Manchester City Council

Agenda and draft minutes

Agenda and draft minutes

Executive - Wednesday, 14th October, 2020 2.00 pm

Venue: https://manchester.public-i.tv/core/portal/webcast_interactive/485349

Contact: Donald Connolly 

Media

Items
No. Item

100.

Minutes pdf icon PDF 189 KB

To approve as a correct record the minutes of the meeting held on 9 September 2020 (now enclosed).

Additional documents:

Minutes:

Decision

 

To approve as a correct record the minutes of the meeting on 3 September 2020.

 

 

101.

The Queen's Birthday Honours

Additional documents:

Minutes:

Congratulations were offered to the Executive Member for Culture and Leisure, Councillor Luthfer Rahman, and to the Deputy Chief Executive and City Treasurer, Carol Culley, on their award of an OBE by Her Majesty The Queen.

 

 

102.

Appointment of the (Statutory) Deputy Leader

The Executive is asked to note that on 5 October the Leader gave notice to the Monitoring Officer that he has appointed Councillor Nigel Murphy as (Statutory) Deputy Leader in accordance with Article 7.4 of the Council's Constitution.

 

Additional documents:

Minutes:

Decision

 

To note the appointment by the Leader of Councillor Nigel Murphy as the (Statutory) Deputy Leader.

 

 

103.

COVID-19 Monthly Update Report pdf icon PDF 934 KB

The report of the Chief Executive was to follow and is now enclosed

Additional documents:

Minutes:

The written report from the Chief Executive took the form of three “situation reports”, one each for the work on the city’s economic recovery, work with residents and communities, and work on the future of the Council itself. The written report was noted.

 

The Leader of the Council provided the meeting with a report on the discussion that had been taking place on the levels and the possible ‘Tiers’ that would be applied by the Government across the country and in Greater Manchester. He also explained the proposals and actions that Greater Manchester was putting forward collectively as a more effective way to contain the virus outbreak and reduce the other health and economic damage that the Tier 3 restrictions would cause to people in Greater Manchester. He reported that the government had been urging the local authorities in the region to accept the Tier 3 restrictions being applied in Greater Manchester. He explained why that had been resisted.

 

The Executive Member reported that the recent spike in rates of infection had peaked a few days previously at 582 cases per 100,000 people and since then had begun to level off and drop, with the latest non-validated data showing 448 cases per 100,000. The profile of infection was also explained, including the impact on the number of university students that had contracted the virus, as had been anticipated in the Council’s planning.

 

At the meeting an oral update on the pandemic was also provided by the Director of Public Health. He gave more details of the Council’s work with the city’s universities and the steps that had been taken to deal with the outbreaks that had occurred in the student populations in the city. He also explained the on-going priority being given to tackling and reducing levels of community transmission. He also reported that the situation with respect to access to testing in the city had been improving, with fewer problems being reported by residents.

 

Decision

 

To note the report.

 

 

104.

Revenue Budget Monitoring 2020/21 and Budget Position 2021/22. pdf icon PDF 568 KB

The report of the Deputy Chief Executive and City Treasurer was to follow and is now enclosed.

Additional documents:

Minutes:

The Deputy Chief Executive and City Treasurer presented a review of the 2020/21 revenue budgets. The report provided an overview of the Council’s financial position as at the end of August 2020 and the work to develop a balanced budget for 2020/21. The report identified a projected deficit for 2020/21 of £271k, a significant improvement on the forecast deficit reported in July of £5.476m (Minute Exe/20/81). That new forecast was based on the financial implications of COVID-19, government funding confirmed to date, other identified budget changes, and in-year efficiencies and mitigations. The anticipated financial cost of the COVID-19 pandemic to the Council so far was £55.583m in 2020/21, increasing by a further £160.675m in 2021/22.  The overall revenue forecast for 2020/21 was:

 

Forecast as at 31 August 2020

Original Approved Budget £000

Revised Budget £000

Forecast Outturn £000

Total Forecast Variance £000

Movement from last report £000

Total Available Resources

(666,125)

(827,470)

(812,604)

