Milton Keynes Council Agenda July 2013

Democratic Services
SUMMONS TO THE MEETING of the MILTON KEYNES COUNCIL
WEDNESDAY 10 JULY 2013 7.30 PM
COUNCIL CHAMBER, CIVIC OFFICES CENTRAL MILTON KEYNES
David Hill Chief Executive
For more information about the meeting please contact Simon Heap on (01908) 252567 or by e-mail simon.heap@milton-keynes.gov.uk
Democratic Services Civic Offices, 1 Saxon Gate East, Central Milton Keynes, MK9 3EJ Tel: (01908) 691691 Fax: (01908) 252456 Hays DX 31406 Milton Keynes
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Health and Safety Please take a few moments to familiarise yourself with the nearest available fire exit, indicated by the fire evacuation signs. In the event of an alarm sounding during the meeting you must evacuate the building immediately and follow all instructions provided by the fire evacuation officer who will identify him/herself should the alarm sound. You will be assisted to the nearest designated assembly point until it is safe to return to the building. Mobile Phones Please ensure that your mobile phone is switched to silent or is switched off completely during the meeting. Agenda Agendas and reports for the majority of the Councils public meetings can be accessed via the Internet at: http://cmis.milton-keynes.gov.uk/cmiswebpublic/ Wi Fi access is available in the Councils meeting rooms. Recording of Meetings The proceedings at this meeting may be recorded for the purpose of preparing the minutes of the meeting. Comments, Complaints and Compliments Milton Keynes Council welcomes comments, complaints and compliments from members of the public in order to make its services as efficient and effective as possible. We would appreciate any suggestions regarding the usefulness of the paperwork for this meeting, or the conduct of the meeting you have attended. Please use the slip below by detaching it and passing it to the Committee Manager. Alternatively the slip can be returned by post to Democratic Services, Milton Keynes Council, Civic Offices, 1 Saxon Gate East, Milton Keynes, MK9 3EJ, or you can email your comments to meetings@milton-keynes.gov.uk If you require a response please leave contact details, ideally including an e-mail address. A formal complaints / compliments form is available online at http://www.miltonkeynes.gov.uk/complaints/ or is obtainable at the meeting from the Committee Manager. ---------------------------------------------------------------------------------------------------------------Meeting Attended: Council Date of Meeting: 10 July 2013 Comments:. . . . . . . Contact details:..
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AGENDA Item No: 1. Procedure (a) (b) Apologies Minutes To approve, and the Mayor to sign as a correct record, the Minutes of the meeting of the Council held on 12 June 2013 (Item 1) (Pages 9 to 30). (c) Disclosure of Interests Members to declare any disclosable pecuniary interests, or personal interests (including other pecuniary interests), they may have in the business to be transacted, and officers to disclose any interests they may have in any contract to be considered. (d) Announcements To receive announcements, if any. 2. Public Involvement (a) Deputations and Petitions No deputations have been submitted for consideration at this meeting. Any petitions received will be reported at the meeting. (b) Questions from Members of the Public To receive questions and provide answers to questions from members of the public. 3. Business Remaining from Last Meeting None. 4. Returning Officers Report Bletchley and Fenny Stratford Ward ByeElection The Council is asked to note that at the Bye-Election held on 20 June 2013 Mohammed Khan was elected as a Councillor for the Bletchley and Fenny Stratford Ward. Accountable Officer: David Hill (Returning Officer) - MK252665
Background Papers: None 5. Local Government and Housing Act 1989 and Local Government (Committees and Political Groups) Regulations 1990 The Council is required by the above Regulations to review the basis of allocation of seats amongst the Political Groups either at its Annual Meeting, or as soon as practicable thereafter, following a by-election, or following a change in its Membership. In making its review, the Council is required, so far as reasonably practicable, to comply with the following principles:
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(a) (b) (c)
Not all seats on each Committee are to be allocated to the same Group. The majority of seats is to be allocated to a particular Group if the number of persons belonging to that Group is a majority on the Authority. Subject to the above paragraphs, the number of seats on the Committees allocated to each Group should bear the same proportion to the total of all the seats on the Committees as that borne by the number of Members of that Group to the Membership of the Council. Subject to paragraphs (a) to (d) above, that the number of the seats on the body which are allocated to different political groups bears the same proportion to the number of all the seats on that body as is borne by the number of members of that group to the membership of the Council.
(d)
Following the Bletchley and Fenny Stratford Ward Bye-Election the Conservative Group holds 37.26% of the seats on the Council, the Labour Group 31.37% of the seats, the Liberal Democrat Group 29.41% of the seats. The remaining seat, equating to 1.96% of the seats on the Council, is occupied by an Independent Member. Of the current 156 seats available on the Council the Conservative Group hold 59 seats, the Labour Group hold 46 seats , Liberal Democrat Group hold 45 seats and the Independent Member holds 2 seats and 4 seats are vacant. On applying the overall percentages the Conservative Group has 0.89 of a seat in excess of its quota, the Labour Group has a deficit of 2.94 seats, the Liberal Democrat Group a deficit of 0.86 of a seat. Of the unallocated seats the Independent Member currently occupies 2 seats, leaving 1 seat unallocated. It is therefore recommended that three vacant seats are allocated to the Labour Group, leaving one seat vacant. Accountable Officer: Geoff Snelson (Director of Strategy) - MK252665
Background Papers: None 6. Reports from Cabinet and Committees (a) Cabinet 19 June 2013 Adoption of the Core Strategy (Minute C10) RECCOMMENDED That the Core Strategy, as amended by the Inspectors report in line with Regulation 26 of the Town and County Planning (Local Planning) Regulations 2012, be adopted. The Council, in considering the recommendation from Cabinet, is also asked to note that there remains the possibility of legal challenge after the Council adopts the Core Strategy therefore financial contingency provision will need to be put in place should this occur.
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A copy of the report considered by the Cabinet is attached at Item 6(a) (Pages 31 to 55). (b) Constitution Commission 8 July 2013 (i) Contract Procedure Rules RECCOMMENDED That the revised Contract Procedure Rules be adopted for inclusion in the Constitution. A copy of the revised Contract Procedure Rules considered by the Cabinet Procurement Committee and the Constitution Commission is attached at Item 6(b) (Pages 56 to 78). (ii) Financial Regulations and Financial Procedure Rules RECCOMMENDED That the revised Financial Regulations and Financial Procedure Rules be adopted for inclusion in the Constitution. A copy of the revised Financial Regulations (Item 6[c][i] [Pages 79 to 96]) and Financial Procedure Rules (Item 6[c][ii] [Pages 97 to 143]) considered by the Audit Committee and the Constitution Commission are attached. 7. Members Matters (a) Members Questions Members to ask questions of the Leader, a Cabinet Member, the Chair of any Committee, or the Leader of a Political Group on the Council. (b) Notices of Motions: (i) Putting Patients First Councillor Eastman 18 June 2013 "1. That this Council agrees that the NHS is an essential front line service for the health and wellbeing for all the citizens of Milton Keynes. 2. That this Council further agrees that any essential improvements to the NHS must not cause delays to treatment and must provide essential and appropriate treatment and care at the point of need. That this Council also agrees that the current strategy and policy of NHS England with reference to Clinical Commissioning Groups does not operate in the best interest of the patient.
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That the Council calls on NHS England to review its policy and strategy to ensure that the working procedures put the patient first and does not make any decision about the patient without the patient thus ensuring full openness and transparency. That to this end the Council calls on NHS England to: (a) ensure every patient, for whom a funding application is submitted to the Clinical Commissioning Group, is fully aware of the commissioning policy and the standard operating procedure that applies; provide a single point of contact for patients when an application for funding has been submitted to the Clinical Commissioning Group to enable the patient to be fully aware of the progress of their application through the Clinical Commissioning Group, and additionally, to inform the patient of the date of the panel that will hear the funding request.; make provision for the patient and/or their representative to attend the panel that makes the decision on the funding application for their treatment ensuring full openness and transparency on the decision, so that the patient and/or their representative will be able to observe that the correct procedure is followed and the patient will be aware of the reasons for the decision made; to ask questions direct to the Clinical Commissioning Group to clarify and expand the reasons for any refusal of funding as stated in the letter of refusal.; and to change the review procedure to enable the patient and/or their representative to attend the review panel hearing, if held, as an observer to ensure full openness and transparency.
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(b)
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That this Council calls on the Chief Executive to write to NHS England with the details of this motion.
Improving Highway Repairs in Milton Keynes Councillor Legg 26 June 2013 "1. That this Council notes the poor state of the highways in Milton Keynes throughout the borough, especially in the older areas, and that the large number of pot holes are dangerous for highway users. 2. That the Council also notes that the current Administration has reiterated promises to improve the condition of roads and Redways, but there is a growing public concern at the lack of effective action.
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That this Council is further concerned that there appears to be no comprehensive record of all the potholes requiring action and the additional funds allocated in the 2011/12 and 2012/13 budgets do not appear to have been well spent. That this Council also notes that the current Administration has publicly stated it will be re-tendering to consolidate all existing highways contracts into a single supplier, on a ten year contract for an estimated value of 200m. That the Council agrees: (i) to request the Assistant Director (Public Realm Services) to compile a report to establish the exact scale of repairs needed on roads and Redways and issue it to all councillors; to request the Cabinet to undertake a comprehensive value for money audit on all road repair spending since 2011 to establish if funds have been spent effectively; to request the Overview and Scrutiny Management Committee to ensure: (a) that the tendering of the new highways contract is subject to proper scrutiny and that all claims made on improving service and value for money be properly evidenced; and that the scrutiny process includes an investigation as to whether announcing the length and value of the contract in advance of tendering was the best way to enter negotiations and achieve value for money;
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(ii)
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to request the Cabinet to ensure that the new Highways contract includes a commitment to repair a pothole within 14 days of it being reported; that Cabinet be requested to consider the need to bring forward funds from the 2014/15 budget to tackle the public concern on the condition of the boroughs highways.
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8.
Membership of Committees As a result of Item 5 above, the Council is asked to consider appointing a member of the Labour Group to two of the vacant seats which remain on the Councils committees. The vacancies are on the Appeals Commission, the Housing and Communities Select Committee and the Regulatory Committee.
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Any Member appointed to the Regulatory Committee, will also become a a member of the Licensing Committee. Accountable Officer: Geoff Snelson (Director of Strategy) - MK252665
Background Papers: None 9. Ward Based Budgets All Councillors have a budget of 1,000 to spend on Ward based issues, giving them the ability to make contributions to projects carried out in their local communities by local organisations. For the period 1 April 2013 to 30 June 2013, applications totalling 1054.50 have been approved. Details of the applications are attached at Item 9 (Page 144). Contact Officer: June Allen (Corporate Leadership Team Support Manager) MK254844 Background Papers: Applications
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ITEM
Minutes of the MILTON KEYNES COUNCIL held on WEDNESDAY 12 JUNE 2013 at 7.30 pm Present: Councillor White (Mayor) Councillors Alexander, Bald, Barney, Bint, Brackenbury, Bradburn, Bramall, Brock, Brunning, M Burke, S Burke, Coventry, Dransfield, Eastman, Edwards, Exon, Ferrans, A Geary, P Geary Hawthorn, Hopkins, Hoyle, Jury, Kennedy, Legg, Long, Marland, D McCall, I McCall, McDonald, McKenzie, McLean, Middleton, Miles, Morris, ONeill, Richards, Shafiq, Small, Wales, Wallis, Webb, Wharton, C Williams, P Williams and Zealley Councillors Klein, Maric and Tallack and Alderpersons Bristow, Ellis, E Henderson, I Henderson, Howell and Lloyd
Apologies:
Also Present: 22 members of the public CL17 MINUTES RESOLVED That the Minutes of the meetings of the Council held on 15 May 2013 and 22 May 2013 be approved and signed by the Mayor as correct records, subject to the names of the mover and seconder of the motion at Minute CL07 of the Minutes of the meeting held on 22 May 2013 being amended to the Mayor as the mover and Councillor Marland as the seconder. CL18 DISCLOSURES OF INTEREST The Chief Executive declared an interest in Item 7 (Returning Officers Fees) as the Councils Returning Officer. CL19 QUESTIONS FROM A MEMBER OF THE PUBLIC Mr P Jones asked Councillor Brock, the Cabinet Member responsible for Adult Social Care, Health and Wellbeing, if the Council, or the NHS could compulsorily purchase the closed Willen Surgery premises and open it once more and transfer the former patients back. Councillor Brock indicated that she understood the concerns of the former patients, but the Council was neither legally nor contractually involved with the closure of the surgery. However, Councillor Brock undertook to supply a copy of the NHS England response to the Willen Surgery issue to Mr Jones for information and pass on his concerns to NHS England.
MILTON KEYNES COUNCIL 12 JUNE 2013 PAGE 1
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L:\Committee\2013-14\COUNCIL\04. 10 JULY 2013\04. ITEM01_DRAFT MINUTES - 12-06-13.doc
CL20
ASSESSMENT OF COMPLAINTS - LOCALISM ACT SECTION 28 ARRANGEMENTS AND WORKING GROUP Councillor Miles moved the following recommendation from the Constitution Commission held on 24 April 2013, which was seconded by Councillor Ferrans: 1. That the Nolan Principles contained within the Guidance to the Code of Conduct be updated to reflect the 14th report of the Committee for Standards in Public Life. That the Guidance to the Code of Conduct be removed from the Constitution, to aid its expeditious updating. That the Standards Committees Terms of Reference be amended to provide for the delegation of the initial determination of a complaint to the Monitoring Officer, in consultation with an Independent Person.
2. 3.
On being put to the vote the recommendation was declared carried unanimously. RESOLVED 1. That the Nolan Principles contained within the Guidance to the Code of Conduct be updated to reflect the 14th report of the Committee for Standards in Public Life. That the Guidance to the Code of Conduct be removed from the Constitution, to aid its expeditious updating. That the Standards Committees Terms of Reference be amended to provide for the delegation of the initial determination of a complaint to the Monitoring Officer, in consultation with an Independent Person.
2. 3.
CL21
ACQUISITION AND DISPOSAL OF LAND AND BUILDINGS PROCEDURE RULES Councillor Miles moved the following recommendation from the Constitution Commission held on 24 April 2013, which was seconded by Councillor Ferrans: That the revised Acquisition and Disposal of Land and Buildings Procedure Rules be recommended to the Council for approval and inclusion in the Constitution. On being put to the vote the recommendation was declared carried unanimously. RESOLVED That the revised Acquisition and Disposal of Land and Buildings Procedure Rules be recommended to the Council for approval and inclusion in the Constitution.
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MEMBERS QUESTIONS (a) Question from Councillor Bradburn to Councillor Dransfield (Cabinet member responsible for Childrens Services and Lifelong Learning) Councillor Bradburn asked Councillor Dransfield to discuss whether he thought Michael Gove, the Secretary of State for Education was an educational visionary, or a meddling classroom maniac. Councillor Dransfield indicated that he thought that it should be discussed. Councillor Bradburn asked a supplementary question which was answered by Councillor Dransfield. (b) Question from Councillor Bramall to Councillor Marland (Leader of the Labour Group) Councillor Bramall asked Councillor Marland if he supported comments from some members of the Labour Group that businesses in Milton Keynes should make greater contributions to the Council, even though the Labour Party was saying that the Country was in economic recession. Councillor Marland asked for details of when the alleged statements had been made, but indicated that the Labour Group did not have a policy which insisted that business make a contribution to the Council. Councillor Bramall asked a supplementary question which was answered by Councillor Marland. (c) Question from Councillor Long to Councillor Brock (Cabinet member responsible for Adult Social Care, Health and Wellbeing) Councillor Long, referring to press reports that nationally the Citizens Advice Bureau had seen a 40% increase in the number of persons seeking advice on welfare issues asked Councillor Brock to detail what dialogue she was having with the Citizens Advice Bureau locally and what actions is she taking to ensure that it has the capacity to be able to provide good quality advice. Councillor Brock indicated that the Citizens Advice Bureau was an important advice service in Milton Keynes providing advice and information services on behalf of the Council. The Council was also doing extensive work to support persons affected and a cross departmental working group had been established to oversee the Councils approach. Councillor Long asked a supplementary question which was answered by Councillor Brock.
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Question from Councillor D McCall to Councillor A Geary (Leader of the Council) Councillor D McCall asked Councillor A Geary if his Administration was trying to cancel Christmas and many other community events in Milton Keynes by insisting that volunteers who organise such community events, which were dependent on road closures, attended a 5 day course on road closures. Councillor A Geary indicated that his Administration had made no changes to the procedures which existed previously. Councillor D McCall asked a supplementary question which was answered by Councillor A Geary.
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Question from Councillor Wharton to Councillor Marland (Leader of the Labour Group) Councillor Wharton asked Councillor Marland if, bearing in mind Councillor Edwards objections to the Milton Keynes Service Partnership, whether, if the Labour Group formed an administration, it would close the Partnership. Councillor Marland indicated that there was no appetite within the Labour Group to close the Partnership, but if the Group was to form an administration it would review all of the Councils contractual relationships to ensure the Council was providing the best services in the best way. Councillor Wharton asked a supplementary question which was answered by Councillor Marland.
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Question from Councillor Barney to Councillor A Geary (Leader of the Council) Councillor Barney asked Councillor A Geary if the Council was being proactive on child sexual exploitation protection measures in place in Milton Keynes. Councillor A Geary requested Councillor Dransfield, the responsible Cabinet member to respond on his behalf. Councillor Dransfield indicated that he was satisfied that adequate measures were in place to protect children. Councillor Dransfield suggested that Councillor Barney should request a briefing on measures in place in Milton Keynes to reassure himself. Councillor Barney asked a supplementary question which was answered by Councillor A Geary.
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Question from Councillor Ferrans to Councillor A Geary (Leader of the Council) Councillor Ferrans asked Councillor A Geary for an explanation why various schemes requested as a result of Members using their Ward Budgets had not been progressed by Transport Officers, and also whether there was a process for monitoring the progress of such matters. Councillor A Geary indicated that he would follow-up the issues raised and respond to Councillor Ferrans.
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Question from Councillor Hoyle to Councillor Marland (Leader of the Labour Group) Councillor Hoyle asked Councillor Marland if it was Labour Group policy to support community asset transfer. Councillor Marland indicated that that he believed that it was necessary to consider the merits of each individual transfer. Councillor Hoyle asked a supplementary question which was answered by Councillor Marland.
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Question from Councillor Marland to Councillor Bald (Cabinet member responsible for Finance, Housing and Regeneration) Councillor Marland asked Councillor Bald if she could update the Council on progress on the transfer of the Laurels Site at New Bradwell to a housing co-operative. Councillor Bald indicated that the intention, as far as she understood it was still to transfer the property to the housing co-operative, but she would check the current position and respond to Councillor Marland. Councillor Marland asked a supplementary question which was answered by Councillor Bald.
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Question from Councillor Jury to Councillor Marland (Leader of the Labour Group) Councillor Jury asked Councillor Marland if he agreed with the Leader of the Labour Party that benefits should be capped, including housing benefits for some people. Councillor Marland indicated that the Labour Leader only advocated a cap on the spending on benefits within a three year period to allow a spending review and the opportunity for local authorities to negotiate with private landlords on rent levels charged by private landlords in the social housing sector. Councillor Jury asked a supplementary question which was answered by Councillor Marland.
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Question from Councillor Middleton to Councillor A Geary (Leader of the Council) Councillor Middleton asked Councillor A Geary if he supported the actions being taken by the community in Wolverton to campaign to keep the branch of Nationwide Building Society open and, if he did, would he support the online petition. Councillor A Geary indicated that he supported the campaign and would sign the petition. Councillor Middleton asked a supplementary question which was answered by Councillor A Geary.
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Question from Councillor Richards to Councillor A Geary (Leader of the Council) Councillor Richards asked Councillor A Geary if he shared his concern and surprise at the implication from an earlier question that the Labour Group locally and the Labour Party nationally actually had policies to offer the people of Milton Keynes and the country. Councillor A Geary indicated that he did. Councillor Richards asked a supplementary question which was answered by Councillor A Geary.
(m)
Question from Councillor Miles to Councillor Dransfield (Cabinet member responsible for Childrens Services and Lifelong Learning) Councillor Miles, referring to statements from Michael Gove, the Secretary of State for Education, asked Councillor Dransfield what his philosophy was with regard to the number and value of teaching assistants in Milton Keynes schools. Councillor Dransfield indicated that he believed that it was up to each governing body to determine how to spend its budget and choose how it used teaching assistants, particularly in seeking to improve standards. Councillor Miles asked a supplementary question which was answered by Councillor Dransfield.
(n)
Question from Councillor M Burke to Councillor Bald (Cabinet member responsible for Finance, Housing and Regeneration) Councillor M Burke, referring to a previous question on the subject, asked Councillor Bald when action would be taken to address problems with bin cupboards at certain properties at Bradwell. Councillor Bald indicated that she would investigate the current position and respond to Councillor M Burke.
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Councillor Burke asked a supplementary question which was answered by Councillor Bald. (o) Question from Councillor D McCall to Councillor Bint (Cabinet member responsible for Transport and Highways) Councillor D McCall asked Councillor Bint how many of the identified 110 missing road signs were replaced by 31 March 2013. Councillor Bint apologised that Councillor D McCall had not received a response to his previous questions and indicated that he had preciously requested that a programme for replacement should be prepared and publicised to Members. Councillor Bint undertook to follow up the action required. Councillor D McCall asked a supplementary question which was answered by Councillor Bint. (p) Question from Councillor A Geary to Councillor Marland (Leader of the Labour Group) Councillor A Geary, referring to Councillor Marlands earlier answer regarding Milton Keynes Service Partnership, asked Councillor Marland if he was aware that the Administration was constantly reviewing the services provided by the Partnership and asked if the Labour Group would work with the Administration for the security of jobs and its wellbeing of the running of the Partnership. Councillor Marland indicated that his Group would work with the Administration where appropriate, but he believed that there were improvements to be made in the running of a number of the Councils contracts. Councillor A Geary asked a supplementary question which was answered by Councillor Marland. CL23 MK CHARTER ON LANDMINES, CLUSTER MUNITIONS AND IMPROVISED EXPLOSIVE DEVICES Councillor A Geary moved the following motion, which was seconded by Councillor Marland: 1. That the Council, on behalf of its residents, recognises the human tragedy in terms of loss of lives and injury, particularly to children, that the legacy of landmines and clusters munitions is continuing to cause on a daily basis. That the Council welcomes the international treaties that have been signed and calls upon those countries that have not signed, or ratified the international treaties yet to do so. The Council also asks those Governments that have signed to restate to the UN their resolve to support the aims of the treaties and the need to clear already affected areas.
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That the Council salutes the courage of those people both civilian and military who are engaged in demining and who daily risk their own lives. That the Council believes that the demining of an area allows towns and villages to develop economically and thereby is a catalyst which helps ensure that development aid can transform lives and will give future trading opportunities between those areas cleared and ourselves. That the Council, in welcoming progress made in recent years, believes that there is an urgent need to raise awareness of the ongoing problem and to speed up demining and therefore commits our city to raising awareness of this issue, especially through our schools.
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On being put to the vote the motion was declared carried unanimously. RESOLVED 1. That the Council, on behalf of its residents, recognises the human tragedy in terms of loss of lives and injury, particularly to children, that the legacy of landmines and clusters munitions is continuing to cause on a daily basis. That the Council welcomes the international treaties that have been signed and calls upon those countries that have not signed, or ratified the international treaties yet to do so. The Council also asks those Governments that have signed to restate to the UN their resolve to support the aims of the treaties and the need to clear already affected areas. That the Council salutes the courage of those people both civilian and military who are engaged in demining and who daily risk their own lives. That the Council believes that the demining of an area allows towns and villages to develop economically and thereby is a catalyst which helps ensure that development aid can transform lives and will give future trading opportunities between those areas cleared and ourselves. That the Council, in welcoming progress made in recent years, believes that there is an urgent need to raise awareness of the ongoing problem and to speed up demining and therefore commits our city to raising awareness of this issue, especially through our schools.
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CL24
HOMELESSNESS, HOUSING AND NEW BUILD Councillor Coventry moved the following motion, which was seconded by Councillor M Burke: 1. That this Council notes the recent BBC investigation which revealed that last year the Council spent 1.4million on placing homeless families into temporary accommodation and that this is the worst local authority performance in England outside of London. That this Council also notes that many of these temporary placements were in accommodation outside of Milton Keynes and that this may have a detrimental impact on families who are separated, and on childrens education. That this Council further notes that this situation is as a result of not having enough social housing places available in the City, that Milton Keynes is one of few authorities to house more qualifying tenants in the private rented sector than the social housing sector, and that as a result of the Bedroom Tax and other changes to benefits, demand for Council and social housing is likely to rise in the future. That this Council therefore resolves: (a) to request the Cabinet to take immediate action on the recommendations made by the Homelessness Review Group when the Group reports to them in the near future; to request the Cabinet to adopt a policy which ensures people adversely affected by the changes to benefits will not lose their homes and add to the burden on current waiting lists for property; to request the Cabinet to seek to find ways to use Milton Keynes Development Partnership assets to implement new Council and Council-led social and affordable housing project that balances traditional models with innovative models such as Community Land Trusts; to request the Chief Executive to write to the Secretary of State for Communities and Local Government to request removal of the Housing Revenue Account borrowing cap for local authorities, like Milton Keynes, who wish to build new properties by using any surplus not taken up by other authorities, and thus not adding to public borrowing overall; and
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(e)
to welcome the steps taken by the Administration to recommence building of new Council properties, but notes that it is a small number of properties, designated for a specific need rather than for general housing stock; that funding for this scheme was reallocated from funds granted for another project; and that this approach is not a sustainable model for the new build requirements of the City.
Councillor Bald moved the following amendment, which was seconded by Councillor A Geary: 1 That in Clause 1 the word revealed be replaced by the word reported, the word temporary be replaced by the words bed and breakfast and the following additional words be added at the end of the Clause However, this Council also notes that numbers of households in temporary accommodation, including bed and breakfast, are average for unitary authorities.. That in Clause 2 the words many of these temporary be replaced by the words around 60% of bed and breakfast, the words (18% of whom are in Deanshanger and Old Stratford) be added after the word placements and the following additional words be added at the end of the Clause This Council also notes that the Administration is committed to reducing bed and breakfast usage significantly and out of area placements in particular and that since January 2013 the number in bed and breakfast has reduced from over 100 to 84 at 3 June 2013; furthermore virtually all non bed and breakfast temporary placements are within Milton Keynes.. That in Clause 3 the word house be replaced by the word have, the word qualifying be deleted, the words reflecting the fact that the housing market is diversifying and that Milton Keynes approach to meeting housing needs is flexing to meet those challenges; be added after the words social housing sector, the words Bedroom Tax be replaced by the words new social housing size criteria rules, the words is likely to be replaced by the word may and the following additional words be added at the end of the Clause and Milton Keynes policy on housing must be able to respond appropriately. That in Clause 4(a) the word immediate be replaced with appropriate and timely and following additional words be added at the end of the Clause , after many months of hard work.
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That in Clause 4(b) the words adopt a be replaced by the words apply its and all the words in the Clause after the word policy be replaced with the words on rent payment and follow up sympathetically taking into account any temporary issues caused by changes to welfare payments, calling on the Discretionary Housing Fund if appropriate. That in Clause 4(c) the words Council land be added after the word use. That in Clause 4(d) the words Leader and be added before the words Chief Executive and the words yet again, in addition to requests made in the City deal bid, be added after the words Chief Executive to. That in Clause 4(e) the word some be added before the words funding for this scheme, the word and after the word project be deleted and the words that an additional 1m per year has been allocated in each of the last 2 years budgets for the purpose of building new Council homes, but with the current constraints around the HRA and general fund in terms of borrowing, notes be added and the words not a sustainable model for the new build requirements of the City be replaced by the words still insufficient to fulfil the aspirations and requirements of the city in coming years.
6. 7.
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On being put to the vote the amendment was declared lost, with 19 Members voting in favour, 28 Members voting against and 0 Members abstaining from voting. Councillor Hawthorne moved the following amendment, which was seconded by Councillor Hoyle: 1 That in Clause 1 the word revealed be replaced by the word reported, the word temporary be replaced by the words bed and breakfast and the following additional words be added at the end of the Clause However, this Council further notes that bed and breakfast is only part the picture and must be considered alongside temporary accommodation, where for example our nearest neighbour, Luton with a smaller population, has over 700 households in private sector temporary accommodation compared with our 170 (including bed and breakfast); and that temporary accommodation levels in Milton Keynes are on a par with all unitary authorities. Furthermore Council notes that until January this year the Council was not permitted to fulfil its homelessness duty through the private sector to ensure bed and breakfast levels were minimised; the Council is now able to do this after the previous Cabinet member for Housing guided through a policy change, which was opposed by both Labour and the Liberal Democrats and had this change happened sooner bed and breakfast solutions would have cost tax
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payers less and would have seen far fewer people struggle in bed and breakfast.. 2. That in Clause 2 the words many of these temporary be replaced by the words of the 84 households in bed and breakfast at 3 June 2013, although 46 are out of area, 19 of these are very close by in Deanshanger and Old Stratford; that for those placed, the words and that after the words Milton Keynes be deleted and the following additional words be added at the end of the Clause This Council notes that the Administration are committed to reducing bed and breakfast usage significantly and out of area placements in particular and that since January the number in bed and breakfast has reduced from 100 to 84 households at 3 June13. Council further notes that the previous policy adopted by Labour and Liberal Democrats to bar temporary private rented accommodation caused additional and unnecessary suffering to families. That in Clause 3 the words not having enough be replaced by the words the supply of, the words places available in the City after the words social housing be replaced with the words not keeping pace with population growth, largely due to the policy for affordable housing and rents adopted by the previous Administration being unworkable for Registered Housing Providers and house builders. The Labour Housing Spokesperson, supported by the Liberal Democrat Spokesperson, said at the Strategic Housing Forum I would prefer to see no houses built in Milton Keynes at all than one affordable rent property a statement which lead to funding for an additional 30 affordable properties going elsewhere and a Social Registered Landlord taking their interests away from Milton Keynes. The delays in agreeing affordable rents at Development Control Committee under Liberal Democrat and Labour chairmanships resulted in properties lying empty while people were placed in bed and breakfast outside Milton Keynes as this was the only solution available. The Council therefore welcomes the recently agreed new policy on affordable rents driven through by the current Administration, supported by Labour, which has started to release and increase new supply. The Council also notes, the words as a result of the Bedroom Tax be replaced by the words this should be seen as a flexible, proactive approach to meeting housing demand; that as a result of the social housing size criteria and the following additional words be added at the end of the Clause and therefore this flexible approach is to be applauded.
