18th September 2002

Councillors Chegwyn (P), Cully (Chairman) (P), Edgar (P), Friend (P), Hook (P), Langdon (P), M Russell (P), Searle (P), Taylor (P), Wright (P) and Mrs Wright (P).

In accordance with Standing Orders the Chief Executive reported that Councillor Taylor had been nominated to attend this meeting in place of Councillor Edgar.

14. MINUTES

RESOLVED: That the Minutes of the meetings of the Board held on 19 June and 1 July 2002 be approved and signed by the Chairman as true and correct records.

PART I

15. EXPLOSION! MUSEUM

The Board considered a joint report of the Chief Executive and Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix "A") on the way forward with the Trustees to reduce operational costs of the Museum in the current and financial years pending re-development of the heritage area.

It was reported that the Museum Trustees had reluctantly accepted the conditions imposed by the Council and would cut staff levels by six posts with the intention to working to a subsidy of £200,000 this financial year. Further vacancies had subsequently arisen and staffing levels would continue to be kept under review. A significant re-organisation of duties and changes to working hours had resulted and the Museum would only open for three days a week during the winter. Significant cuts in overheads had also been agreed. It was noted that some of these could not be sustained in the longer term.

Council officers were working with Museum staff to achieve an agreed budget for 2003-04 by October 2002 with a view to the Council's current £100,000 base subsidy for the Museum being achieved. It was envisaged that the target would be achieved by a combination of cost reductions already in place plus revenues produced from the wider heritage area. The Trustees had also indicated that they would wish the Council to nominate an additional Board member.

RECOMMENDED: That -

(i) it be noted that substantial cost reductions had been implemented by the Trustees of the Explosion! Museum;

(ii) the amended financial relationship be incorporated in an agreement to be implemented as soon as practicable;

(iii) an additional Trustee be nominated to the Museum Board; and

(iv) a vote of thanks from the Council be accorded to Councillor Searle and the officers for the work they had undertaken to establish the new financial relationship with the Museum.

16. TREASURY MANAGEMENT ANNUAL REVIEW 2001-02 AND PROGRESS REPORT 2002-03

Consideration was given to a report of the Borough Treasurer (a copy of which is as affixed in the Minute Book as Appendix "B") which reported on the review of the Treasury Management Annual Review and progress made following the guidelines issued by the Chartered Institute of Public Finance and Accountancy.

The purpose of the report was to provide the Board with the Annual Review of Treasury Management for 2001-02 and a progress report covering the current financial year. Changes in legislation had now made it possible for the Council to partake in short term borrowing and lending on the money market. Statistics were being gathered to compare interest rates with those used to date. On the Annual Review for 2001-02 it had been agreed to take no loans which matured beyond 31 March 2006, the target was to become free from long-term debt and appropriate dealing parameters had been agreed and subsequently complied with.

It was reported that for 2002-03 there had been seven investment transactions to date; two with Building Societies and five with the British banking group. No transactions had exceeded £2m and interest earned would be £15,017. No long-term transactions had taken place to date this year and none were anticipated. Capital receipts and developers deposits continued to accumulate and the situation was likely to be one of net short term lending for the foreseeable future.

RECOMMENDED: That the Treasury Management Annual Review and Progress Report be approved.

17. FINANCIAL REGULATIONS - AMENDMENTS

The Board considered a report of the Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix "C") which referred to Financial Regulations amendments on banking and revenue budget virement limits.

It was reported that new procedures related to the use of modern technology to produce cheques more economically, offered the opportunity to review cheque-signing arrangements. The amended regulation (14.3) was less onerous in terms of staff cover whilst maintaining appropriate levels of security. A new regulation 14.5 had also been drafted to specifically govern the setting up of secure bank accounts.

Financial Regulations 3.4 contained a series of parameters governing virements. The figure in the first paragraph should have been amended to £10,000 to keep pace with inflation when the Constitution was produced. The appended new version of the regulations incorporated the corrected limit and coincided with regulation 3.5 governing supplementary estimates.

