Agenda, decisions and minutes

To receive any apologies for absence.

Apologies were received from Cllr Bill Revans (Cllr Theo Butt Philip as substitute), and Cllr Richard Wilkins (unable to attend due to other Council business).

To approve the minutes from the previous meeting.

The minutes were agreed as an accurate record of the meeting and signed by the Chair.

To receive and note any declarations of interests in respect of any matters included on the agenda for consideration at this meeting.

(The other registrable interests of Councillors of Somerset Council, arising from membership of City, Town or Parish Councils and other Local Authorities will automatically be recorded in the minutes: City, Town & Parish Twin Hatters - Somerset Councillors 2023 )

The following declarations of interest were automatically recorded:

Cllr Theo Butt Philip – Wells City Council
Cllr Mike Rigby – Bishops Lydeard and Cothelstone Parish Council

The Chair to advise the Committee of any items on which members of the public have requested to speak and advise those members of the public present of the details of the Council’s public participation scheme.

For those members of the public who have submitted any questions or statements, please note, a three-minute time limit applies to each speaker and you will be asked to speak before Councillors debate the issue.

We are now live webcasting most of our committee meetings and you are welcome to view and listen to the discussion. The link to each webcast will be available on the meeting webpage, please see details under ‘click here to join online meeting’.

There were no public questions received by the submission deadline.

To note the forward plan.

There are no items on the Forward Plan for this Subcommittee at present.

The Property and Investments Executive Sub-Committee resolved to:

1. Note the performance indicators for the asset management of Commercial Investment Portfolio for Q3 2024/2025 as shown in Tables 1, 2 and 3 below. 

2. Note the main risks to the programme set out under paragraph 10. 

At the invitation of the Chair, the Lead Member for Economic Development, Planning and Assets, Cllr Mike Rigby, introduced the item. Cllr Rigby explained the responsibility for appropriate governance arrangements to ensure the programme is meeting its requirements; that the performance measures are total contracted income, void measure, rent arrears measure, and progress with property disposals.

Cllr Rigby proceeded to hand over to the Head of Commercial Investment, Robert Orrett, who detailed: the KPIs relating to continuing management of the portfolio and the KPIs specifically monitoring the programme of disposal; how the indicators of the overall portfolio were changing as assets are disposed of; that the overall void rate had increased to the upper limit of the good level outlined by guidance; the reduction in rent arrears and that properties were now being managed by external agents; the data shown in the charts including that nearly £72m worth of sales had been completed; that a further £21m of assets were in progress; the level of confidence in ongoing asset disposals; and that it was important to be patient to get best consideration for assets.

The Chair invited comments from Sub-Committee Members and other Members present, with officers providing responses as appropriate. Points raised included: which type of businesses were more likely to be in arrears with rent; the ongoing marketing for assets in the pipeline for disposal; whether there were targets for future financial years; what asset management involves; how repairs are managed for commercial tenants; whether there are rent reviews; how the asset disposal impacts borrowing commitments; how the contracted income relates to the number of properties sold and the rate of return; whether there were figures available comparing sale price to purchase price; and whether the loss of income from investment properties had been included as a pressure in the next year’s budget.

The Sub-Committee proceeded to vote on the recommendations.

The Property and Investments Executive Sub-Committee resolved to:

1. Note the performance indicators for the asset management of Commercial Investment Portfolio for Q3 2024/2025 as shown in Tables 1, 2 and 3 below. 

2. Note the main risks to the programme set out under paragraph 10. 

Report to follow.

Having been duly proposed and seconded, the Property and Investments Executive Sub-Committee resolved to:

1. Nominate and appoint Mel Lock, Executive Director – Adult Services and Kirsty Larkins, Interim Service Director – Housing as Council appointed directors to the board of Aspen Housing and Development Limited (Company number 10000266) with immediate effect. 

2. Nominate and appoint Mel Lock, Executive Director – Adult Services and Kirsty Larkins, Interim Service Director – Housing as Council appointed directors to the board of Sedgemoor Group Limited (Company number 10084596) with immediate effect. 