3.
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4.
That in Clause 4(a) the word immediate be replaced with appropriate and timely and following additional words be added at the end of the Clause The Council regrets that this report has taken so long to be presented to Cabinet, as Cabinet was prepared for it and ready to act in December 2012.. That in Clause 4(b) the words adopt a be replaced by the words apply its and all the words in the Clause after the word policy be replaced with the words on rent payment and follow up sympathetically taking into account any temporary issues caused by changes to welfare payments, calling on the Discretionary Housing Fund if appropriate. That in Clause 4(c) the words Council land be added after the word use. That in Clause 4(d) the words whilst noting that Council has already written to and met with government to request a relaxation of the Housing Revenue Account debt cap and further noting that the Governments response was to point out that to have agreed one of the lowest rent increases in the country in 2012 (pushed through by Labour and Liberal Democrats) indicated that the Council was not prepared to help itself to improve its capacity to invest in social housing; nevertheless the Council also resolves be added at the beginning of the Clause and the words yet again be added after the words Local Government. That in Clause 4(e) the word some be added before the words funding for this scheme and the words that this approach is not a sustainable model for the new build requirements of the City be replaced by the words further notes that 1m was allocated in the 2012/13 and 2013/14 Housing Revenue Account budgets for new Council housing, this being the first time that this has happened for over 15 years; that this Administration would have invested more were it not prevented from doing so by the Housing Revenue Account debt cap and the need to maintain and enhance the repairs and maintenance budgets.
5.
6. 7.
8.
On being put to the vote the amendment was declared lost, with 18 Members voting in favour, 28 Members voting against and 1 Member abstaining from voting. On being put to the vote the motion was declared carried with 29 Members voting in favour, 18 Members voting against and 0 Members abstaining from voting. The Council heard from 5 members of the public during its consideration of this motion.
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RESOLVED 1. That this Council notes the recent BBC investigation which revealed that last year the Council spent 1.4million on placing homeless families into temporary accommodation and that this is the worst local authority performance in England outside of London. That this Council also notes that many of these temporary placements were in accommodation outside of Milton Keynes and that this may have a detrimental impact on families who are separated, and on childrens education. That this Council further notes that this situation is as a result of not having enough social housing places available in the City, that Milton Keynes is one of few authorities to house more qualifying tenants in the private rented sector than the social housing sector, and that as a result of the Bedroom Tax and other changes to benefits, demand for Council and social housing is likely to rise in the future. That this Council therefore resolves: (a) to request the Cabinet to take immediate action on the recommendations made by the Homelessness Review Group when the Group reports to them in the near future; to request the Cabinet to adopt a policy which ensures people adversely affected by the changes to benefits will not lose their homes and add to the burden on current waiting lists for property; to request the Cabinet to seek to find ways to use Milton Keynes Development Partnership assets to implement new Council and Council-led social and affordable housing project that balances traditional models with innovative models such as Community Land Trusts; to request the Chief Executive to write to the Secretary of State for Communities and Local Government to request removal of the Housing Revenue Account borrowing cap for local authorities, like Milton Keynes, who wish to build new properties by using any surplus not taken up by other authorities, and thus not adding to public borrowing overall; and to welcome the steps taken by the Administration to recommence building of new Council properties, but notes that it is a small number of properties, designated for a specific need rather than for general housing stock; that funding for this scheme was reallocated from funds granted for another project; and
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2.
3.
4.
(b)
(c)
(d)
(e)
that this approach is not a sustainable model for the new build requirements of the City. CL25 MEALS ON WHEELS AND SOCIAL CARE COSTS Councillor Long moved the following motion, which was seconded by Councillor Wallis: 1. That this Council notes that in 2012/13 the charge for the Meals on Wheels service was 5.19 per meal; one of highest charges in the country and second only to Richmond Council, one of the most affluent districts in England. That this Council further notes that the Conservative Administration will increase this charge to 5.33 in the 2013/14 year, which compares to the average cost for a Meals on Wheels Service in England of 3.66, and that the Milton Keynes Council service is 3.06 more expensive than the same service provided by Warrington Council. That this Council also notes that charges for the laundry service and home care service are amongst the highest in the England and have risen again this year. That this Council therefore resolves: (a) that a full review of adult social care charges, with comparisons to other comparable authorities, is undertaken by Assistant Director (Adult Social Care) and made available to the Budget Review Group and Health and Health and Adult Social Care Select Committee; that a value for money assessment is undertaken by the Assistant Director (Joint Commissioning) on contract costs to ascertain why Milton Keynes Council charges are amongst the highest in England and if this is linked to service procurement; and that if value for money savings can be identified, then the Council seek to negotiate with current contractor with a view to reducing any excessive cost and passing savings to service users.
2.
3.
4.
(b)
(c)
Councillor Brock moved the following amendment which was seconded by Councillor Bramall: 1. That in clause 1, delete all after per meal and add and that the decision to charge 100% of cost for meals was taken by the previous administration in January 2011 and confirmed by Council in every budget since. That in clause 2, delete all after in the 2013/14 year and replace with in line with the 2.7% increase agreed by Council at its Budget setting meeting in February 2013 and that:
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2.
(a).
The Milton Keynes Meals on Wheels service charge covers a hot, two course meal, plated if required, a welfare check and medication prompt if needed, which receives much positive feedback from service users; Some authorities do not contract a hot meal service; some providing only frozen meals, or signposting to suppliers costs will therefore vary across councils and comparing price alone is misleading.
(b)
That in clause 3, delete all after laundry service and replace with ,Community Alarm, Telecare and Telehealth are uplifted by CPI each year in line with the Councils Charging Policy. These services along with the Meals-on-Wheels service make up the flat rate charges subject to annual uplift. The Council recognises that: (a) Milton Keynes Laundry Service includes door to door collection/return washing, drying and ironing of standard items and for service users with incontinence problems there is no charge. Some authorities do not offer a Laundry Service, some refer clients to local laundrettes, few offer a service comparable to Milton Keynes; Homecare is not subject to the Flat Rate Charging Policy, and forms part of assessed packages of care. Social Care Assessments are free to all and 43% of all those in receipt of support packages pay nothing, whatever support they receive, or whatever it costs..
(b)
4.
That in clause 4(a) after full review of adult social care insert flat rate services and, delete with comparisons to and insert benchmarked against and also delete one of the and Health. That in clause 4(b) after undertaken insert on the Meals on Wheels contract and delete all after Assistant Director (Joint Commissioning).
5.
On being put to the vote the amendment was declared carried, with 19 Members voting in favour, 15 Members voting against and 13 Members abstaining from voting. On being put to the vote the substantive motion was declared carried with 33 Members voting in favour, 0 Members voting against and 13 Members abstaining from voting. RESOLVED 1. That this Council notes that in 2012/13 the charge for the Meals on Wheels service was 5.19 per meal; and that the decision to charge 100% of cost for meals was taken by the previous administration in January 2011 and confirmed by Council in every budget since.
(24)
2.
That this Council further notes that the Conservative Administration will increase this charge to 5.33 in the 2013/14 year, in line with the 2.7% increase agreed by Council at its Budget setting meeting in February 2013 and that: (a) the Milton Keynes Meals on Wheels service charge covers a hot, two course meal, plated if required, a welfare check and medication prompt if needed, which receives much positive feedback from service users; and some authorities do not contract a hot meal service; some providing only frozen meals, or signposting to suppliers, costs will therefore vary across councils and comparing price alone is misleading.
(b)
3.
That this Council also notes that charges for the laundry service, Community Alarm, Telecare and Telehealth are uplifted by CPI each year in line with the Councils Charging Policy. These services along with the Meals-on-Wheels service make up the flat rate charges subject to annual uplift. The Council also recognises that: (a) Milton Keynes Laundry Service includes door to door collection/return washing, drying and ironing of standard items and for service users with incontinence problems there is no charge. Some authorities do not offer a Laundry Service, some refer clients to local laundrettes, few offer a service comparable to Milton Keynes; and Homecare is not subject to the Flat Rate Charging Policy, and forms part of assessed packages of care. Social Care Assessments are free to all and 43% of all those in receipt of support packages pay nothing, whatever support they receive, or whatever it costs.
(b)
4.
That this Council therefore resolves to request the Cabinet: (a) to undertake a full review of adult social care flat rate services and charges, benchmarked against other comparable authorities, and with the outcome of the review being made available to the Budget Review Group and Health and Adult Social Care Select Committee; to undertake a value for money assessment on the Meals on Wheels contract; and if value for money savings can be identified, to negotiate with current contractor with a view to reducing any excessive cost and passing savings to service users.
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(b) (c)
CL26
PROCEDURAL MOTION The Mayor moved and the Deputy Mayor seconded the following procedural motion: That Council Procedure Rules 11 and 13.6[a] be waived in order to allow a revised motion in respect of the Closure of Willen Village Surgery to be submitted and also to allow amendments to be moved of which notice has not been given by the deadline in the Constitution. The procedural motion was declared carried by acclamation. RESOLVED That Council Procedure Rules 11 and 13.6[a] be waived in order to allow a revised motion in respect of the Closure of Willen Village Surgery to be submitted and also to allow amendments to be moved of which notice has not been given by the deadline in the Constitution.
CL27
CLOSURE OF WILLEN VILLAGE SURGERY With the consent of the Council the motion was withdrawn by its mover:
CL28
CLOSURE OF WILLEN SURGERY With the consent of the Council the motion was withdrawn by its mover.
CL29
CLOSURE OF WILLEN VILLAGE SURGERY Councillor Brackenbury moved the following motion, which was seconded by Councillor Morris: That the Council: 1. notes with regret the closure in April of the popular GP Surgery at Willen and the lack of prior notice given to patients registered there; commends the public for the way they have coped with the disruption and distress caused by these events; believes that in such circumstances, it would have been better to allocate patients to other practices on a geographic basis rather than a surname basis (for the travel convenience of patients, especially those with limited mobility and to ensure all members of a household get allocated to the same practice) and requests that the Cabinet Member provides feedback to the relevant authorities on this point;
2. 3.
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4.
in particular notes the distress caused by suggesting that surgeries as far away as Bletchley were accepting registrations when in fact all Willen patients had been reallocated more locally; is also concerned about the piles of uncollected post inside the surgery building, including urgent medical information; calls for the owner and leaseholder of the surgery to give firm public assurances that medical information posted to the surgery will be processed appropriately; recognises and appreciates the work carried out by Healthwatch:MK in handling patient enquiries, and notes the efforts made to get all patients registered with other GPs as speedily as possible, yet believes NHS England should have taken responsibility for answering patients' concerns; criticises NHS England for being so unwilling to answer questions from media, members of the public and officials which only served to heighten inevitable concerns; asks the Overview and Scrutiny Management Committee to review whether there are any lessons for the Council to be learned from the closure, with or without input from NHS England; notes the scarcity of available places at alternative practices in the immediately surrounding area, and the apparent absence of ongoing liaison over the needs of the borough as it changes; and calls on the Chief Executive in conjunction with the Cabinet Member to press NHS England for a long-term plan for GP facilities to meet the growing needs of Milton Keynes residents, including the likelihood of Willen Village Surgery reopening in time, and to set up a mechanism for discussing changes due to the growth of the city in future.
5. 6.
7.
8.
9.
10.
11.
Councillor P Williams moved the following amendment which was seconded by Councillor Long: 1. 2. That the words and those who rely on public transport, be inserted after the word mobility in clause 3. That clause 8 be deleted and replace with believes that the response from NHS England and health authorities was poor, lacked clarity and caused increased concern to residents and requests that a full explanation as to why enquires were dealt with in such a poor manner. That all words in clause 9 after closure be deleted and replaced with seeking input from all relevant bodies as needed and consider asking the Health and Adult Social Care Select Committee to scrutinise the matter fully.
(27)
3.
5.
That in clause 11 the words health services in Milton Keynes, with particular focus on be inserted before GP, the word facilities after GP deleted and replaced with the word services and the words a plan for the Willen area of the city and be inserted after the word included. That a new clause 12 be inserted that reads: also asks the Chief Executive to write to the Secretary of State for Health to request a full investigation into the circumstances surrounding the closure of Willen Village Surgery as unanswered serious questions remain around the closure such as the workload of the practice, patient care and the engagement with patients after the closure.
6.
On being put to the vote the amendment was declared lost, with 15 Members voting in favour, 32 Members voting against and 0 Members abstaining from voting. On being put to the vote the motion was declared carried unanimously. The Council heard from a member of the public during its consideration of this motion. RESOLVED That the Council: 1. notes with regret the closure in April of the popular GP Surgery at Willen and the lack of prior notice given to patients registered there; commends the public for the way they have coped with the disruption and distress caused by these events; believes that in such circumstances, it would have been better to allocate patients to other practices on a geographic basis rather than a surname basis (for the travel convenience of patients, especially those with limited mobility and to ensure all members of a household get allocated to the same practice) and requests that the Cabinet Member provides feedback to the relevant authorities on this point; in particular notes the distress caused by suggesting that surgeries as far away as Bletchley were accepting registrations when in fact all Willen patients had been reallocated more locally; is also concerned about the piles of uncollected post inside the surgery building, including urgent medical information; calls for the owner and leaseholder of the surgery to give firm public assurances that medical information posted to the surgery will be processed appropriately;
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2. 3.
4.
5. 6.
7.
recognises and appreciates the work carried out by Healthwatch:MK in handling patient enquiries, and notes the efforts made to get all patients registered with other GPs as speedily as possible, yet believes NHS England should have taken responsibility for answering patients' concerns; criticises NHS England for being so unwilling to answer questions from media, members of the public and officials which only served to heighten inevitable concerns; asks the Overview and Scrutiny Management Committee to review whether there are any lessons for the Council to be learned from the closure, with or without input from NHS England; notes the scarcity of available places at alternative practices in the immediately surrounding area, and the apparent absence of ongoing liaison over the needs of the borough as it changes; and calls on the Chief Executive in conjunction with the Cabinet Member to press NHS England for a long-term plan for GP facilities to meet the growing needs of Milton Keynes residents, including the likelihood of Willen Village Surgery reopening in time, and to set up a mechanism for discussing changes due to the growth of the city in future.
8.
9.
10.
11.
CL30
ARMED FORCES COVENANT The Council received a report from Councillor Richards, the Councils Armed Forces Member Champion, on the work undertaken by the Council in support of the Community Covenant adopted by the Council on 13 March 2012. The Council noted that the Covenant set out a framework for sharing information about the issues facing serving and retired Armed Forces personnel and helped build an understanding of how agencies could provide continued support as well as help the transition from Service to civilian life and then in the longer term. Councillor Richards reported that the Covenant had led to the setting up of a Milton Keynes Armed Forces Liaison Group, which had created an armed forces web page to assist the Armed Forces Community with a full range of subjects, including how to access advice and Council services. The Group also provided support at Combat Stress support group meetings in Milton Keynes organised by the local Combat Stress team. The Council noted that the Council was also working with Buckinghamshire County Council to host Armed Forces Day, a family fun event on 29 June 2013; which provided an opportunity to show the Councils support for the Armed Forces Community.
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CL31
RETURNING OFFICERS FEES The Council considered the Returning Officers for Borough and Parish Elections for 2013/14. The Council noted that Section 35(4) of the Representation of the People Act 1983 required the Council to meet all expenditure properly incurred by a Returning Officer in relation to holding an election and that it had been the practice for many years for the Council to adopt a schedule of fees and disbursements agreed with the district councils in Buckinghamshire. RESOLVED That the Buckinghamshire Scheme for Election fees be adopted for 2013/14.
CL32
WARD BASED BUDGETS The Council noted the outturn position of the Ward Based Budgets for 2012/13.
CL33
QUARTERLY REPORT ON SPECIAL URGENCY DECISIONS The Council noted that in accordance with Access to Information Procedure Rule 17.3, that the Provisions for Special Urgency, as set out in Access to Information Procedure Rule 16, were used once during the period 1 March 2013 to 31 May 2013, for the agreement of the Management Arrangements of Older Peoples Day Services with Milton Keynes Council. The Council also noted that in accordance with Overview and Scrutiny Procedure Rule 16.1, the Cabinet member, when making the decision on the Management Arrangements of Older Peoples Day Services decided, with the consent of the Chair of the Overview and Scrutiny Management Committee, to waive the call-in process as failure to make the decision would have seriously prejudiced the Councils interests by jeopardising the Councils ability to provide a continuation of the existing service.
THE MAYOR CLOSED THE MEETING AT 10:46 PM
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ITEM Wards Affected: All Wards Report considered by Cabinet - 19 June 2013 ADOPTION OF THE CORE STRATEGY Author: Bob Wilson, Development Plans Manager, Tel: (01908) 252480
6(a)
MILTON KEYNES COUNCIL 10 JULY 2013
Executive Summary: The Core Strategy is a key council document and was the subject of a public examination in 2012 and more recently has been confirmed as sound in the Inspectors report received on 29 May 2013. It is now proposed for adoption to provide a clear and strategic framework for planning and investment decisions over potentially the next 13 years.
1. 1.1
Recommendation(s) That the Council be recommended to adopt the Core Strategy as amended by the Inspectors report in line with Regulation 26 of the Town and County Planning (Local Planning) Regulations 2012. Issues The public examination hearings into the Core Strategy took place over five days starting on 10 July and closing on 25 July last year. The Inspector has now produced her report with recommended modifications as requested by the Council (see the Council decision of 9 January 2013, minute CL82[d] refers), to ensure the plan is sound, legally compliant and capable of adoption. The modifications approved by the Council in January were subsequently subject to public consultation. The Inspectors report was published on 30 May 2013 and it does not summarise any cases submitted to the examination, but concentrates on the issues upon which the soundness of the Core Strategy depends The final paragraph of the Inspectors conclusion states: `The Council has requested that I recommend main modifications to make the Plan sound and legally compliant and capable of adoption. I conclude that with the recommended main modifications set out in the Appendix the Milton Keynes Core Strategy satisfies the requirements of Section 20(5) of the 2004 Act and meets the criteria for soundness in the National Planning Policy Framework.
2. 2.1
2.2
2.3
2.4
At the beginning of the Inspectors report there is a non technical summary and that lists the main modifications as follows:
Confirmation that the Plans housing target is an interim, minimum figure; Changes to the definition of the Strategic Land Allocation, its housing capacity and development principles;
10 JULY 2013 PAGE 1
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CL ITEM 6(a)
Clarification about how non-strategic sites will be brought forward and a rolling five-year supply of housing land will be maintained; Confirmation that the Council will undertake an early review of the Plan that will address needs in co-operation with adjoining authorities to 2031 and beyond; Changes to ensure that the need for traveller sites will be addressed and clarifying how affordable housing policy will be reviewed; Amendments clarifying that quantitative and qualitative aspects of the employment land supply will be reviewed in Plan:MK Clarification of the Plans approach to Central Milton Keynes, retail and other town centre development, taking account of national planning policy; Amendments to the transport strategy that update it and confirm the priority for sustainable transport; Revision of the policy approach to sustainable construction and community energy networks for consistency with national policy; Refinement of the Plans principles for urban extensions wholly or partly within adjoining authorities; Clarification of the approach to monitoring to assist the delivery of the Plan, and Amendments to ensure clarity about saved policies from the Milton Keynes Local Plan so that the Plan will be effective.
2.5
A schedule of the main modifications is Annexed.
Next steps 2.6 2.5 The Council should adopt the Core Strategy with the modifications which are based on the modifications approved by the Council in January this year. This will ensure the Council has an up to date strategic planning policy framework which not only provides clarity about what development should go where and when, but also enables the Council to resist inappropriate development in the open countryside and on protected open spaces. Options The Inspectors report has endorsed the Core Strategy which as she explains has been produced during a period of significant legislative and policy change and the examination of the plan has been against this background. The options available to the Council are either to adopt the Core Strategy or not to adopt it. If the Council chooses not to adopt the Core Strategy then it loses the opportunity to have its own control over the future development of Milton Keynes. It would mean that without an up to date plan and a series of out of date strategic policies in the Local Plan the presumption in favour of development set out in the National Planning Policy Framework could lead to major developments in areas and locations against the Councils wishes. This option, not to adopt the Core Strategy is not therefore recommended.
3. 3.1
3.2
CL ITEM 6(a)
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4. 4.1
Implications Policy The Core Strategy underpins many of the Councils priorities, vision and values. Furthermore a number of other Council strategies rely on the Core Strategy, for example the Economic Development Strategy. A diagram within the Core Strategy sets out the inter relationship of the Core Strategy with other strategies and plans.
4.2
Resources and Risk Financial: The costs of the public examination have been taken into account within existing budgetary provision for Development Plans Inquiries within Planning and Transport. Staffing: The preparation of the Core Strategy has involved a considerable commitment of both officers and members time and energy. Consultancy staff has also assisted at certain stages. The Core Strategy has remained a key priority and given the uncertainty which has led to many other councils having failed core strategies, means to receive a favourable report should not be underestimated. Most of the staff resources are met within the Development Plans Team. N N Capital IT Y Y Revenue Medium Term Plan N N Accommodation Asset Management
4.3
Carbon and Energy Management The introduction of higher standards for carbon reduction planning policies was attempted in the Core Strategy. But because of the impacts of the recession the Inspector considered more work was required to ensure these measures would not undermine the viability of development. Consequently in the modifications the Council accepted that the existing Local Plan policies should continue to apply until the new evidence is available.
4.4
Legal The Council is required to have up to date planning policy and the Core Strategy together with the saved Local Plan policies and the Minerals and Waste Plans provide a comprehensive suite of planning policy for the Borough. However this will continue to need to be kept up to date and additional work will be guided by the Core Strategy review Working Group
4.5
Other Implications The adoption of the Core Strategy will require an adoption statement, sustainability appraisal and copies sent to the Secretary of State and all those who requested this during previous rounds of public consultation N N Equalities/Diversity E-Government Y Y Sustainability Stakeholders N N Human Rights Crime and Disorder
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CL ITEM 6(a)
10 JULY 2013
Background Papers:
The Council meeting held on January 2013 and all of the back ground papers available for the public examination and the consultation documents since the close of the public hearings. Draft Core Strategy
CL ITEM 6(a)
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ANNEX
SCHEDULEOFMAINMODIFICATIONS Newtextisunderlined.Texttobedeletedisshownasstruckthrough. Uniqueref no. MM1 MM2 Pagerefin Paragraphor Core Policy Strategy (Oct2010) Line Detailsofchange(strikethroughfordeletions,underlineforadditions)
50
49 3435
MM3
iv)v)and Changesto 1 CoreStrategy and Introduction
MM4 MM5
ListofPolicies 1.9
ThePoliciesMap(PostSubmissionProposalsMapAmendment September2011)willrequireanamendmentsothatitreflectsthe revisedalignmentoftheBedfordtoMKWaterwayasshownonMKC/46. ThePoliciesMap(PostSubmissionProposalsMapAmendment September2011)willrequireanamendmentsothattheStrategicLand AllocationandotherpolicynotationsareasshownonMKC/46. Addgreenbufferforseparationtokeydiagramsonpages34and35 Deleteparagraph(c) DeleteIndoingsoatstartofparagraph(d) Addatendofparagraphf)pagev): Thiswouldbeconsideredthroughjointworkingwithneighbouringlocal authoritiesandshouldbeaddressedthroughthereplacementofthis CoreStrategywithPlan:MK. PolicyCS5StrategicReserveAreasLandAllocation Currently,thereisnoshorttermrequirementfornewretaildevelopment tosupportgrowth.Longertermrequirementsafter2011willbefocused onCentralMiltonKeynesandthecentresofBletchley,Wolverton, WestcroftandKingston.Thereisaneedtosetcriteriaforconsidering optionsforpossiblefuturesites,suchasthestateofthe'real'economy, progressondevelopmentstodateandeconomicgrowth.Thisislikelyto requireanupdateoftheRetailCapacityStudyandthiswillbeassessedin theDevelopmentManagementandSiteAllocationsDPDs. Replacewith: Thereisaconsiderableamountofretailfloorspace,whichiscommitted fordevelopmentwithintheBoroughbuthasyettobedeveloped.The continuedpopulationandexpendituregrowthinMiltonKeyneswill generateaneedforadditionalretailfloorspace.Thelongtermneedfor comparisonfloorspacewillbefocusedonthePrimaryShoppingArea withinCentralMiltonKeynes,butsomeretaildevelopmentisexpectedto comeforwardwithinthecentresdefinedwithintheCouncilsretail hierarchy(Seetable5.5)tomeetlocalneeds. LocalTransportPlan2(2006/072010/11) 3.7TheLocalTransportPlan2aimsto: Maketransporttrulyaccessible Makesignificantimprovementsinpublictransportinorderto encouragemodalshift Tackletheemergingcongestionhotspotsand Maintainourexistingtransportassetssothequalityofthe infrastructuredoesnotdeteriorate 3.8AnupdatedLocalTransportPlan(3)willbedevelopedbyApril2011 toradicallyaddressthetransportissuesidentifiedinthisCoreStrategy. LocalTransportPlan3(20112031) 3.7TheLocalTransportPlan3aimsto: 1.Providerealandattractivetransportchoicestoencouragemore sustainabletravelbehaviourasMiltonKeynesgrows. 2.Supporttheeconomicgrowthoftheboroughthroughthefast, efficientandreliablemovementofpeopleandgoods. 3.ReducetransportbasedCO2emissionstohelptackleclimate change. 4.ProvideaccessforalltokeyservicesandamenitiesinMilton Keynes,includingemployment,education,health,retail,andleisure. 5.Improvesafety,securityandhealth. 6.ContributetoqualityoflifeforallMiltonKeynesresidents, strengtheninglinkagesbetweencommunities. 7.Establishadevelopmentframeworkthatembracestechnological change,inwhichMiltonKeynescancontinuetogrow,pioneerand develop. Transportlinkstoothertowns,includingAylesbury,Bedford,Lutonand Northampton,willhavebeenimproved.TheseincludetheEastWestrail linkbetweenOxfordandCambridgeviaMiltonKeynes,theA421corridor throughthecity(linkingtheA1,M1andM40andanewjunction13aon theM1withlandsafeguardedforfuturecrossingsofthemotorwaynorth ofJunction14).PromotionofadirecttrainservicefromMiltonKeynesto theEuropeanrailnetworkwillbeunderway.
MM6
15
3.73.8
MM7
SpatialVision
Item11
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Uniqueref no. MM8
Pagerefin Paragraphor Core Policy Strategy (Oct2010) 18 Objective1
Line
Detailsofchange(strikethroughfordeletions,underlineforadditions)
MM9
20
Before paragraph5.1
Anallocationofamaximumintheregionof2,5002,900homestothe southeastofthecityintheareasidentifiedasStrategicReserveAreas southeastofthecityintheLocalPlan,plus: additionallandbetweenSR2andSR3; thelandcurrentlydesignatedasopencountrysidetothewestof NewportRoadandimmediatelynorthofthesettlement boundaryofWavendonVillage,eastandwestofStockwellLane (partofsiteMKSA4intheSiteSelectionReport,September 2011); landtotheeastofEagleFarmSouth(landatWavendonLodge) andthetwoareasofwoodlandadjacenttoEagleFarmNorth. IntroduceanewpolicyandpreambleatbeginningofChapter5: InaccordancewiththeNationalPlanningPolicyFramework,thisCouncil willworkproactivelytoensureplanningisnotabarriertonew development.ThisCoreStrategyprovidesaclearframeworknotjustfor planningdecisionsbutalsomanyotherformsofinvestmentdecisions. PolicyCSA NationalPlanningPolicyFrameworkPresumptioninfavourof sustainabledevelopment Whenconsideringdevelopmentproposals,theCouncilwilltakea positiveapproachthatreflectsthepresumptioninfavourofsustainable developmentcontainedintheNationalPlanningPolicyFramework.Itwill alwaysworkproactivelywithapplicantsjointlytofindsolutionswhich meanthatproposalscanbeapprovedwhereverpossible,andtosecure developmentthatimprovestheeconomic,socialandenvironmental conditionsinthearea. PlanningapplicationsthataccordwiththepoliciesinthisLocalPlan(and, whererelevant,withpolicesinneighbourhoodplans)willbeapproved withoutdelay,unlessmaterialconsiderationsindicateotherwise. Wheretherearenopoliciesrelevanttotheapplicationorrelevant policiesareoutofdateatthetimeofmakingthedecisionthenthe Councilwillgrantpermissionunlessmaterialconsiderationsindicate otherwisetakingintoaccountwhether:
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Paragraph2ofPolicyCS1 TheallocationoftheStrategicReserveAreasAStrategicLand AllocationtothesoutheastofthecityfromtheLocalPlan(2005)will provideasustainableurbanextensionadjoiningtheexistingurban boundary. InadditiontotheStrategicReserveAreas,LandAllocationothernon strategicdevelopmentsiteswillbeconsideredfordevelopmentbrought forwardthroughtheSiteAllocationsDPDPlantoprovideshortterm flexibilityandcontingencyaheadofafullreviewofthisCoreStrategyin Plan:MK(SeepolicyAD/1).SiteAllocationsDPDTheCouncilsapproach tomajordevelopmentproposalsadjoiningthecity,butwithintheareaof aneighbouringlocalauthority,issetoutinPolicyCS6Placeshaping PrinciplesforSustainableUrbanExtensionsinAdjacentLocalAuthorities WithinTable5.1row2,amendStrategicReserveAreasLandAllocation InadditiontotheStrategicReserveAreasStrategicLandAllocation,other siteswillbeconsideredfordevelopmentthroughtheSiteAllocationsPlan DPDtoprovideshorttermflexibilityandcontingencytoensurethatat least28,000homeswillbeprovidedby2026,aheadofafullreviewofthis CoreStrategyinPlan:MK(SeePolicyAD/1). Replace: Itisrecognisedthatotherproposalsmaycomeforwardatalaterdate throughtheSiteAllocationsDPDorotherwise.Anysuchproposalsmust berobustlyevidencedandjustifiedinaccordancewiththeprinciplesof thisCoreStrategy.