14,866

33

Total Corporate Budgets

126,761

264,202

262,634

(1,568)

(1,192)

Children's Services

130,320

130,540

131,198

658

(6,021)

Adult Social Care

221,253

232,291

239,165

6,874

(1,491)

Homelessness

15,285

17,292

22,120

4,828

(2,316)

Corporate Core

69,958

77,598

78,893

1,295

(2,414)

Neighbourhoods

93,802

94,841

103,282

8,441

2,497

Growth and Development

8,746

10,706

16,035

5,329

(2,264)

Total Directorate Budgets

539,364

563,268

590,693

27,425

(12,009)

Total Use of Resources

666,125

827,470

853,327

25,857

(13,201)

Total forecast over / (under) spend

0

0

40,723

40,723

(13,168)

COVID 19 Government grant income (tranche 1, 2 and 3) - Confirmed

 

 

 

(40,452)

0

Proposed Corporate mitigations

 

 

 

0

7,963

Net forecast over / (under) spend

 

 

 

271

(5,205)

 

The report examined the impact the COVID-19 pandemic was expected to have on the council’s finances in 2021/22 and beyond. The report included a reminder that the Council had, back in February and early March 2020, forecast a £20m budget deficit which would have had to be addressed as part of the 2021/22 budget setting process.  With the impact of the pandemic, the added costs and the loss of income,  the forecast deficit had increased to £136m before possible mitigations, and £105.448m after mitigations. The forecast position for the coming years was:

 

 

Revised

2020/21 £000

2021/22 £000

2022/23 £000

2023/24 £000

2024/25 £000

Budget shortfall after confirmed funding/ mitigations

271

135,958

146,801

110,143

123,391

Sales, fees and charges support (estimate)

(6,400)

0

0

0

0

Smooth Collection Fund over 3 years:

0

(24,381)

12,190

12,190

0

Defer planned use of reserves to balance the budget

6,129

(6,129)

 

 

 

Total - Potential Budget Gap

0

105,448

158,991

122,333

123,391

 

Unless further government support was forthcoming that scale of reduction in 2021/22 would require cuts of about 20% of the budgets for the delivery of services. Those cuts would be on top of cumulative budget cuts of £379m and workforce reductions of around 40% since 2010. The ways the potential deficit could be addressed were to be considered in November, by the Scrutiny Committees and then by the Executive.

 

The report also addressed a number of specific changes and approvals needed as part  ...  view the full minutes text for item 104.

105.

Capital Budget Monitoring 2020/21 pdf icon PDF 1 MB

The report of the Deputy Chief Executive and City Treasurer was to follow and is now enclosed.

Additional documents:

Minutes:

The Deputy Chief Executive and City Treasurer's report informed the Executive of the revised capital budget 2020/21 to 2023/24 taking account of agreed and proposed additions to the programme, profiling changes, and the latest estimates of forecast spend and resources for the 2020/21 capital programme. The report explained the major variations to forecast spend, and any impact that variations had on the five-year Capital Programme.

 

The forecast of expenditure for 2020/21 for the Manchester City Council capital programme was £435.9m compared to the proposed revised budget of £435.7m. Spend as of 31 August was £169.9m.

 

Appended to the report was a schedule of projects within the overall capital programme where the allocations needed to be revised and funding allocations vired between projects. The appendix showed the virement needed for each scheme and each project. We agreed to recommend the virements of more than £500,000 to the Council for approval, and to approve those below £500,000.

 

Also appended to the report was a schedule showing the updated capital budget for each project within the overall programme. The budgets shown in that table anticipated the approval of the virements being requested at this meeting. They also included the changes arising from any predicted or known advances or delays in when money would be spent in each of the five years in the programme. It was agreed that the Council also be recommended to approve that complete programme.

 

The prudential indicators as at the end of August 2020 were shown at appendix C of the report, and were noted.

 

It was also noted that the report had been considered at a recent meeting of the Resources and Governance Scrutiny Committee, and the Committed noted the report and not made any recommendations of the decisions the Executive was being asked to consider (Minute RGSC/20/39).

