Agenda item

The Cabinet Member for Resources presented the report to seek approval of the updated Asset Management Strategy, County Farms Strategy and the Asset Investment Policy.  He informed Council of amendments to the report as follows:

Proposed Amendments to Agenda Item 15a

Asset Management Strategy and Supporting Policies

We are proposing the following amendments to the above report as follows:

Recommendations:

1.1           To approve the Asset Management Strategy, County Farms Strategy and supporting policies.

1.2           To agree to the adoption of the Asset Investment Policy and the approval of up to £50,000,000 of prudential borrowing to fund acquisitions over a three year period.

1.3           To agree to the amendment of the Constitution to include an Investment Committee that will have delegated authority to make decisions on the acquisition of Investment Assets as prescribed in the Asset Investment Policy.

1.4           To agree to the formation of an Investment Committee as outlined in 3.10 of the amended report.

1.5           The delegation of authority to an Investment Committee to approval Business Cases, approve spend for at risk due diligence surveys and reports and agree to the acquisition of land and property assets in line with agreed evaluation criteria and subject to annual performance reviews.

1.6           To approve earmarked reserve cover to the sum of £100,000 from the Capital Receipts Generation reserve to fund initial pre-acquisition due diligence costs. 

Paragraph 3.10 of the report is amended as follows:

Decision making will be delegated to an Investment Committee which will be made up of the Leader, Deputy Leader, Cabinet Member for Resources and the leaders of the two largest opposition parties (3:1:1).  The committee will be supported by the Resources Chief Officer and colleagues from Estates, Finance and Legal Services. Annual reports on performance will be submitted to Audit committee. It is expected that expert advice will be procured with initial acquisitions to supplement expertise and capacity.

Paragraph 6.4 of The Asset Investment Policy (pg 780 of your bundle) has been amended as follows:

6.4       The Business Case will be presented to the Investment Committee which will be made up of the Council Leader, Deputy Leader, Cabinet Member for Resources and the Leaders of the two largest opposition parties (political balance 3:1:1).  The Committee will be advised by the Resources Chief Officer and Officers from Finance, Estates and Legal Services.

During discussion the following points were4 noted:

In response to a concern the Cabinet Member reassured Members we were not borrowing beyond means.

Officers confirmed that in terms of the evaluation criteria, the performance indicators we will be held to is explained on page 773 of the agenda pack.

As well as holding ourselves to account, the specific acquisitions we intend to9 enter into, performance updates will be brought through Audit Committee.

It was questioned how the Leader would be able to be involved with the Investment Committee given his interest under County Farms.  It was confirmed that the Leader would continue to declare his interest in that area, and it was considered important that the Leader be a member of the panel.

Councillor Taylor referred to para 3.10 which discusses the delegated decision making and states that the committee will be made up of the leaders of the two opposition parties, and proposed an amendment that the Leaders of all 3 opposition groups be included.

The amendment was seconded, and upon being to the vote the amendment was defeated.

Discussion returned to the substantive recommendation, upon being put to the vote Council resolved to agree the recommendation:

To approve the Asset Management Strategy, County Farms Strategy and supporting policies.

To agree to the adoption of the Asset Investment Policy and the approval of up to £50,000,000 of prudential borrowing to fund acquisitions over a three year period.

To agree to the amendment of the Constitution to include an Investment Committee that will have delegated authority to make decisions on the acquisition of Investment Assets as prescribed in the Asset Investment Policy.

To agree to the formation of an Investment Committee as outlined in 3.10 of the amended report.

The delegation of authority to an Investment Committee to approval Business Cases, approve spend for at risk due diligence surveys and reports and agree to the acquisition of land and property assets in line with agreed evaluation criteria and subject to annual performance reviews.

To approve earmarked reserve cover to the sum of £100,000 from the Capital Receipts Generation reserve to fund initial pre-acquisition due diligence costs.