Agenda item

There will be a presentation on this item. Presentation slides are attached.

The Cabinet Project Lead for Built Environment and Sustainable Development - Councillor Deborah Collins (with officer support – Simon Martin, Director of Capital and Housing Delivery and also Tim Richens - Aequus) gave a presentation which covered the following:

·  Aequus Group – Company Background

·  Company Achievements 2022/23

·  Company Aims – Updated

·  Pipeline – BANES Housing and Regeneration

·  Pipeline – Partnership Working

·  Meeting the Climate Emergency

·  Efficient Company Structure

·  Sustaining Financial Returns to Shareholder

·  Financials – ACL Forecast P & L

·  Financials – Forecast Returns to Shareholder

·  Draft Company Objectives (Operational)

·  Draft Company Objectives (Financial & Corporate)

·  Business Planning Next Steps

·  And Finally – Examples of Achievements

Panel members raised the following points and asked the following questions:

Councillor Blackburn asked about the risk element of projects such as the impact of the deficiencies regarding the Keynsham Riverside Site and remedial work at Sladebrook. Tim Richens explained that there is a 2-year post completion defect liability which is all within the budget. There is no impact on the Council. There is also 10-year NHBC insurance contract in place.

Councillor Blackburn asked what ‘cost price’ means in relation to social housing. Tim Richens stated that the Council look at the business plan some sites are challenging and costs have to be factored in.

Councillor Blackburn asked where scrutiny would be appropriate in the tendering process. Councillor Moss stated that the Aequus Business Plan is going to the March meeting of the Cabinet where questions can be submitted and the item will be coming back this Panel every 6/12 months.

Councillor Blackburn asked about interest paid on borrowings and the impacts on returns to the Council. He asked about consultancy fees and commissioned services in term of the amount. Tim Richens stated the consultancy fees would cover getting the site ready for delivery. In response to a further question about last years costs, Mr Richens explained that this was considered last November by the Corporate Audit Committee and the information is publicly available.

Regarding Wellington buildings, Mr Richens explained that this is owned by the Council and he could not comment. Simon Martin (Council officer) explained that the site is currently being reviewed to enable us to instruct Aequus. In response to a query from Councillor Blackburn on how long the Council had been aware of the issues, the officer explained that he could not give a direct timeline at present, some properties were tenanted and from an executive point of view, the Council has accountability for the work.

Councillor Treby asked about Aequus’ part in the Council’s objectives. The officer explained that an update on KPIs (Key Performance Indicators) will be reported to the Panel every 6 months. The Cabinet Project Lead added that the Council will be working on the Housing Delivery Plan.

Councillor Hodge asked if the fixed revenue return of £1m would come forward before 2026/27 and when does the overage profit come through. Tim Richens explained that the cost of sales depends on the development and approval process. The Overage profit flows once the development is complete which depends on the rate of sales.

Councillor Simon asked if Aequus risk register is shared with the Council. The officer explained that, from the Council perspective the risk is picked up in the Sustainability Communities risk register. The risks are not currently escalated, there is a regular monthly meeting to assess risk. Tim Richens explained that Aequus have a low level risk register that is escalated to the board if necessary. Aequus has an Audit and Risk Committee with an independent Chair.

Councillor Moss referred to the delivery of 22 homes towards the Council’s housing stock – he asked if there is a delivery schedule and is preparatory work being done on a Housing Revenue Account (HRA) which is needed on reaching 200 dwellings. Tim Richens stated that there are 26 homes separate to Newbridge and work is being done on the future pipeline, there will be more details in March. The Cabinet Member explained that work is being done on a pipeline for homes. She confirmed that work is being done regarding the need for an HRA.

Councillor Moss asked the number of social houses at the moment. The officer explained that there are categories such as ‘supported lodging’ and ‘general needs’. The HRA would take into account ‘general needs’. He stated that he would report back on exact numbers.