 

Decisions

 

1.         To recommend that the Council approve virements over £0.5m within the capital programme as outlined in Appendix 1 of these minutes

 

2.         To recommend that the Council approve the capital programme as presented in Appendix 2 of these minutes which will require prudential borrowing of £790.7m to fund non-HRA schemes over the five-year period for which provision has been made in the revenue budget for the associated financing costs (within limits previously agreed).

 

3.         To approve virements under £0.5m within the capital programme as outlined in Appendix 1 of these minutes.

 

4.         To note that approvals of movements and transfers to the capital programme, will result in a revised budget total of £435.7m and a latest full year spend forecast of £435.9m. Expenditure to the end of August 2020 is £169.9m.

 

5.         To note the prudential indicators as set out in the report.

 

 

106.

Capital Programme Update pdf icon PDF 266 KB

The report of the Deputy Chief Executive and City Treasurer was to follow and is now enclosed.

Additional documents:

Minutes:

A report concerning requests to increase the capital programme was submitted. It was agreed to recommend three changes to the Council for approval, and to make a further two changes under delegated powers. These changes would increase Manchester City Council’s capital budget by £15.647m over the next three years, funded by a mixture of the Eastlands Reserve, borrowing, capital receipts, and external grants.

 

It was also reported that the Deputy Chief Executive and City Treasurer had made a further change using delegated powers:

·         £33,000 for the Early Years maintenance programme within Children’s Services.

 

Decisions

 

1.         To recommend that the Council approve the following changes to Manchester City Council’s capital programme:

 

a)         Growth and Development – Demolition of Grey Mare Police Station. A capital budget increase of £0.761m is requested, funded by HCA Eastlands Reserve Fund.

 

b)         Highways Services - Planned Maintenance 2020/21 Carriageway Preventative Programme. A capital budget virement of £1.289m is requested from the Highways Project Delivery Fund budget.

 

c)         Public Sector Housing – Silk Street. A capital budget increase of £12.048m is requested, funded by £5.650m HRA (RCCO), £4.140m Grant and £2.258m Capital Receipts.

 

2.         Under powers delegated to the Executive, to approve the following changes to the City Council’s capital programme:

 

a)         Highways Services - Patching defect repairs 2020/22 Maintenance Programme. A capital budget increase of £2.838m is requested, funded by Government Grant.

 

b)         Neighbourhoods – Wythenshawe Track Changing Rooms. A capital budget virement of £0.380m is requested from the Parks Development Programme budget

 

3.         To note the increase to the programme of £0.033m as a result of a delegated approval.

 

 

107.

Purpose Built Student Accommodation in Manchester pdf icon PDF 485 KB

The report of the Strategic Director (Growth & Development) is enclosed.

Additional documents:

Minutes:

Decision

 

To defer this item of business to a future meeting so as to allow councillors to have more time to examine the potential issues in their wards.

 

 

108.

Demolition of the Maisonettes on Bridgnorth Road pdf icon PDF 294 KB

The report of the Interim Director of Housing and Residential Growth is enclosed.

Additional documents:

Minutes:

The Riverdale estate in the Higher Blackley ward has four blocks of maisonettes at Bridgnorth Road, Inchcape Drive and Riverdale Road. Together, these comprise 44 properties: 8 x 3-bed and 36 x 2-bed homes. Despite investment in the maisonettes to achieve the Decent Homes standard in 2011, the blocks are considered to be a generally a poor housing offer with limited demand for the upper units.

 

A report submitted by the Interim Director of Housing and Residential Growth explained that an assessment of all the blocks had been undertaken. That had concluded that that three of the blocks at Riverdale Road and Inchcape Drive were considered to be suitable for refurbishment but that the block at Bridgnorth Road was not, and should be demolished. That block comprised 16 x 2-bed homes. That block was situated on a large site next to other vacant land and so provided an opportunity, if the block was demolished, to create a larger development site for the re-provision of modern, energy efficient, social and affordable homes in the area. The larger development site had the potential for 38 new homes, providing an increase of 22 homes in the area.