RECOMMENDED: That the amended Financial Regulations 3.4 and 14.3 and new regulation 14.5 as appended to the report, be approved.

PART II

18. GOSPORT BOROUGH LOCAL PLAN REVIEW - PROPOSED DEPOSIT OF THE PLAN

The Board considered a report of the Director of Development and Environment(a copy of which is affixed in the Minute Book as Appendix "D") concerning the draft Deposit Gosport Borough Local Plan Review.

It was reported that the Local Plan Review was set out in the form of a series of mainly topic-based chapters. Each of these had been subject to previous consideration by the Development Plans Steering Group and amended and up-dated as a result of discussion. The main changes from the adopted 1995 Plan were the inclusion of a strategy (chapter 2), which was regarded as good practice by Government, and a Development Principles chapter (3) which was intended to provide overall guidance for the control of development. Indicators were also included at the end of the implementation chapter (14) to meet Best Value requirements. A review of the Plan had allowed removal of the "Statements of Intent" which was a compromise arrangement in the adopted Local Plan arising from changes to the way Government required policies to be worded at that time.

The Borough Council, in preparing the Local Plan Review, had to follow a series of definitive procedures established by Government through the 1990 Town & Country Planning Act, the Regulations, Planning Policy Guidance notes and advice from the Regional Office (GOSE). Although the wording of policies was now less stilted than in the early 1990's there were still certain principles which had to be adhered to if the plan was to get through the various stages to adoption:

· Policies generally must be worded positively, reflecting Circular 22/80 and the presumption in favour of development. Exceptions could relate to Listed Buildings, International nature conservation designation, etc.
· Policies must only relate to land use and development.
· All policies must be followed by a reasoned justification based on planning issues.
· Policies must conform to Regional Planning Guidance (RPG9) and the Hampshire County Structure Plan 1996-2011 (Review). Liaison had been undertaken with County officers during the preparation process.

Two documents had been prepared concurrently with the Deposit Local Plan Review. These were the Urban Capacity Study, which was the subject of discussion at meetings of the Development Plans Steering Group earlier this year, and the Sustainability Appraisal of Policies. Both documents were required by advice contained in Planning Policy Guidance Notes and were agreed at the meeting of the Steering Group on 3 September 2002.

Members debated the various sections in the Local Plan Review. An amendment was proposed and subsequently carried to Chapter 6 (Employment) of the Review. The amendment read:

"That the further release of up to 32 hectares of MOD land at Frater be considered suitable for employment use".

RESOLVED: That -

(i) the Deposit Local Plan Review, with the amendment to Chapter 6 (Employment) in respect of Frater Gate, be approved for formal deposit in accordance with the relevant legislation;

(ii) the Deposit Local Plan Review for development control purposes be approved;

(iii) the document be endorsed for forwarding to Hampshire County Council for the issue of a Certificate of Conformity with the Hampshire Country Structure Plan 1996-2011 (Review); and

(iv) approval be given to the Sustainability Appraisal and Urban Capacity Study for publication as supporting documents.

19. ECONOMIC REGENERATION STRATEGY - ACTION PLANS
2001-02 AND 2002-03

The Board considered a report of the Director of Development and Environment (a copy of which is affixed in the Minute Book as Appendix "E") on the Economic Regeneration Strategy Action Plans for 2001-02, 2002-03.

Members were reminded that the Strategy provided the policy framework for the Borough Council's involvement in economic regeneration issues within Gosport. The Action Plans formed a part of the strategy and identified the key tasks to be undertaken with regard to the implementation of the strategy year on year. Future strategies and action plans would be key mechanisms for delivering the Gosport Community Strategy (due for completion early next year) and would be prepared as part of developing the framework for the Local Strategic Partnership for Gosport. The next review of the Action Plan in Spring next year and the full strategy in
2003-04 would consequently reflect the community priorities established through
the community strategy, which could not be incorporated within this review.