At the invitation of the Chair, Executive Director Resources, Strategy & Transformation, Alyn Jones, introduced the report. He highlighted that it is to ensure we have appropriate representation on the Aspen House board from Adults Services and Housing.

The Lead Member for Adults Services, Housing and Homelessness explained that Aspen House was an investment made by Sedgemoor District Council and that a full board was needed to determine the future of it.

The Chair invited comments from Sub-Committee Members and other Members present. No comments were made.

The Sub-Committee proceeded to vote on the recommendations.

Having been duly proposed and seconded, the Property and Investments Executive Sub-Committee resolved to:

1. Nominate and appoint Mel Lock, Executive Director – Adult Services and Kirsty Larkins, Interim Service Director – Housing as Council appointed directors to the board of Aspen Housing and Development Limited (Company number 10000266) with immediate effect. 

2. Nominate and appoint Mel Lock, Executive Director – Adult Services and Kirsty Larkins, Interim Service Director – Housing as Council appointed directors to the board of Sedgemoor Group Limited (Company number 10084596) with immediate effect. 

Report to follow.

This item was deferred to a future meeting due to papers not being ready in time.

Having been duly proposed and seconded, the Property and Investments Executive Sub-Committee resolved to:

1. Pass a resolution under Schedule 12A of the Local Government Act 2000 to exclude the press and public from the meeting, on the basis that if they were present during the business to be transacted there would be a likelihood of disclosure of exempt information, within the meaning of Schedule 12A to the Local Government Act 2000: Reason: Information relating to the financial or business affairs of any particular person (including the authority holding that information). 

2. authorise the recommendations regarding implementation of dilapidation works as set out in Confidential Appendix A. 

3. delegate the authority to make all necessary arrangements and agreements to conclude arrangements for the works to the Executive Director for Resources, Strategy and Transformation in consultation with the Lead Member for Economic Development Planning and Assets.

The sub-committee proceeded to discuss this confidential item with officers providing responses as appropriate.

Having been duly proposed and seconded, the Property and Investments Executive Sub-Committee resolved to:

1. Pass a resolution under Schedule 12A of the Local Government Act 2000 to exclude the press and public from the meeting, on the basis that if they were present during the business to be transacted there would be a likelihood of disclosure of exempt information, within the meaning of Schedule 12A to the Local Government Act 2000: Reason: Information relating to the financial or business affairs of any particular person (including the authority holding that information). 

2. authorise the recommendations regarding implementation of dilapidation works as set out in Confidential Appendix A. 

3. delegate the authority to make all necessary arrangements and agreements to conclude arrangements for the works to the Executive Director for Resources, Strategy and Transformation in consultation with the Lead Member for Economic Development Planning and Assets.

The Property and Investments Executive Sub-Committee resolved to:

1. Pass a resolution under Schedule 12A of the Local Government Act 2000 to exclude the press and public from the meeting, on the basis that if they were present during the business to be transacted there would be a likelihood of disclosure of exempt information, within the meaning of Schedule 12A to the Local Government Act 2000: 

Reason: Information relating to the financial or business affairs of any particular person (including the authority holding that information). 

2. Exclude the press and public from the meeting where there is any discussion at the meeting regarding this report and the exempt or confidential information contained.  

3. Note the progress update. 

The sub-committee proceeded to discuss this confidential item with officers providing responses as appropriate.

The Property and Investments Executive Sub-Committee resolved to:

1. Pass a resolution under Schedule 12A of the Local Government Act 2000 to exclude the press and public from the meeting, on the basis that if they were present during the business to be transacted there would be a likelihood of disclosure of exempt information, within the meaning of Schedule 12A to the Local Government Act 2000: 

Reason: Information relating to the financial or business affairs of any particular person (including the authority holding that information). 

2. Exclude the press and public from the meeting where there is any discussion at the meeting regarding this report and the exempt or confidential information contained.  

3. Note the progress update.