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With: OtherproposalsthatcomeforwardintheSiteAllocationsPlanmustbe robustlyevidencedandjustifiedinaccordancewiththisCoreStrategy. ThefinallevelofprovisionintheSiteAllocationsPlanwillbedetermined inaccordancewithNationalPlanningPolicyFrameworkguidanceonthe fiveyearlandsupply.Basedonforecastsin2012,byApril2015,the Councilwillrequiretheallocationofdeliverableland,whichcanbe demonstratedtobeimmediatelyavailablefordevelopment,for approximately1,000homes.Withinthisfigureof1,000thereare approximately200homesneededintheruralarea.Theallocationofthis landtogetherwithexistingdevelopmentareas,wouldenabletheCouncil todemonstratedeliverablelandsupplyforfiveyearsfromthedateof adoptionplusanadditionalbufferof20%,toaccordwiththeNational PlanningPolicyFramework. 5.13ItisnotconsideredthattheTimelineandHousingTrajectoryare unrealisticgiventheeconomicpositionduring2008to2012.However, thistrajectoryhasbeenpreparedduringaneconomicdownturnwhich hasseverelyhithousebuilding,soaccuratelongtermpredictionsare difficulttoforecast.Manysitesareunderconstruction,havepermission oratleasthaveadevelopmentbrief.Thisshouldmeanthatthereare fewdelayswhenthemarketrecovers.Inaddition,MiltonKeyneshasan excellenttrackrecordindeliveringinfrastructurebeforeandalongside housing,throughthetariffsystem,reducingpotentialdelays.TheJoint DeliveryTeamswillalsoassistinunblockingandcoordinating development.AssetoutinTableD.1Risks,ActionsandContingencies, tThehousingtrajectorysaccuracywillbeassessedbystayingwithina 20%rangeoftheannualforecastrateofhousingdelivery.However,this trajectoryhasbeenpreparedduringaneconomicdownturnwhichhas severelyhithousebuilding,soaccuratelongtermpredictionsaredifficult toforecast.AfullreviewofthisCoreStrategywillconsiderthelonger termimplicationsoftheeconomicsituationonhousingandemployment needsanddemandsinthePlan:MK,assetoutinpolicyAD1(CS.) 5.14Projectionsoffuturechangestothepopulationandeconomyare subjecttosignificantuncertainties.Continuedhighlevelsofinmigration toMiltonKeynesorahigherrateofeconomicgrowthwhichresultsin higherdemandforhousingmayhavenegativesocial,economicand environmentalconsequences.Suchconsequencescouldinclude increasingcommutingintothecity,andincreasingovercrowding,sharing andconcealedhouseholds.Theremaybeadverseimplicationsforthe widerhousingmarketareaifthehomesrequiredtosupportthe workforce,orpopulationpressures,exceedthesupplyofhousingland deliveredwithintheauthorityboundaryorinplannedextensionsto MiltonKeynesurbanareainadjoiningauthoritiesasthenowrevoked SouthEastPlanhadanticipated. 5.15TheCouncilalsoacknowledgesthattheSHMAsuggestsasubstantial gapbetweenforecastaffordablehousingneedandpotentialaffordable housingsupply.TheCouncilschoiceofthescaleofoverallhousingtobe accommodatedinevitablylimitsthenumberofaffordablehomesthatcan bedelivered.Thelikelygapbetweenaffordablehousingneedand provisionwillhavenegativesocioeconomicconsequences. 5.16ThelevelofnewhousingfortheBoroughduringtheperiod2006 2026thatwasrequiredbytheSouthEastPlanwas41,360homes(an averageof2,068perannum)andwithintheMKgrowthareaoverallwas 52,350(2,617.5perannum).TheCouncilhasconcernsaboutthe deliverabilityofthisnumberofhomesandthereforeproposestomakean interimprovisionatthisstageforthedeliveryof1,750homesperannum (aminimumof28,000intotalby2026)whichrepresentsanincreasein theaveragehousingcompletionrateoverthelast5(1,660),10(1,560) and20(1,610)years.Theinterimhousingtargetwillbeusedforthe purposeofmonitoringhousinglandsupplyuntilsuchatimethatanew housingtargetisadoptedinPlan:MK.Itistoberegardedasaminimum figure. 5.17AnadditionalprovisionofhomeswillbeallocatedinPlan:MKatand adjoiningtheurbanarea,subjecttotheobjectiveassessmentofneedsto beproducedinaccordancewithparagraph47oftheNationalPlanning PolicyFrameworkandtherequirementsofthedutytocooperatewith adjoiningauthorities.
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Replacesecondcommentincolumnthree: SupplytobesupplementedthroughallocationsintheSiteAllocations DPD Toprovideadditionalshorttermflexibilityandcontingencytoexisting supply,additionalnonstrategicsiteswillbeallocatedintheSite AllocationsDPD (renumberparagraph) TheStrategicLandAllocation,whichincludesfourStrategicReserveAreas (SR1,SR2,SR3andSR4)identifiedintheLocalPlan(2005)aswellas: additionallandbetweenSR2andSR3; thelandcurrentlydesignatedasopencountrysidetothewestof NewportRoadandimmediatelynorthofthesettlement boundaryofWavendonVillage,eastandwestofStockwellLane (partofsiteMKSA4intheSiteSelectionReport,September 2011); landtotheeastofEagleFarmSouth(landatWavendonLodge) and thethreeareasofmostlywoodlandadjacenttoEagleFarm North, liesontheeasternedgeofthecity.WeestimatethattheseStrategic LandAllocationcanaccommodateamaximumintheregionof2,500 2,900homes(plusotheruses),meetingthehousingtargetsoftheCore Strategy.InlinewithPolicyAD/1,theCounciliscommittedtoundertake anearlyreviewoftheCoreStrategyinPlan:MK. Rewordsecondparagraphofpolicyasfollows: TheexistingLocalPlanStrategicReservestothesoutheastofthecityare includedinanewallocationsintheisCoreStrategytogetherwithother parcelsofadjoininglandforamaximumintheregionof2,900homes. AD1(CS) TheCouncilwillundertakeanearlyreviewoftheCoreStrategyinthe formofPlan:MK,to2031orsuchlongerperiodastheCouncilchooses, withtheaimofhavinganadoptedplaninplacein2015.Thiswillbeled bytheNPPFapproachofobjectiveassessmentofhousing,employment andotherneedsandtherequirementsofthedutytocooperatewith adjoiningauthorities. Reviseparagraph5.21asfollows: MKhasakeyroleasanemploymentcentrewithintheSouthEast MidlandsLEP.Aswithhousingsupply,thereisasubstantialexisting supplyofemploymentlandintheBorough,however,therearesome qualitativedeficienciesinthisportfolioofemploymentlandwhichmay needtoberemediedinthemediumtolongtermtoachieveallofthe objectivesoftheCouncilsEconomicDevelopmentStrategyincludingto supportlocalandinwardinvestment.Aswellasthejobscreatedinfirms occupyingdevelopedemploymentland,otherjobswillbecreatedin retail,education,healthandotherservices.Potentialjobcreationfrom thesesourcesisidentifiedinTable5.3Jobspotentialofexistingandnew employmentlocations Addtobeginningof5.23: TheproposedreviewoftheCoreStrategy(Plan:MK)willreassessthe adequacy(bothquantitativeandqualitative)oftheexistingportfolioof employmentlandandtakeforwardtheneed,ifevidenced,fornew strategicemploymentallocationstomeettheeconomicandhousing growthpotentialofMKincludingthedevelopmentneedsofbusiness,by providinglocationstosupportclustersofknowledgedrivenandhigh technologyindustries. CentralMiltonKeynesistheprimaryfocusforthedevelopmentof additionaloffice(B1a)andhightechnology/researchanddevelopment (B1b)floorspacewithintheBorough.Planningapplicationsformorethan 1,000sq.metresofB1a/B1busesonsitesoutsideCMKwillneedto provideevidencethatdemonstrateswhythedevelopmentcannotoccur inCMK.Developmentsshouldnotbedeliberatelysubdividedorphased inanattempttoavoidthe1000sq.metresthreshold. Officeandhightechnology/researchanddevelopmentproposalsofmore than1000sqmetresoffloorspace,whichclearlydemonstrateswith evidencewhyitcannotbeaccommodatedwillbepermittedwithin CentralMiltonKeyneswillbepermitted,andoutsideitatstrategic locations(over10hectares)withsustainabletransportlinks.These includeingShenleyWood,theWesternExpansionArea,Kents Hill/Walton,KnowlhillandinotherlocationstobeidentifiedintheSite AllocationsDPDPlan:MK
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NewParagraphtobeaddedtoPolicyCS3,priortoTable5.4 EmploymentLandAllocationsinMiltonKeynes,toread: Accountwillbetakenofanyneedtomakefurtheremployment allocationstowidenthequantitativeandqualitativesupplyofsites, wherethereisevidence.Thesestrategicemploymentallocationswill supportthedeliveryofthekeyprioritiesoftheEconomicDevelopment Strategy(EDS)andwillbeaddressedinPlan:MK. Deletethethirdsentenceoftheparagraphasfollows: MonitoringthroughtheJointDeliveryTeamswillensurethatappropriate actionistakenbytheplanningauthoritiestokeepthegrowthofnew employmentopportunitiesintheratioof1.5:1withhousinggrowth. Abalanceneedstobestruckbetweentheprovisionofofficeandhigh technologyfloorspacewithinCentralMiltonKeynesandoutsideit.This balanceacknowledgesthatwhileoutoftownlocationswillberequiredto accommodategrowth,thepriorityfordevelopmentiswithinCMK. Speculativedevelopmentofover1000sq.metresshouldbedirectedto CMK.However,ifdevelopmentoutsideCMKisproposed,planning applicationsshouldbeaccompaniedbyevidencetoshowthatthereisno suitablesitewithinCMK,whichisavailablewithinareasonableperiodof timeandviablefortheproposeddevelopment.Developmentsshould alsonotbedeliberatelysubdividedorphasedinanattempttoavoidthe 1000sqmetresthreshold. Secondrowofthesecondcolumnshouldreadasfollows: PrimaryShoppingArea:CentralMiltonKeynes Paragraph5.36tobedeleted: TheMiltonKeynesRetailCapacityandLeisureStudy(February2010)was preparedwithinthecontextofthehousinggrowthfiguresofthenow revokedSouthEastPlan.Itwillneedtobereviewedbecausethenumber ofnewdwellingsovertheplanperiodhasbeenreducedto28,000and consequently,theamountofadditionalretailfloorspaceforecasttobe requiredinMiltonKeynesislikelytobelessthanthatcurrentlysetoutin Table5.6AmountofadditionalretailfloorspacerequiredinMilton Keynes.Anotherreasontoreviewthestudyistoreassesshowmuch conveniencefloorspaceisneededintheStrategicReserveAreas.Outline planningpermissionalreadyexistsfora3,000sqm(gross)foodstorein theWesternExpansionArea.TheRetailCapacityandleisureStudy suggeststherewouldbecapacityforadditionalconveniencefloorspacein theEasternExpansionArea(39).Itisverydifficulttoforecastretail requirementsasfaraheadas2026,solongertermforecastsshouldbe treatedwithcaution,asaguidetotheleveloffutureretailfloorspace. Thecouncilwillneedtoreviewtheretailcapacitystudyseveraltimes before2026. Tobereplacedwith: TheRetailCapacityUpdatereiteratedthattheretailneedsidentifiedin thereportwouldbestbesatisfiedalongthelinesofStrategy1,which wouldinvolve: MeetingmostofthecomparisonretailneedsinCMK. Allowforsmallerscalecomparisonretailneedsinthetownand districtcentreinordertoaccommodatealocallyderivedneed consistentwiththeirroleintheretailhierarchy.Largescaleretail developmentwillberesisted. Nottopromotefurtherconveniencefloorspacebuttoassesseach applicationonitsownmerits,havingregardtothepolicyinNPPFon ensuringthevitalityoftowncentres.Smallerincrementalincreases andextensionstoexistingfacilitiescouldbeacceptable,wherethisis appropriatetotheroleofthecentreitislocatedin. TheCouncilencouragesdevelopmentwithinitstowncentres.Thisis consistentwiththeNationalPlanningPolicyFramework(NPPF)which requiresplanningapplicationsforthedevelopmentofmaintowncentre usestobewithintowncentres,thenedgeofcentrelocationsandonlyif suitablesitesarenotavailableshouldoutofcentrelocationsbe considered. Newtables5.6aand5.6bandaccompanyingtexttobeinsertedas follows: Table5.6a:Estimatedamountofadditionalretailfloorspaceneededin theBoroughofMiltonKeynes(aftercommitments)understrategy1in fiveyearperiods
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Note:The rangeof floorspace isdueto thetwo scenarios usedin thestudy. Underthe static retentionscenarioMiltonKeynesshareofcatchmentspendingremains unchanged.TheincreasingretentionscenarioassumesMiltonKeynes increasesitsmarketshareoftheavailablecatchmentareaexpenditure fromanestimated25.8%atthestartoftheplanperiodto30%by2026. AstheBoroughattractsmoreexpenditureitcansupportmoreadditional retailfloorspace.
Year Comparison Comparison Convenience floorspace: floorspace floorspace Static increasing retention retention 2011 915 20112016 0 15,605 12,989 20162021 40,453 57,950 7,543 20212026 41,563 56,776 3,406 Total 82,016 130,330 Figuresinsq.mgross.Source:MiltonKeynesRetailCapacityUpdate (August2011)producedbyRogerTymandPartners,partofPeter BrettAssociatesLLP
Table5.6aillustratesforecastsproducedbytheCouncilsconsultants (RogerTymandPartners)onthequantityofnetadditionalcomparison (nonfood)andconvenience(food)floorspace,whichcouldbesupported byavailableexpenditurewithintheBoroughovertime.Atthetimethe retailcapacityupdatestudywasproducedsiteswithplanningpermission totalledover16,000sq.mforconveniencefloorspaceandover44,000 sq.mofcomparisonfloorspace.Oncealltheconveniencefloorspace commitmentsareassumedtohavebeendevelopedby2016,theBorough goesfromhavingapositiverequirementforanadditional915sq.m (gross)offloorspacein2011toanoversupplyofconveniencefloorspace of12,989sq.m(gross)by2016.Thisoversupplyoffloorspaceisforecast tocontinuethroughouttheremainderofthestudyperiodupto2026. TheamountofcomparisonfloorspacetheBoroughisforecasttorequire inthefuturehasbeencalculatedusingtwoscenarios.Thequantitative assessmentshowsthatcommitteddevelopment,hasoutstripped expendituregrowthintheperiodupto2011andunderthestatic retentionscenariothisremainsthecaseuntilafter2016.After2016on bothscenariosusedthereisasharpincreaseinthefloorspace requirementsofbetween40,453to57,950sq.m(gross)from2016to 2021.Intable5.6bmostoftherequirementforadditionalcomparison floorspace(85%)isassumedtobelocatedwithCMKwiththeremainder (15%)providedinotherdistrictandtowncentres. Table5.6bBreakdownofestimatedcomparisonfloorspaceneededin CMKandotherdistrictandtowncentresfrom2011to2026infiveyear periods. 2011 2016 2021 Totalto 2016 2021 2026 2026 Totalrequirement 0 40,453 41,563 82,016 ComparisonGoods 15,605 57,950 56,776 130,330 CentralMiltonKeynes 0 34,385 35,329 69,714 (CMK)(85%oftotal 13,264 49,257 48,260 110,781
floorspace) Otherdistrictand 0 6,068 6,234 12,302 towncentres(15%of 2,341 8,693 8,516 19,550 floorspace) Figuresinsq.mgross.Source:MiltonKeynesRetailCapacityUpdate (August2011)producedbyRogerTymandPartners,partofPeter BrettAssociatesLLP
NewParagraphstobeinsertedbelownewtable5.6bbeforeexisting paragraph5.37,toread: Onthisbasisabout85%oftheidentifiedrequirementforadditional comparisonfloorspaceshouldbedirectedtotheprimaryshoppingarea ofCMK.Theremainder(about15%)shouldbedirectedtootherTownand Districtcentresonascalethatisconsistentwiththeirroleinthe hierarchy.Thereisnopolicysupportforretaildevelopmentinoutof centreretailparksorotheroutofcentrelocations. However,itisverydifficulttoforecastretailrequirementsforthe Boroughasfaraheadas2026,solongertermforecastmorethan510 yearsaheadshouldbetreatedwithconsiderablecaution.TheCouncilwill needtomonitorandreviewfiguresonretailcapacitystudyseveraltimes before2026. Thesefiguresonestimatedretailarenotintendedtorestrictorprevent newretailfloorspacecomingforwardinappropriatelocationssuchasthe primaryshoppingareaofCMKortheTownandDistrictCentres.These figuresareasnapshot(ataparticularpointintimebasedoncertain assumptions)whichindicatestheleveloffutureretailfloorspacethatcan besupportedwithintheBoroughbytheexpectedgrowthofretail expenditure.
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CentralMiltonKeynesislikelytowillbethemainfocusforthe developmentofcommercialleisureandentertainmentfacilities, especiallythosewithasubregionalcatchment,butthisdoesnotprevent suchfacilitiesbeingdevelopedelsewherewithinotherdistrictandtown centres.,orinspecialcases,elsewhereinthecity,wheregoodpublic transportis,orwillbecomeavailable(forexamplelargesportingfacilities suchastheStadiumMK).However,leisureproposalsdesignedmorefora localcatchmentwilllocateindistrictandtowncentres(40). Paragraph5.41asexiststobedeleted: Aregionalsportsfacilityshouldbedevelopedaspartofourgrowth, locatedatvariousvenuesacrosstheBoroughforexamplefurther developmentattheStadiumMKinDenbighorinanysitestobe identifiedthroughthesiteallocationsDPD. andreplacedwith: MKhasthepotentialtooperateasaregionalfocusforsportandleisure aspartofitseconomicoffer.TheInternationalSportingCityconcept, discussedinChapter16DeliveringInfrastructureconsidershowthis couldbedeveloped. RetailandLeisureDevelopment ThePlanningAuthoritywillgrantplanningpermissionforadditionalretail andleisurefloorspaceinaccordancewiththedefinedshoppingcentre hierarchy(inTable5.5RetailHierarchy)todeliverthefollowing objectives. RegionalShoppingCentre:CentralMiltonKeynesThePrimaryShopping Areawillfunctionanddevelopasaregionalshoppingcentrefor comparisonshoppingandleisuredevelopment.Planningpermissionwill begrantedforadditionalcomparisonretailfloorspaceandother associateddevelopmentintheareabetweenSilburyandAvebury Boulevard,SaxonGateandMarlboroughGate(ThePrimaryShopping Area). InsertattheendofPolicyCS4: Applicationsforretailandothermaintowncentreusesoutsideofexisting centreswillonlybepermittediftheysatisfyNPPFssequentialandimpact tests. DeletelastparagraphofCS4startingatTheCouncilwillwork Addthefollowingtexttothefirstsentenceofthepolicyafteradditional retailfloorspace: andotherusesappropriatewithintowncentresasdefinedinnational policysuchasleisure,entertainmentandculturalwillalsobegranted planningpermissionwithinthecitycentreCMKDevelopmentBoundary asdefinedonFigure7.1andtheretailhierarchy,subjecttothescaleof theproposalreflectingthecharacteristicsofthecentrewithinwhichit isproposed. Column6ofTable5.7(pg41)RetailandLeisure,firstparagraph,tobe deleted: MiltonKeynesprimaryretailcentre,withanemphasisonsupportingand enhancingtheroleofCMKasaregionalcentreandEuropeandestination Andreplacedwith: RetaildevelopmentwithinCMKwillbefocusedwithinthedefined primaryshoppingarea.ItwillsupportandenhancetheroleofCMKasa regionalcentreandinternationaldestination. 6.2TheCoreStrategyinPolicyCS5StrategicReserveAreasLand Allocationallocatestheseareas,alongwith: additionallandbetweenSR2andSR3; thelandcurrentlydesignatedasopencountrysidetothewestof NewportRoadandimmediatelynorthofthesettlement boundaryofWavendonVillage,eastandwestofStockwellLane (partofsiteMKSA4intheSiteSelectionReport,September 2011); landtotheeastofEagleFarmSouth(landatWavendonLodge) and thethreeareasofmostlywoodlandadjacenttoEagleFarm North, asasustainableurbanextensiontoMiltonKeynes.
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developmentintheSLAwillbeguidedbyPolicyCS3,includingthe sequentialapproachtothelocationofofficedevelopment.
6.2.bInlinewithPolicyAD1,theCounciliscommittedtoundertake anearlyreviewoftheCoreStrategyintheformofPlan:MKwhich willmakeadditionalprovisionfornewhomesandotherneedsat andadjoiningtheurbanareaupto2031orbeyond. 6.3InadditiontotheStrategicReserveAreasLandAllocationand existingexpansionareasalreadyidentifiedwithintheCoreStrategyitis recognisedthatotherproposalsmaycomeforwardatsomelaterdate throughtheSiteAllocationsDPDorotherwise.Anysuchproposalsmust berobustlyevidencedandjustifiedinaccordancewiththeprinciplesof thisCoreStrategyandshouldnotforecloseoptionsforfurther sustainableextensionoftheurbanareathatwillbeexploredthrough Plan:MK. Title:StrategicReserveAreasLandAllocation 6.4Therewillbeacomprehensiveapproachtomasterplanningthe StrategicReserveAreasLandAllocationandanysitesidentifiedthrough theSiteAllocationsDPDand/orthePlan:MKthatmaycomeforwardat somelaterdate.Thisworkwilltakeintoaccounttheneedtoavoid coalescence(settlementsjoiningtogether)andtoprovideclear separationbetweenthenewdevelopmentandexistingsettlementsas indicatedontheProposalsMap,theneedtoprotecttheirsettingand distinctiveness,andtheimportanceofintegratinglongtermdefensible boundariesandlandscapebuffersintothedevelopment.Oneofthekey aimsofthemasterplanningapproachwillbehighqualityfutureproofing toensurethatinfrastructureandotherrequirementsforanylongerterm sustainableurbanextensionsandthewiderneedsofMiltonKeynesare properlyconsideredattheearliestpossiblestage. 6.5TheStrategicLandAllocationincludesTherearefourStrategic ReserveAreas(SRAs)locatedintheSouthEast(SR1:LandEastofFen Farm,SR2:GlebeFarm,SR3:EagleFarmandSR4:ChurchFarm)which wereidentifiedintheLocalPlanaspotentialdevelopmentareas.SR1, SR2andSR3fallwithintheareacoveredbytheexistingMiltonKeynes Tariffagreement.;thereisarequirementforapolicyframeworkforthese areastobeinplaceby2011. 6.6TheLandEastofFenfarm(SR1)SRAliestothenorthoftheA421and includesatransportreservationfortheBedfordandMiltonKeynes waterway(LocalPlanPolicyT13),andlandsafeguardedforanypotential futurecrossingof,orjunctionwith,theM1motorway. 6.7Theallocationalsoincludes additionallandbetweenSR2andSR3; thelandcurrentlydesignatedasopencountrysidetothewestof NewportRoadandimmediatelynorthofthesettlement boundaryofWavendonVillage,eastandwestofStockwellLane (partofsiteMKSA4intheSiteSelectionReport,September 2011); landtotheeastofEagleFarmSouth(landatWavendonLodge) and thethreeareasofmostlywoodlandadjacenttoEagleFarm North, PolicyCS5StrategicReserveAreasLandAllocation TheadoptedLocalPlanidentifiesfourStrategicReserveAreas(SRAs)inor adjoiningtheMiltonKeynesurbanarea: SR1LandeastofFenFarm SR2GlebeFarm SR3EagleFarm SR4ChurchFarm TheCoreStrategyallocatestheseareas,alongwith: additionallandbetweenSR2andSR3; thelandcurrentlydesignatedasopencountrysidetothewestof NewportRoadandimmediatelynorthofthesettlement boundaryofWavendonVillage,eastandwestofStockwellLane (partofsiteMKSA4intheSiteSelectionReport,September2011) landtotheeastofEagleFarmSouth(landatWavendonLodge) and threeareasofmostlywoodlandadjacenttoEagleFarmNorth,
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asasustainableurbanextension(theStrategicLandAllocation)toMilton Keynes.TheallocationisshownonFigure5.2KeyDiagramUrbanArea andtheProposalsMapAmendment. DevelopmentintheseSRAstheStrategicLandAllocationwillbe permittedinaccordancewithotherrelevantpoliciesintheLDFandthe principlesofdevelopmentsetoutbelow.Theseprincipleswillbedefined inmoredetailthroughthepreparationofasingleDevelopment FrameworkforallfourSRAsthearea,whichwillbeproducedjointly betweenbyMiltonKeynesCouncilandMiltonKeynesPartnership(or anysuccessorbodies),withtheinvolvementoftheHomesand CommunitiesAgency,thelandownersanddevelopers,stakeholdersand thecommunity. InordertoensurethattheSRAsareStrategicLandAllocationisbrought forwardinastrategicandcomprehensivemanner,planningpermission willonlybegrantedfordevelopmentfollowingtheapprovalofthe DevelopmentFramework.Developmentbriefsanddesigncodeswillalso berequiredforeachphaseorsite,tobepreparedbythedeveloperand approvedbyMiltonKeynesCouncilandMiltonKeynesPartnership(or anysuccessorbodies). Theprinciplesofthedevelopmentarethatdevelopmentshould: 1.ProvideasustainableurbanextensiontoMiltonKeynes,providinga maximumintheregionof2,5002,900homes 3.Maintainthecharacterandintegrityofexistingsettlementsand provideclearseparationbetweenthenewdevelopmentandadjacent existingsettlements 6.Safeguardlandfortheprovisionofamultimodaltransporthubhigh qualitytransportinterchangeincorporatingaparkandridesiteinline withtherequirementsofPolicyCS1..
7.Apply,asaminimum,thestandardsoftheCouncilfor sustainableconstructioninforceatthetime.withtheaimof creatingazerocarbonandwaterefficientdevelopment.

8.Meettherequirementforastrategicapproachtothedeliveryofa communityenergynetworkConsidertheuseofcommunityenergy networksinlinewithPolicyCS15 10.Providenewsocialandcommercialfacilitiesandservices,andwhere possibleimprovefacilitiesintheexistingsettlements,tomeetthedayto dayneedsofnewandexistingresidents. 13.ThedeliveryofdevelopmentwillbethroughtheMiltonKeynesTariff anupdatedtariffand/orframework.and/orSection106and/or CommunityInfrastructureLevyagreementtoprovideforcontributionsto onandoffsitestrategicandlocalinfrastructureinaneffectiveand timelyway,assumingthedevelopmentgains(outline)planning permissionbeforeaCommunityInfrastructureLevyChargingScheduleis adopted(orApril2014,whicheverissooner).Thismustincludefinancial contributionstotheimprovementandextensionofinfrastructureand facilitiesinnearbyexistingsettlementswhicharemadenecessarybythe development. 14.EmploymenttocontributetotheBoroughwidetargetof1.5new jobspernewhome(51)achievementofthePlansemployment objectives. 15.Homeswitharangeofsizes,typesandtenure,includingaffordable housingatalevelinlinewiththeCouncilscurrentSPD,orsuccessor policyinaccordancewithPolicyCS10orsuccessordevelopmentplan policy. 16.Retailandcommercialdevelopmentofanappropriatescaletoensure theweeklytopupconvenienceshoppingneedsofnewandexisting residentsinthedevelopmentareaaremet. 18.Aproportionatecontributiontoneworupgradedtransport infrastructurethatismadenecessarybythedevelopment.The infrastructurewillincludetheduallingoftheA421betweentheKingston FenroundaboutandtheM1Junction13andanewmultimodalhubhigh qualitytransportinterchangeincorporatingaparkandridesiteinline withtherequirementsofPolicyCS11..
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20.Safeguardlandforafuturebridgeoverand/orjunctionwiththeM1 (J13a). Addnewprincipleasfollows: Technicalworkwillberequiredtofullyassessthetrafficimpactofthe developmentontheroadnetworkwithinthecity,nearbytownand districtcentresandadjoiningruralareas,andtoidentifynecessary improvements. Amendline3ofparagraphasfollows: servicesandinfrastructureinthecityandnearbyvillagesandwill require RevisepolicyCS6asfollows: Whenandifdevelopmentcomesforwardforanareaontheedgeof MiltonKeyneswhichiswhollyorpartlywithintheadministrative boundaryofaneighbouringauthoritythisCouncilwillputforwardthe followingprinciplesofdevelopmentduringthejointworkingon planning,designandimplementation: 1.Thelocalauthoritieswillworkjointly 2.Asustainable,safeandhighqualityurbanextensionshouldbe created 3.Astrategic,integratedandsustainableapproachtowaterresource management 4.Thedesignofdevelopmentshouldrespectitscontextaswellasthe characteroftheadjoiningareasofthecity. 5.Linearparks 6.Technicalworktobeundertakentofullyassessthetrafficimpactofthe developmentontheroadnetworkwithinthecity,nearbytownand districtcentresandadjoiningruralareas,andtoidentifynecessary improvementstopublictransportandtotheroadnetwork,including parking. 7.Arouteforthefutureconstructionofastrategiclinkroad(s)andorrail linkshouldbeprotectedwherenecessary. 8.Newsocialandcommercialfacilitiesandservices 9.TheopportunityfornewParkandRidesites. 10.Thepotentialofasiteforaregionallysignificantsportingfacility shouldbefullyexploredandconsideredwithin,orcloselyrelatedto,the developmentarea. 11.Thelocalauthoritiesandtheirpartnerorganisations Addattheendofthisparagraph: andotherauthoritiesincludingthelocalParishCouncil. Inthekeytofigure7.1insertthewordprimaryinfrontofshopping area,toread: PrimaryShoppingArea CentralMiltonKeynesisamodernandcarefullyplannednewcitycentre butneedstocontinuetoevolveandchange.Itwillretainandenhanceits roleasasubregionalcentreandthecitysfocusforretail,(withinthe definedPrimaryShoppingArea)office,hotel,leisureandcultural development,togetherwithnewhousingandrelatedfacilities.(SeePolicy CS4RetailDevelopmentandTables5.6aand5.6bAmountofadditional retailfloorspacerequiredinMiltonKeynesandsupportingtext TheSiteAllocationsDPDwillassesswhetherweneedtoidentifynew sitestomeetourhousingtargetsortohelpdeliveryoftheCoreStrategy Objectives.TheSiteAllocationsDPDwillallocatenewnonstrategicsites toprovideflexibilityandcontingencytoexistingsupplyortohelpdeliver theCoreStrategyobjectives.Inassessingsites,wewillgivepriorityto thosethatwillsupporttheobjectivesinPolicyCS8OtherAreasof Change. TheCouncilwillworkwithMiltonKeynesPartnership(oranysuccessor bodies)theHomesandCommunitiesAgency,developersandregistered sociallandlordstomeettheCouncilshousingrequirement,assetoutin PolicyCS2HousingLandSupply Newandrefurbishedhousingshouldmeettheneedsandaspirationsof theexistingpopulationandofthefutureresidentsbytheprovisionofan appropriaterangeofsizes,values,styles,tenuresanddensities.Infill developmentsshouldrespectthestyleandscaleofbuildingsandthemix ofdwellingtypesoninthesurroundingarea. HousingshouldmeettheCouncilsadoptedstandardsofenergy efficiency,renewableenergygeneration,carbonneutrality,safetyand lifetimehomes.Somedwellingsshouldsupporthomebasedworking andallhomesshouldhavehighqualityICTconnectivity.