RESOLVED: That -

(i) the review of the Economic Regeneration Strategy Action Plan for 2001-2002 be noted;

(ii) the proposed changes to the priorities contained in the Economic Regeneration Strategy 1999-2004, as outlined in the report, be approved; and

(iii) the Economic Regeneration Strategy Action Plan for 2002-2003 be approved and authority be given to the Economic Regeneration Unit to undertake the actions identified in the Plan.

20. INTERNAL AUDIT - ANNUAL REPORT 2001-02

The Chairman reported that this item was to be "scrutinised" by the Policy and Organisation Overview and Scrutiny Committee, therefore it had been withdrawn from the Board's agenda.

21. DISPOSAL OF LAND AT REAR OF THORNGATE HALLS

Consideration was given to a report of the Borough Treasurer concerning the disposal of land at the rear of Thorngate Halls.

It was reported that in order to assist Gosport Community Association (GCA) during a period of financial instability this Council had purchased from them a plot of land at the rear of their premises in 1991 for £100,000. The agreement included the right for them to re-purchase the land should their financial position improve sufficiently to enable them to do so. GCA had experienced a period of re-generation since this purchase and were now in a position to re-purchase the land. The provisions of Section 123, Local Government Act 1972, obliged the Council to accept no less than the market value of the land which had been valued at £135,000 or £113,850 subject to a ten year restriction and use of the land and a Covenant which prevented disposal.

The GCA now wished to pursue re-purchase of the land and a valuation of £135,000 had been reached by the Council's Valuation Consultant. The Valuer had also advised that a ten year restriction on the subject land to existing office building plus car-parking with a covenant which prohibited the disposal of any interest in the land to a third party would result in a value of £113,850. It was considered that these conditions would recognise Members' concerns about the future of the site and it was on this basis that the GCA wished to proceed. If approved, the transaction must be completed by 31 March 2003 with payment in full on completion. Both parties would bear their own costs.

RESOLVED: That the disposal of land at the rear of Thorngate Halls to Gosport Community Association for £113,850 be approved, the transaction to incorporate a ten year restriction on the subject land to existing office building plus car-parking with a Covenant to prohibit the disposal of any interest in the land to a third party.

22. APPROVAL OF THE STATEMENT OF ACCOUNTS

The Board considered a report of the Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix "F") on the Statement of Accounts.

It was reported that the transfer from reserves that was required to balance the General Fund was marginally less than the forecast of £617,000. The net revenue shortfall of £615,000 had been met by contributions from the General Fund working balance (£119,000), Provisions (£200,000) and the Capital Reserve (£296,000).

The list of budgetary variances included several budgets where the variance reflected a trend that would also impact on the current financial year. Most notably, the lower net cost of Council Tax and Housing Benefits, the increased income from Local Land Charges, and the fall in anticipated income from the Open Market. The effect of these in the current financial year would be reported in the next budget monitor.

The General Fund working balance had been reduced to £0.5m at 31 March 2002 as anticipated. It was now at the minimum recommended level and would be further considered during the Council's budget process for 2003-04.

The Housing Revenue Account balance had reduced to £591,000 (£44,000 less than that estimated). The Capital Programme for 2001-02 showed an under-spending of approximately £1m from the Revised Programme budget of £6,681,000. This was mainly due to programme slippage that had subsequently been incorporated into the budget spend for 2002-03. A full report on the capital programme for 2002-03 would include a scheme progress up date which would be presented to Members as part of the budget process for 2003-04.

The Council had further reduced its long term borrowing during 2001-02 from £7.1m to £5m. The level of net short-term borrowing had also decreased from £5.5m at 31 March 2001 to £2m at 31 March 2002.

RESOLVED: That -

(i) the Statement of Accounts for the Financial Year ending 31 March 2002 be received and approved;

(ii) the variances detailed in Appendix "A" to the Borough Treasurer's report be noted and approved; and

(iii) the revenue carry forwards detailed in Appendix "B" to the Borough Treasurers report be noted and approved.