 

The report explained that a consultation exercise with residents had been concluded in March 2020. Overall, 82% of residents responded to the consultation of which 93% supported the proposal to demolish the block, so being more than three quarters of all the residents.

 

The estimated total cost of the demolition and the tenant homeloss & disturbance payments was £637k. This was made up of £475k demolition costs and £162k for home loss and disturbance payments to existing tenants. All the affected residents were to be relocated to alternative accommodation with at least 2 bedrooms in accordance with their housing need, if they requested relocation.

 

The necessary approvals to demolish the block and relocate the tenants were given.

 

Decisions

 

1.         To note the results of the residents’ consultation where 82% of residents took part, of which 93% supported the proposal to demolish the maisonette block.

 

2.         To authorise the Interim Director of Housing and Residential Growth, in consultation with the Executive Member for Housing and Regeneration, to cease new lettings for the maisonettes at Bridgnorth Road.

 

3.         To authorise the Interim Director of Housing and Residential Growth, in consultation with the Executive Member for Housing and Regeneration, to declare the maisonettes in the block surplus to requirements and should be demolished.

 

4.         To authorise the Interim Director of Housing and Residential Growth to serve Initial Demolition Notices to all secure tenants within the block in order to suspend the right to buy pending the demolition of the block.

 

5.         To authorise the Interim Director of Housing and Residential Growth to award Band 1 rehousing priority to displaced residents.

 

6.         To approve the use of Home Loss and Disturbance compensation for all displaced residents.

 

 

109.

Lyndene Children's Home - Re-modelling and Next Steps pdf icon PDF 324 KB

The report of the Strategic Director for Children and Education Services is enclosed.

Additional documents:

Minutes:

The Lyndene children’s home in Wythenshawe is at a property owned by the Council in Wythenshawe; a large detached property with its own substantial grounds. A report submitted by the Strategic Director for Children and Education Services explained that the home had been operating under-capacity in its current format in recent years.

 

The report explained that a number of children and young people in Manchester had high volume, complex needs and packages of care. Some of those children had to be placed outside the city, away from home, family, carers, friends and their local community, because local provision was not available or not configured to meet their needs. The intention therefore was for the under-occupied home to be refurbished to provide outreach and short term support as part of a pathway to enable children and young people to remain with or move back to their family environments.

 

The proposal was procure the capital works needed to support the delivery of a service for children and young people with learning difficulties and autism who may potentially become looked after by the Council and/or transition to a family setting. The estimated refurbishment cost of approximately £850,000 was to be met through external National Health Service England grant funding.

 

This proposal was supported.

 

Decisions

 

1.         To approve the decommissioning of the existing children's home provision.

 

2.         To approve the recommissioning of Lyndene Children’s Home to better respond to the presenting needs of children and young people with learning difficulties and/or autism and their families.

 

 

110.

Former Central Retail Park Development Framework pdf icon PDF 396 KB

The report of the Strategic Director (Growth & Development) was to follow and is now enclosed.

Additional documents:

Minutes:

Central Retail Park, on Great Ancoats Street on the eastern side of the city centre, had been an established retail destination in the city. It had occupied the strategically significant site since the late 1980s. In 2015 and 2016 consideration had been given to the possible redevelopment of the site and a Development Framework for the area had been approved in February 2016 (Minute Exe/16/013). The Council holds the freehold on the site and in September 2017 resolved to take full control of the site, buying out the then leaseholder (Minute Exe/17/122). In October 2019 temporary consent had been granted by the Planning and Highways Committee for the site to be used as a car park (Minute PH/19/93). In February 2020 the Executive had endorsed a new draft Development Framework for the Central Retail Park site as a basis for public consultation (Minute Exe/20/24). A report now submitted by the Strategic Director (Growth & Development) reported on the outcome of that consultation and proposed that the revised Framework be adopted.

 

The vision for the area was for it to become an exemplary net zero-carbon commercial district with the ability to attract new businesses and talent to Manchester. The development should bring together activities and people to create a vibrant mixed use neighbourhood.