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Residentialneighbourhooddesignshouldencourageaccessbywalking, cyclingandotherformsofnoncartravelwithintheneighbourhoodand acrossthecity.Carparkingstandardsshouldmeettheprojectedlevelsof carownership(inadditiontovisitorparking). TheCouncilwillplantomeetspecifichousingneedsacrosstheBorough includingthefollowing:affordablehousing,multipleoccupancy,elderly persons,specialneeds,singlepeople,religious,ethnicorlifestylegroups. Theserequirementswillbecoveredinfurtherplanningandhousing managementguidance. AnaffordablehousingtargetwillbesetinthePlan:MK.Intheinterim, theamountofaffordablehousingsoughtonqualifyingsites,assetoutin theAffordableHousingSupplementaryPlanningDocument2007(or successorAffordableHousingSPD),willcontinuetobedeterminedin accordancewiththesavedadoptedLocalPlanPolicyH4targetof30%on allsitesof15ormoreunits. Fortravellersites,alocalassessmentofneedwillbeundertakeninline withnationalpolicyrequirements.Thiswillrequirecollaborativeworking withtravellers,representativebodies,supportgroupsandotherlocal authorities.ThiswillbecompletedaspartofthePlan:MKandwillinform theallocationofsites,whereaneedisidentified,withinthatplan.Inthe interim,needwillbemetinaccordancewithnationalpolicyandsaved adoptedLocalPlanPolicyH12. 10.6LocalPlansavedPoliciesH4andH5currentlyrequire30% affordablehousingprovision,subjecttositeandmarketconditions.This figure,anyfuturetargetsandissueswiththeaffordabilityatpointofsale, willbereviewedintheDevelopmentManagementDPDPlan:MKtaking intoaccounttheneedsofMK'scurrentresidentsandtheirchildren,the demographicmixofpeopleitishopedwillmovetoMK,andfinancial viability.AffordablehousingintheExpansionAreasisprovidedunderthe Tariffagreement.TheAffordableHousingSPDprovidesadditional guidanceon,forexample,tenuremix.TheSPDwillbeupdatedwhen necessaryinlightofthelatestassessmentofneedorchangesinfunding regimes. 10.7TheaffordablehousingrequirementsintheStrategicReserveAreas LandAllocationwillbesetoutinthedevelopmentframeworkforthose areasandreflectthesavedLocalPlanPolicyH430%target. 10.8TheSiteAllocationsDPDwillallocateasiteforTravelling Showpeopleand,ifnecessary,anewsite(s)forGypsiesandTravellers, subjecttothefindingsofafutureMKBoroughreview.TheDevelopment ManagementDPDwillcontaindetailedsitecriteriafortheprovisionof GypsiesandTravellersSites.ThePlan:MKwillallocatesitesforTravellers, (subjecttothefindingsofthelocalassessmentofneed). 10.9TheDevelopmentManagementDPDPlan:MKwillincludepolicy .guidanceon"LifetimeHomes"orequivalentstandards. 10.10Housesinmultipleoccupation(HiMOs),areakeyissuewhichwill beisaddressedbythedevelopmentofanewDevelopmentPlan DocumentorSupplementaryPlanningDocumentadoptedinApril2012. Improvingpublictransport,makingbetteruseofexistinginfrastructure andencouragingcyclingandwalkingarealsoCouncilpriorities Insertnewparagraphafter11.2toread: TheLTP3TransportVisionandStrategyObjectivesdescribetheroleof transportinachievingtheobjectivesthroughreferencetohighlevel interventionsandconcepts.TheTransportStrategyconsistsofseven strategystrandscontaininginterrelatedinterventionsthatdirectly addressthekeyissuesidentified: PublicTransport:rail,bus,interchange,communitytransport,taxi andprivatehire,futuremodesoftransport(andpublictransport safetyandsecurity). CyclingandWalking:infrastructureandpromotion(includingsafety andsecurity). SmarterChoices:behaviouralchangetechniques. HighwaysandTrafficManagement:thefastandefficientmovement ofpeopleandgoods,congestion,freight,parking,airquality,androad safety. Technology:informationprovision,webbasedtechnology,future modesoftransport,andalternativefuels. InfrastructureManagement:highway,Redwayandotherasset management. DevelopmentPlanning:integratedplanningandframeworks. Improvementstopublictransport,makingbetteruseofexisting infrastructureandprovisionforcyclingandwalking
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TheCouncilstransportstrategyhasthemainpublictransportroutes linkingCentralMiltonKeynesandtowncentres(themainfocusfornew jobs)withtheExpansionAreasandStrategicReserveAreasLand Allocation.TheNorthSouthrouteconnectstheareasoflowcar ownership.Theseareaswillbenefitfrommorefrequentandmoredirect services.ParkandRideandinterchangefacilitiesontheedgeofthecity andanimprovedtransportinterchangeattheCentralMiltonKeynesrail stationshouldaimtoreducethenumberofprivatecarjourneysinto CentralMiltonKeynes.Thisiscurrentlyunderreviewwasreviewed throughthepreparationoftheLocalTransportPlan3(LTP3). Improvementswereunderconstructionin2010.AnewJunction13a wouldimproveaccesstoandfromtheM1andlandwillneedtobe safeguardedforfuturecrossingsoftheM1. Includetwoadditionalparagraphsafterparagraph11.13toread: TheChancellorannouncedinNovember2011thatEastWestRail fundingof270mwouldbemadeavailableprovidingthattheEastWest RailConsortiummettwoconditions.Firstly,astrongbusinesscaseforthe routewasrequiredandsecondlyacommitmentbylocalauthoritiesalong theroutetocontribute50milliontothecost. FurtherGovernmentannouncementsinJuly2012haveagainconfirmed supportforEastWestRail.Bothpreconditionshavebeenmetandthe WesternsectionofEastWestRailwillformpartofthegovernments strategyforrailtransport,withtheprojectlikelytoproceedintheperiod 20142017. MiltonKeynesCouncilacceptsthatEastWestRailwillcontributetothe growthanddevelopmentofMiltonKeynesandprovideanexcellent opportunityfortheBoroughinboththelocalandregionalcontextwhich willprovidesignificanteconomic,environmentalandsocialbenefits. MiltonKeynesCouncilisamemberoftheJointDeliveryBoardsetupby theEastWestRailConsortiumasameansofengagementfortheeight authoritiesEastWestRailwillrunthrough. TheCouncilwillseektoengagewithNetworkRailandrelevant stakeholdersalongtherouteoftheEastWestRaillinethroughthe Boroughtoestablishwhetheranyoperationalbenefitsorimprovements tomoresustainableformsofnoncarbornejourneyscanberealisedwith theimplementationofthisproject.
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MaximisingthecapacityoftheBoroughshighwaynetworkthrough phasedimprovementsinstepwithhousingandemploymentgrowth(for exampletheduallingoftheA421,anewjunction13aontheM1and improvementstokeyroundaboutsonthegridnetwork). PolicyCS11,Item8shouldbedeletedandthefollowinginsertedinits place: 8.Thehighwaynetworkwillbeservedbyhighqualitytransport interchangeswelllocatedtotransportnodesandthestrategichighway network,andbyParkandRidesitesontheedgeofthecityandinclose proximitytothestrategichighwaynetwork. InsertadditionalpolicytoPolicyCS11asitem9,toread: ToengagewithNetworkRailandrelevantstakeholdersalongtheEast WestRaillinetoidentifyoperationalbenefitswhichtherebyprovides additionalsupportforamoresustainabletransportstrategyand/or economicgrowthoftheCity. PolicyCS11shouldbereorderedtoreadasfollows:(includingchangesto textalreadymadeelsewhere): AWellConnectedMiltonKeynes TheCouncilwillworkwithneighbouringlocalauthoritiesandtransport providerstomeetthedemandfor:increasedmovementofpeopleand goods,improvedaccessibilityacrosstheBorough,improvedsafetyand qualityoflifeandareductionintheBorough'scarbonfootprint. OvertheCoreStrategyperiod,themeasuresusedwillinclude: 1.Astepchangeinimprovementstopublictransportincludingacore publictransportnetwork,withCentralMiltonKeynesatitshub,serving keytripgeneratorsandtocaterforspecificareasandtypesofpublic transportneed.Newbusserviceswillbeprovidedtomajornewareasof developmentwhensufficientbuildingsareoccupied. 2.Moresustainabletransportchoicesforcarownersandinformationand measurestoencouragethemtousenoncarmodesformorejourneys.
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3.EncouraginggreatermovementwithintheBoroughbycyclingand walkingthroughimprovementstotheexistingRedwaynetworkandother pathsincludingmoredirectroutes,enhancedfacilitiesandsignage, betterintegrationwithtransportinterchangehubs,andimproved surveillance;andbyextendingtheRedwaysnetworkthroughoutmajor newdevelopmentareas(includingthecreationofroutesthatareshorter thantheequivalentroadjourney). 4.Planningthedevelopmentoflargehousingandemploymentareas, health,education,leisure,sports,emergencyservicesandotherkey facilitiessothatitiswellservedbypublictransportandeasilyaccessible bywalkingandcycling.ThisappliesparticularlytoCentralMiltonKeynes, townanddistrictcentreselsewhereintheBorough,theEasternand WesternExpansionAreas,theStrategicLandAllocationandKey Settlementsintheruralarea. 5.Demandmanagementinordertohelpachieveashiftfromjourneysby cartomoresustainabletransport. 6.Maintainingandfutureproofingthecitysgridroadnetworkand extendingitintonewdevelopmentareaswhilstsafeguardingthe corridorsforpossiblemasstransitschemes. 7.MaximisingthecapacityoftheBoroughshighwaynetworkthrough phasedimprovementsinstepwithhousingandemploymentgrowth(for exampletheduallingoftheA421andimprovementstokeyroundabouts onthegridnetwork). 8.Thehighwaynetworkwillbeservedbyhighqualitytransport interchangeswelllocatedtotransportnodesandthestrategichighway network,andbyParkandRidesitesontheedgeofthecityandinclose proximitytothestrategichighwaynetwork. 9.ToengagewithNetworkRailandrelevantstakeholdersalongtheEast WestRaillinetoidentifyoperationalbenefitswhichtherebyprovides additionalsupportforamoresustainabletransportstrategyand/or economicgrowthoftheCity. Insertnewparagraphafterparagraph11.14toread: MiltonKeynesCouncilconsiderstheA421intwoways; 1. thatpartoftheA421inMiltonKeynesasthelocalandregional partofthetrafficnetwork 2. thatpartoftheA421inCentralBedfordshireaspartoftheregional partofthetrafficnetwork. MiltonKeynesCouncilexpectstheduallingofthatpartoftheA421in MiltonKeynesthatismadenecessarybynewdevelopmenttobefunded proportionatelybydevelopercontributions. MiltonKeynesCouncilexpectstheduallingofthatpartoftheA421in CentralBedfordshiretobefundedfullyaspartofaregional/subregional projectpromotedjointlybyMiltonKeynesandCentralBedsorpromoted bySEMLEP. (IfthereisashortfallinfundingforthelocalMiltonKeynespartofthe A421dualling,itwouldbeincludedintheregional/subregionalproject.) RewordParagraph11.15toread: 11.15ThepriorityschemessetoutinLTP3andtheMKPLocal InvestmentPlanare: 1. PublicTransport 1. MKStarBusNetwork 2. Semiflexibleurbanfeederservices 3. Increasepeakfrequencyruralservices 4. Improvedinterchanges 2. CyclingandWalking 1. Promotion,educationandtraining 2. Improvedsignage 3. journeyplanning 4. ExpansionofredwaynetworkintoCMK,new developments,regenerationareasandwherepossible theoldertowns 3. SmarterChoices 1. Travelplanning 2. Carsharing 3. Carpooling 4. Broadbandenhancements 4. HighwaysandTrafficManagement,RoadSafetyand InfrastructureManagement
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1. Networkmanagementplan 2. Peakspreadingoftraffic(spreadschoolandbusiness workhours) 3. RefreshofLorryManagementStrategy 4. Improvedfreightpartnershipworking 5. DevelopmentPlanning 1. ExtensionofgridroadsintoandthroughfutureExpansion Areas 2. DevelopHighwayDesignGuide 3. Appropriateparkingstandardsfornewdevelopmentsand inregenerationareas 4. Improvedintegrationofspatialandtransportpoliciesand improvedpartnershipworking MM53 69 11.15 Insertnewparagraphsafter11.15toread: LTP3setsouttheBoroughspoliciesandprogrammefordeliveringlocal, subnationalandnationalpolicyobjectives;includingtheboroughs SustainableCommunityStrategy(SCS)andthespatialplanningpoliciesof theCoreStrategy.ItalsoenablestheBoroughtoplanstrategicallyfor transport,helpingachievebroadergoalsforsaferandhealthier communities,abetterurbanandnaturalenvironment,adynamic, prosperouslocaleconomy,andgreateropportunitiesforall. AkeyaspectoftheLTPistheCouncilsroleasapartner,workingwith residents,businesses,transportoperators,centralgovernment,andother localpartnerstoachievearangeofimprovementstothetransport networkandtransformthewaythatpeopletravel. SomeofthemeasuresandproposalsinLTP3canbeimplementedbythe borough,usingitsstatutoryplanning,highwaysandnetwork management,andparkingpowers. Otherinterventions,particularlylargerprojects,willbedeliveredin partnershipwiththeHomesandCommunitiesAgency,theHighways Agencyandtransportoperators,localbusinessesandorganisations,and thewidercommunity.LTP3alsodrawsontheMiltonKeynesandSouth Midlands(MKSM)subregionalwork. RewordParagraph11.22toread: LTP3andotherCounciltransportstrategieswilldevelopanappropriate casebycaseresponse. DeletePolicyCS14andrewordpreamblein12.19byadding: TheCouncilwillcontinuetoimplementLocalPlan(2005)policyD4untila newrevisedpolicycanbetestedthroughthepreparationofPlan:MK. Thiswilllookatthetechnicalfeasibilityofamendingcurrentstandards andtheeconomicviabilityofdoingsoinrelationtootherCouncilpolicies andplanningobligations. Deleteparagraphs12.20,12.21and12.23 RewordCS15asfollows: TheCouncilwishestopromotetheuseofrenewableenergyschemes whereitcanbedemonstratedthattherewillnotbeanynegativesocial, economicorenvironmentalresultsfromthescheme. TheCouncilalsohasthefollowingrequirements: 1.Fordevelopmentsofmorethan100homes,applicationshouldshow thatthepotentialforcommunityenergynetworkshasbeenexplored 2.Fordevelopmentsofmorethan200homes,applicationswillrequire communityenergynetworks,unlessitcanbeproventhanitisnot feasibleontechnicalgroundsoreconomicgrounds Proposalsforover100homeswillbeencouragedtoconsidertheuseof communityenergynetworksintheirdevelopment. 3.Regardlessofthenumberofhomesinaproposal,Whereanexisting localcommunityenergynetworkisestablished,developmentswillbe expectedtoconnecttothenetwork,iffeasible. Deletenotinline3andreplacelastsentencewith: Tomeettheneedforruralhousingandprovidecontingencyfortherest oftheboroughtheSiteAllocationsPlanwillprovideaplanledapproach toidentifysiteswhicharenotstrategic.
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ReplaceTable18.1withthefollowingtables: Table18.1BoroughwideHousingFigures Year Totalhousingstock 2006 94,147 2010 101,362 2026 129,362 Predictedincrease(2010to 28,000 2026) Table18.2BoroughwidePopulationFigures Year Totalpopulation 2006 224,760 2010 240,990 2026 298,450 Predictedincrease(2010to 57,460 2026) Amendexplanatorytext 18.8N.B.Weonlyhaveapopulationforecastto2026fortheBoroughas awhole,notforthecity,partsofthecityortherestoftheBorough.The increaseintheBoroughshousingstockbetween2006and2010reflects actualhousingcompletions(7,720),lessdemolitions.Theincrease between2010and2026reflectstherevisedhousingtargetssetoutinthe CoreStrategy(16years@1,750newhomesperyear=28.000). 18.9Thereisnodirectrelationshipbetweentheincreaseinthetotal housingstock(2010to2026)andtheincreaseinthetotalpopulationof theBoroughoverthesameperiod;thechangetothetotalpopulation reflectsnotonlythelevelofnewhousebuildingproposedbutalso changestobirth,deathandmigrationratesandotherchangeswithinthe existingpopulation.Thesechangeswillnotaffectallagegroupsequally; asnotedelsewhereintheCoreStrategy(paragraph2.5),therewill continuetobearelativelyhighnumberofchildreninthefuture, particularlythe516agegroup,butalsomanymoreelderlyresidents (aged60+_.AppendixFsetsoutthelatestpopulationprojectionseach year,withadditionalupdateswhennecessary,e.g.toreflectthechange tothehousingtargetintheCoreStrategy. Replacewordinginthirdcolumn,eighteenthrowasfollows: ReplacedbyCoreStrategyPolicyCS14Plan:MK AndupdateallotherreferencesinAppendixCtoDevelopment ManagementDPDandSiteAllocationsDPDwithPlan:MKorSite AllocationsPlan Replacetable17.1andAppendixDwithfollowingtable:
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IndicatorBundles Localsatisfactionsurvey RisksandEvents ActionsandContingencies
Objective All
KeyDeliveryPolicies All
1 Netadditionaldwellingssplitby area Projectednetadditionaldwellings 5yearhousinglandsupplyHousing trajectory Populationgrowth
CS1 MiltonKeynes DevelopmentStrategy CS2 HousingLandSupply CS5 StrategicLand AllocationReserve Areas CS7 CentralMiltonKeynes CS8 OtherAreasofChange CS9 StrategyfortheRural Area
Targets Increaseinproportionofthe populationissatisfiedwiththelocal area By2016,deliver10,500dwellings withinMiltonKeynesBorough By2026,deliver28,000dwellings withinMiltonKeynesBorough Deliver,onaverage,110dwellings perannumintheruralareaupto 2026 AdoptionofanSPDfortheStrategic LandAllocationReserveAreasby end2012 AdoptionofthePlan:MK(newLocal Plan)SiteAllocationsDPDbyend 20122015 Ensurea5yearsupplyof deliverablehousingland Housingmarketfailstoimprove resultinginannualcompletions consistentlymorethan20%below thehousingtrajectory Someexistingallocationsand permissionsprovetobeunviable Largestrategicsitesnotbeing deliveredorarebeingdeliveredtoo slowlyduetomarketconditions A421improvementsdelayed Releasetoomuchlandatoncein theruralarearesultinginwellover 120110dwellingsperannumbeing delivered Housingdemandimproves significantlybutthesupplyofland doesnotprovideanadequate bufferorrangeofsites.
TodevelopMiltonKeynesasamajor 21stcenturycity Todeliverlandforatleast28,000new homeswithintheBoroughbetween 2010and2026.Thiswill comprise: Anallocationofamaximuminthe regionof2,500homestothe southeastofthecityintheareas identifiedasStrategicReserve Areassoutheastofthecityinthe LocalPlan,plusadditionalland betweenSR2andSR3. Completionofdevelopmenton existingLocalPlansitesandland withplanningpermission comprisingapproximately24,000 homes1,200homesin sustainablesettlementsinthe ruralarea
Workwithlandowners,developers andJDTstohelpunblockschemes andassistinpotentialfutureland assembly Earlyengagementofkey stakeholdersincreatingthe developmentframeworkforthe StrategicLandAllocationReserve Areas Undertakeviabilityassessmentsto identifycauseofslowcompletions rate Continuetomonitorandupdatethe housinglandsupplythroughthe SHLAAandJHDTandother methodologyidentifiedas appropriatebytheMKCPartnership andGrowthSelectCommittee (2010/2011) Considerallocationofadditional sitesinapotentialfuturereviewof theplanMK(newLocalPlan)Site AllocationsDPDiffurtherland releaseisdeemednecessary Revisedevelopmentframeworks andmasterplans Focusavailableresourcesonkey projects,suchastheA421,to ensureontimedelivery Fortheruralarea,haveacontrolled releaseofsites(following consultationwithParishandTown Councils)inreviewsoftheplanMK (newLocalPlan)SiteAllocations DPDtoensurethatdevelopmentis phasedoverthelifeoftheplan Ifmarketconditionschange significantlythenconsideranearly reviewoftheCoreStrategy BringforwardSiteAllocationswork inparallelwiththeworkonthe reviewoftheCoreStrategythrough Plan:MKinordertoensurethat thereisa20%bufferinthe5year supplyofsitesandreasonable choiceandcompetitioninthe market
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Objective Toworkjointlywithneighbouring authoritiesandotherkey organisationsontheplanningofany developmentlocatedontheedgeof MiltonKeynes(butoutsidethe currentMKboundary)sothatthese areasareintegratedwiththecityand contributetoitsroleandcharacter
KeyDeliveryPolicies Targets IndicatorBundles CS5 StrategicLand AdoptionofanSPDfortheStrategic Netadditionaldwellingssplitby AllocationReserve LandAllocationReserveAreasby area Areas end20123 CS6 PlaceshapingPrinciples forSustainableUrban ExtensionsinAdjacent LocalAuthorities
3 By2016,deliver15,750jobs(1.5 jobsperdwelling) By2026,deliveraminimumof 42,000jobstosupporthousingin theMK(1.5jobsperdwelling) LAAtargetforpercentageIIncrease inVATregisteredbusinesses showinggrowth
CS3 EmploymentLand Supply CS7 CentralMiltonKeynes CS16 DeliveringEconomic Prosperity CS17 SupportingSmall Businesses
Toallocateandmanagethe developmentofemploymentland andpursueavigorouseconomic developmentstrategysufficientto deliveraminimumof1.5jobsfor everyhousebuildinMiltonKeynesso thatthebusinesssectorandlocal economyaresupported,existing firmscanexpand,newfirmsare attracted,thelevelofworkingskills amongthelocalpopulationis enhancedandthearea'sresident populationcanfindworklocally
RisksandEvents SouthWestSDAandCentral BedfordshireportionoftheSouth EastSDAareslowincoming forward DevelopmentadjacenttoMilton KeynesisintheSouthWestSDA andCentralBedfordshireportionof theSouthEastSDAaremaster plannedoutofcharacterwith MiltonKeynes Netadditionalfulltimeequivalent Mismatchbetweenavailable jobsperannum employmentsitesandDPD(or futurereviews)thoserequiredby Completedemploymentfloorspace business byuseclass Totalemploymentlandavailablefor Jobgrowthdoesnotmeettargetof 1.5newjobsperdwellingis development insufficientresultinginincreased Employmentlandjobdensities outcommutingandunemployment Lossofemploymentlandtoother Availableemploymentlocationsnot uses desirabletodevelopers Vacantemploymentspace Overallemploymentrate Numberofpeopleclaimingjob seekersallowance VATregistrationrate VATregisteredbusinessesshowing growth GVApercapita Grossearnings Impactofdirecteconomic investment
Toassistgreatereconomicprosperity byimprovingthelocalopportunities forlearningandtoincreasethelocal levelofknowledgeandskillsthrough theestablishmentofaMKuniversity, andsupportthedevelopmentofMK CollegeandtheScienceand InnovationInitiative
CS3 EmploymentLand Supply CS16 DeliveringEconomic Prosperity
Workingagepopulation qualificationlevels Socioeconomicgroupingsof workingagepopulation GVApercapita Grossearnings Impactofdirecteconomic investment
ActionsandContingencies Workwithadjoiningauthorities, landowners,developersandJDTsto helpunblockschemesandassistin landassembly Activelyengagewithadjoining authoritiesanddevelopersduring thedevelopmentframework process Continueworkingwithothernearby authoritiesthroughtheSEMLEP planningofficersforum Considerchangingemployment allocationsthroughtheplanMK (newLocalPlan)SiteAllocations WorkwithMKPHCAasthemajor landownertoprogress developmentofarangeofsites Createincentivesforbusinessto locateinMiltonKeynes Workonsupportmechanismsfor existingsmallandmedium businesses RegularlyupdateEmploymentLand Reviews Workwithpartners,suchasInvest MK,tomarketMKasadesirable employmentlocation Investigateopportunitiesto considerallocatinghousingsites thatarenotcomingforwardas employmentsites Shouldtheemploymentneedsof theBoroughchangedramatically andunderminetheassumptions behindtheCoreStrategy,thena partialreviewcouldbeconsidered Insufficientlandforschoolstomeet WorkwithMKELPMKGatewayand pupilyield otherdeliverypartnerstosecure furtherfundingfortheproject Insufficientfundingsecuredfor progressionofMiltonKeynes InvestigatewhatfurtherrolesMK Universityproject CollegeandtheOpenUniversity andotherscancontribute Decreaseintheproportionofjobs inknowledgebasedindustries AfallintheskillslevelofMilton Keynesresidents
Developmentofanaccredited universityby2020 DevelopmentoftheScienceand InnovationHabitat Increaseinproportionofnet additionaljobsinknowledgebased industries IncreaseinBy2011,74.1%ofthe workingagepopulationqualifiedto NVQ2andabove,asperthe EconomicDevelopmentStrategy, 20112016 IncreaseinBy2011,34.4%ofthe workingagepopulationqualifiedto NVQ4andabove,asperthe EconomicDevelopmentStrategy, 20112016
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Objective Topromotethedevelopmentof CentralMiltonKeynesasthevibrant culturalcentreofthesubregionby makingitthemainlocationwithinthe cityforretail,leisure,culturaland largerofficedevelopments(around 12,000m2ofofficefloorspaceper year)andforupto5,000homesby 2026
KeyDeliveryPolicies CS2 HousingLandSupply CS3 EmploymentLand Supply CS4 RetailandLeisure Development CS7 CentralMiltonKeynes
IndicatorBundles Officedevelopmentcompletedin CMK Netadditionaldwellings VacantofficespacewithinCMK Grossadditionalretailandleisure floorspacewithintowncentres Grossadditionaloffice,retailand leisurefloorspacethatisoutof centre
RisksandEvents Developmentpressureforretail, culturalandleisureusesinother areasoftheBorough ResidentialgrowthinCMKslows OtherlocationsintheBorough provemoreattractiveformajor officeschemes
ActionsandContingencies ReviseCMKSPDs WorkwithHCAMKPasthemajor landownertopromoteCMK Revisedevelopmentframeworks andmasterplanstoconsiderchange inmarkets WorkwithDevelopment ManagementDCOfficersand Memberstodeliverpolicy effectively Workwithpartnerstopromote CMKandimprovetheimageofthe city
6 Facilitiesandservicesauditofrural townsandvillages
Targets By2016,deliver72,000m2of completedofficefloorspaceinCMK By2026,deliver192,000m2of completedofficefloorspaceinCMK By2021,deliver1,800dwellingsin CMK By2026,deliver5,000dwellingsin CMK Majorityofretailandleisure developmentwithinMiltonKeynes tobelocatedwithinCMK Adoptionof3additionaldesign SPDsforCMKby2012 AdoptarefreshoftheCMK DevelopmentFrameworkin2012 Nosignificantlossofservicesand facilitiesinruralareas Despitepolicy,servicesandfacilities inrurallocationsarelost
Toseektheprotectionofexistingkey CS9 StrategyfortheRural Area servicesandfacilitiesinsustainable CS18 Improvingaccessto ruralsettlementsandtoencourage localservicesand thedevelopmentoffurtherprovision, facilities includingshops,education, communityandhealthservices
CS8 OtherAreasofChange CS19 HealthierandSafer Communities
Reducedavailabilityoffunding resultsindifficultyindelivering outcomes Resistancetochangefrom communities
Toaimtoreducehealthinequalities, deprivationandimprovehousing qualityandaccesstoservicesfor thoselivingintheareastargetedby thesuiteofdocumentsthatformthe RegenerationStrategy,aswellasany otherareasidentifiedduringtheplan period DevelopNeighbourhoodAction Plansfortargetedestates LimitBy2011,keepto5.9%the numberof16to18yearoldsnotin education,employmentortraining to5.9% ImprovementinIndexofMultiple Deprivationintargetedestates
Earlyengagementwithservice providers,suchastheNHSandPost Office,andtheprivatesectorto ensurecontinuedserviceprovision Considerneedforadditional allocationsinrurallocationsto supportservicesandfacilities WorkwithDevelopment ManagementOfficersandMembers todeliverpolicyeffectively Identifykeyprioritiessofundingis focusedtodeliverthemost importantoutcomes Seekalternativefundingsources ConsiderdevelopingAAPsor NeighbourhoodPlansfor regenerationareastoevaluate options
CS10 Housing Tofacilitatethedeliveryofhousing thatmeetstheneedsofallsectionsof thecommunitythrough: Providingsufficientdevelopable landfornewhousing Constructionofviablelevelsof diversehousingincluding affordable,supportedand specialisthousing Takingaccountoftheneedfor housesinmultipleoccupation
Changeinhousingneed Housetypesdeliveredby developersdonotmeethousing needs Lowcompletionratesofaffordable housing Asignificantincreaseinproperty prices/costs Ifsitesarenotallocatedthereisa riskofunauthorisedsitesand/or sitesobtainingplanningpermission byappeal
IndexofMultipleDeprivation Standardisedmortalityratio Lifeexpectancy Ethnicity Unemployment Crimerates Workingagepopulation qualificationlevels Grossearnings Tenure Affordablehousingcompletions splitbytypesocial rent/intermediate Typeandsizeofhouseholds completed Affordablehousingcompletionsin theruralarea DwellingsmeetingLifetimeHomes standards Houseprices Gypsy,TravellerandTravelling Showpeoplepitches HiMOapplicationdecisionsand locations
Deliver30%ofresidential completionsasaffordablehomes 3,150affordablehomesby2016 Deliver8,400affordablehomesby 2026 DelivertheadditionalGypsyand Travellerpitchesasrequired followingaMiltonKeynesBorough surveyneedsassessment DelivertheadditionalTravelling Showpeopleplotsasrequired followingaMiltonKeynesBorough surveyneedsassessment AdoptionofanAffordableHousing SPDby20122013 AdoptionofaHousesinMultiple Occupation(HiMO)SPDby2011 2012
EnsureSHMAisregularlyupdated Ensuremasterplansand developmentframeworksarein linewithhousingneed;ifnotthen review WorkwithDCDevelopment Managementofficers,Members andDeveloperstoensurehouse typesareinlinewithrequirements WorkwithHCAMKPandRSLs RegisteredProviderstoidentify fundingforaffordablehousing Workincollaborationwith travellers,representativebodies, supportgroupsandotherlocal authorities Ensureaffordablehousingisnot compromisedinsection106
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18
Objective
KeyDeliveryPolicies
IndicatorBundles
RisksandEvents
ActionsandContingencies negotiations
Modalshiftfromcarstopublic transport,walkingandcyclingfails toincreasesignificantly Congestionincreasesaremuch higherthanforecastreducingthe capacityofthegridroadsystem
Journeysonlocalbusservices Accesstoahospitalbypublic transportwithin30minutes Passengersusingcommunity transport Bussatisfactionsurveys Buspunctuality CyclejourneystoCMK CarsenteringCMKinpeakhours Congestion Airquality
Revisitparking,bus,walkingand cyclingstrategiestoencourageuse ofpublictransport,iftheyare deemednottobeworking Revisetransportmodels Workwithtransportcolleaguesto reviewtransportstrategy Implementfurtherdemand managementmeasuresto reduce/limitcongestion Reviewprogrammeofhighway improvementsintheMKPLocal InvestmentPlan
Highsustainableconstruction standardsaffectviabilityof development Wastetolandfillisnotsignificantly reduced FailuretomeetLocalTransportPlan objectivesresultinginincreasedCO2 emissionsfromtransport
Targets AdoptionoftheDevelopment ManagementDPDPlanMK(new LocalPlan)bymid2014byend 2012 CS11 AWellConnected Allnewresidentialdevelopment MiltonKeynes shouldbesitedwithin400mofa CS22 Delivering busstop Infrastructure LocalTransportPlan2(LTP2)3 (LTP3)targetforlocalbuspassenger journeys AdoptionofLocalTransportPlan3 byend2011 AssistindeliveringEastWestRail servicestoOxfordandAylesburyby 2021 LTP3LTP2targetformodalshareof schooljourneys Allnewresidentialdevelopmentsto bewithinwalkingdistanceofkey servicesandfacilities Reducecongestiongrowth(target beingdevelopedinLTP3LTP2) Noairqualitymanagementareas withintheBorough CS14 Sustainable Allnewdevelopments(ofoverfive Construction dwellings)todeliveraminimumof CS15 CommunityEnergy 10%oftheirenergyrequirements NetworksandLarge fromrenewablesources ScaleRenewableEnergy Allnewresidentialdevelopmentsto Schemes achieveaminimumoflevel4Code forSustainableHomes(CSH)rating By20202011,achievea2212% reductioninCO2emissionsper capitafroma2005base
Percentageofenergyinnew developmentsfromrenewable sources Amountofrenewableenergy providedfromstrategicenergy developments NewdwellingsachievingCSHlevel4 Newdevelopmentsover200 dwellingswithacommunityenergy network NationalIndicator185:CO2 reductionfromLocalAuthority operations NationalIndicator186:Percapita reductioninCO2emissionsinthe LocalAuthorityarea NationalIndicator188:Planningto adapttoclimatechange
Conductfurtherviabilityanalysisof sustainableconstructionstandards Considerintroducingflexibilityin therequirements Reviewsustainableconstruction requirementsinthePlanMK(new LocalPlan)separateDPD Ensurelayoutanddesignof developmentpromotesrecycling ThroughtheCodeforSustainable Homesensurethathousebuyers haveinformationandadequate recyclingfacilities Reviewrelevanttransportstrategies ConsiderareviewoftheWasteDPD
Tomanageincreasedtraveldemands through: Promotingimprovementsto publictransportandsupporting thedevelopmentofanEast WestraillinkbetweenOxfordand Cambridge,includingthe AylesburySpur Encouraginganincreasednumber ofpeopletowalkandcycleby developinganexpandedand improvedRedwaynetwork Extendingthegridroadpattern intoanymajornewdevelopment areas Utilisingdemandmanagement measurestoreducethegrowthof roadcongestion,whilstupgrading keytrafficroutessuchasthe A421andtheA509 10 TomitigatetheBoroughsimpacton climatechangeandreduceCO2 emissionsthrough: Implementinghigherthan nationalrequirementsfor sustainablehomesandbuildings Maximisingthequalityofnew builddevelopments Locatingdevelopmentawayfrom areasoffloodrisk Promotingcommunityenergy networksandstrategicrenewable energydevelopments Reducingwastegenerationand increasingtheamountof recycling Sustainabletransportinitiatives Implementingthesuiteof initiativesundertheLowCarbon LivingProject 11 ToembodyPlaceMakingasan overarchingdesignobjectivefornew developmentandrequirethatthe layoutanddesignofnew developmentcreatessafe,healthy, sustainablebuiltenvironmentswith easyaccesstoopenspace,public transportandeverydayfacilities, deliveringahighqualityofurban Allnewresidentialdevelopmentsto bewithinwalkingdistanceofkey servicesandfacilities Allnewdwellingstobewithin walkingdistanceofabusstop Adoptionofadevelopment frameworkSPDfortheStrategic LandAllocationReserveAreasby 20123 Householdswithin30minutesofa hospitalbypublictransport Newdwellingswithinwalking distanceofkeyfacilities,services andpublictransport Airquality Planningapplicationsapproved contrarytoadvicefromthe EnvironmentAgencyonflooding Duetodelaysandeconomic circumstancesservices,facilities andopenspacearenot implementedonsitewhen developmentofthefirsthomesin newcommunitiesbegins BuildingforLifesurveysindicate standardsofdesigninnew developmentshavenotbeenraised
CS11 AWellConnected MiltonKeynes CS12 DevelopingSuccessful Neighbourhoods CS13 EnsuringHighQuality, WellDesignedPlaces CS18 Improvingaccessto localservicesand facilities
Workwithdeliverypartnerssothat priorityservicesareprovidedearly innewcommunitiestoensurethat theiruseistakenup WorkwithDevelopment ManagementDCOfficers.Urban DesignOfficers,Developersand Memberstoensuresubstandard designisnotaccepted
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19
Objective design,architectureandpublicrealm andcreatesplaceswithidentity
RisksandEvents
ActionsandContingencies Ensuremasterplansanddesign codesareapplied Considerfurtherdesignrelated SPDs
Pressuretodevelopadditionalsites potentiallythreatensareasof architecturalqualityandcharacter Developmentpressure"impacts"on theuniquefeaturesoftheNew Town Pressureofdevelopment potentiallythreateningtheHistoric Environment.
