Issue - meetings

To consider the report of the Director of City Development.

The Leader presented Local Authority Housing Fund (LAHF) Round 3 Funding to consider the recommendations set out in the report and made the following points:

·         the Executive considered the report last week; and

·         Option 2 was the preferred choice, which would require a £297,000 contribution from Council.

Councillor Moore as co-Leader of the Progressive Group welcomed the report and asked that the Portfolio Holder provide an update in six months on the resettlement matching process.

The Deputy Lord Mayor, Councillor Knott spoke in support of the proposal making the following points:

·         he had recently attended the Respect Festival and met some of those who have been supported in the previous housing schemes;

·         this proposal and Option 2 also supported the reduction in local housing need; and

·         he endorsed the report and sought Members to vote in support of the recommendations.

The Leader in summing up agreed to request that a Portfolio Holder report be presented to a future Scrutiny Committee to update Members on the resettlement process.

The Leader moved and Councillor Wright seconded the recommendations for Option 2 to be supported and following the vote was carried unanimously.

RESOLVED that Council agree Option 2 as follows:

1)    to accept the full allocation of £594,000 in DLUHC grant funding;

2)    the purchase of (four) properties off the open market;

3)    that the Council’s Capital contribution be funded through £297,000 of S106 funds;

4)    the identification and purchase of suitable properties to let;

5)    that the rents be set at affordable rates in accordance with the provisions of the Memorandum of Understanding between DLUHC and Exeter City Council and the DLUHC recommended rental funding model Rent Standard – April 2023;

6)    that the MOU be signed and returned to DLUHC by the 12th of June 2024 confirming the Council’s participation in the programme; and

7)    that delegated authority be granted to the Director of City Development and Housing and the relevant Portfolio Holder to proceed with the acquisitions and to amend the number of properties purchased in line with the agreement above and including where additional government grant may become available (provided that no further capital contribution is required from Exeter City Council).

To consider the report of the Director Finance.

The Leader presented the report which sought Members’ approval for a range of proposals to enable Exeter Science Park Limited (ESPL) to deliver on its objective of providing high quality jobs to support the local region.

The Leader moved and Councillor Wright seconded an amendment to recommendation 3, to read as follows:-

“The appointment of Councillor Matt Vizard as shareholder representative with the Director Finance as an advisor.”

The Director Finance responded to questions from Members as follows:

• the loan was initially given and borrowed against the Council’s loans and the conversion to equity, would equate to a debt repayment of £40,000 per year, with no interest issues;
• the Annual report and financial statement would be shared as soon as it is published;
• the Science Park would not become its own owner, however the percentage of shareholding would change;
• Councillor Vizard would act on behalf of Exeter City Council (ECC) and therefore look after the interests of ECC rather than the interests of the company;
• there was no conflict arising from the recommendations as they were acting in the interests of the Council; and
• the LEP had now ended and the money was being returned to the four stakeholders – Somerset Council, Devon County Council(DCC), Plymouth City Council and Torbay. These funds could only be used for the original purpose of what they were given.

Councillor Moore moved an amendment for the following additional recommendations, which was seconded by Councillor Palmer:-

“1. That the shareholder representative report back to Council not later January 2025, on the progress on the matters in Recommendation 4 and the Company’s ability to undertake the share buy-back;

 2. As set out in minute 27 of the Audit and Governance Minutes of 30 November 2022 the next Audit and Governance Committee receive the report on the “review of the governance of external companies” and consider appropriate arrangements for the nomination for shareholder representatives to and the proper oversight of all Council connected companies and make recommendations to the Executive; and

 3. To provide a report of all other unsecured loans and risk to the Council of those loans.”

During debate on the amendment, Members made the following further comments:-

• there was disappointment that the Executive had not acted on auditors’ recommendations and progressed these matters;
• it appeared that the Council had not learnt from the Exeter City Living issue; and
• the additional recommendations would strengthen the Council’s position, whilst reflecting on past situations and bringing accountability for using public money.

Councillor Palmer, in seconding the recommendation, commented that previous lack of governance and oversight could be amended to ensure residents were fully aware.

In concluding, Councillor Moore commented: -

• that she was glad people had contributed to the debate and that all Councillors wanted the same thing; and
• that the additional recommendations would help all Councillors understand the position.

The Leader, as the mover of the original motion, spoke on the additional recommendations and thanked Councillor Atkinson for providing context and in addressing the additional recommendations,  ...  view the full minutes text for item 14