 

The consultation exercise had run for eight weeks from Monday 3 August 2020 to Friday 25 September 2020. A total of 598 responses had been received, the breakdown of which included:

·         471 who describe themselves as local residents

·         19 who describe themselves as local business owners

·         8 who describe themselves as landowners

·         2 who describe themselves as from a statutory body

·         106 who describe themselves as working in the local area

·         142 who describe themselves as a regular visitor to the local area

·         16 who describe themselves as belonging to a local interest group

 

The report set out the issues that consultees had raised in their responses, including details on the submissions from other statutory bodies, utility companies, housing providers and local councillors.

 

The report then set out proposed responses to those issues, examining in turn the public realm and greenspace, zero-carbon objectives, the height, density and massing of the proposed developments, the development principles and proposed uses of the land, and traffic and highway safety.

 

Having examined the outcome of the consultation, the report suggested that the development framework be amended to:

·         highlight the proximity of public space in adjacent areas;

·         note the requirements for the development to be more walking and cycling friendly, particularly in how it links through to adjacent districts; and

·         better capture the aspiration to deliver zero carbon objectives.

 

That was agreed and the amended framework was adopted.

 

Decisions

 

1.         To note the outcome of the public consultation on the draft Development Framework for the former Central Retail Park.

 

2.         To approve the Development Framework for the former Central Retail Park area and request that Planning and Highways Committee take the framework into account as a material consideration when considering planning applications for the  ...  view the full minutes text for item 110.

111.

Exclusion of the Public

The officers consider that the following item or items contains exempt information as provided for in the Local Government Access to Information Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. The Executive is recommended to agree the necessary resolutions excluding the public from the meeting during consideration of these items. At the time this agenda is published no representations have been made that this part of the meeting should be open to the public.

Additional documents:

Minutes:

Decision

 

To exclude the public during consideration of the following item which involved consideration of exempt information relating to the financial or business affairs of particular persons and public interest in maintaining the exemption outweighs the public interest in disclosing the information.

 

 

112.

Capital Budget - The Factory - Part B

The report of the Deputy Chief Executive and City Treasurer was to follow and is now enclosed.

Minutes:

A joint report submitted by the Strategic Director (Growth & Development) and the Deputy Chief Executive and City Treasurer provided an update on progress with the delivery of The Factory, including the impact of the Covid-19 pandemic on the project; and progress with the redevelopment of St John’s.

 

In relation to the Factory development, the report explained the source of unavoidable and irretrievable additional projects costs that had arisen from the pandemic, the prolongation costs for the revised building and commissioning programme, and other changes to projects costs.

 

The report proposed the means for those budget changes to be addressed, which were supported.

 

Decisions

 

1.         To recommend that the Council approve a Capital Budget increase of £45.17m for The Factory. This will increase the total capital budget for the construction of The Factory from £140.62m to £185.79m to be met from external contributions. This increase will be met from Council resources to support the delivery of Factory in advance of external contributions being received by the Council, in order that the Council can continue to meet its contractual obligations.

 

2.         Subject to the Council approving the increase in the Capital Budget, to delegate authority to the Chief Executive, in consultation with the Deputy Chief Executive and City Treasurer and the Leader, to determine the Council resources which are to be used in advance of receipt of external contributions. Noting that there is a MIF reserve of £11m held to support the revenue funding match funding requirement for future years and a £4.3 m capital loan repayment due to be paid by Manchester Quays Riverside Limited to the Council in August 2023 which may be applied to support the project until external contributions are received.

 

3.         To note progress with the delivery of The Factory.

 

4.         To note that the external contributions are proposed to be funded from a funding application to Arts Council England (ACE) and external fundraising and commercial sponsorship.

 

5.         To note the intention to make the next formal submission of the updated business plan to ACE in December 2020 and the planned Business Case review process with ACE.

 

6.         To note the progress in the development of employment, training and education opportunities and creative engagement programmes as part of The Factory’s skills development programme.

 

 

113.