IndicatorBundles andwaterqualitygrounds Dwellingscompletedonpreviously developedland NewdwellingsbuilttoLifetime Homesstandards BuildingforLifescores Densityofresidentialdevelopment Crimerates Followingthepublicationofthe HeritageatRiskregister,numberof assetsremovedfromregister EnsuretheSAprocesstakes accountofurbancharacterwhen examiningpotentialsites Ensurethroughrigorous implementationofthepolicythat developmenttakesthehistoric environmentintoaccountis sensitivetoexistingcharacterand context
Prioritisethedeliveryofopenspace innewdevelopments Seekadditionalfundingfromthe GrowthAreaFundandseekother sources Resistdevelopmentpressures througheffectivedevelopment managementpoliciesandworking withtheParksTrust,Development ManagementDCOfficersand Members
ChangeinoverallareaofBAP priorityhabitats ChangeinoverallareaofLocal WildlifesitesandBiological NotificationSites Provisionofopenspaceinnew developments Lossofopenspacefordevelopment ParksawardedGreenFlagstatus NationalIndicator197:Proportion ofLocalSiteswherepositive conservationmanagementhasbeen orisbeingImplemented
Pressuretodevelopinareasof importantbiodiversityorlandscape character Qualityopenspaceandgreen infrastructureisnotdeliveredat appropriatelevelsinnew developmentduetofunding Lackoffundingforpartnersto adequatelysupportanincreasein adultparticipationinsportand provisionofhighqualityPEfor children Pressuretodevelopagreater proportionoftheSLAandprovidea reducedlevelofgreen infrastructure
KeyDeliveryPolicies Targets CS19 HealthierandSafer Nonewresidentialdevelopmentin Communities areaspronetoflooding CS20 TheHistoricandNatural AdoptionoftheResidentialDesign Environment GuideSPDby20102012 BuildingforLifescorefornew developments ProduceaDesigningforCommunity SafetySPDby2012 TheHistoricandNatural By2012,all27conservationareas 12 Toprotect,maintainandenhancethe CS20 Environment importantenvironmentalfeatures, tohaveanuptodateConservation characterandassetsoftheNewTown AreaCharacterAssessment andthetownsandvillages No"atrisk"listedbuildingsonthe throughouttheBorough EnglishHeritageregister CompleteandpublishaLocalListby endof2014 CompleteandpublishaHeritageat RiskRegisterbyendof20123 CompleteaConservationArea PartnershipSchemeforBletchley ConservationAreabytheendof 2013 13 Toencouragehealthylifestyleswith CS12 DevelopingSuccessful By2011,24.5%ofadultsto theprovisionofrecreationfacilities Neighbourhoods participateinsportoractive CS20 TheHistoricandNatural andbiodiversitybyenhancingthe recreation Environment linearparknetworkandextendingit Achievea1%increaseyearonyear intonewdevelopmentswhile upto2014inthenumberofadults conservingandprotectingenhancing participatinginmoderately keylandscapesandimportant intensivesportandactive habitats recreation By2013,100%ofchildrenand youngpeopleparticipatinginhigh qualityphysicaleducation Deliveryoflinearparkextensions, includingintheStrategicLand AllocationReserveAreas By20123,adoptadevelopment frameworkSPDfortheStrategic LandAllocationReserveAreas Ensurethatthereisnonetlossof recognisedbiodiversityhabitats Ensurethatthereisnoworseningof conditionofSSSIs 14 TodevelopMiltonKeynesasan CS20 TheHistoricandNatural By20122013ensurethatthereisa Environment InternationalSportingCity majorreviewoftheSportsand CS16DeliveringEconomic LeisureStrategy Prosperity Ensurethedeliveryofthefuture requiredfacilitiesinthe20092014 andsubsequentSportsandLeisure Strategies IdentificationoftheISCs SupportingInfrastructureand LocationsandClustersneeds within: MiltonKeynesfailstoattract significantsportingeventsand facilities Englandfailstobeawardedthe 2018worldcup Successinattractinginternational sportingeventsandfacilitiesdoes notboostsportparticipationat grassrootslevelanddoesnot supportahealthierpopulation MiltonKeyneseconomicgrowthis Prioritisethefundingandeffort towardsplanning,developingkey ISCfacilitiesandSportsandLeisure Strategyfacilitiesandmajorevents Ensurecolleaguesandpartner organisationsmaximise opportunitiestoattractmajor eventsandplananddelivernew andenhancedfacilities,and enablingdevelopmentwhere appropriate,toMiltonKeynes
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20
Objective
KeyDeliveryPolicies
Targets
RisksandEvents restricted MiltonKeynesprofileisrestricted leadingtolessinwardinvestment
ActionsandContingencies WorkwithCouncilandexternal partnerstoensurethatmeasures takentoattractinternationalevents andfacilitiesarebackedata grassrootslevelandinvolvelocal sportsclubsandschoolsandhave widercommunityhealthbenefits. Supporttheearlyformal establishmentofaneffectiveISC Board
CS21 Minerals
15 Tomanagemineralextraction, safeguardingreservesandprocessing facilities,restoringworkedsites,and maximisinguseofsecondaryand recycledmaterials.
MineralsDPDsStrategysettingout corepoliciesfortheBoroughare delayed
PrioritisedocumentsintheLDSand highlightinfutureAMRs Ensuresufficientresourcesare allocatedtowardstheproductionof theDPDs
Keyinfrastructureprojectssetout intheMiltonKeynesPartnership LocalInvestmentPlanaredelayed Reducedfundingforgrowth infrastructure FailuretoagreeanewTariff FrameworkfortheStrategic ReserveAreas(shouldthisbe required) Suiteofplanningobligationsaffect viabilityofdevelopment
CS22 Delivering 16 Toworkwithpublicserviceand Infrastructure infrastructureproviders(principally viatheMiltonKeynesPartnership LocalInvestmentPlan)toensurethat thesocialandeconomicgrowth plannedintheBoroughand neighbouringlocalauthoritiesis facilitatedbythetimelyprovisionof appropriatenewandimproved facilitiessuchaspublictransport, schools,communityhalls,sportand recreationfacilities,transport interchanges,healthservices (includingMKGeneralHospital), emergencyservices,highwaysandrail improvements,andaresidualwaste treatmentplant
IndicatorBundles Plan:MK theLocalInvestment Plan futureSEMLEPpolicy anddeliverydocuments Protectionofthecurrentkey sportingfacilitiesandtimely deliveryoftheISCSupporting InfrastructureandLocationsand Clusterswith Anearlydeliveryofthe teamtrainingbase, majorcyclingfacility, andsportsand science/medicinehub, ifpractical,withthese facilitieshaving planningpermission (andpossiblyoperation) within2013/14 Currentmajorsports eventsretained, enhancedand expanded,andtwonew majorsportsevents attractedtoMKbyend of2014 AdopttheMineralsCoreStrategy Productionofprimarylandwon andSites&PoliciesDPDsbymid aggregates 20122013 Productionofsecondaryand recycledaggregates Numberofplanningapplicationson safeguardedland Sizeoflandbank Timelydeliveryofinfrastructureset Monitoringprogressofmajorworks outintheMiltonKeynes setoutintheMKPLocalInvestment Plan PartnershipLocalInfrastructure Plan ByApril2014end2012,adopta consolidatedPlanningObsSPD By2015,completetheduallingof theA421fromM1J13toMilton Keynes Bymid2011,adoptaTariff FrameworkAgreementBytheend of2013,signsitespecificS106 agreementsmadeundertheMilton KeynesTariffcoveringthefunding anddeliveryofinfrastructure relatingtotheStrategicLand AllocationReserveAreas AdoptaCommunityInfrastructure LevybyApril2014
Earlyengagementwith infrastructureproviderstoseekout furtherrequirementsfor development Identifykeyrequirementsand prioritisefundingtowardsthem Earlynegotiationofanewtarifffor theremainingStrategicReserve Areasandanysitesthatmaybe broughtforwardthroughtheSite AllocationsDPDhighlightingto developersthebenefitsofcertainty TimelypreparationofaCommunity InfrastructureLevy. Identifykeydevelopercontribution priorities Considerrevisingdeveloper contributionSPDs
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21
CONTRACT PROCEDURE RULES
ITEM
6(b)
Contract Procedure Rules
07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 1 of 23
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
INTRODUCTION..................................................................................................................................................... 3 ROLES & RESPONSIBILITIES............................................................................................................................. 5 DEFINING THE NEED ........................................................................................................................................... 6 PRE-TENDER MARKET RESEARCH AND CONSULTATION ...................................................................... 8 PUBLIC SERVICES (SOCIAL VALUE) ACT 2012............................................................................................. 8 QUOTATION OR TENDER PROCEDURES ....................................................................................................... 9 FRAMEWORK AGREEMENTS.......................................................................................................................... 10 LEGAL ADVICE .................................................................................................................................................... 11 SELECTION OF TENDERING PROCEDURE.................................................................................................. 12 TENDERING PROCEDURE ................................................................................................................................ 12 ADVERTISING REQUIREMENTS ..................................................................................................................... 13 SELECTION CRITERIA, PUBLICATION AND AWARD OF CONTRACTS .............................................. 14 NOTIFICATION OF UNSUCCESSFUL TENDERERS .................................................................................... 15 EXECUTION........................................................................................................................................................... 16 CONTRACTS REGISTER .................................................................................................................................... 17 CONTENTS OF CONTRACTS ............................................................................................................................ 17 VARIATIONS AND EXTENSIONS ..................................................................................................................... 19 PERFORMANCE BONDS AND PARENT COMPANY INDEMNITY ........................................................... 19 DISCLOSURES OF INTEREST ........................................................................................................................... 20 PREVENTION OF CORRUPTION...................................................................................................................... 21 EXEMPTION .......................................................................................................................................................... 22
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Introduction
1.1
These Contract Procedure Rules (the Rules) are part of the Councils Constitution and govern all contracts let by the Council or on its behalf for the supply of goods or materials or for the execution of works. The Council is obliged to make these standing orders under s.135 of the Local Government Act 1972, which must include provision for securing competition for such contracts and for regulating the manner in which tenders are invited, but may exempt from any such provision contracts for a price below that specified in standing orders and may authorise the authority to exempt any contract from any such provision when the authority are satisfied that the exemption is justified by special circumstances. The Rules meet this obligation and form part of the Councils Constitution. The Rules shall be reviewed every two years. The Rules must always be followed for every contract entered into or proposed to be entered into by the Council unless overriding law (European or UK) requires something different. The Rules must be read in conjunction with other parts of the Councils Constitution (for example, if a decision about a contract is also a key decision, then the requirements set out in the Constitution in relation to Rules and to key decisions will also have to be met). It is the responsibility of all Corporate and Assistant Directors to ensure that their staff are adequately trained in the application of these Rules and that audit trails are in place for all procurement. Any dispute regarding the interpretation of these Rules shall be referred to the Head of Strategic Procurement (HoSP) and the AD Law & Governance. In accordance with the requirements of the Scheme for Financing schools and Financial Regulations for schools where a school acts as an agent of the Council these Rules apply to all schools within Milton Keynes except Trust and Academy schools. Schools governing body shall have the powers and duties as defined for Corporate Directors within these Rules. Anyone making procurement decisions should be familiar with these Rules and those within the Procurement Handbook. Anyone unsure of whether the Rules apply should contact Strategic Procurement for advice and guidance including: via the Councils Intranet by ringing 01908 254688 by emailing procurement@milton-keynes.gov.uk
1.2
1.3
1.4
1.5
1.6 1.7
1.8
1.9
If the Rules are not followed and/or there is a failure to enter into a contract on behalf of the Council in accordance with the Rules it will be a breach of the Code of Conduct and this could be a disciplinary offence. All Officers are responsible 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 3 of 23
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for reporting any suspected breach of these Rules to the HoSP, the Head of Internal Audit or the AD Law & Governance. 1.10 Summary of thresholds
EU Thresholds 2012 1st Jan 1st February 2012 Value of Works/Supplies Less than 500
Supplies /Services 173,934
Works 4,348,350
Minimum Number Verbal quotation is sufficient Three telephone quotations to be obtained and records retained for 12 months. A minimum of three written quotations to be obtained via In-tend or open Tender should the responsible officer decide so. Client officer to liaise with CPT (Corporate Procurement Team) and invite minimum of four competitive Tenders via In-tend. Client to liaise with CPT and invite minimum of four competitive Tenders via In-tend.
Approval to Tender/award Not required by CPT (not involved) Not required by CPT (not involved)
More than 500 but does not exceed 5k
More than 5k and up to 100k
Included on Tender Request Form
Over 100k up to 20m
Cabinet Procurement Committee
Over 20m
Full Cabinet
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2
2.1
Roles & Responsibilities

Corporate and Assistant Directors are responsible for all contracts tendered and let under their control. They should ensure sufficient oversight and governance is in place to satisfy themselves of compliance with these rules. Corporate and Assistant Directors must ensure that procurement is undertaken by authorised officers who can demonstrate knowledge and understanding of these Rules and skills appropriate to the task and in particular : 2.2.1 2.2.2 2.2.3 2.2.4 ensure that their staff comply with these Rules; keep registers of contracts completed by signature, rather than by Councils seal and arrange their safe keeping; Maintain records of all waivers or exemptions of these Rules, and make these available when required; use the MKC suite of standard contracts and clauses unless the AD Law and Governance has authorised otherwise; and
2.2
2.3
Any officers undertaking these duties must: 2.3.1 2.3.2 2.3.3 2.3.4 Act only under proper authority granted under the Leaders Scheme of Delegation or Cabinet resolution comply with the processes set out in the Constitution; have adequate budgetary provision and authority apply the MK Approach (MKC project management standard) to each revenue procurement in excess of 100,000 pa and 10,000 for capital (or in the opinion of the HoSP (Head of Strategic Procurement) where such sensitivities exist); have regard to the guidance in the Procurement Handbook, and ensure Value for Money check whether a suitable Corporate Contract or other such externally let contract or framework agreement exists before seeking to let another contract; keep the records of all quotation and tender documentation and contracts, including those documents relating to unsuccessful bids and quotes, for a period of 6 years from the expiry or termination of a contract; and take all necessary legal, financial and professional advice. Ensure that performance indicators and contract monitoring arrangements are built into every contract awarded;
2.3.5 2.3.6
2.3.7
2.3.8 2.3.9 2.4
When any employee either of the Council or of a service provider may be affected by any transfer arrangement, Officers must ensure that the Transfer of 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 5 of 23
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Undertaking (Protection of Employment) (TUPE) issues are considered and obtain HR and legal advice before proceeding with inviting Tenders or Quotations. 2.5 The HoSP (Head of Strategic Procurement) shall : 2.5.1 hold electronic copies of all contracts and acceptance letters entered into by the Council that were let using the Councils E-tendering system; ensure that regular training is offered to external stakeholders and internal procurers in relation to procurement processes and the Councils E-tendering system; ensure that the E-tendering system provides an effective public register of current contracts and upcoming opportunities; and ensure that appropriate support is given by Corporate Procurement to officers undertaking activity under these rules.
2.5.2
2.5.3
2.5.4 2.6
All contracts (both procurement and disposals) must: 2.6.1 2.6.2 2.6.3 2.6.4 2.6.5 2.6.6 2.6.7 2.6.8 2.6.9 achieve Best Value for public money spent; be consistent with the highest standards of integrity; ensure fairness in allocating public contracts; comply with all legal requirements; allow sufficient time for suppliers to prepare detailed and quality tenders and for any clarification to be managed effectively; publish and apply objective evaluation criteria; support the Councils corporate and departmental aims and policies; and comply with the Procurement Strategic Plan have an appropriate level of contract monitoring to ensure that the works, goods and services are being delivered as specified within the tendered price.
3
3.1
Defining the need

Under Best Value legislation the options for the delivery of the required supplies, services or works must be considered. The options are: 3.1.1 3.1.2 Not buying the supplies or services or having the works done at all; Provision of the supplies, services or works internally by the Council; 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf (61) 6 of 23
3.1.3 3.1.4
Providing the supplies, or services in partnership with and existing partner / contractor where that contract permits; By commissioning jointly with another public contracting authority, where this aligns with our corporate objectives and provides Best Value; Shared service delivery with another public contracting Authority, where this aligns with our corporate objectives and provides Best Value; and/or Procuring a third party service provider to provide the ongoing supplies, services or works Consider whether appropriate and affordable Social Value considerations can be built into the specification (see section 5 and the handbook for further information); Consider whether the requirements can be broken down to allow competition from smaller suppliers, whilst remaining compliant with the relevant UK and EU legislation. Consider the overall shape and size of the requirement in relation to the market available to deliver in order to determine the best sized contract to tender. Consideration should be supported by evidence on the regional supply chain and best practise.
3.1.5
3.1.6 3.1.7
3.1.8
3.1.9
3.2
Competition is presumed to provide evidence of Best Value where a set of works to be procured, particularly capital works, may be reasonably packaged as a contract for which there is an existing or primed marketplace. Where such works are not put to the market but provided by the Council or transferred under existing contracts, other evidence must be obtained to demonstrate Best Value and provided to the HoSP. Where procurement is intended to take place: 3.3.1 The size, scope and specification of the supplies, services or works required must be decided in advance of the procurement process and must avoid over specification of requirements. The supplies, services or works required must be clearly and carefully identified and specified, together with the terms for payments and any other terms and conditions. The duration of the contract must be defined, that will provide the most economically advantageous outcome for the Council and not to avoid or delay the requirement to conduct a subsequent future procurement process. The estimated total cost must be established at the start of the procurement process. The estimated total cost is the whole contract value aggregated over the term of the contract period, or over a term of four year where no term is specified (ie not just annual spend). 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 7 of 23
3.3
3.3.2
3.3.3
3.3.4
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3.3.5
A realistic project plan must be drafted to allow sufficient time for the wider market to become aware of the opportunity and sufficient suppliers to prepare and submit tenders to maximise the opportunity for value for money to be achieved.
3.4
Approval to commence a procurement process must be obtained in accordance with the Leaders Scheme of Delegation (and the terms of reference of the Cabinet Procurement Committee and reported in the Procurement Forward Plan. Approval to commence all capital procurements with an estimated total cost in excess of 10,000 shall be submitted to the Capital & Procurement Review Panel (C&PRP) prior to submission to the Cabinet Procurement Committee. Revenue procurements in excess of 100,000 shall be subject to the project controls established in MK Approach. Where a procurement is part of an existing project or programme already managed via MK Approach that shall suffice.
3.5
3.6
4
4.1
Pre-tender market research and consultation

The Officer responsible for the procurement must ensure that sufficient time is programmed to allow effective market research, development of fit for purpose specification and MEAT criteria and the proper completion of tender processes. Potential tenderers may be consulted prior to an issue of the invitation to tender by holding market engagement sessions to provide advance notice to the market and to consult in general terms about the nature, level and standard of the contract packaging and other relevant matters, provided this does not prejudice any potential tenderer. Such sessions may also be held to research the current market offering especially where innovation and change is common. Technical advice must not be sought or accepted on the preparation of an Invitation to Tender or Quotation from anyone who may have a commercial interest in them, if this may prejudice the equal treatment of all potential Candidates or distort competition. Pre-tender consultation with service users, their advocates and other future beneficiaries on what is being procured is allowable and is considered best practice to ensure that the specification correctly addresses needs. Service users should also be consulted on the performance measures and engaged in contract management arrangements wherever practicable. In considering or undertaking any of these actions, the officer responsible should seek advice from the Corporate Procurement Team and Legal services.
4.2
4.3
4.4
4.5
5
5.1
Public Services (Social Value) Act 2012

This Act of Parliament requires public authorities to have regard to economic, social and environmental well being in connection with public service contracts; and for connected purposes. 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 8 of 23
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5.2
Officers must consider the following before starting the procurement process: 5.2.1 How what is being proposed to be procured might improve the economic, social and environmental well-being of the Council and how the procurement might be structured to deliver that improvement; When considering this potential improvement officers must only take into account what is relevant to that procurement and whether or not it is proportionate to do something; Officers must consider whether to do any consultation as part of its thinking about whether improvements could be made; Compliance with the Act is not negated if officers delay the procurement so much so that to comply would not be possible in the time given.
5.2.2
5.2.3
5.2.4
5.3
Officers must consult Corporate Procurement and Legal services for advice on specifying requirements under Social Value and how to evaluate tenders.
6
6.1 6.2
Quotation or Tender Procedures

Where the Estimated Total Cost is less than 500 verbal quotation is sufficient, with details kept locally for a 24 month period. Where the Estimated Total Cost is more than 500 but does not exceed 5,000, three (3) telephone quotations shall be obtained and the details kept for 24 months. Where the Estimated Total Cost is between 5,000 and 100,000, a minimum of three (3) written quotations must be obtained via the E-tendering system and retained with all other financial documentation or, should the Officer responsible so choose, undertake a tendering procedure. At least one of these quotes should, wherever reasonably practicable, be from a supplier based within Milton Keynes. The Head of Strategic Procurement to agree where this is not possible due to market conditions and an officer can produce evidence to support this. Where the Estimated Total Cost exceeds 100,000 the Officer will 6.4.1 liaise with the Corporate Procurement team and complete a tender request form with all required information, including budget figures and validation from finance colleagues; consult Legal services in advance as to the level of their involvement needed; notify Democratic Services and place an entry on the Forward Plan for the Cabinet Procurement Committee decision to tender and a separate line for award, this includes extensions or variations to contract; 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 9 of 23
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6.3
6.4
6.4.2 6.4.3
6.4.4 6.4.5 6.4.6
advertise the tendering process; manage the procurement process consistent with the MK Approach of project management. undertake a procurement process to obtain at least four (4) formal competitive tenders via E-tendering system. The Head of Strategic Procurement to agree where this is not possible due to market conditions and an officer can produce evidence to support this.; tender in a form consistent with these Rules ; enter into signed contract based on the Councils standard terms and conditions for supply or services, supplies or works, where such contract has been awarded by Cabinet or other such nominated Committee.