23. MAYOR'S ALLOWANCE 2002-03

Consideration was given to a report of the Borough Treasurer concerning the Mayor's Allowance for 2002-03.

It was reported that following the death of the Mayor earlier this year, the Deputy Mayor had been required to perform an enhanced role which involved chairing the Council, considerable increased involvement in civic events and representing the Borough through sporting events, civic engagements and hosting visits, etc. It was appropriate that this additional workload and associated expenses were properly recognised and reflected in an adjustment to the allowance payable to the Deputy Mayor. A balance of £5,481 out of the total Mayoral Allowance of £7,650 remained uncommitted and could be made available to the Deputy Mayor without additional cost to the Council.

RESOLVED: That the uncommitted balance of £5,481 from the 2002-03 Mayor's Allowance be made available to the Deputy Mayor and formally vired for that purpose.

24. THE COMMUNITY STRATEGY AND LOCAL STRATEGIC PARTNERSHIP - PROCESS AND IMPLICATIONS

Consideration was given to a report of the Chief Executive (a copy of which is affixed in the Minute Book as Appendix "G") concerning the Community Strategy and Local Strategic Partnership.

It was reported that the production of the Community Strategy for Gosport was a statutory role for this Council under the Local Government Act 2000. However, the strategy must be produced through a Local Strategic Partnership (LSP) in which the Council was an equal partner with other agencies also providing services for the Gosport community. The final document, would detail community issues and priorities, and would be published in spring 2003. The degree to which this Council utilised these community priorities to determine its priorities, budgetary and resource allocations would affect the Council's Comprehensive Performance Assessment (CPA) score.

It was explained that the LSP was to be made up of 8 issue partnership Sub Groups with other Sub Groups representing different elements of the Gosport community. For some of the issues there were existing partnerships or groups that could take on the role of a Partnership Sub Group with little or no modification, for example the Committee Safety Partnership and the Gosport Healthy Alliance. For other issues, existing groups needed to be adapted to fulfil a new role, for example, the Leisure Forum/Group. The remaining issues had no existing working partnerships that drew together the service provided and engaged the community at a local level (transport; economy and employment; education and training; environment and housing - although the Council had a well established and highly praised consultation process for its housing strategy). In these cases, to ensure progress, it was appropriate for this Council to initiate the establishment of Sub Groups and take the lead where necessary.

To ensure that community involvement was being enhanced, this Council :

(i) supported Gosport Voluntary Action in the establishment of a Community Forum to provide representation for community groups on the Partnership Sub Groups; and

(ii) sought to develop the existing Housing Forum into a Resident's Forum, which would represent both private, and public sector residents on the Partnership Sub Groups.

To comply with the Government guidance and increase the Council's CPA score, the community priorities, as set out in the Community Strategy, would need to be reflected in Council policy documents and strategies. Where possible this process had already begun.

In particular, the community priorities which emerged from the draft Community Strategy would need to be built into the Review of the Council's Corporate Plan this Autumn and must also be seen to influence the Council's budgetary process. This year's review of the Capital Strategy and the Asset Management Plan, submitted with the Housing Strategy, had been prepared to reflect the draft Community Strategy and current work was being undertaken to revise the Council's corporate planning and management processes to reflect the Community Strategy and meet the requirements of CPA.

The Community Strategy process required Member support in order to ensure that appropriate democratic representation of the community was achieved and that effective links were established between the Council and the Gosport Partnership and its Sub Groups. The Leader of the Council had already taken on a key role as a lead member of the Steering Group, but Member representation on the Partnership Sub Groups would also play an important role. In two existing partnerships formal nominations of Members taken from the related Council Boards, already existed:

(i) Gosport Community Safety Partnership;
Policy and Organisation Board - two Members per political group;
(ii) Gosport Healthy Alliance;
Community and Environment Board - one Member.