Appendices to the Minutes

Additional documents:

Minutes:

Appendix 1 - Proposed Programme Virements

 

Project Name

2020/21

£'000

2021/22

£'000

2022/23

£'000

2023/24

£'000

2024/25

£'000

Other Improvement works

 

359

 

 

 

Princess Rd Safety Review

 

-359

 

 

 

Total Highways Programme

0

0

0

0

0

 

 

 

 

 

 

External cyclical works Charlestown Chain Bar Hillingdon Drive maisonettes

 

-11

 

 

 

 

External cyclical works Crumpsall Blackley Village

 

-20

 

 

 

Environmental improvements Moston corrolites

31

 

 

 

 

Delivery Costs

-5

-4

 

 

 

Fire Risk Assessments

 

 

800

 

 

Delivery Costs

 

54

138

 

 

Delivery Costs

-2

 

 

 

 

Delivery Costs

14

 

 

 

 

Northwards Housing Programme - Unallocated

-38

-19

-938

 

 

Total Public Sector Housing (HRA) Programme

0

0

0

0

0

 

 

 

 

 

 

St.Augustine's

1

 

 

 

 

Mauldeth Rd Rewire

17

 

 

 

 

Charlestown Community Fire Alarm/Lighting

-80

 

 

 

 

Manley Park Primary roof repairs

-1

 

 

 

 

Schools Capital Maintenance -unallocated

63

 

 

 

 

Total Children's Services Programme

0

0

0

0

0

Total Capital Programme

0

0

0

0

0


 

Appendix 2 - Proposed Revised Capital Budget

 

Project Name

2020/21

Proposed revised budget

£’000

2021/22

Proposed revised budget

£’000

2022/23

Proposed revised budget

£’000

2023/24

Proposed revised budget

£’000

2024/25

Proposed revised budget

£’000

Total Budget

£’000

Drainage

2,120

1,871

0

0

0

3,991

Patching Defect repairs

2,000

528

0

0

0

2,528

Carriageway Resurfacing

8,592

8,499

0

0

0

17,091

Footway schemes

1,316

2,110

0

0

0

3,426

Carriageway Preventative

3,500

1,100

0

0

0

4,600

Bridge Maintenance

500

2,234

2,233

2,233

0

7,200

Other Improvement works

739

4,164

4,164

4,164

0

13,231

Highways Maintenance Challenge Fund

5,160

910

0

0

0

6,070

Hyde Road (A57) Pinch Point Widening

3,147

0

0

0

0

3,147

Manchester/Salford Inner Relief Road (MSIRR)

100

0

0

0

0

100

Great Ancoats Improvement Scheme

5,854

514

0

0

0

6,368

Mancunian Way and Princess Parkway NPIF

4,910

87

0

0

0

4,997

Christie Extension Residents Parking Zones

108

201

0

0

0

309

Hathersage Residents Parking Zones

60

0

0

0

0

60

North Mcr General Hospital Residents Parking Zones

63

0

0

0

0

63

St George's Residents Parking Zones

90

71

0

0

0

161

Rusholme Residents Parking Zones

55

204

0

0

0

259

School Crossings

3,784

0

0

0

0

3,784

Chorlton Cycling Scheme

4,381

7,645

354

0

0

12,380

Northern Quarter Cycling Scheme

1,996

8,280

0

0

0

10,276

Manchester Cycleway

415

178

0

0

0

593

Beswick Filtered Neighbourhood Development Costs

938

494

0

0

0

1,432

Green Bridge at Airport City

852

71

0

0

0

923

A6 Stockport Road Pinch Point Scheme

438

8

0

0

0

446

Levenshulme Mini Holland Cycling and Walking scheme

638

340

0

0

0

978

Northern/Eastern GW Walking and Cycling scheme-development costs

503

111

0

0

0

614

Rochdale Canal

168

9

0

0

0

177

20mph Zones (Phase 3)

124

0

0

0

0

124

Princess Rd Safety Review

60

28

0

0

0

88

Public Realm

1,500

924

0

0

0

2,424

Street Lighting PFI

1,500

3,039

0

0

0

4,539

Didsbury West

23

0

0

0

0

23

A56 Liverpool Road

62

0

0

0

0

62

A56 Chester Road

40

0

0  ...  view the full minutes text for item 113.