Agenda item

O&S.16/17

The Panel was presented with a report that set out the Section 106 contributions that the Council had received.  As of 31 March 2017, it was noted that the contributions totalled £4.413 million.

In discussion, reference was made to:-

(a)   the report being welcomed.  In welcoming production of the report, a number of Members felt that it constituted a significant step forward for the Council;

(b)   communication with local Ward Members.  A number of Members expressed their disappointment that they had not been kept informed of progress regarding Section 106 Agreement contributions.  Further concerns were raised in relation to the apparent lack of emphasis that was currently being given to monitoring and control of the funding arrangements.  In taking these points a step further, an additional two recommendations were PROPOSED and SECONDED to read as follows:

‘That the Panel expresses its concern over the lack of emphasis being given to monitoring, control and communication as part of the current process for spending Section 106 funds; and

That the Panel stresses the need for the Council to appoint a person to be responsible for the monitoring, control and liaison with both local Ward Members and town and parish councils as part of the process for spending S106 funds.’

When put to the vote, these additional recommendations were both declared CARRIED.

(c)    deadlines to use S106 monies.  For clarity, officers confirmed that, whilst it was not necessarily a requirement to have spent the money before the deadline, it must be committed before this time;

(d)   the 5% Monitoring Fee.  The Deputy Monitoring Officer stressed that not all Section 106 Agreements had a 5% Monitoring Fee obligation and there was a need, in each instance, to illustrate that it was required and would be directly related to the development.  As a consequence, Members noted that they should therefore not assume that the 5% Fee would be applicable for each application;

(e)   improving internal communications within the Council.  The Deputy Monitoring Officer gave a commitment that the legal service would re-introduce the process whereby, upon completion of a Section 106 Agreement, notification would be sent to relevant officers with the details of each obligation outlined.  The Panel subsequently expressed its support for this suggestion to improve internal communications;

(f)     the accuracy of Appendix A of the presented agenda report.  In response to some confusion, officers clarified that Appendix A referred to monies that had actually already been received by the Council and not those signed agreements for which payment was still pending.  In stressing the importance of a Schedule being produced that provided this information to all Members, it was PROPOSED and SECONDED:

‘That the Panel requires the production of a Schedule that lists all Section 106 Agreements (irrespective of whether or not payment has been received) for consideration at a future Panel meeting.’

When put to the vote, this recommendation was declared CARRIED;

(g)   the criteria to obtain affordable housing contributions.  The Panel was of the view that the criteria required greater explanation to all Members during a future briefing session.  In addition, the point was expressed that decisions relating to affordable housing contributions should be undertaken by the Council whilst bearing in mind the views of local town and parish councils.

Moreover, a Member cited instances that he was aware of where off-site affordable housing contributions were not materialising in affordable housing actually being developed and requested that this matter be included during the aforementioned Member briefing session.  

It was then:

RESOLVED

That the Panel:

1.      acknowledges the amount of Section 106 funding held at 31 March 2017 (as set out in Appendix A of the presented agenda report (totalling £4.413 million)) and the proposed future reporting arrangements;

2.      expresses its concern over the lack of emphasis being given to monitoring, control and communication as part of the current process for spending S106 funds;

3.      stresses the need for the Council to appoint a person to be responsible for the monitoring, control and liaison with both local Ward Members and town and parish councils as part of the process for spending S106 funds;

4.      encourages legal officers to introduce revised procedures to ensure more effective internal communications within the Council;

5.      approves the flowchart (as outlined at Appendix B of the presented agenda report) that illustrates the process for spending Section 106 funding for Affordable Housing;

6.      approves the draft application form for Section 106 funding for Affordable Housing (as outlined at Appendix C of the presented agenda report); and

7.      requires the production of a Schedule that lists all Section 106 Agreements (irrespective of whether or not payment has been received) for consideration at a future Panel meeting.