6.4.7 6.4.8
7
7.1
Framework Agreements
The term of a Framework Agreement must not exceed four years. A Framework Agreement may be entered into with one provider. Where an agreement is concluded with several organisations, there must be at least three in number, unless agreed by Legal Services and the HoSP. Any use of a Framework agreement must comply with the Public Contract Regulations and abide by national best practise . Any officer using an externally let Framework Agreement must ensure that Procurement and Legal services have approved the procurement and contract details both for the overarching agreement and any subsequent contract derived from the framework before progressing to use the framework. Any officer using a Framework agreement must ensure that their requirement is met by the specification of that framework, if more than 10% of a requirement does not fall under the framework scope then a full tender exercise must be carried out; if less than 10% then agreement from the Corporate Procurement Team is required for validation. Externally let framework agreements let on a national or regional basis may provide value for money, especially in relation to volume supplies and goods. However officers must consider the Social Value considerations when determining whether such a framework meets the wider Council objectives, especially in relation to the delivery of services and works. Framework agreements let by officer of Milton Keynes should always allow for a mini competition amongst suppliers on the framework, and the number of suppliers on the framework must be three or more. This requirement can only be waived with the express agreement of the Head of Strategic Procurement. All frameworks will be managed to ensure that the maximum number of bids is received on as many occasions as possible. 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 10 of 23
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7.2
7.3
7.4
7.5
7.6
7.7
Contracts based on Framework Agreements may be awarded by either: 7.7.1 applying the terms laid down in the Framework Agreement (where such terms are sufficiently precise to cover the particular call-off) without reopening competition; or where the terms laid down in the Framework Agreement are not precise enough or complete for the particular call-off, by holding a mini competition in accordance with the following procedure: a. inviting the organisations within the Framework Agreement that are capable of executing the subject of the contract to submit written Tenders; b. fixing a time limit which is sufficiently long to allow Tenders for each specific Contract to be submitted and considered; c. taking into account factors such as the complexity of the subject of the contract; d. evaluating tenders using MEAT criteria that reflect those outlined in the original framework agreement and that also related to the precise nature of the requirement.
7.7.2
8
8.1
Legal Advice
For all contracts exceeding 100,000 Estimated Total Cost, Officers must obtain legal advice at the earliest stage of the procurement process to determine the level of legal engagement needed on the process.. Officers must use the standard templates for legal terms for supplies, services, ICT and consultants available from the legal services section of the staff portal. Officers shall obtain legal advice for all contracts (regardless of value) if it involves all or any of the following: a. Significant change(s) to a previous service, or provision of a new service for the Council; b. The potential transfer of Council employees to a contractor; c. The use or development of Council land or premises;
8.2 8.3
8.4
Officers shall obtain legal advice, for termination of contracts or expiry of contracts which could potentially trigger a potential transfer of a third party employee or asset. If any officer is asked to issue a certificate under the Local Authorities (Contracts) Regulations 1997 they must immediately report the situation to the AD Law & Governance. Any such certificate must be approved by the AD Law &Governance and also signed by the S151 Officer. 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 11 of 23
(66)
8.5
8.6
The Client Officer shall obtain the advice of AD Law & Governance: a. where the Estimated Total Cost of the contract exceeds 100k b. for all leasing arrangements c. where the Officer is proposing to use the contractors own terms and conditions d. for the purchase of application software of an aggregate value of 25k or more.
9
9.1
Selection of Tendering Procedure

Subject to the provisions of Part II of the Local Government Act 1988, as well as of the Public Contracts Regulations 2006, the procedures below will be used in the procurement of a services, works or supplies Contract: The Open Procedure, or The Restricted Procedure.
9.2
Where procurement is particularly complex, the Officer must seek advice from the AD Law & Governance and the HoSP as to whether a procedure other than the Open Procedure or Restricted Procedure may be more appropriate. Use of other procedures other than as set out in Rule 8(1) above (as detailed by Procurement Regulations or other relevant legislation), shall require prior approval of the Section 151 Officer or the AD Law & Governance with advice provided by the HoSP; Where (b) is selected then officers shall work with Finance, Procurement and Legal services to ensure that the standard Prequalification Questionnaire (PQQ) template is adapted for use and that the thresholds set within are proportionate to the requirement.
9.3
9.4
10
10.1 10.2 10.3
Tendering Procedure
Tenders shall be administered by the Corporate Procurement Team using the Etendering system. No tender will be accepted if the tenderer can be identified prior to the tender deadline. No tender or quotation received after the latest time specified for receipt shall be accepted.
(67)
10.4 10.5
Every tender shall be addressed to the MKC Corporate Procurement and held securely until the time appointed for its opening. All Invitations to Tender shall include the following: a. A specification that describes the Councils requirements in sufficient detail to enable the submission of competitive offers. b. A requirement for tenderers to declare that the Tender content, price or any other figure or particulars concerning the Tender have not been disclosed by the tenderer to any other party (except where such a disclosure is made in confidence for a necessary purpose). c. A requirement for tenderers to fully complete and sign all Tender documents including a Form of Tender and certificates relating to canvassing/lobbying and non-collusion. d. Notification that Tenders are submitted to the Council on the basis that they are compiled at the tenderers expense. e. A description of the Award Procedure and, unless defined in a prior advertisement, a definition of the Award Criteria in objective terms and in descending order of importance. f. A full breakdown of the MEAT criteria and any sub criteria to be applied to all tenders and the way in which clarification will be managed;
g. The method by which any arithmetical errors discovered in the submitted Tenders are to be dealt with. In particular, whether the overall price prevails over the rates in the Tender or vice versa. 10.6 10.7 The Invitation to Tender or Quotation must state that the Council is not bound to accept any Quotation or Tender. All Candidates invited to Tender or submit a Quotation must be issued with the same information at the same time and subject to the same conditions. Any supplementary information must be given on the same basis.
11
11.1 11.2
Advertising Requirements
All contract opportunities above 5,000 in value must be advertised and run via the Councils E-tendering system. All contract opportunities above 100,000 shall additionally be advertised on any other appropriate websites and/or in relevant trade journals to increase competition, giving at least 14 days public notice. Where the Estimated Total Cost exceeds the EU Threshold then the contract shall be advertised in accordance with the Procurement Regulations. All contracts between 100,000 and EU Threshold shall be advertised on the Etendering system and wherever practicable a Meet the Buyer Day or other wide market engagement session shall be held to warm the market and seek feedback on our proposals before the formal commencement of the tender process. 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf (68) 13 of 23
11.3
11.4
For all contracts below the EU Threshold and Relevant Contracts falling under Part B of the Public Contracts Regulations 2006, Officers shall consider potential European interest in the provision of goods, works or services. If the Relevant Contract could be of potential interest for economic operators within the European Union, the Relevant Contract should be advertised in the Official Journal of the European Union after seeking advice from Corporate Procurement.
12
12.1
Selection Criteria, Publication and Award of Contracts

Approval shall be sought from the Cabinet Procurement Committee or any other relevant body or identified process, in compliance with the Leaders Financial Scheme of Delegation before a. issuing an invitation to tender; and b. award of contract of contract For all tenders and contracts above 100,000.
12.2
Where an award is challenged during call in it shall be referred to the relevant authorised decision making body / person as defined by the Leaders Scheme of Delegation or prior Cabinet delegation. For procurement with an Estimated Total Cost of 100,000 or above the most economically advantageous tender (MEAT) shall be selected. Guidance on the use of MEAT and appropriate MEAT criterion is set out in the Procurement Handbook. For procurement with an estimated total value of below 100,000 the Quotation process via the E-tendering system must be used and the standard templates for ITQ, evaluation criteria and business evaluation must be used. Award of contract for sums below 100,000 in value must be done via the Etendering system and the appropriate authorisation to award provided to in writing by the head of service and the Assistant Director. The Client Officer shall determine the appropriate award criteria in advance of the publication of the contract notice or notice on In-Tend. Appropriate details of the award criteria shall be notified to those tenderers participating in the procurement process, in advance of their tender or quotation submission. The Client Officer, with advice from Corporate Procurement, shall ensure that the evaluation criteria (ie MEAT) properly include the evaluation of Social Benefits/Value and Quality factors to differentiate between bids. Such factors shall be clearly explained within all documentation. In the event of using award criteria for selection of successful tenderer, the Officer shall ensure that award criteria are distinct from the selection criteria.
12.3
12.4
12.5
12.6
12.7
12.8
(69)
12.9 12.10 12.11 12.12
The S151 Officer, in consultation with the relevant Cabinet member, be required to approve where the price proportion of MEAT is less than 40%. The Cabinet Procurement Committee shall agree any award where the price proportion of MEAT is less than 40%. The client officer will set a minimum quality threshold, below which a tender cannot be awarded the contract. The Client Officer shall assess (using the Councils risk system GRACE) the risks within each bid and shall then maintain a Risk Register entry for the successful bid to assist Contract Management. The appropriate AD (with the agreement of the HoSP) may permit a Tenderer to correct an error or omission that, in the opinion of the AD is an obvious error. All such corrections shall be formally recorded. Only authorised officers (as per the Leaders Scheme of Delegation) with the requisite delegated authority may award a contract. Any contract exceeding the budget provided must submit a decision to award as set out in 12.14.1 and 12.14.2 as below: 12.14.1 If exceeding the budget by less than 10% the decision to award a. shall be submitted to the C&PRP and approval shall only be given if the relevant officers have identified (and reported to the S151 Officer) compensating savings. b. shall be submitted to the Cabinet Procurement Committee with comment from the S151 if compensating savings have not been identified
12.13
12.14
12.14.2
If exceeding the budget by more than 10% the decision to award a. shall require approval of the Cabinet Procurement Committee b. shall require the funding of such overspend to be clearly identified.
12.15
All Contracts awarded must be reported to the Strategic Procurement Team as per section 14 of these Rules.
13
13.1
Notification of Unsuccessful Tenderers

Following contract award all unsuccessful tenderers will be notified by the Etendering team in Corporate Procurement in writing, upon instruction from the relevant Officer responsible for the procurement. The relevant officer will provide a completed unsuccessful letter and a detailed breakdown showing the relative 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 15 of 23
(70)
characteristics and merits of the winning bid and the comparative scoring of the same compared to their bid. 13.2 Unsuccessful bidders will be offered written feedback, and where the value of the contract exceeds 5,000 and face-to-face feedback will also be offered where the contract value exceeds 100,000 provided if requested. All OJEU procurement projects will include a lessons learnt stage, where all bidders are asked for their feedback on the procurement they have participated in; this will be undertaken via the E-tendering system by the client officer. All those suppliers who failed to submit a bid, following invitation to tender at the PQQ stage must be asked as to what their reasons were for not submitting. A summary of this information must be provided to members as part of the award of contract report. Corporate Procurement will retain information in order to enhance the procurement process. If there are questions raised/informal challenges following the end of call in and before the award of the contract, a full review of the relevant part of the procurement exercise must be done by the Head of Service and relevant Assistant Director in conjunction with support from Legal Services and Corporate Procurement. The result of this review and the Councils final decision on the matter must be communicated to the respondent in a timely fashion using the Etendering system. The decision to proceed to award of contract must be preceded by a full risk assessment of any likely further action, balanced against the requirement for business continuity. For the avoidance of doubt, the EU Remedies Directive only applies to procurement undertaken in accordance with the Public Contract Regulations 2006. If there is a formal legal challenge to the award of contract following a full OJEU procurement exercise then this must be managed by the relevant Corporate Director/Assistant Director in conjunction with Legal Services and the Head of Strategic Procurement. Officers should consult Legal Services and Procurement immediately where a non EU procurement is subject to a formal legal challenge; note that there is no recourse under the Remedies Directive but a Court may make a judgement on wider general principles.
13.3
13.4
13.5
13.6
13.7
13.8
13.9
14
14.1
Execution
Every Contract over a value of 100,000 shall be given under the seals of the parties. If the contractor is unable to execute a contract under seal, it shall be executed as a deed.
(71)
14.2 14.3
Any other contract shall be required to be given under the seals of the parties at the discretion of the AD Law & Governance. For all Relevant Contracts in excess of 100,000 shall use the standard contract terms and conditions issued by Legal Service unless such variation is agreed by the AD Law & Governance.
15
15.1 15.2
Contracts Register
Corporate Directors and ADs must inform the HoSP of any contracts awarded in excess of 5,000 The HoSP must maintain a register of all approved and current contracts and framework agreements where the Estimated total Value is 5,000 or over. The register should be published on the Council website. Corporate Directors and ADs must maintain a register, using the template provided by the HoSP, of all current contracts where the value is less than 5,000. The Corporate Procurement Team will verify the accuracy of the Contracts Register with ADs at least every 6 months. An up-to-date register must be available to the HoSP on request and formally issued to the HoSP by 31st March every year. All contracts shall have a scheduled benefits realisation date where the performance of that contract against the expected outcomes shall be measured. The outcome of this will be reported to Cabinet Procurement Committee at the annual anniversary of its commencement or at such other period agreed by members and the Head of Strategic Procurement.
15.3
15.4
15.5
16
16.1
Contents of Contracts
All Contracts in excess of 100,000 shall be in writing and be based upon the standard suite of legal documents for supplies, services, consultants and ICT (or other such professional terms in use, such as JCT,ICE,NEC3 etc) and shall document: a. A technical description of the goods, works and services to be supplied including delivery specifications, in sufficient detail to demonstrate that the required quality has or has not been achieved. b. The requirement for compliance with the appropriate European specification or where no European specification exists, the appropriate British technical specification. 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 17 of 23
(72)
c. The price to be paid or the rates at which the price is to be calculated, any milestones for payments, a statement of discounts or other deductions and if prices are not fixed an appropriate price fluctuation clause by reference to a published index if the term exceeds 12 months. d. The timescales within which the outputs / outcomes are to be completed. e. A set of key performance indicators with the appropriate arrangements for increasing targets over the course of the contract f. An agreed process for contract management and escalation where performance is not meeting targets.
16.2
For all Contracts over EU Threshold value ,for Services and Supplies and 250K for works contracts, Officers will include remedies for non performance as follows, unless it is agreed with Strategic Finance in conjunction with the Head of Risk management and HoSP that they are not appropriate: a. Liquidated damages, other financial deductions, claw back and termination. This shall include liquidated damages, or other financial deductions, to be paid by or made to any supplier in respect of any delay in performing or completing such work or services. b. Liquidated damages (and all other non-performance remedies) will be recovered robustly and recorded as a debt owed to the Council. c. The write off of any non-performance remedy including liquidated damages above 500 must be authorised by the Corporate Director under advisement of the HoSP and Strategic Finance.
16.3
All Contracts will contain an appropriate clause that provides protection and the right to terminate the contract in the event of a supplier offering any inducement, committing fraud or committing an offence under the relevant theft, false accounting, money laundering or bribery acts All Contracts shall contain clauses that ensures adherence to those relevant Council policies e.g. (without limitation) Anti Fraud & Corruption, Data Protection, Safeguarding etc. In the event of any request to sub-contract or assign contract, in part or in whole, the Officer shall seek the guidance from the AD Law & Governance and the Head of Strategic Procurement. All contracts shall contain clauses that the Council may terminate on the grounds of: a. Insolvency of contractor (including insolvency of parent company); 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 18 of 23
16.4
16.5
16.6
(73)
b. Contractor applying for voluntary arrangement with its creditors; c. Allegation of offences under the Prevention of Corruption Acts d. Collusive tendering / bidding e. Breach of contract conditions
17
17.1
Variations and Extensions

As well as complying with any statutory restrictions and compliance with these Rules, Corporate Directors or ADs may only authorise an extension to an existing contract if each of the following conditions are met: a b c an extension for the particular period is provided for within the terms and conditions of the contract there has been satisfactory performance by the supplier; and in accordance with the limits of delegated authority.
17.2
Subject to any statutory restrictions and compliance with these Rules, Corporate Directors or ADs may, with the approval of the HoSP, authorise any other variation to an existing contract, and if relevant a consequent change in price, determined in accordance with the contract terms where the Estimated Total Cost of the variation is less than 50,000 or 15% of the original annual contract value (which ever is the lesser). All extensions and variations to an existing contract must be checked to confirm that they represent Best Value and they are not being instigated solely to avoid or delay the requirement to conduct procurement. All extensions and variations to a contract awarded under the EU Procurement Regulations must be authorised by the HoSP and AD Law and Governance.. All extensions and variations must be documented and signed by an authorised signatory on behalf of the Council and counter-signed by the supplier. All extensions of contract over 100,000 in value must be approved by Cabinet Procurement Committee or as delegated by the same.
17.3
17.4 17.5 17.6
18
18.1
Performance Bonds and Parent Company Indemnity

The Procurement Handbook shall determine the circumstances under which a contractor shall be required to furnish a performance bond, guarantee or other 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf (74) 19 of 23
appropriate risk management approach. Only those approaches as provided in the Procurement Handbook or those approved by the Section 151 Officer and the AD Law & Governance can be utilised. 18.2 The Officer must obtain a parent company guarantee when the successful bidder is a subsidiary of a parent company and: a. the Estimated Total Cost exceeds 250,000, or b. award is based on evaluation of the parent company, or c. there is some concern about the stability of the bidder. 18.3 18.4 The parent company guarantee will be subject to such tests and validation as required for the value of the contract as decided by Strategic Finance. The Officer must consult the AD Law & Governance and AD Finance about whether a performance bond is needed: a. where the Estimated Total Cost exceeds 1,000,000, or b. where it is proposed to make stage or other payments in advance of receiving the whole of the subject matter of the contract and/or there is concern about the stability of the Candidate.
19
19.1
Disclosures of interest
Staff must give immediate written notice to their Corporate Director or Chief Executive (as appropriate) where it comes to their knowledge that they have a potential conflict of interest with any MKC contract. Staff are reminded at every appraisal to record such interests but must highlight potential conflicts of interest immediately they become aware of them. Failure to do so may result in disciplinary proceedings and/or criminal prosecution. Members of the Council must declare any Disclosable Pecuniary Interest or other personal interest in any letting or management of contracts, and must act accordingly as defined or required by the Councils Members Code of Conduct. Failure to do so may result in a finding of a breach of the Code or a criminal offence. Persons working on behalf of the Council or invited representatives of bodies other than the Council (including community representatives) who fulfil a role that may give them influence over any aspect of the Councils procurement process or access to associated commercially sensitive information must disclose in writing to the relevant Corporate Director or the Chief Executive any direct or indirect interests that may conflict in any way with the interests of the Council or 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 20 of 23
(75)
19.2
19.3
the nature of the role or work to which they have been appointed by the Council. Failure to do so may result in a termination of the relevant agreement or appropriate action against the individual concerned. This disclosure must be noted in any report before a Committee of the Council. 19.4 All parties, internal or external third parties, engaged with a procurement project will be issued with the Councils paper on conflict of interest to ensure full understanding of the requirement to notify potential conflicts and the steps needed to rectify this. Relevant Chief Officers will ensure that a Register of Interests record of is maintained for all officers (including consultants) involved in the letting and management of contracts. Chief Officers will keep completed staff disclosures in accordance with the Councils Code of Conduct for Employees. The Client Officer shall keep any contracted staff, consultants' or other bodies representatives' declarations on the contract file. Where potential conflict of interest is identified, the relevant AD or Director shall liaise with the AD Law & Governance and AD Audit & Risk Management to agree and formally record the action to be taken. No gifts or hospitality should be accepted from any bidders to any contract being let by the Council. Acceptance of gifts or hospitality may be a disciplinary offence. Every officer (whether of the Council or Procurement Services or Property Services) managing a procurement, letting a contract or managing a contract for the Council must inform the HoSP of any offers of gifts or hospitality. Reference should be made to the Councils policy on Gifts and Hospitality in place at such time.
19.5
19.6
19.7
19.8
20
20.1
Prevention of Corruption
The Client Officer must comply with the Councils Code of Conduct for Employees and must not invite or accept any gift or reward in respect of the award or performance of any contract. It will be for the officer to prove that anything received was not received corruptly. High standards of conduct are obligatory. Corrupt behaviour will lead to dismissal and is also a criminal offence which may lead to prosecution. An officer or member of the Council must disclose any offer made by an existing or bidding supplier to their AD or Director. Directors and ADs shall maintain a record of such offers, inform the AD Law & Governance and AD Audit & Risk Management and agree such action as appropriate.
20.2 20.3
(76)
21
21.1
Exemption
In exceptional circumstances it may not be possible to comply with these Rules. Variation from these rules is permitted where: 21.1.1 Written report
A written report will be prepared by the relevant Head of Service/AD or Corporate Director and submitted to the HoSP specifying the special circumstances justifying the exemption. Without limitation, special circumstances are where there is: a. An unforeseen and real risk of harm to individuals ; or b. Excessive and significant damage to the Councils reputation has occurred or could potentially occur. services, finances or
For the avoidance of any doubt the failure to properly plan timescales to comply with Rules and / or EU Procurement Regulations is not special circumstances. The written report will detail the specific provisions within the Rules, from which exemption is sought, reasons for seeking the exemption and how relevant risks arising from those variations will be mitigated and managed. 21.1.2 Approval
Approval to waive Rules will only be granted by the agreement of both the S151 Officer and the relevant lead Cabinet Member following the advice of the Head of Strategic Procurement and where required the AD Law and Governance. Where the value of the waiver is below 100,000 then the lead Cabinet members shall be made aware of the waiver request but their approval is not required for the waiver to progress. The final decision rests with the S151 Officer. The Corporate Director and Officer will consult the Portfolio Cabinet Member for Contracts for waivers in excess of 100,000. Copies of all waivers and supporting information will be retained by the relevant officer and the Corporate Procurement Team for a period of 6 years. A quarterly report of all waivers granted will be presented to Cabinet Procurement Committee by the Head of Strategic Procurement for their information and consideration. 21.1.3 Council Reports
A formal report will be prepared quarterly to the Cabinet Procurement Committee. That report will set out the specific rationale for waiving the Rules 07. ITEM06(b)_CONTRACT PROCEDURE RULES.rtf 22 of 23
(77)
and will also append a summary of the previous instances where Rules were waived. 21.2 Adult Social Care and Childrens Specialist Services care contracts may be : b. 'block' contracts (where a number of beds, places or services are provided by the contractor at pre-agreed pricing schedules, to which the Council may refer users over the contract period) b. or 'spot' contracts (one-off contracts meeting an individual user's needs, or contracts where a number of beds, places or services are provided by the contractor without pre-agreed prices, such prices to be agreed (based upon the specific needs of the client/young person) upon each referral of a user over the contract period). 21.3 The Assistant Directors of Adult Social Care and Childrens Specialist Services will seek to maximise the use of block contracts where this represents best value for the Council. The following provisions shall apply to the Adult Social Care and Childrens Specialist Services care contracts: a. All Contract Procedure Rules apply to block contracts, except; b. CPR 8, 9, 10 and 11 (in relation to tender procedures and formation of contract) shall not apply to spot contracts; c. The Assistant Directors of Adult Social Care and Childrens Specialist Services may award all spot contracts, which shall be reviewed at least annually as part of the review of whether the service provided continues to meet the needs of the service user; d. The Assistant Directors of Adult Social Care and Childrens Specialist Services shall provide monthly reports to the relevant Cabinet Member and a quarterly report to the Cabinet detailing the nature, extent and value of spot contracts entered into in the previous quarter. 21.4 Where the contract value exceeds the EU threshold and falls to be treated as a Part B service under the Regulations, then consideration must be given to whether there is likely to be any cross border interest that would trigger an advertisement being placed in the Official Journal of the European Union, in addition to the other advertising requirements in these rules. For the avoidance of doubt, where a procurement exercise is conducted under these rules then it is essential that any tenders or quotations are evaluated as per the published criteria.
21.5
(78)
ITEM
6(c)(i)
Financial Regulations
(79)
Reference Financial Regulations Introduction FR1 FR2 Responsibilities Financial Planning and Annual Estimates
Financial Procedure Rules
FPR1 FPR2 FPR3 FPR4 FPR5 FPR6 FPR7 FPR8 FPR9
Budget Preparation Medium Term Financial Planning Capital Programme Preparation Tariff Virements Forecasting and Monitoring Approved Capital Projects Capital Year End
FR3
Forecasting and Monitoring
FR4
Accounting
FPR10 Income FPR 11 Write Offs FPR12 Banking FPR 13 Treasury Management FPR 14 Payment of Grants and Benefits to external bodies
FR5
Grants received from External Bodies
FPR15 Managing Grants FPR16 General Grants FPR17 Specific Grants FPR18 Grant Letters and Conditions FPR19 Security and Control of Assets FPR20 Acquisition and Disposal of Assets FPR 21 Small Value Assets (Inventory) FPR 22 Stocks and Stores FPR 23 Fleet Management FPR24 Purchase Orders FPR 25 Imprest and Petty Cash FPR 26 Reimbursement of expenses and payments FPR27 Grants FPR 28 Voluntary Sector FPR 29 To be developed FPR 30 To be developed FPR 31 Internal Audit FPR 32 Risk management and Insurance
FR6
Security and Control of Assets
FR7
Procurement Rules
FR8 FR9
Partnerships Limited Liability Partnerships
FR10
Preventing Fraud and Corruption
(80)
Financial Regulations Introduction These financial regulations form part of the Councils Constitution and are part of the financial framework within which the Council operates. This framework comprises: Council Constitution Financial Regulations Financial Procedure Rules Financial Scheme of Delegation Other guidance i) Section 151 of the Local Government Act 1972 states that every local authority shall make arrangements for the proper administration of their financial affairs and shall secure that one of their officers has responsibility for the administration of those affairs.
ii) The officer designated by the Council as having the statutory responsibility set out in Section 151 of the 1972 Act as Chief Financial Officer is the Corporate Director (Resources). iii) Financial Regulations provide the framework for the financial administration of the Council with a view to ensuring that the Councils financial affairs are conducted in a sound and proper manner; constitute value for money and minimise the risk of legal challenge to the Council. However, Financial Regulations are not intended to constitute a set of detailed rules to respond to every situation. iv) The key document underpinning the Financial Regulations is the Financial Procedure Rules. These set out the processes which need to be followed to ensure that sound financial management is maintained and that the Council maintains good financial governance. v) In addition to these constitutional documents detailed Financial Guidance, Codes of Practice and other financial instructions (e.g. Financial Management System Business Process Procedures) may be issued from time to time by the Chief Financial Officer, to clarify the interpretation of Financial Regulations. vi) In addition, the Council also needs to maintain proper schemes of delegation. The corporate scheme of delegation is part of the Councils Constitution and is underpinned by the Leaders Financial Scheme of Delegation which sets out the level of authority each officer or member has. Officers and members can
(81)
only operate within these limits. The Scheme of Delegation is updated alongside the Financial Regulations and Financial Procedure Rules. vii) All financial decisions and decisions with financial implications must have regard to proper financial control. Any doubt as to the appropriateness of a financial proposal or correctness of a financial action must be clarified in advance of the decision or action with the Chief Financial Officer. viii) Failure to observe Financial Regulations, Financial Procedure Rules, the Financial Scheme of Delegation, Codes of Practice and financial instructions issued under Financial Regulations, may result in action under the Councils disciplinary procedures. ix) All Assistant Directors should ensure that any financial procedures / guidelines produced by their Service Group in support of financial control are fully compliant with Financial Regulations, Financial Procedure Rules, the Financial Scheme of Delegation, Codes of Practice and financial instructions. Internal Audit should be consulted in the development of such procedures. x) Unless specified to the contrary, all references to Corporate Directors are also applicable to the Chief Executive. xi) These Financial Regulations should be read in conjunction with the Financial Procedure Rules, Contract Procedure Rules and the Financial Scheme of Delegation. xii) The Chief Financial Officer is responsible for maintaining a continuous review of the Financial Regulations and Financial Schemes of Delegation and submitting any additions or changes necessary for approval. The Chief Financial Officer is also responsible for reporting, where appropriate, breaches of the Financial Regulations to the Council and/or to Cabinet members. The Chief Financial Officer is authorised to temporarily suspend Financial Regulations in exceptional circumstances, and where such suspension is authorised, a written record of this shall be kept. xiii) Corporate Directors and Assistant Directors are responsible for ensuring that all staff in their Service Groups are aware of the existence and content of the Councils Financial Regulations and Procedure Rules, Financial Scheme of Delegation and other internal regulatory documents and that they comply with them.
(82)
FR1
Responsibilities
This Financial Regulation aims to provide an overview of the responsibilities and accountability of all elected members and Officers charged with the use or care of the Councils resources. 1.1 Responsibilities to the Council
1.1.1 All elected members and employees of the Council are responsible for ensuring that they use the resources and assets entrusted to them in a responsible and lawful manner. They should strive to achieve value for money and avoid legal challenge to the Council. 1.1.2 These responsibilities apply equally to members and employees when representing the Council on outside bodies. 1.2 Personal Responsibilities
1.2.1 Any person charged with the use or care of the Councils resources and assets should inform himself/herself of the Councils requirements under Financial Regulations, Financial Procedure Rules and their limits of delegated authority under the Financial Scheme of Delegation. If anyone is in any doubt as to their obligations, then they should seek advice from their Service Group Finance Manager. 1.2.2 Any employee must report immediately to their manager, supervisor or other responsible officer any illegality, impropriety, serious breach of procedure or serious deficiency in the provision of service he or she suspects or becomes aware of. Employees are able to do this without fear or recrimination providing they act in good faith via the Councils Whistle Blowing policy. In such circumstances managers must record and investigate such reports and take appropriate action. Compliance with the Councils Anti-Fraud and Corruption policy and Code of Conduct for Officers is mandatory for all officers. 1.3 Chief Financial Officer
1.3.1 The Chief Financial Officer shall maintain on behalf of the Council an adequate and effective system of internal audit of the accounting records and internal control systems of the Council. 1.3.2 Section 114 of the Local Government Finance Act 1988 requires the Chief Financial Officer to report to the full Council or the Executive (as appropriate) and the external auditor if the authority or one of its officers: a) has made, or is about to make, a decision which involves incurring unlawful expenditure; b) has taken, or is about to take, an unlawful action which has resulted or would result in a loss or deficiency to the Council; or c) is about to make an unlawful entry in the Councils accounts.
(83)
1.3.3 Section 114 of the 1988 Local Government Finance Act also requires the Council to provide the Chief Financial Officer with sufficient staff, accommodation and other resources including legal advice where this is necessary to carry out the duties under Section 114. 1.3.4 Reference to the Chief Financial Officer includes those authorised by him to undertake the various functions concerned.
