section of the meeting due to the restricted nature of the information.

The Committee is asked to appoint Mr Peter Catchpole to the Business Planning Group (BPG) as the new Vice-Chairman of the Committee, replacing Mr Elkins who recently stood down from the position when he was appointed as a Cabinet Member. The current members of the BPG are Mr Montyn (Chairman), Mrs Dennis, Mrs Mullins, and Dr. Walsh. Members are therefore asked to agree the amended Membership of the Group.

No background papers.

63.1 The Chairman nominated Mr Catchpole to be appointed to the BPG, and this was seconded by Mr Turner.Members accepted that appointing the Vice Chairman to the Business Planning Group (BPG) was customary and advisable, but requested in future when a vacancy arises on the BPG that all Committee members be given the opportunity to nominate to the vacancy.

63.2 Mrs Dennis nominated Mr Fitzjohn to be appointed to the BPG, and this was seconded by Mr Lea.

63.3 A vote was taken on the nominations and Mr Catchpole was appointed.

63.4 Resolved – That Mr Catchpole be appointed to the Committee’s BPG.

A report by the Director of Finance, Performance and Procurement, (to follow).

The Committee is asked to support the update regarding the work towards a balanced budget for 2019/20.

64.1 The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

64.2 The Cabinet Member for Finance and Resources introduced the report, which provides an update on the Medium Term Financial Strategy presented to the last meeting of the Committee and the work underway to balance the budget for 2019/20. The local government finance settlement announcement is expected in December, alongside further details on how the extra adult social care funding may be used. Continued pressure is being applied to the Government for better long term funding of Council services. Having removed from the report the savings proposals which will not be achieved in this financial year the budget gap currently stands at £66.3m, which demonstrates the critical nature of the important decisions necessary to balance the budget.

64.3 The Director of Finance, Performance and Procurement introduced the report and highlighted key information for the Committee. The detail of the budget hasn’t yet emerged but officers are working on demand assumptions for services in 2019/20-2022/23 in order to close the budget gap. There is some uncertainty at this point but the latest inflationary figures will be updated in the final report coming to the January meeting of this Committee, and the national living wage and Fire and Rescue Service pensions will also be clarified by that time. The report reiterates the importance of maintaining the Council’s level of reserve funds, especially in light of the fair funding formula.

64.4 The Committee made comments in relation to the report including those that follow. It:

·        Commented that austerity is certainly not at an end and this concern is widely held by Members. The effects of past decisions and service reductions often have unintended consequences which still affect residents, with the burden often falling to District and Borough Councils. Extra funding is welcomed when given and lobbying of Government must continue, however the missing part of the full picture is the Government green paper on Adult Social Care. The Leader commented that at a recent County Councils Network (CCN) conference all Councils are in the same position as West Sussex. It is hoped there will be clarity in December with the settlement figure, however what the Council would really benefit from is longevity in financial planning.

·        Sought clarity regarding the £6.1m highway maintenance award from the Government as to whether this is for additional works above those already programmed or whether it can be added to the general highways budget, and if it is for additional works then is there sufficient capacity to bring forward works. The Leader explained that it is understood to be for additional works, however further details are awaited soon which will clarify how it is to be used. The Cabinet Member for Highways and Infrastructure confirmed officers are currently assessing the time and capacity requirements in relation to extra works being undertaken and he would feed back the review findings to the Committee in due course.

·        Sought clarity in  ...  view the full minutes text for item 64.

A report by the Director of Finance, Performance and Procurement.

The Committee is asked to review and comment on the treasury management mid-year position.

65.1 The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

65.2 The Cabinet Member for Finance and Resources introduced the report which provides treasury performance data, and commended the Treasury Management officers who have managed treasury funds well over the past year.

65.3 The Financial Reporting Manager introduced the report which outlines the treasury management mid-year position and highlighted key information for the Committee. Throughout the first half of 2018/19 the Council has complied with all relevant statutory and regulatory requirements; on one occasion the monetary exposure limit for investments held in short-term Money Market Funds was exceeded due to actual payments and receipts differing from the cash flow forecast, however this was rectified the next day and has been reported through both the Treasury Management Panel and Regulation Audit and Accounts Committee. Forecasted borrowing is within the set limits and the internal borrowing strategy continued in the first half of the year. Section 7 Non-Treasury (Commercial) Activity is a new addition to the report detailing non-treasury activity.