Negotiations on the exact structure and membership/representation on the Sub Groups was still to be completed with partners, but the principle of Gosport Council Member involvement had generally been welcomed from both service delivery and democratic representation aspects. Because of the important work of the Partnership Sub Groups in contributing to and influencing the Community Strategy, it was suggested that Member representation on the Partnership Sub Groups, as they developed, would be sought on a proportional basis per political group. This would reflect the current approach agreed for the Gosport Community Safety Partnership, with three or six nominations per Partnership Sub Group being sought as appropriate.

Currently the Council's Constitution required that full Council make all appointments to outside bodies, but provision was made for full Council to delegate the authority to appoint to an appropriate Board. It was suggested that a report be prepared for Council to delegate the responsibility for appointing representatives to the Partnership Sub Boards to this Board.

With potentially eight Partnership Sub Groups, this would result in at least 24 nominations. It was therefore suggested that nominations were open to all Members. This would enable the potential workload to be spread and provide the opportunity for the widest possible Member involvement. It was intended that, as the Partnership Sub Groups were established, they be requested to allow substitutions to ensure that full representation could be achieved when Sub Group meetings were called.

In conclusion as part of the requirement for the Council's budgetary processes to reflect the needs of the community, it was suggested that financial implications were incorporated as part of the budgetary programme. This would not involve significant additional resources, but would involve clearer identification of how resources, within the parameters set by this Council, were being directed to meeting the community's priorities as set out in the Community Strategy.

RESOLVED: That -

(i) the necessary adaptations to working practices to meet the requirements of the Community Strategy as set out in paragraphs 4.5, 4.6, 5.1, 5.2 and 5.11 of the report be approved;

(ii) the proposed role of the Council in:

(a) Membership and current Chairmanship of the Steering Group of the LSP (the Gosport Partnership);

(b) Member involvement in the Partnership Sub Groups;

(c) establishing and/or supporting the Partnerships Sub Groups

be approved as set out in paragraphs 5.3 to 5.6 and Appendix 4 of the report.

25. APPOINTMENT SUB BOARD

Consideration was given to a report of the Corporate Services Manager concerning the appointment of an Appointment Sub Board.

It was reported that the new Constitution provided that the Policy and Organisation Board may appoint an Officer or an Appointment Sub Board with power to act on its behalf on appointments at Chief Officer level and above. The Chief Executive was currently conducting a review of the Law and Administration Unit, consequent on the vacancies created by the departure of the Borough Secretary and the Corporate Legal Adviser. Once the review had been completed, it was envisaged that there would be a need to appoint an officer at Chief Officer level, who was also likely to undertake the Monitoring Officer role of the Council. The inclusion of that role for the successful candidate would need to be ratified by the Council. It was requested that a Sub Board be appointed for the purpose of this appointment.

RESOLVED: That an Appointment Sub Board be appointed with power to act on the Board's behalf for the appointment of the most senior post in the Law and Administration Unit with three Members (ie Councillors Friend, Hayward and Wright) under the proportionality regulations.

26. EXCLUSION OF THE PUBLIC

RESOLVED: That under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the under-mentioned items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 4 and 9 of Part 1 of Schedule 12A of the Act.

27. DISPOSAL OF THE TOWN QUAY FREEHOLD

Consideration was given to an exempt report of the Director of Development and Environment (a copy of which is inserted in the Minute Book as Appendix "H") which recommended the disposal of the freehold interest in the Town Quay on revised terms.

RESOLVED: That the exempt report of the Director of Development and Environment on the disposal of the Town Quay freehold be deferred for further negotiations on this matter.

28. WRITE-OFFS

Consideration was given to an exempt report of the Borough Treasurer (a copy of which is inserted in the Minute Book as Appendix "I") which proposed the approval of a write off.

RESOLVED: That the Housing Benefit Overpayment write-off as detailed in the Borough Treasurer's report be approved.

CHAIRMAN