Agenda item

There will be a presentation on this item at the meeting.

Tim Richens, Managing Director Aequus Group gave a presentation to the Panel which covered the following:

Andy Rothery, Chief Finance Officer (Section 151), and Simon Martin, Director of Regeneration and Housing, were also present to answer questions.

·  Background

·  2020/21 Accounts

·  Company Restructuring (1)

·  Company Restructuring (2)

·  Business Plan 2021/22 to 2023/24

·  Key Achievements – March 2021

·  Future Delivery Focus

·  Climate Emergency

·  Financial Returns and Dependencies

·  Governance and Resourcing

·  Delivery and Decision Making (1, 2 & 3)

·  Company Performance 2021/22

·  Company Updates – 2022-23

Panel Member made the following points and asked the following questions:

Councillor Blackburn asked, regarding the 40 rental properties, how many void properties have been repurposed and brought back on to the market. He commented that this is what ADL had been set up to do. The officer confirmed that all 40 properties had been brought back into use and explained that these are properties that were originally transferred under LSVT.  After 15 years and only as they became vacant, they are then returned to the Council, most are in a poor condition and need to be refurbished/repurposed. He stated that ADL was set up to repurpose these ex-Curo properties. Councillor Furse explained that properties were in a poor condition and were coming back to BANES and sold back on to the market/private sector – there was a feeling that this was a loss of social properties, that is the history.

Councillor Blackburn referred to 117 Newbridge Hill and asked how comfortable the officer was that there was value for money regarding these units. The officer replied that any underspend is returned to the Council as overage. He explained that the Gross Profit of £350K before tax will contribute towards Shareholder dividend payments delivering the Council’s £1M income target from Aequus

Councillor Blackburn asked how South Gloucestershire became involved in this as the original aim was to provide local properties. The officer explained that the business plan is approved by the shareholder (BANES), South Gloucestershire was brought in with the agreement of the shareholder. The Board of Aequus are responsible for running a successful business, the link with South Gloucestershire provides diversity and sustainability and means we are not reliant on a single source of development sites. Andy Rothery, Chief Finance Officer (Section 151), added that ADL, as a limited company, is a tradable entity and well placed to fulfil this activity which benefits our neighbours and ourselves.

In response to a query from Councillor Blackburn, the officer explained that a number of local partners had approached Aequus to discuss potential developments but the partnership with South Gloucestershire developed which has afforded economies of scale/knowledge and delivery. No other partnerships are being worked on at the moment.

In response to a query from Councillor Duguid, the officer explained that all development profits on the South Gloucestershire site come to Aequus (and ultimately its shareholder BANES), South Gloucestershire gets the land value and a 50% share of any overage.

Councillor Blackburn asked what lessons had been learned regarding Sladebrook in terms of delivery. The officer explained that the low energy elements had been subject to an independent rating regarding energy and carbon. Any lessons arising from feedback during the ongoing two year defects period will be learned.  The Association for Environment Conscious Building (AECB) standard was used for the Sladebrook Road development and has been adopted by Aequus as the standard for all their new homes developments.

Councillor Blackburn asked why properties in Keynsham did not get solar panels. Simon Martin responded that this was a BANES project and will be progressed in this financial year.

Councillor Elliott asked about staff TUPE and pension fund issues. The officer explained that staff were brought across on a TUPE transfer with rights to remain in the LGPS (Local Government Pension Scheme) with any liability at that time ultimately underwritten by the Council.  The LGPS is also subject to triennial revaluations by the Fund’s Actuary for the setting of the employer contribution rates payable by all scheme employers, including Aequus. It was explained that new employees are on the stakeholder money purchase scheme which does not give rise to any ongoing employer pension liability.

Councillor Elliot asked how remuneration is set. The officer explained that the Remuneration Policy was approved by the shareholder and is overseen by the Aequus Remuneration Committee. In response to a query from Councillor Blackburn, the officer explained that all bonus payments are agreed in accordance with the approved Remuneration Policy and applies to all Aequus staff.

The Cabinet Member for Council Housing, Councillor Tom Davies explained that the Council is often challenged on what it is doing regarding the housing crisis and through this Council owned company, we are delivering new homes and quality rental Council Housing, Aequus has facilitated our delivery.

It was RESOLVED that Councillor Duguid investigates a possible Task and Finish group (to involve Audit Committee representative/s) to look at the Council’s wider approach to Housing Policy and Delivery, including via Aequus.