Agenda item

(Cabinet Member with Special Responsibility Councillor Hanson)

Report of Chief Officer (Regeneration & Planning)

 (Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Chief Officer (Regeneration & Planning) which provided context and information for the endorsement of proposals for a Morecambe BID ballot in May 2016 as required by statute.  The report updated Members on potential pre and post ballot issues and resource implications in relation to the City Council’s role in the potential Morecambe BID.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

On submission of a Final Proposal the local authority is obliged to endorse a BID proposal and approve a ballot if it meets the regulatory and policy tests mentioned in paragraph 2.3 of the report.  The draft proposals provide a good indication of whether it is likely the Council will need to use its veto powers. The draft proposals do not conflict materially with published council polices and a successful BID should support the council’s corporate objectives.  The work of Morecambe BID in canvassing opinion and consultation among local business shows a good level of support for the way the BID proposals have been shaped.

The amount of prior discussion between the BID proposer and the local authority before submitting the BID draft proposals to the authority has been sufficient and it is expected consultation will continue up to the submission of final proposals.  The costs incurred and due in developing BID proposals, canvassing and balloting have been covered through the Council’s approved feasibility funding award to the Lancaster Chamber.  The decision for Morecambe BID to incorporate and take on formal accountable body status is a common route undertaken at the start of the majority of national BIDs. Incorporation should allow Morecambe BID to achieve significant admin savings, better value for money and greater local control.

There are no advantages in holding over on endorsement pending Final Proposals (Option 1). While officers are aware that BID budget changes may be introduced in the Final Proposal as a result of ongoing levy payer cap negotiations this will not have any material impact on the council’s view on policy fit or the ability to introduce a programme of initiatives (Option 3). 

The preferred Option is therefore Option 2, to endorse the draft Proposals.  It follows that an appropriate level of delegated authority is required to ensure outstanding matters are addressed and final proposals can be approved to move forward to ballot.  As these issues are mainly technical and operational it is recommended this be undertaken through a report and decision by the Chief Executive.

The Council’s administrative costs can be recovered through the BID levy and estimates are currently based on 40% of one full time equivalent post at the lowest grade plus accommodation and technical support recharges, drawing on officers’ existing basis for charging.  Using this, the charge would be similar to the fee charged to Lancaster BID as the number of hereditaments involved is not materially different and from an officer perspective this is appropriate, commensurate with the task and clear to those who will vote.

Implementation of BIDs is usually underpinned by formal legal agreements between the billing authority and BID delivery body.  An Operating Agreement (OA), the formal contract between the BID body and the local authority, will be entered into setting out the various procedures for the collection, payment, monitoring and enforcement of the BID levy.  The current OA between the Council and the existing Lancaster BID  is regarded as having provided a sound basis for that operational relationship and will be redrafted to reflect a relationship with the proposed stand-alone Morecambe BID incorporated entity.

A feature of the OA is the 'baseline' - a statement/measure of the existing services provided by the city council to the BID area.  Production of a baseline and its formal incorporation under the OA (as a “Baseline Agreement”) is useful to assist potential levy payers identify added value of services proposed.  For example, if the council is involved in delivering services solely for the improvement or benefit of the BID area (funded using the BID levy or other contributions to the BID body) it provides a benchmark to ensure true additionality for BID resources.  These operational matters will be agreed in principle prior to a ballot (mainly for clarity and as an additional ‘selling point’ over the BID ballot period) - the agreements being formally signed off post-ballot.

Members should note the City Council will be liable for the levy on rateable property it occupies/holds in the BID area should a ballot be successful.   As a potential levy payer the council is eligible to vote in a ballot.  There are no statutory rules on how individual local authorities treat this part of the process.  Members have previously escalated BID voting decisions to Full Council (who will consider a report prior to the voting period) and officers expect this arrangement will continue.

The draft Proposal for Morecambe BID complies with statutory regulations.  Members are asked to endorse the proposals to enable the Final Proposal and approval process to be undertaken by the Chief Executive.  Progression to a ballot with the aim of enacting a BID will follow in May 2016.  The report has also updated Members on potential pre- and post- ballot issues and resource implications in relation to the role of the City Council in the BID should a ballot be successful.

Councillor Newman-Thomson proposed, seconded by Councillor Clifford:-

“That the recommendations as set out in the report, be approved, with Option 2 being the preferred option but with regard to administration, the amount to be charged should be based on the same percentage of levy as applies to Lancaster.”

Councillors then voted:-

Resolved:

(7 Members (Councillors Blamire, Bryning, Clifford, Leytham, Newman-Thompson, Pattison and Smith) voted in favour.  Councillor Hanson, having previously declared an interest in this item, did not vote.)

(1)             That the draft Renewal Proposals for Morecambe Business Improvement District (BID) be agreed as being in compliance with statutory requirements.

(2)             That the Morecambe BID Final Proposals be approved and the issue of an instruction to proceed to ballot being delegated to the Chief Executive (Option 2 to the report) with the administrative charges being based on the same  percentage of levy as applies to Lancaster.

(3)             That an Operating Agreement and Baseline Agreement be drafted to reflect the formal relationship between the BID Body and Council as Billing Authority and the current council service provision respectively, with approval and post-ballot sign-off of the final documents delegated to the Chief Executive.

(4)             That, subject to a successful BID outcome, the General Fund Revenue Budget be updated accordingly from 2016/17 onwards.

Officers responsible for effecting the decision:

Chief Executive

Chief Officer (Regeneration & Planning)

Chief Officer (Resources)

Reasons for making the decision:

The decision is consistent with the following City Council’s Corporate Priorities:  Supporting Sustainable Economic Growth, Clean Green & Safe Places and Community Leadership outcomes, success, measures and actions.  Support for a BID in Morecambe is a priority action in the Lancaster Cultural Heritage Strategy.