65.4 The Committee made comments in relation to the report including those that follow. It:

•        Queried whether interest rates are likely to rise, and whether it is worth locking in borrowing now at a lower rate of interest in order to use later. The Cabinet Member for Finance and Resources confirmed interest rate forecasts are continually monitored against the cost of forward borrowing to ensure the Council is getting the best benefit.

•        Commented in relation to the report stating there was no new external borrowing, that the Cabinet Member for Environment had previously informed a member of the Committee that £2m was borrowed for installation of solar panels in schools and the Cabinet Member may need to be updated if this is not the case. The Financial Reporting Manager confirmed there had been no new external borrowing.

65.5 Resolved – That the Committee welcomes the Treasury Management Mid-Year Review (2018/19) report and recognises the continual review by officers.

A report by the Director of Finance, Performance and Procurement outlining the performance and finance position as at the end of September 2018.

The Committee is asked to examine the data and supporting commentary for the September 2018 TPM and make any relevant recommendations for action to the Cabinet Member or a relevant Select Committee.

66.1 The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

66.2 The Cabinet Member for Finance and Resources introduced the report, highlighting that the July TPM showed a £4.75m overspend but the September TPM shows the overspend is now £6m. This increase is mostly due to children’s services challenges including additional costs from children’s homes as detailed in paragraphs 5 and 6, and £2.5m for new social worker posts. The overspend must be reduced in order to avoid use of the budget management reserve. Savings have now been categorised as with or without mitigated actions (para 23) which results in a predicted £1.8m shortfall, which has been factored into the forecast outturn position.

66.3 The Director of Finance, Performance and Procurement introduced the financial element of the report, reiterating the main budget pressure of children and young people’s services. Mitigation work is ongoing through general staffing and vacancy control. School transport costs have been stationary since September which is positive and reserves have been used to partially mitigate this pressure. The cost anticipated with renewing the Highways contract has reduced to £1.6m and this has been partially mitigated. Extra Government funds for adult social care winter pressure may have constraints on how it can be used, however contingency funds to mitigate this are available from the Improved Better Care Fund (IBCF). There has been some overspend in Facilities Management but this is being monitored. Overspend in 2018/19 can be funded by the use of reserves if necessary however much depends upon what extra winter pressure is felt.

66.4 The Committee made comments in relation to the financial element of the report including those that follow. It:

•        Queried whether there was an end date for replacing the children’s homes, and a predicted date for the Council’s facilities to be open again. The Cabinet Member for Children and Young People explained that there is a review of children’s residential homes currently underway, with an interim review due in January specific to Cissbury Lodge and May House with a full review of all establishments due in March 2019; there are no firm dates yet for the reopening of facilities. Retention schemes and payments have been positively received by staff and taken up by 125 existing social workers. 10 new job offers have been made recently and 10 more are expected imminently which shows the Council’s commitment to staffing children’s social care. The Leader commented that the work in ongoing

•        Queried what was being done to tackle the longer term situation for children’s placements outside the county, which are more costly to the Council and disruptive for the children. The Cabinet Member for Children and Young People explained that due to the closure of Cissbury Lodge, May House and Seaside homes most children have been placed within West Sussex. The review of residential homes will look at the demand, marketplace offering and cost against a review of the County’s own offering.

•  ...  view the full minutes text for item 66.

A report by the Executive Director of Economy, Infrastructure and Environment outlining the Capital Programme’s performance as at 30 September 2018.

The Committee is asked to review, comment on and make any relevant recommendations for action to the Cabinet Member in relation to the quarterly performance report of the capital programme. 

67.1 The Committee considered a report by the Executive Director of Economy, Infrastructure and Environment (copy appended to the signed minutes).

67.2 The Capital Programme Manager introduced the report and highlighted key information for the Committee including two projects that have remained in the pipeline stage and two benefits reported as delayed or at risk. 

67.3 The Committee made comments in relation to the report including those that follow. It:

•        Expressed concern regarding the Alternative Provision scheme and queried whether there was a timeline or site proposed. The Capital Programme Manager confirmed the works at the FlintstoneCentre were complete and the service had moved, but that remedial maintenance works were required at additional cost before the project could complete.

•        Expressed concern regarding the A284 Lyminster Bypass and sought assurance that capital funding would be made available for the viaduct. The Executive Director of Economy, Infrastructure and Environment explained that the project is partly funded by the LEP. The cost to the Council will be mitigated via a bid to the future capital programme, which is currently being worked on and will be considered at County Council in February 2019. A further funding bid can also be made to Highways England. The local member noted his full support to this approach.

