To consider the submitted report on the Capital Investment Plan and any recommendations from the Overview and Scrutiny Board.

Members noted the submitted report which provided information on capital expenditure and income from the year, compared with the latest budget position as at quarter three reported in February 2015.  The Overview and Scrutiny Board considered the submitted report at its meetings on 18 and 24 February 2015 and put forward a number of recommendations.

It was proposed by Councillor Darling and seconded by Councillor Parrott:

The Overview and Scrutiny Board is concerned that it is recommended that the term of the Prudential Borrowing associated with Meadfoot Beach Chalets be extended from 25 to 35 years.  It is also concerned about the lack of detail which was available to it with regard to the business case for the reinstatement and enhancement of the beach chalets at Oddicombe Beach.

The Council re-confirms its position that any Prudential Borrowing must be agreed by the Council and be backed by a clear Business Case and that, at this time, the Council has not seen a full Business Care for Oddicombe beach huts.

An amendment was proposed by Councillor Thomas (D) and seconded by Councillor Tyerman:

(i)       that, in light of the issues raised at the Overview and Scrutiny Board meetings on 18 and 24 February regarding the governance of the decision making in connection with Oddicombe and Meadfoot beaches, the Executive Director of Operations and Finance be requested to complete a thorough investigation into this matter and report back to the Council at the earliest opportunity.

On being put to the vote the amendment was declared carried.

The substantive motion (the original motion with the addition of (i) above) was then before Members for consideration.

On being put to the vote, the substantive motion was declared carried.

The Council then considered the submitted officer report.  It was proposed by the Mayor and seconded by Councillor Mills:

(i)     that the latest position for the Council’s Capital expenditure and funding for 2014/15 be noted;

(ii)    that prudential borrowing of £0.134 million for works to reinstate and enhance Beach Chalets at Oddicombe Beach to be funded from future rental income and the resort services budget be approved;

(iii)    that additional prudential borrowing of £0.6 million for works on the Meadfoot Beach Chalets replacements to be funded from future rental income and the resort services budget be approved;

(iv)   that a loan for a capital purpose to the Torbay Development Agency (TDA) for £1.4 million to enable the TDA’s acquisition and related works on sites at Kings Ash House be approved;

(v)    that prudential borrowing of £2.0 million and £0.350m from New Growth Points Grant towards the £6.5m Electronics and Photonics Innovation Centre at White Rock to be funded from future rental income be approved;

(vi)   that Department of Transport Structural Maintenance and Integrated Transport grant allocations announced for future years (2015/16 to 2020/21) be earmarked for Highways;

(vii)   that £0.254m from New Growth Points Grant be allocated for the replacement of decking and joists on Princess Pier;

(viii)  that £0.100m from New Growth Points Grant be allocated for remedial works to the Cliff face at Oddicombe and Goodrington beaches; and

(ix)   that a loan of £50,000 to Torbay Coast and Countryside Trust to support the Green Heart appeal be approved.

An amendment was proposed by Councillor Pountney and seconded by Councillor Darling:

(iii)      that the Executive Director of Operations and Finance be given delegated authority, in consultation with the Group Leaders and following receipt of a satisfactory full business plan to approve prudential borrowing of up to £193,000 for works to reinstate and enhance Beach Chalets at Oddicombe Beach.  The Council believes that the Insurance Claim receipts should be treated as compensation for the loss of income of the former beach huts and must therefore be used to partially offset such losses.  The business case, therefore, must show a satisfactory return to Torbay taxpayers based on the full investment cost of the project.

On being put to the vote the amendment was declared carried.

The substantive motion (the original motion with replacement of (iii) above) was then before Members for consideration.

A further amendment was proposed by Councillor Pountney and seconded by Councillor Darling:

(iv)     that the Executive Director of Operations and Finance, in consultation with Group Leaders, be given delegated authority to determine a satisfactory funding solution for the additional borrowing requirement of £0.6 million for works on the Meadfoot Beach Chalets.  The Council does not accept that an extension of the prudential payback period to 35 years is prudent or that the Resort Service revenue budget should show a deficit and requests that the Director of Operations and Finance determines that any resulting funding shortfall should be met from savings from other capital projects or from any unallocated budgets or from receipts from future assets sales or any other method he feels is financially viable.

On being put to the vote the amendment was declared carried.

The substantive motion (the original motion with replacement of (iii) and (iv) above) was then before Members for consideration.

On being put to the vote, the substantive motion was declared carried.

(Note:  Prior to consideration of the item in Minute 168, Councillors Hill and Tyerman declared their non-pecuniary interests.)