1.4
Corporate Directors/Assistant Directors
1.4.1 Corporate Directors and Assistant Directors are responsible for ensuring that Financial Regulations are observed throughout all areas under their control and shall: a) Provide the Chief Financial Officer with such information and explanations as he or she feels is necessary to meet his/her obligations under Financial Regulations; b) Consult with the Chief Financial Officer and seek approval of any actions liable to affect the Councils finances materially, before any commitments are incurred; c) ensure that Executive members are advised of the financial implications of all significant proposals and that the financial implications have been agreed by the Chief Financial Officer; d) Inform the Chief Financial Officer of failures of financial control resulting in additional expenditure or liability, or loss of income or assets e) Wherever any matter arises which may involve irregularities in financial transactions consult with the Chief Financial Officer and, if a serious irregularity is confirmed, the matter shall be reported to the Chief Executive, appropriate Cabinet member and the Assistant Director Audit and Risk Management; f) Ensure the legality of the actions taken by the services within their Service Group(s).
(84)
FR2
Medium Term Financial Planning and Annual Budget
This Financial Regulation aims to provide an overview of the Medium Term Financial Planning and Annual Budget process which enable an Annual Budget to be recommended by Chief Financial Officer for Members consideration and Council approval each year 2.1 The Chief Financial Officer shall, each year, set a timetable to enable a Revenue Budget and Capital Programme to be considered by the Cabinet and set by the Council. A Medium Term Financial Plan will also be published at three points during the financial year: 2.2 Summer as a basis for detailed budget planning for the next annual cycle; November/December alongside the draft Budget; and February alongside the final Budget
The Medium Term Financial Plan will cover the annual budget year, plus at least three future years. Detailed estimates of revenue income and expenditure including pressures and savings and capital receipts and payments shall be prepared by Assistant Directors in the form required by the Chief Financial Officer. The resulting budgets set will align with the Councils Corporate Plan and Service Plans and follow the guidelines issued annually by the Chief Financial Officer. Budget information shall be forwarded to the Chief Financial Officer by each Assistant Director in accordance with the agreed programme, so information can be examined and challenged before submission to the Cabinet. Assistant Directors are responsible for completing an annual review of income and ensuring that income budgets are adjusted in line with the agreed budgetary guidance with exceptions to the Income Policy being highlighted. An explanation for exceptions to the Income Policy must be provided to the relevant Finance Manager to ensure that this can be approved by Members. The Cabinet shall review the draft Budget and submit a final Budget proposal to the Council together with such summaries, statements and reports as are considered necessary by the Chief Financial Officer. The budget report shall also recommend the Council Tax to be levied for the ensuing year. The Cabinet shall also approve the Business Rates Baseline, under the Localisation of Business Rates legislation. Council shall: a) Approve the Councils annual Council Tax Base (this is currently delegated to Cabinet by the Council on 13 January 2004 [Minute CL94(d) refers);
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b) Approve the Councils Revenue Budget and Capital Programme and set the level of Council Tax for each year within statutory deadlines and requirements. c) Note the estimated financial requirements for future years and the context this provides for budget decisions. FR3 Forecasting and Monitoring
This Financial Regulation aims to provide appropriate financial information to Members and Corporate Leadership Team to enable them to monitor the financial position against the agreed budgets and take appropriate decisions to correct any forecast variance against those budgets 3.1 Management and control of a Service Group budget (or part where appropriate) is the responsibility of the appropriate Assistant Director(s). Each Service Group must ensure that there is a designated senior officer who is accountable to the Assistant Director for the detailed management of all budgets. The relevant Finance Manager should be notified of any changes to Budget Managers, so that all budgets continue to have a named manager at all times. Assistant Directors are responsible for ensuring that the forecasting function within Business Objects Planning and Consolidation (BPC) is used appropriately and that this is updated on a regular basis to reflect the latest forecast outturn, and all risks or issues whether the financial consequence is known or uncertain are reported through this process to Finance Managers. Assistant Directors, Corporate Directors and the Chief Financial Officer will jointly carry out regular budget monitoring and reporting to identify financial problems and key issues and ensure appropriate management action is taken as necessary. Responsibility for management action rests with the relevant Assistant Director, unless otherwise identified. The Chief Financial Officer will take budget monitoring reports to Cabinet and Budget Review Group on a regular basis. Audit Committee will receive budget monitoring reports as and when they are requested. These reports will contain updates on both the Revenue Budget and Capital Programme, Human Resources information and other relevant information (for example projects and Treasury Management reporting). The report will outline management actions being taken where variances, risks or issues have been identified. The Council's final financial position as presented in the Annual Statement of Accounts will be approved by the Audit Committee. The Audit Committee will also continue to approve the Draft Accounts for External Audit.
3.2
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3.4
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FR4
Accounting
For effective Financial Management to be undertaken it is important for all Officers to take responsibility for ensuring that financial information is accurate, consistent and delivered in a timely manner. 4.1 The Chief Financial Officer shall: a) Determine accounting policies, systems and procedures and the form of financial records and statements in accordance with statute and recognised best practice. Such best practice will be taken as defined through: (i) (ii) International Financial Reporting Standards (IFRSs); and International Accounting Standards (IAS)
b) Provide guidance and advice on all accounting matters; c) Monitor accounting performance to ensure an adequate standard for all services d) Certify all financial returns, grant funding applications and claims and other periodic financial reports required of the Council 4.2 Each Assistant Director shall: a) Implement accounting procedures and adopt the form of financial records and statements as determined by the Chief Financial Officer. b) Obtain the approval of the Chief Financial Officer prior to introducing or changing the form or method of existing accounting systems and procedures, financial records or statements. Approval is to be requested from the Chief Financial Officer in writing. The request must give details of the proposed change and the anticipated benefit from the change, an estimate of the costs involved and the proposed implementation date. Internal Audit advice should be sought for all proposed changes at as early a stage as possible. c) Complete and pass to the Chief Financial Officer financial returns and other financial reports requiring certification in good time. d) Keep a proper segregation of duties for staff with financial responsibilities. e) Supply information in a timely manner and in the format as requested by the Chief Financial Officer to support the production of the Statement of Accounts. f) Review the basis and level of the fees and charges on at least an annual basis and ensure the resulting fees and charges are submitted
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g)
h) i)
j)
k)
as requested by the Chief Financial Officer for approval through the annual Budget process To ensure levels of income received are compared to budgeted income due on a regular basis and differences are promptly investigated and addressed. To ensure that, where appropriate, payments for services are received in advance of the service being delivered. To ensure all debts raised by their Budget Managers are accurate; have been agreed with the third party; are raised promptly and maintained on a regular basis. Every effort must be made to recover income owed to the Council. Ensure Budget Managers support the Recovery Team as appropriate with actions for collectable debts. Where this function has been retained by the Service Group (see Annex A) the Assistant Director shall ensure wherever possible outstanding sums are recovered, this includes ensuring further recovery action is taken where debts remain unpaid. Where debt collection has been retained by the Service Group, ensure Budget Managers inform the chief Financial Officer where the opportunity to collect a debt has been exhausted to enable the debt write off process to be initiated. For the avoidance of doubt, Budget Manager approval is not required to write off historic unrecoverable debt.
4.3
The Chief Financial Officer shall be responsible, through staff under his control, for maintaining the Councils overall Accounts and direction of Finance teams. All accounting procedures shall be determined by the Chief Financial Officer, where procedures and records are maintained in a Service Group other than that of the Service Group of Resources: Finance, HR & Governance, the appropriate Assistant Director will be responsible for ensuring they are compliant with the appropriate accounting policies, processes and audit requirements. In conjunction with the Assistant Director concerned or the appropriate officer of any third party collecting sums on behalf of the Council, the Chief Financial Officer shall make and maintain adequate arrangements for prompt and proper accounting for all cash, cheques, standing orders, direct debits, and debit/credit card payments. The arrangements shall include the collection and deposit of sums received from third parties. Service Groups are responsible for ensuring all guidance is followed in a timely and appropriate manner, and for raising queries if the collection of these items is unclear. The Assistant Director Financial Management shall: a) Ensure that proper financial processes are followed with regard to financial planning and monitoring. Ensure compliance with the CIPFA Code of Practice for Treasury
4.4
4.5
b)
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Management. c) Maintain sufficient Banking records to satisfy external audit and other regulatory bodies. Maintain adequate accounting policies and records to satisfy external audit and other regulatory bodies.
d)
FR5
Grants from External Bodies
The purpose of this Financial Regulation is to ensure that all grant claims submitted to external funders (e.g. European Union) in respect of specific projects are: a) b) c) d) e) f) g) lawful and in line with statutory obligations accurate complete timely within the approved grant allocation in accordance with each funders eligibility criteria submitted with due regard to the Councils continuing commitment to the project h) in accordance with Council priorities.
5.1
The Chief Financial Officer has a statutory responsibility for ensuring that accounting records are sufficient to show the authoritys transactions are maintained in accordance with proper practices and are kept up to date. Accounting records must include a record of income and expenditure in relation to grant claims. Service Groups are responsible for the proper and accurate preparation of claims and returns to External Grant-Paying Bodies, this will include the establishment of effective administrative and financial systems, including proper arrangements to prevent and detect fraud or error. Claim forms must be submitted to the relevant Service Finance Manager, with times to verify claims ahead of the certification process. Each Service Group has a responsibility to satisfy themselves that they will be able to comply with the terms and conditions of a grant, including auditor certification requirements before accepting the Grant from an External Body. Irrespective of who may complete claims and returns for the Council, Grant-Paying bodies always require the Councils certificate to be given by an appropriate officer, typically the Chief Financial Officer, or an Officer authorised by written delegated powers. The Councils certificate should be given only when the certifying Officer is satisfied with the entries made and that the assurance given by the Councils certificate is well founded.
5.2
5.3
5.4
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5.5
It is important that any commitment arising from taking a grant is linked to the certainty over future levels of grant income and the life of the grant and temporary staffing contracts should not extend beyond the period of the grant. It is important to emphasise that the acceptance of a grant must not commit the Council to maintaining the service offered beyond the life of the grant. In any circumstances where acceptance of a grant would lead to a future financial commitment, the Assistant Director, in conjunction with the Corporate Director (Resources), shall provide a written report to Cabinet in line with Financial Procedure Rule 15. Security and Control of Assets
5.6
FR6
This Financial Regulation aims to provide a framework for the proper use and recording of the Councils assets. 6.1 Assistant Directors should ensure that records of assets are properly maintained and securely held with appropriate sign off requirements for staff using assets. Assets must only be used for Council business unless authorised in writing by the relevant Assistant Director. Assistant Directors should also ensure that adequate business continuity arrangements in place in the event of disaster or system failure. Procurement Rules
6.2
FR7
This Financial Regulation aims to outline some of the key rules which are embedded in the Councils Contract Procedure Rules and the correct procedures which must be followed when acquiring supplies, works and services from third parties. 7.1 The rules for procurement are embodied in the Councils Contract Procedure Rules. All Members and officers of the Council are required to comply with Contract Procedure Rules. Contract Procedure Rules cover the process of acquiring supplies, works and services from third parties, including: a) b) c) d) the purchase of goods, materials and related services all contracting including the execution of works commercial partnering commissioning of supplies, works or services
7.2
Care and Education Contracts for Individuals 7.3 These Financial Regulations recognise that within areas such as Adult Social Care, Childrens Social Care contracts and Special Education Needs (SEN) residential and day school contracts there may be:
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'block' contracts - where a number of beds, places or services are provided by the contractor at pre-agreed pricing schedules, to which the Council may refer users over the contract period; or 'spot' contracts - one-off contracts meeting an individual user's needs, or contracts where a number of beds, places or services are provided by the contractor without pre-agreed prices, such prices to be agreed upon each referral of a user over the contract period.
7.4
The Assistant Directors of Adult Social Care; Joint Commissioning and Integrated Support and Social Care will seek to maximise the use of block contracts where this represents best value for the Council and meets the individual needs of the person requiring care and/or education. The relevant Assistant Directors will ensure that the purchasing of placements provides value for money. The relevant Assistant Directors will also, where feasible, enter into framework and/or approved provider arrangements to improve quality and value for money. The following provisions shall apply to contracts referred to in 7.3 above: a) b) All Contract Procedure Rules apply to block contracts; CPR 8, 9, 10 and 11 (in relation to tender procedures and formation of contract) shall not apply to spot contracts (on their own or as part of framework/approved provider arrangements); The Assistant Directors of Adult Social Care; Joint Commissioning and Integrated Support and Social Care may award all spot contracts, which shall be reviewed at least annually as part of the review of whether the service provided continues to meet the needs of the service user; The Assistant Directors of Adult Social Care; Joint Commissioning and Integrated Support and Social Care shall provide quarterly reports to the relevant Cabinet Member detailing the nature, extent and value of spot contracts entered into in the previous quarter.
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c)
d)
FR8
Partnerships
This Financial Regulation outlines the protocol that both Officers and elected Members should adhere to when engaging with Partners regarding Council matters. It also informs the responsibility that each Assistant Director has in performance and financial monitoring of each Partnership. 8.1 A partnership is defined (within the Partnership Toolkit used to assess partnership governance in 2009) as a joint working arrangement where partners: are otherwise independent bodies or groups; agree to co-operate to achieve common goals; create a new organisational structure or process, separate from their own organisations to achieve these goals;
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8.2
jointly plan and implement an agreed programme; share relevant information; pool risks and rewards; and have dual accountability to both the partnership and their own organisation.
All Members and Officers currently involved in or considering partnership working should have regard to the Councils Partnership guidance. It should be noted that the selection of partners must be underpinned by a procurement process as set out in Contract Procedure Rules except for the following circumstances: a) where there is no exchange of funds (e.g. information sharing only); b) where the Council is providing grant funding (e.g to a voluntary sector body, where that body would be expected to undertake a procurement exercise) for the delivery of a service, supply or works (e.g. this would not apply where funding depends upon detailed specified requirements); c) where it is permitted, required or encouraged by law (e.g. joint committee, pooled budgets and integrated services with Health Trusts).
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As this area can be complex and legal challenges can arise the view of the Chief Financial Officer and Chief Executive should be sought before any discussions are held with potential partners. Any financial relationship with a partner must be fully documented and appropriately approved. Where the entering into a partnership requires a financial commitment from the Council, either immediate or potential, for which the budget provision is not available, or where the acceptance of external funding would lead to a financial commitment beyond the current year, the Assistant Director in conjunction with the Chief Financial Officer shall provide a written report to Cabinet giving a full appraisal of the financial implications for the Council of the scheme both in the current year and beyond. The approval of the Cabinet must be secured before the Assistant Director commits the Council to any partnership agreement. In addition, a clear exit strategy and risk share approach must be in place prior to entering into any partnership agreement. The Assistant Director(s) of the applicant Service Group shall be responsible and accountable for the performance and financial monitoring of each partnership. A risk assessment should be maintained in relation to the Council being a party to each Partnership.
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8.7
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8.8
Where receipt of funds from a partner or third party (i.e. matched funding) is part of any grant submission, Assistant Directors must adhere to the guidance which has been provided by the Chief Financial Officer. Internal Audits rights of access to all officers, buildings and information, explanations and documentation required to discharge the audit role should be written into the appropriate agreements within these organisations. This is the responsibility of Assistant Directors. Limited Liability Partnerships
8.9
FR9
This financial regulation sets out the Councils approach when working with the Limited Liability Partnerships (LLPs) of the Council. 9.1 The Council in 2012 created two Limited Liability Partnerships: Milton Keynes Service Partnership (MKSP) which takes on the services which were previously managed under the Mouchel contract; and Milton Keynes Development Partnership (MKDP) which is a new development vehicle for the Council and has taken on the assets purchased from the Homes and Communities Agency
9.2
The ongoing services which MKSP and MKDP will provide to the Council will be set out in service level agreements and the cost of providing these agreements will be fixed. If additional services are requested beyond the service level agreement, details of the request should be considered by the relevant MKSP or MKDP manager to determine whether the request can be delivered. If the request can be delivered within the available resource, this request should be delivered at no additional charge. However, if the request means MKSP or MKDP need to incur additional costs then these should be agreed in advance and met by the Council. Additional charges will only be at cost price. The Council is not required to go through its procurement processes to commission work through MKSP, as this is a wholly owned entity and will only charge cost price. However, key decision and budget limits still apply and will limit unplanned items of expenditure. The ongoing services the /council will provide to the LLPs will e set out in service level agreements. The cost of these service level agreements will be agreed with the LLPs. If the LLP requires additional services from the Council a discussion will need to be undertaken with the relevant service manager to determine if there is sufficient capacity to meet this request. If additional costs will be incurred by the Council then these costs should be agreed in advance of the work and met by the relevant LLP. All charging for SLA services (both to and from the LLPs) will be managed by the finance function. Any agreements for meeting additional costs (both to and from the LLPs) must result in a purchase order being raised and goods receipting being approved as works are delivered. The
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9.3
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relevant manager expecting a contribution is also responsible for raising an invoice in a timely way. This process results in a cash transaction between the LLP and the Council and therefore must be accurate and timely.
FR10 Preventing Fraud and Corruption This Financial Regulation clearly states the responsibility of all Council staff, elected Members, agents and other partners to protect the funds they administer on behalf of the Council. It outlines the duties of the Assistant Director of Audit and Risk Management to take necessary steps and inform the Chief Financial Officer of investigations that have been conducted of any suspected fraud, corruption or irregularity. 10.1 All Council staff, members, agents, contractors and strategic partners have responsibilities to protect the funds they administer on behalf of the Council. Council resources must be administered to the benefit of the taxpayer and not the inappropriate personal benefit of any of the above. All Staff, Councillors, agents or contractors of Milton Keynes Council have a responsibility to bring to the attention of the Head of Internal Audit, Section 151 Officer or their Assistant Director any suspected fraud, corruption or irregularity. The Head of Internal Audit, in consultation with the Chief Financial Officer if appropriate, will take such steps as considered necessary by way of investigation or report. Wherever possible the Assistant Director and the officer referring concerns shall be kept informed.
10.2
10.3
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Contacts Chief Financial Officer Assistant Director Financial Management Assistant Director Audit and Risk Management Head of Financial Reporting and Projects Head of Financial Planning Head of Internal Audit Ext 2756 Ext 2079 Ext 2089 Ext 4591 Ext 3268 Ext 2227
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ANNEX A SERVICE AREAS RESPONSIBLE FOR RECOVERY ACTION Housing Rents (Tenant arrears) Former tenant arrears Homelessness Housing Right to Buy
Estates Revenues and Benefits
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ITEM
6(C)(ii)
Financial Procedure Rules
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Reference Financial Procedure Rules
Financial Regulations
Introduction FR1 Responsibilities FPR 1 FPR 2 FPR 3 FPR 4 FPR 5 FPR 6 FPR 7 FPR 8 FPR 9 FPR 10 FPR 11 FPR 12 FPR 13 FPR 14 Budget Preparation Medium Term Financial Planning Capital Programme Preparation Tariff Virements Forecasting and Monitoring Approved Capital Projects Capital Year End Income Write Offs Banking Treasury Management Payment of Grants and Benefits to external bodies Managing Grants General Grants Specific Grants Grant Letters and Conditions Security and Control of Assets Acquisition and Disposal of Assets Small Value Assets (Inventory) Stocks and Stores Fleet Management Purchase Orders Imprest and Petty Cash Reimbursement of expenses and payments Grants Voluntary Sector To be developed To be developed Internal Audit Risk management and Insurance FR2 Financial Planning and Annual Estimates
FR3 Forecasting and Monitoring
FR4 Accounting
FPR 15 FPR 16 FPR 17 FPR 18 FPR 19 FPR 20 FPR 21 FPR 22 FPR 23 FPR 24 FPR 25 FPR 26 FPR 27 FPR 28 FPR 29 FPR 30 FPR 31 FPR 32
FR5 Grants Received from External Bodies
FR6 Security and Control of Assets
FR7 Procurement Rules
FR8 Partnerships FR9 Limited Liability Partnerships FR10 Preventing Fraud and Corruption
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Financial Procedure Rules Introduction These Financial Procedure Rules underpin the Financial Regulations and are part of the financial framework within which the Council operates. This framework comprises: Council Constitution Financial Regulations Financial Procedure Rules Financial Scheme of Delegation Other guidance Financial Regulations provide the framework for the financial administration of the Council with a view to ensuring that the Councils financial affairs are conducted in a sound and proper manner, constitute value for money and minimise the risk of legal challenge to the Council. Financial Regulations are not intended to constitute a set of detailed rules to respond to every situation. Financial Procedure Rules set out the processes that need to be followed to ensure that sound financial management is maintained and that the authority maintains good financial governance. The Council has agreed 12 underlying key principle which we need to ensure are endorsed when developing our Financial Plans. These are: 1. 2. 3. Emerging pressures are managed within existing cash limits Spending is aligned to the key priorities set out in the Corporate Plan Income is only included in budget where supported by robust proposals and is deliverable Future Liabilities are anticipated Budgets are sustainable Base Budget / One-off expenditure/ Capital expenditure are distinguished. Savings proposals are supported by project plans and the impact on service delivery is clear. The allocation of capital resources is separate from expenditure approval. Capital and revenue planning needs to be integrated to ensure implications are fully anticipated.
4. 5. 6. 7.
8. 9.
10. The use of specific grant funding does not lead to revenue budget pressures. Page 3 of 47
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11. The Council reduces its dependency on reserves to balance the Budget. 12. The Council ensures it has sufficient earmarked reserves to address the risks identified in future years particularly in relation to demand led services.
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FINANCIAL PLANNING AND ESTIMATES FPR1 Budget Preparation 1.1 The Corporate Leadership Team (CLT)/Cabinet shall keep under review the medium term financial position of the Council taking into account the Councils performance plans and anticipated future levels of capital and revenue resources. Assistant Directors are responsible for preparing Service Group financial plans and ensuring they are clearly aligned with relevant service plans and the Corporate Plan; for ensuring that prior approval is given by the full Council or the Cabinet/CLT (as appropriate) for any measures that are likely to extend or reduce the Councils services or policy objectives, and for new commitments for which there would otherwise be no agreed budget. In accordance with the Councils Scheme of Delegation, Assistant Directors, and their budget holders, have powers to incur revenue expenditure in carrying out the functions allocated to them provided: a) The expenditure is lawful and there is sufficient budget provision; b) Procurement Rules have been complied with; c) expenditure is within the approved revenue budget or capital spend approval; d) expenditure is in respect of Council policy; e) consultations, where relevant, have taken place with the appropriate stakeholders including Corporate Directors and Portfolio Holders. f) Expenditure is within their delegated powers 1.4 Nothing in these Rules shall prevent a Corporate Director or Assistant Director incurring expenditure to meet the needs of an emergency or which is referable to Section 138 of the Local Government Act 1972, subject to their action being reported at the earliest opportunity to the Cabinet and where appropriate the Council. However, when such an incident occurs as soon as the incident is resolved and there is no risk to public safety the expenditure should be reviewed to ensure that ongoing costs are subject to the processes set out in these Rules e.g. the continuation of expenditure on a service has been secured through an appropriate procurement/recruitment process.
1.2
1.3
1.5
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FPR2 Budget and Medium Term Financial Planning What is Financial Planning? 2.1 Medium Term Financial Planning outlines spending pressures and savings and the resources available to the Council to ensure that decisions can be made about resource allocation. The Medium Term Financial Planning process is an integrated process with the Corporate and service planning process. This is to ensure that the annual budget reflects the priorities of the Council and that service plans explain consistently how priorities will be delivered within the resources available. The Medium Term Financial Plan produces the framework for future resource allocation decisions to support the delivery of the Corporate Plan. Outlined in the introduction are the 10 Key Financial principles which have been incorporated into our Revenue and Capital Budget Planning and will be the key underpinning principles for the Councils Medium Term Financial Planning The cycle for budget and medium term financial planning is set out below. Table 1: MTFP Budget Planning Stages Budget Stage a Budget Planning Corporate Process Planning Process Refresh/ develop Use year end Medium Term performance data, Financial Strategy in and other research light of known issues and intelligence to and funding shape the review of assumptions priorities at a corporate and Set and apply planning assumptions service level. Begin combined service and financial planning process for managers Member discussion and approval of high level budget strategy Identification of amendments due to reflect known activity changes and proposals to reduce costs resulting in pressures and savings Development of draft service priorities and plans alongside financial plans Timescale March
2.2
2.3
2.4
b c
April- June April June
June/July
June October
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Budget Stage f
h h
Budget Planning Process Robustness, validation and Challenge Review Draft Budget Proposals considered by members Public consultation Final Budget approved by members and Council Tax set.
Corporate Planning Process Detailed work by services and Councillors on service planning and priorities alongside budget considerations resulting in the finalisation of the Corporate Plan.
Timescale September November November/ December December/ January February
Improved Budget Process 2.5 Budget Managers are required as part of the Budget Setting process to identify in each of their service areas the following: Base Budget Position Unavoidable Expenditure Avoidable Expenditure/Investment Proposals One-off Expenditure Savings Proposals Full Time Equivalent [FTEs] Key Risks How their budget and proposals link with key activity data
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2.6
A more integrated approach has been taken to finance, service planning and performance. Part of the service planning process has been to cross reference between MTFP pressures and savings and those key areas of priority for the service delivery ensuring that finance and performance are not looked at in isolation. The Budget planning process is an iterative process and the key stages in the Budget setting cycle are noted above in Table 1 in 2.4. In April of each Financial Year a draft timetable of the forthcoming Budget Setting Process will be circulated by Finance to Budget Managers and Assistant Directors The development of the Medium Term Financial Framework, the review of the wider economic climate and other external factors begins early in the financial year, with an initial overview reported by Officers to Members in June/July each year. This MTFP informs the detailed budget setting process for the following year. Officers will draft initial budget options for consideration by Members and Budget Group in October/November each year [part of stages f and g in Table 1 above] to enable a period of challenge and validation by Members The Corporate Leadership Team (CLT)/Cabinet shall keep under review the medium term financial position of the Council taking into account the Councils performance plans and anticipated future levels of capital and revenue resources. This will include a review of the MTFP Risk Register and updating risks with current developments and actions as part of the Budget Setting Process Assistant Directors are responsible for preparing Service Group financial plans and ensuring they are clearly aligned with relevant service plans; and for ensuring that prior approval is given by the full Council or the Cabinet/CLT (as appropriate) for any measures that are likely to extend or reduce the Councils services or policy objectives, and for new commitments for which there would otherwise be no agreed budget
2.7
2.8
2.9
2.10
2.11
Medium Term Financial Plan (MTFP) 2.12 The MTFP is a financial framework for looking further ahead than the next annual Budget, and provides an overview of the financial outlook over the medium term based upon enabling the delivery of the corporate priorities. The MTFP as a minimum sets out the annual budget year plus 3 further years projections. The MTFP approved by Council in February 2012 covered the financial years 2012/13 to 2015/16. Various external factors will influence the planning assumptions underpinning the MTFP and these will cover some of the following variables: Corporate Priorities Levels of Council Tax
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2.13
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Likely impact on inflation in the current and future economic climate Future Spending Reviews and funding allocations to Local Authorities from Central Government
2.14
One significant issue addressed in the 2010/11 Budget Report was the introduction of Sustainability Items into the Base Budget. This provides for known future liabilities, such as Pension Costs, Highways Infrastructure Investment and the development of a Residual Waste Treatment Facility. This approach is consistent with our MTFP financial principles of anticipating future liabilities. Each Service Group is required to review future funding pressures over the period of the MTFP and indicate these and how the increased demands on services will be addressed in future years. As part of the Budget Setting Cycle, an updated to the MTFP report approved by Members each February will be prepared during June/ July each year and will outline the key planning assumptions that the Authority will need to consider as it sets its Budget for the following financial year and future MTFP period. The Medium Term Financial Plan is updated in November/December each year alongside the draft budget to reflect a better understanding of assumptions before the final budget is approved. The MTFP is finally updated alongside the final budget in February, to set the context for the approval of the budget and as a starting point for future financial planning.
2.15
2.16
2.17
FPR3 Capital Programme Preparation 3.1 The Medium Term Financial Plan includes; 3.2 A long-term (15 year) projection of capital investment needs and potential funding, which is consistent with the Local Infrastructure Plan (LIP); The Capital strategy; A forecast of potential capital resources; and A forecast of potential capital expenditure
The Cabinet have also agreed a number of underlying key principles upon which the Capital Programme will be developed in the future. These are: Emerging pressures are managed within existing cash limits - new capital schemes are not added in year, unless there is an explicit decision to re-prioritise the capital programme removing schemes if necessary. All schemes in the Capital Programme must be fully funded. Spending is aligned to Key Priorities - capital schemes will be prioritised based on information arising from Asset Management Plan work and the Local Investment Plan (LIP).
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Income is only included in budget where supported by robust proposals and is deliverable - capital schemes relying on funding from external parties will only be given spend approval when funding is in place. Expenditure against capital receipts will only be agreed once received. Future liabilities are anticipated - The need to maintain the Councils assets is recognised and given priority within the Capital Programme. The Council is developing a long-term investment strategy to outline how future asset needs can be funded. This will ensure the financial impact of known future liabilities are adequately managed. Budgets are sustainable - Council budgets recognise that sales of assets alone are not a sustainable method of funding the capital programme over the medium term. The Council therefore needs to build into its budget revenue contributions to capital outlay and also take the opportunity to secure one-off sources to build up asset replacement reserves. Base Budget / One-off expenditure/ Capital expenditure are distinguished. Capital schemes: Allocation of resources is separate from expenditure approval. Capital and revenue planning needs to be integrated to ensure implications are fully anticipated. The use of specific grant funding does not lead to revenue budget pressures - where grant funding is made available to schemes there needs to be an explicit assessment of risk. In particular, on complex schemes where grant funding is fixed, the Council needs to recognise it would have to wholly fund any overspend. Reduce our dependency on reserves to balance the budget - funding from rephasing creates significant risks around the Capital Programme, particularly where resources are constrained and future programmes are likely to diminish. For this reason rephasing will not be used to fund schemes. A more prudent approach of funding schemes only when the specific resources allocated to the schemes have been identified and secured.