•        Commented that the local member was not made aware of the location of 6 solar farm/battery storage sites within his ward. The Leader noted the member should have been aware and will ensure he is kept informed and updated in future.

•        Noted that the capital programme is ambitious, and queried how much the lack of resource within the team to complete projects has been a factor over the past year and how uncompleted projects will impact the coming year. The Executive Director of Economy, Infrastructure and Environment confirmed the team has struggled to recruit and retain specialised staff e.g. surveyors, and has used the multi-disciplinary contract procured in the summer to cover this gap in staffing. The capacity within the team is a future risk however this is being monitored.

·                  Commented that a significant proportion of projects have been reprofiled which may delay the benefit from the project, incur additional cost or entail a cost to the community, and queried how these factors could be better represented within the report. The Capital Programme Manager explained the projections may have been over-optimistic regarding delivery in some instances. The Cabinet Member for Finance and Resources explained that the concern is greater for projects at risk of non-delivery than of delay, and rescheduling of projects is sometimes of benefit. Projects such as school places are always a priority. Officers are refining the capital programme’s progress to better understand its performance and the Executive Director is monitoring capacity within the team.

·                  Commented that slippage of 20% within the programme is a great improvement from that of two years ago, that the reports are much clearer and informative, and offered thanks to the officers involved for their dedication to the  ...  view the full minutes text for item 67.

A report by the Executive Director of Economy, Infrastructure and Environment providing an update on the programme, (to follow).

The Committee is asked to review and support the update regarding the programme.

68.1 The Committee considered a report by the Executive Director of Economy, Infrastructure and Environment (copy appended to the signed minutes).

68.2 The Executive Director of Economy, Infrastructure and Environment introduced the report which provides an update on the overall programme and highlighted key information for the Committee.

68.3 The Committee made comments in relation to the report including those that follow. It:

•        Expressed concern regarding the Maltravers/Fitzalan Road Littlehampton project as the services included in this project are changing regularly. The core concern for residents is the health hub, as the Clinical Commissioning Group estate strategy proposes the closure of the Zachary Merton Community Hospital. Members believe this to be within an unrealistic timetable, expressed concern that no funding is offered towards the health hub and asked HASC to consider this further. The Executive Director of Economy, Infrastructure and Environment commented that as the project feasibility is created the funding is committed; 100 homes are proposed as part of the finance but this needs to be converted from an aspiration to a commitment. The Leader echoed the frustration regarding the slow progress of the NHS with this project.

•        Queried whether mental health services or day services are planned to be provided from Centenary House Worthing; a presentation was given to the CLC regarding relocation of services to the library and then relocation back to Centenary House again once redeveloped, which will be a lot of disruption for services including the Registration Service. The Executive Director of Economy, Infrastructure and Environment commented that Centenary House is in a poor state of repair and requires refurbishment, a viability study has been undertaken which gave a number of ideas for the site but a proposal has not been confirmed yet. A key constraint in the redevelopment is providing appropriate interim service accommodation in order that services only relocate once.

•        Commented that it would be helpful to have an overall feel for the performance of the OPE programme in regards to delivering on both timeline and cost in order to reassure Members, and queried whether there are any revenue savings attached to the projects under OPE. The Executive Director of Economy, Infrastructure and Environment commented that the projects may not all be delivered as some are speculative, but the Council needs to deliver on our internal projects. Officers do look at revenue savings as part of the projects, and some savings are made via capital receipts.

•        The Executive Director of Economy, Infrastructure and Environment explained that there is a meeting shortly with the NHS regarding the OPE and asked if the Committee would be happy to broaden the scope of its comments about the NHS commitment to the OPE programme to include other projects within the OPE. The Committee agreed this would be beneficial.

68.4 Resolved:

1) That the Committee notes the lack of NHS capital funding and commitment for projects, and requests the Health and Adult Social Care Select Committee (HASC) take these issues and concerns forward for  ...  view the full minutes text for item 68.

The Committee is asked to consider in respect of the following item(s) whether the public, including the press, should be excluded from the meeting on the grounds of exemption under Part I of Schedule 12A of the Local Government Act 1972, as indicated below, and because, in all the circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

Exempt:  paragraph 3, Financial or business affairs of any person (including the authority)

69.1 Resolved – That under section 100(4) of the local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involved the likely disclosure of exempt information as defined in Part I, of schedule 12A of the Act by virtue of paragraph 3, and that, in all circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

69.2 The Committee continued its discussion in Part II, for which a Part I summary is available. The discussion in Part II took place from 2.14pm until 2.37pm.

