Agenda item

There will be a verbal update on this at the meeting.

(Note: there is a site visit planned in Bristol on 17^th July)

The Chairman began this item by saying that depending on the level of information that the Panel wish to receive that it may need to go into exempt session.

Councillor Charles Gerrish said that he did not feel that the Panel had been given enough information and that they should know how the current figures were reached.

The Strategic Director of Resources replied that the Panel needs to know whether the figures are consistent with those approved in the budget.

Councillor David Bellotti, Cabinet Member for Community Resources said that if the Panel intended to go further than the Cabinet had done yet that he would have to raise an objection.

The Strategic Director of Resources asked if the project was still on track financially.

The Head of Housing replied that the costs for the project are comfortably within the agreed budget. He added that build costs are lower than expected an on costs are slightly higher.

The Strategic Director of Resources asked if capital budgets were over-stressed.

The Head of Housing replied that overall expenditure was to be well within the agreed £2.5m.

The Chairman asked what was contained within the on costs.

The Head of Housing replied that it was fees associated with legal, planning, architects and engineering surveys. He added that time was critical on site and that they were looking to commence work in August.

Councillor Barry Macrae asked who had made this commitment.

The Strategic Director of Resources replied that the budget had been agreed at Cabinet and then by Council. He added that the current decision had been made by two members of the Cabinet.

Councillor Charles Gerrish commented that he was concerned as any eviction costs should not be a capital cost. He added that it was in everyone’s interest to know what the true cost of the project would be to the Council and that those figures should be known prior to a decision being made.

The Strategic Director of Resources replied that the budget as a whole is monitored on a regular basis and that with Cabinet approval the Panel would be updated with the exact figures.

Councillor David Bellotti added that if the figure of £1.8m was exceeded then the Council’s Section 151 officer would have a decision to take and that he would be consulted to discuss if further funds should be found. He added that the figures would be released when they could.

Councillor Barry Macrae said that he was concerned over the possible revenue figures. He also asked why the Council was paying for the site.

The Head of Housing replied that the operating model was to be revenue neutral to the Council. He added that the Council had found one Registered Housing Provider (RP) that was willing to work with us and that they too have no profit motive. He assured the Panel that contract negotiations had taken place to protect the Council.

He stated that the contract would have a minimum ten year break clause for the RP whereas the Council will have to only give three months’ notice. He added that the Council will have control of who stays on the site.

He said that the RP have advised that they require the site to be at 80% occupancy level and that the Council has agreed to risk share that with them for one year. This would result in a maximum exposure of £300 a week if pitches were not occupied. He informed the Panel that in the most recent survey 28 pitches were needed and that he saw no reason that that figure will have changed.

He stated that the approval of the Core Strategy was reliant on this site coming to fruition.

Councillor Charles Gerrish thanked the Head of Housing for the recent visit to a Gypsy and Traveller Site in Bristol as he had found it very informative. He added that he would be surprised if we did not fill our site easily. He commented that the project would be revenue neutral ‘to Housing’ as servicing would come out of the central budget.

The Head of Housing replied that there would be a small revenue stream to the Council and that the site would also be eligible for New Homes Bonus.

Councillor Charles Gerrish asked what the next steps were on the part of the RP.

The Head of Housing replied that their Chief Executive and Development Officer would be making recommendation to proceed to their Board on 23^rd July and that following that plans were in place for the Council, HCA and the RP to meet on 25^th July.

Councillor Gerrish asked for assurances that no funds would be released before a contract had been signed.

The Strategic Director of Resources replied that was the case.

Councillor Barry Macrae and Councillor Colin Barrett wished to have their reservations about the site and their unhappiness with the process noted.

The Chairman thanked the Head of Housing for his update.