The Committee is asked to agree the Part II minutes of the meeting held on 5 October 2018 (yellow paper, for members of the Committee only).

70.1 Resolved – That the Part II minutes of the Performance and Finance Select Committee held on 5 October 2018 be approved as a correct record and that they be signed by the Chairman.

The Committee received a verbal update from the Cabinet Member for Finance and Resources regarding Angel’s Nursery, Barnham in Part II.

Resolved – That the Committee thanked the Cabinet Member for Finance and Resources for the update and made comments for consideration.

The report will inform the Committee of the Business Planning Group meeting held on 5 November 2018, setting out the key issues discussed.

The Committee is asked to support the updates to the work programme as recommended by the Business Planning Group and reflected in the updated work programme at Appendix A to ensure that the highest priority issues are being scrutinised. The Committee is also asked to note the Task and Finish Group Rolling Programme attached as Appendix B. 

72.1 The Committee considered a report by the Chairman of the Business Planning Group (BPG), (copy appended to the signed minutes).

72.2 The Senior Advisor introduced the report which provides an update from the latest BPG meeting held on 5 November 2018, setting out the key issues discussed and highlighting key information for the Committee. A review of governance and procurement will be added to the Contract Management TFG scheduled to reconvene in 2019. A draft of the extra information provided regarding the Capital Programme report was considered and the BPG will monitor its effectiveness. The relevant officer will be invited to attend the February BPG in relation to Whole Council Design and a Member Day is being proposed on this topic for March 2019. The December PFSC Project Day has been cancelled as not required and a member session on questioning skills will be scheduled for an alternative date.

72.3 The Committee made comments in relation to the report including those that follow. It:

•        Sought clarity that once the Contracts Management TFG reconvenes this will also look at contract negotiation, and Mr Lea expressed interest in being part of the TFG if possible. The Senior Advisor confirmed this is correct, and that one Conservative seat on the TFG will be available.

•        Commented that a briefing on the Orbis project was provided two years ago regarding progress, but that progress appears slow. The Senior Advisor explained the integration is a long process, however the Director of Law and Assurance is satisfied with the progress of the project as services continue to align.

•        Commented in relation to Whole Council Design that it is due to come to a Member Day in March, however it would be better for the Member Day to come ahead of the budget going to Council in February to give Members a holistic picture of the Council’s direction before the budget considerations. The Senior Advisor will feed this comment back to the Member Development Group and Head of Democratic Services and consider options to bring this update forward.

72.4 Resolved - That the Committee supported the updates to the work programme and notes the Task and Finish Group rolling programme.

Extract fromthe ForwardPlan dated 13 November 2018.

Anextract fromanyForwardPlan publishedbetween the date of despatchof the agenda and the date of the meetingwill be tabled at the meeting.

The Committee is asked to consider whetheritwishes to enquireinto any of the forthcoming decisions withinits portfolio.

73.1 The Committee considered the Forward Plan of Key Decisions (copy appended to the signed minutes).

73.2 The Committee made comments in relation to the Forward Plan including those that follow. It:

·                  Queried whether any of the Strategic Budget decisions will be webcast to save avoidable Member travel. The Senior Advisor will confirm this for the Committee.

·                  Commented that it is important the Committees receive the papers for these decisions in advance, in order to give adequate consideration to the savings.

·                  Commented that the Guidance on Parking in New Developments decision could be contentious. The Senior Advisor will relay the Committee’s concern and refer this decision to the Chairman of the Environment, Fire and Communities Select Committee (ECFSC) as an extra meeting has been scheduled in December for scrutiny of the budget savings decisions within its remit.

73.3 Resolved – That the Forward Plan be noted.

The next meeting of the Committee will be held on 17 January 2019 at 10.30 am at County Hall, Chichester.  Probable agenda items include:

·        2019/20 Draft Revenue and Capital Budgets

·        Total Performance Monitor October 2018

·        Treasury Management Strategy

Any member wishing to place an item on the agenda for the meeting must notify the Director of Law and Assurance by 4 January 2019.

74.1 The Committee notes its next meeting will take place on 17 January 2019, commencing at 10.30am.