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3.3
The Finance Service develops a view of the resources available in the medium term to provide a context for Service Groups. All Service Groups are asked to identify their long-term investment needs. With those projects required over the medium term being submitted for detailed review and challenge as part of the medium term capital programme process. Longterm investment needs are capture in the long-term investment plan. This plan is updated as part of the MTFP process, as a context for allocating capital resources. The Councils strategic approach to capital planning is developed alongside and based on detailed Asset Management Plans (AMPs) to ensure that the strategic investment needs of the Council together with the ongoing maintenance demands of the assets are being addressed. Project managers are required to prepare project appraisals for all capital projects to be included in the Councils Capital Programme. The appraisal will be in the format of the START documentation used for all Council project administration, and will identify a project sponsor and a project manager who are accountable for delivery of the scheme. Appraisals will show the expected costs for each scheme, including future revenue costs associated with operating the asset and whole life costs such as decommissioning, and identify the source of funds through which the project is to be financed (including, where appropriate, leasing). All appraisals should be authorised by the following persons: Project Manager Senior Finance Manager Corporate Director/Assistant Director/Project Sponsor Chief Finance Officer or Section 151 Deputy Cabinet Member
3.4
3.5
3.6
3.7
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3.8
Projects submitted for inclusion in the capital programme shall be reviewed by the Service Group Management Team and prioritised on how well their projected outputs match the priorities of the Council set out in the Council Plan, and on expectations of available resources in the short and medium term. Projects which are fully funded by grant or third party funding, with no current or future capital or revenue impact will be ring-fenced from the prioritisation process, unless alternative use for grant has been identified. Project appraisals and Cabinet approval are still required for such schemes, to enable informed decision-making and appropriate monitoring. A draft programme will be submitted to Cabinet for initial consideration in November of the year prior to the first year of the new programme. A revised draft programme will be submitted to Cabinet, for recommendation for approval by Council in February. This is the Resource Allocation. The approved programme will then be implemented from April as the programme beginning in the forthcoming year. Individual project appraisals must have Resource Allocation and Spend Approval in accordance with the Scheme of Delegation before any expenditure is committed. Projects must have received Resource Allocation to be part of the approved programme, normally as part of the Budget process. Projects must receive spend approval to begin spending as part of the approved programme. Spend approval is requested through the Capital Programme Review Panel and formally approved by the Cabinet following confirmation that all funding is in place and project planning is complete. There is an expectation that larger schemes are given multi-year approvals and, again where appropriate, spend approvals may well be sub-divided to reflect key stages in the scheme. Officers may submit for inclusion in the five-year programme schemes that are not expected to start in the first year. If these are prioritised by members, they may be included as indicative schemes in future years, to be reviewed for final approval when they are due to start. The de minimis value for individual schemes to be included in the capital programme is 10,000, unless specifically agreed by the Chief Finance Officer. All capital projects will also need to ensure that they follow appropriate procurement processes, including the approval processes necessary to meet the terms of reference of the Cabinet Procurement Committee.
3.9
3.10
3.11
3.12
3.13
3.14
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FPR4 Tariff 4.1 The Council has taken on the Milton Keynes Tariff from the Homes and Communities Agency (HCA). The MK Tariff is a forward funding model where Government investment has enabled infrastructure to be developed to enable housing and business growth. The Council has also taken over the responsibility for the Local Infrastructure Plan, which sets out the investment required to fund growth across Milton Keynes. This plan will be developed in conjunction with the Councils long-term investment programme, but will also incorporate the needs of partners. The MK Tariff is governed by legal agreements between developers and the Council as the Tariff operator. The LIP will be used to inform the investment plan for the Tariff. The Tariff investment plan will be subject to public consultation before being finalised alongside the Councils Capital Programme in February. This process will represent a Resource Allocation Stage. There will be a detailed approval process for Tariff projects, in line with the Councils approach to the Capital Programme, which will allow spend approval to be granted. For projects being developed by the Council this will be integrated into the current Capital Programme Review Panel. No Tariff funding will be allocated until Spend Approval has been granted. External parties delivering projects under the Tariff will be liable for their own risks. The forward funding of the Tariff cashflow must be managed within the profile agreed with the HCA, and the risks inherent in the Tariff must be managed in accordance with the Tariff Risk Management Plan, which will be subject to a biennial review with the DCLG and the HCA. Spending and income on the Tariff position will be reported quarterly as part of the Budget Monitoring Report.
4.2
4.3
4.4
4.5
4.6
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FPR5 Virement (or transfers) between Budgets 5.1 A virement is the balanced transfer of spending power [or budget] from one place to another, ie overall budget does not change. Virements should support the Councils policies and not result in enhanced service levels or budget commitments beyond the base budget. A virement should not be used for cosmetic purposes within the same budget code. This section refers to three types of virements: supplementary estimates; revenue virements and capital virements
Supplementary Estimates 5.2 Supplementary Estimates will only be used where the Council wishes to amend its budget requirement, for example, a non specific grant where there is no clear spending requirement.
Revenue Virements 5.3 Assistant Directors can request a budget Virement providing it meets the following criteria: a) virements should only apply to the transfer of funds within the delegated budget of the Assistant Director; b) the proposals should be consistent with approved Council policy; c) virements should only involve the transfer of funds between Services; d) virements should only be allowed where the total net delegated budget is still within the delegated costs limit; e) there should be no consequential revenue effects in later years; f) there are some restrictions on the type of budgets that can be vired i.e. you are not allowed to vire recharge budgets or salary budgets.
5.4
The Corporate Director (Resources) or his nominated representative can approve the following virements: Technical virements those virements which are required to properly reflect the intentions as set out in the Council budget, for example, changes to the Council structure, or the detailed allocation of budget savings once consultation has been undertaken. Within Service Group virements as requested by an Assistant Director where the request meets the conditions set out in
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paragraph 5.3. These virements will be reported to Cabinet for information. 5.5 The following virements can only be approved by Cabinet, if recommended by the Corporate Director (Resources): Virements between Service Groups (except for technical virements) Virements which do not meet one or more of the required conditions 5.6 A quarterly report on virement activity will be provided to the Corporate Director (Resources), and included in the Budget Monitoring Report. Contingencies 5.7 Transfers from Reserves to revenue budgets require the approval of the Corporate Director (Resources) or his nominated member of staff.
FORECASTING AND MONITORING FPR6 Forecasting and Monitoring 6.1 Each Assistant Director responsible for a revenue or capital budget shall: a) monitor and control expenditure within their approved budget and be accountable for the actions of budget managers in accordance with the reporting timetable issued by the Corporate Director (Resources); b) report progress against their budget in accordance with the guidance and timetable set using the Business Objects Planning and Consolidation system, to ultimately report to Cabinet in the Budget Monitoring Report in consultation with the Corporate Director (Resources) ; c) highlight any significant risk which may impact on the forecast; and d) keep the Corporate Director (Resources) informed of any actual or likely changes which will/may have a significant impact on current or future budgets as soon as this is identified.
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6.2
The Corporate Director (Resources) shall also provide guidance on and co-ordinate the budget monitoring process and the form, basis, supporting information and timetable for the preparation thereof. It is the responsibility of Budget Managers to contact Finance Managers with any requests for carryover of budgets including project funding which will only be approved by the Corporate Director (Resources) where: There is sufficient funding to complete the project; and There is good reason why the expenditure could not have been completed during the financial year.
6.3
6.4
If it is envisaged that a significant amount of income is due in any period, which does not form part of the normal budget forecast (e.g. court settlement) these amounts should be notified to Treasury Management team.
FPR7 Management of Approved Capital Projects 7.1 Assistant Directors are responsible for managing the overall capital programme for their Service Group. This includes ensuring that the overall actual and forecast outturn for the current year is not in excess of the level of spend approval, ensuring commentary on the project progress is correct, and the forecast outturn is as accurate as possible and that projects are well managed and controlled in accordance with the Councils project management framework. Regard must also be made to the overall actual and forecast outturn over the whole life of all approved schemes. Assistant Directors and project sponsors are responsible for ensuring and demonstrating effective project management for all schemes within their area. Corporate Directors and Assistant Directors are authorised to spend on any scheme (for which they have delegated responsibility) up to the spend approval included in the latest approved capital programme for that scheme. The approved programme comprises only projects for which spend approval has been given by Cabinet. Regard must be made to managing in-year expenditure within the in-year programme budget, as well as total expenditure over the life of each scheme. As part of the monitoring process, the Chief Finance Officer must be provided with written explanation of all significant in-year under and overspends compared to spend approval. Proposed additions to the programme during the financial year should be submitted to Capital Programme Review Panel (which is an officer group led by the Corporate Director (Resources)) for onward submission to Cabinet for approval, supported by a project appraisal. Page 16 of 47
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7.2
7.3
7.4
7.5
Cabinet is authorised, once the programme has been set, to approve new capital schemes and variations to existing schemes, subject to funding being available and the schemes being in accordance with the objectives and priorities of the Council. Cabinet authority is a delegated power from full Council. 7.6 Assistant Directors shall ensure that appropriate and adequate information is maintained for each scheme, showing as a minimum: Planned start date and any subsequent revisions Planned completion date and any subsequent revisions Gross value of scheme (both capital and revenue expenditure) Expenditure to date Forecast final outturn Budgeted expenditure for the current year Expenditure during the current year to date Forecast outturn for the current year Estimated carry forward expenditure to the following year If the individual project varies by > 100,000 or any value cannot be accommodated within the overall approved gross resource allocation, Cabinet approval for the change will be required. Except in urgent circumstances, approval for these will normally be requested under cover of the regular Revisions to Capital Programme and Update Report to Cabinet. The Cabinet authority is a delegated power from full Council. Proposed variations and new appraisals during a financial year will be reported to a monthly meeting of the Capital Programme Review Panel for validation. A summary of agreed variations and appraisals will be presented to Cabinet for approval, as part of the Revisions to Capital Programme and Update Report. Where actual or forecast expenditure on a scheme varies from the spend approval any agreed variances should be reported to Cabinet as part of the monthly Budget Monitoring report for information. Where it is not possible to take programme changes to Cabinet due to the need to make an urgent or speedy decision, the rules contained within the Constitution on delegated decision making and urgent decisions will apply. At the completion of capital projects a benefits realisation report will be prepared and for the Capital Programme Review Panel and Members. The form of the report and its use is currently being developed.
7.7
7.8
7.9
7.10
7.11
FPR8 Record of Contracts for Capital and Revenue 8.1 Each Assistant Director shall be responsible for maintaining proper records for all contracts. This should be referenced to the Contracts
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Register held by Procurement and the details reconciled and revised to ensure that there is, effectively, a single record. 8.2 The specific requirements of contract processes are set out in Contract Procedure Rules which can be found on the Councils intranet and are applicable to all contracts.
FPR9 Year end 9.1 The Corporate Director (Resources) will issue guidance on the processes that are required for successful closure of accounts. Each Service Group is responsible for ensuring that all expenditure is properly accounted for during the year. In particular, they should ensure that all goods receipting and raising of debtors is undertaken correctly. If there is any doubt over what is required Budget Managers should consult the relevant Finance Managers. The Corporate Director (Resources) will report on the financial outturn to the Cabinet and will require each Service Group to provide explanations for any major variations between forecasts in Month 11 and actual expenditure at the end of the year. The Finance Control Team will compile the draft Statement of Accounts and provide this to the Corporate Director (Resources) for approval prior to the draft Statement of Accounts being submitted to the Audit Committee for approval. Once the Audit Committee has approved the draft Statement of Accounts it will be passed to the Councils External Auditor to enable the audit of accounts to be undertaken.
9.2
9.3
9.4
9.5
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ACCOUNTING FPR10 Income
The objective of this Financial Procedure Rule is to ensure that all income due to the Council is in accordance with the Councils Income Policy and is collected, banked and properly accounted for. This includes sums received by electronic means such as debit/credit cards, internet, telephone and direct debits. 10.1 All budget managers are responsible for raising and collecting income in a timely and accurate manner. Wherever possible services should be billed and paid for in advance and no service delivered until payment has been received. There are two types of income, income and uninvoiced income, the requirements of these income streams are set out below: Cash/Uninvoiced income 10.3 Where monies are received for a service at the point of delivery this income should be treated as uninvoiced income. A record should be maintained of all individual payments, including the amount, time and date of the receipt. This should be compared to the income held, with appropriate segregation of duties, to ensure all income is banked and verified. Verification of records should be by an appropriate second officer. All officers should follow the guidance on the finance website when dealing with uninvoiced income. Cash handling should be kept to a minimum. Assistant Directors (previously Corporate Director) should only collect income as cash when other payment routes are not available and must put in place additional controls if any income is to be collected as cash. These arrangements must provide that: a) officers are appropriately trained in income accounting and cash handling arrangements collection,
10.2
10.4
10.5
10.6
b) sufficient separation of duties are in place, in particular between billing income, processing payments and banking payments. c) official receipts are available on request for payments made in person d) proper records are kept
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e) all money received is banked as soon as practicable. All insurance limits on safes shall be adhered to and all cash/cheques shall be banked no later than one week after receipt. f) VAT is properly accounted for in accordance with the VAT Guidance Manual for Service Group Staff g) where it is necessary for cash to be held prior to it being paid into the Councils bank account, it should be recorded and kept in an appropriate secure environment. h) security of staff shall be maintained when cash collections are involved. 10.7 Each officer who pays in money on behalf of the Council shall enter on the paying in slip and duplicate or counterfoil, particulars of such payment, including in the case of each cheque paid in: a) the amount of the cheque b) the invoice/account number if one exists; c) if an account/invoice number does not exist then a reference (such as the number of the receipt given, or the name and/or address of the debtor), which will connect the cheque with the debt for which it was received. d) the officers name and contact number 10.8 Personal cheques must not be cashed out of money held on behalf of the Council Invoiced Income 10.9 Invoiced income falls into two categories, payments in advance and payments in arrears. Wherever possible, users of services should be billed in advance of the provision of the service. For all billed income it is the responsibility of the Assistant Director to ensure that any debts raised are accurate, appropriate and due to the authority. Payments in Advance 10.11 Budget managers are responsible for setting out the basis of the charge to the recipient of the service and ensuring that the amounts billed are consistent with the approved list of fees and charges. Payment is verbally acknowledged and should be entered immediately into Radius (the Councils income system) to allow Page 20 of 47
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10.10
payment to be taken. When receiving payment by debit or credit card, under no circumstances should the card details be recorded other then when keyed directly into the payments system. Similarly, card details must not be able to be retrieved from systems on which they are taken. Failure to adhere to this risks a substantial fine for breaching the payment card industrys security rules. Payments in advance should be acknowledged in an appropriate manner to provide assurance to the customer. Wherever possible budget managers should validate that a payment has been received prior to the service being delivered (although it is acknowledged that this cannot be completed in some areas at the present time).
Invoiced Income (Sundry Debtors) 10.12 For the main debt collection the following process must be followed; For all invoiced income a debtor account must be opened or a current debtor account reference must be used. If a debtor needs to be created, a request is sent to the Masterdata team using the form available at the following link http://staffintranet/Finance/MouchelFinance/MasterData.htm#_Toc286918169 Once the unique reference has been returned to the budget manager, a debtor request must be raised by the budget manager using an MDFES form. This debtor must be: o Raised in a timely manner (within 5 working days of the debt being identified); o Be an accurate record of the debt; o State the period and goods and services the debt covers; o If the service provided is for a long period an invoice should be raised at regular periods during the provision of the service (e.g. weekly or fortnightly for provision of services to individuals or monthly for provision of services to companies). MDFES forms need to be approved for release by the budget manager to allow bills to be automatically generated. If an invoice is disputed by the debtor this will be marked by the Sundry Debtors team as being disputed. This disputed invoice is then passed to the relevant budget manager. The budget manager must resolve this dispute within 14 working days or notify Sundry Debtors of ongoing process if a dispute Page 21 of 47
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takes longer to resolve. If a credit note or adjustment to future bill is required this must be authorised by the Assistant Director, or by another appropriate arrangement including an officer of an equal or higher grade to the budget manager. Debts not made on time will be processed through the sundry debtor process. If this process is not successful in collecting the debt, this debt will be referred to a debt collection agency (except if the debt is for Social Care). If debt collection is not successful through the debt collection process pr a legal process, the outstanding debts referred by sundry debtors are to be written off in accordance with FPR 11 below.
Payment by instalments 10.13 Instalment payments should only be agreed if verified as appropriate by the Debt Recovery Manager or another appropriate manager. Instalments should only be approved if there is no means of immediate payment. Services raising their own debts 10.14 For services who raise debts through separate systems, including housing, revenues and benefits, and estates (i.e. not using the Sundry Debtors team), the same principles should be followed, i.e.: Debts should be accurate, timely and document the goods and services provided; The service is responsible for ensuring debts are raised and paid. If debts are not paid then the service is responsible for ensuring debt collection procedures are followed. As a minimum, these debt collection procedures must include: o Reminder letters on the following days after payment is due (7 days, 14 days, 21 days and 30 days); o Debt collection and recovery.
10.15
All debts for consideration of write off should be compiled on a monthly basis for approval. All write offs must be approved by the Corporate Director (Resources) or his authorised nominee (as set out in FPR 11 below). Bad Debts/ Write- Offs/ Loss of Income The Authority has a duty to maximise revenue collection. However, circumstances may arise in which amounts due must, for all practical purposes, be deemed uncollectable. The Accounts & Audit Regulations 2011 require that in such Page 22 of 47
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FPR11 11.1
11.2
circumstances a decision to write-off an amount must be taken with the authority of the Chief Finance Officer, whether exercised personally or properly delegated by him to a member of his staff. The amounts involved, and approval granted, should be recorded in the accounting records. 11.3 No such provisions apply where debts are cancelled i.e. because they were incorrectly raised (e.g. wrong amount, wrong debtor) or waived i.e. because an authorised policy decision was taken not to charge or to reduce the charge of an amount otherwise properly payable by a debtor. The Corporate Director (Resources) or his nominated member of staff may approve the write-off of any amounts properly charged, but deemed uncollectable, in the following cases: (i) Bankruptcy or liquidation (where every effort should be made to minimise the loss); (ii) The company having ceased trading and there being no assets; (iii) Court decisions; 11.5 Other individual bad debts or loss of income, not falling into these categories, may be written off as follows: (i) By the Corporate Director (Resources) or his nominated member of staff, if it does not exceed 20,000; (ii) By the Corporate Director (Resources) or his nominated member of staff with the approval of the Cabinet if exceeding 20,000.
11.4
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FPR12 12.1
Banking Arrangements The Council's banking arrangements are the responsibility of the Corporate Director (Resources). Bank accounts can only be opened in consultation with Strategic Finance and must be approved by the Corporate Director (Resources). All bank accounts must include Milton Keynes Council in their title. The Corporate Director (Resources) must approve the signing arrangements for each bank account including the names of officers authorised to sign cheques and issue instructions to the bank and the limits of their authority. The Corporate Director (Resources) will issue guidance on how bank accounts should be operated, controlled and reconciled. All officers are responsible for ensuring that all bank accounts within their Service Group are operated in accordance with guidance issued by the Corporate Director (Resources) and that they are reconciled at least once a month. Assistant Directors must also ensure that loans are not made to third parties and that interests are not acquired in companies, joint ventures or other enterprises without the approval of the Cabinet or the Council, following consultation with the Corporate Director (Resources). Assistant Directors are responsible for ensuring that all monies collected are banked promptly and properly accounted for in accordance with guidance issued by the Corporate Director (Resources).
12.2
12.3
12.4
12.5
12.6
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FPR13
Treasury Management
The objective of this Financial Procedure Rule is to ensure that investment and borrowing activities are properly managed and operate in accordance with industry accepted best practice. 13.1 All investments and borrowing shall be made by the Corporate Director (Resources) and are in the name of Milton Keynes Council. All securities which are the property of, or are in the name of, the Council shall be recorded, managed and monitored by the Corporate Director (Resources). The Corporate Director (Resources) shall produce a Treasury Management Strategy Statement and Treasury Management Policy Statement and submit them to Cabinet and then to Council each year. The Corporate Director (Resources) shall also report on Treasury Management activity during the year, at least mid year, and will revise the Treasury Management Strategy as appropriate and submit to Cabinet for approval, and, as and where appropriate, to Council. The Corporate Director (Resources) shall also produce an outturn report for the previous years activity against the agreed strategy and also a report on the treasury management activity for the first half of the current financial year. All Treasury Management activities must be conducted by the Corporate Director (Resources) in line with the relevant CIPFA Code of Practice and Cross-Sectoral guidance notes for Treasury Management in the Public Services and the CIPFA Prudential Code for Capital Finance in Local Authorities. Adequate division of duties must exist between arranging and settling of transactions. Additional segregation must exist between arranging and recording of transactions. Arrangements must exist which provide for someone within Strategic Finance other than the Treasury Manager to monitor investment levels, which should be periodically reviewed. Investment levels shall be monitored by the Head of Financial Reporting and Projects.
13.2
13.3
13.4
13.5
13.6
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FPR14 Payment of Grants and Benefits to External Bodies The objective of this Financial Procedure Rule is to ensure that only properly authorised grant and benefit payments are made and where discretionary, to ensure that the purpose of the payment is achieved. 14.1 All claims must be correctly certified and submitted only if all conditions are met. The Assistant Director or designated Officer is responsible within their Service Group for examining, verifying and certifying grant/benefit payments and certification shall mean that: a) the grant/benefit payment has not been paid previously b) the payment is lawful and in accordance with the Councils policy c) the payment is arithmetically correct d) the grant is within budget provision. e) each grant must have an identifiable responsible officer 14.2 When making payments for which external funding can be claimed, Assistant Directors must be aware of any conditions/obligations laid down by the external funder that the Council must meet (e.g. monitoring of spending) and be satisfied that these conditions/obligations are being met. Any shortfall in grant will be met from within the individual budget of the responsible officer. Where funding is dependent on the achievement of outputs, such outputs must be evidenced and monitored accordingly by those charged with the governance of the grant. The approval of the Cabinet must be sought before an Assistant Director provides assistance to any outside body (public, private, charity etc) by way of loan, grant or guarantee over 50,000 to any one body in any one financial year. Each Assistant Director shall provide a record justifying the award of the grant, with a full business case to the Corporate Director (Resources).
14.3
14.4
14.5
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GRANTS RECEIVED FROM EXTERNAL BODIES
FPR15 15.1
Managing Grants The Corporate Director (Resources) must be consulted on the financial and probity implications of all projects involving funding from external sources (e.g. Lottery grants, European Social Funds etc). In promoting or committing the authority to any externally funded projects Corporate Directors and Assistant Directors must ensure adherence to the any terms laid down by the Corporate Director (Resources). The Corporate Director (Resources) shall be responsible for accounting for non-specific Government Grants received and receivable. Assistant Directors shall be responsible for: a) building in any agreed financial implications (e.g. matched funding) into the budget strategy; ensuring that all external funding agreed with external bodies is received and is properly recorded in the Councils accounts, liaising with the Finance Control Team; ensuring that the relevant Finance Manager is aware of and agrees all bids for external funding. that external funding which is sought supports the Councils service priorities. ensuring that any matched funding requirements relating to external funding agreements are provided for in the budget prior to any external funding agreement being concluded. ensuring that necessary approvals are obtained before external funding agreements are concluded investigating ways of maximising income
15.2
15.3
15.4
b)
c)
d)
e)
f)
g)
15.5
Where the use of external funding for projects requires a financial commitment from the Council for which budget provision is not available, or where the acceptance of external funding would lead to a financial commitment beyond the current year, the Assistant Director, in conjunction with the Corporate Director (Resources), shall provide a written report to Cabinet giving a full appraisal of the financial implications for the Council of the scheme both in the current year and
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beyond. This report should also set out the ways that the external funding sought supports the Councils service priorities. 15.6 Where funding is used to support additional service provision or contributes to existing service provision then the Assistant Director responsible should have an exit strategy in place to deal with the expiry of the grant. Each Assistant Director shall nominate a named responsible (senior) officer to be accountable for the performance and financial monitoring of each project. The named responsible officer should agree deadlines for the preparation of claims and returns with the Finance Control Team prior to Chief Finance Officer sign-off. Written approval must be obtained from the funder which clearly shows the approved allocation, the purpose of the grant and the financial period to which it relates. The responsible officer shall ensure, prior to submission of a grant claim, that all expenditure declared is eligible in accordance with the relevant funders criteria, including purposes and deadlines. Should there be any uncertainty as to the purpose of such funding, the responsible officer shall make such enquiries as necessary, to the funder, to ensure proper use of grant. Grant claims and monitoring returns working paper files must include an internal authorising form signed by the relevant Finance Manager prior to submission to the Finance Control Team and the Corporate Director (Resources), and be submitted within the funders timescales. Where receipt of funds from a third party (i.e. matched funding) is part of any grant submission, Assistant Directors must adhere to the guidance which has been provided by the Corporate Director (Resources). The manner in which external funding is managed shall be in accordance with Council policy, Contract Procedure Rules and Financial Regulations, in addition to the funders own requirements. Grant claim working papers should be maintained in a form agreed by the Corporate Director (Resources).
15.7
15.8
15.9
15.10
15.11
15.12
15.13
15.14
FPR16 16.1
General Grants The main form of general grant received by the authority are Revenue Support/Distribution of National Non-Domestic Rates as part of the grant settlement from Government.
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16.2
The Assistant Director Financial Management is responsible for ensuring that all information required by the Government which is to be taken into account in the annual settlement is available and updated where necessary in line with any information requests received. The Strategic Finance section will monitor any announcements during the year of changes to central government financing. As part of this any discussions by the Settlement Working Group will be reviewed and the possible implications of changes taken into account in financial planning reports to Corporate Leadership Team and Members. The Budget Review Group will be informed of any developments in central government funding and will be fully informed of announcements of government grant.
16.3
16.4
FPR 17 17.1
Specific Grants The Government provides a number of grants for specific purposes. It is the responsibility of Service Group to ensure that these are recorded correctly and that estimates and forecasts are updated properly. Each Assistant Director will ensure that Finance Managers are informed of any changes in specific grants and that forecasts properly reflect these changes. Where one of the conditions of a specific grant is that expenditure is time limited, it is the responsibility of the relevant Budget Manager to ensure that any spending associated with the grant is also limited to the same timescale to ensure that the authority does not become liable for further expenditure.
17.2
17.3
FPR18 18.1
Grant Letters and Conditions Each external body that provides a grant to the authority will stipulate certain terms and conditions within the grant offer letter which are specific to each Grant offer. It is good financial management practice to ensure that all Officers responsible for the administrative of Grants adhere to the following principles: Grant claims and returns are completed accurately and in accordance with the scheme terms and conditions; Grant claims and returns are supported by systems of internal control, including systems of internal financial control and internal audit, which are both adequate and effective in practice;
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Grant claims and returns are completed in a timely fashion so that deadlines are met; All Grant claims and returns are supported by adequate working papers, including where applicable, non-financial records, which: - Satisfy the statutory requirement on the Chief Finance Officer of a Local Authority to maintain adequate records in relation to claims; - Document the basis of the claim or return and the derivation of the information it contains; and - Are kept in a form what will help the process of certification at the end of a financial year
18.2
The Authoritys External Auditors have a responsibility to External Grant-Paying Bodies to review the information contained in a claim or return and to express a conclusion whether the claim or return: Is in accordance with the underlying records (claims and returns between the de minimis amount and the threshold); or Is fairly stated in accordance with the relevant terms and conditions (claims and returns over the threshold). A good practice guidance Note Preparation and Submission of Grant Claims has been prepared to assist officers responsible with the administration of grants from external bodies. This good practice guidance note covers the following topics: Certification by the External Auditor Grant Claims Protocol who needs to sign off within MKC Record and File Keeping of Grant Claims and Returns [suggested Standard layout for the File is provided in Appendix A of the Guidance note] Grant Submission Checklist
18.3
18.4
A copy of this good practice guidance note can be found on the Strategic Finance Section of the Councils Intranet.
CONTROL OF ASSETS FR19 Security and Control of Assets The objective of this Financial Procedure Rule is to ensure the proper use and safeguarding of assets owned by the Council or for which the Council has responsibility. This Rule applies to all assets, including stocks, stores, furniture, equipment, vehicles, cash, land and buildings, software and information that are owned by, or are in the possession of the Council and for which the Council is responsible. 19.1 The use of assets is restricted to authorised Council business. Surplus assets should be disposed of in accordance with Council procedures. It is the responsibility of the Corporate Director Page 30 of 47
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(Resources) to ensure the Councils Corporate Asset Management Plan supports the strategic approach to Capital as well as complying with best practice and guidance issued by the Government. 19.2 Assistant Directors are responsible for other Asset Management plans prepared for the Councils key assets such as Highways, Maintenance, Vehicles, and ICT. In some instances these will be encompassed within the appropriate strategy e.g. ICT. It is the responsibility of Assistant Directors to ensure compliance with the measures, processes and policies outlined in the Asset Management Plans and to ensure the maintenance and annual review of an inventory of their Service Groups assets including those leased or loaned to the Council. Assistant Directors are responsible for the land and properties in their Service Group. They must take all reasonable steps to safeguard them. Properties must be adequately insured, and appropriate procedures put in place to ensure their security and safety. Appropriations and disposals must be made in accordance with Council rules and procedures; and where this relates to land and properties Cabinet approval is required. The disposal of all property should be reported to the Corporate Director (Resources) to be reflected in the resources available to the Capital Programme and reported to Cabinet via the Revisions to Capital Programme and Spend Approvals Report. No property of the Council shall be removed otherwise than in the ordinary course of business or used otherwise than for the Councils purposes. Assistant Directors shall maintain an inventory of assets (eg furnishing, fittings, equipment and attractive/ portable items) within their Service Group. For leased assets, Service Groups should verify with the Corporate Director (Resources) that these have been categorised and recorded correctly in accordance with International Financial Reporting Standards. If in doubt officers should consult the Capital Team. No leasing agreement should be entered into without the prior agreement of the Corporate Director (Resources). All decisions on leasing should be considered as part of the initial approval process for the project (as part of the START documentation considered by Capital Programme Revisions Panel). Surplus, obsolete or unserviceable items (with the exception of leased items that must not be disposed of without the authorisation of
19.3
19.4
19.5
19.6
19.7
19.8
19.9
19.10
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Strategic Finance) shall be disposed of in accordance with the directions set out below: If possible surplus but operational equipment should be offered (at nil cost) to other areas of the Council. A record shall be maintained of such offers. Where another area of the Council can make use of the equipment it shall be transferred from one inventory to the other. If the above fails to identify another area who will make use of the asset an estimate shall be made of the items commercial value and opportunities for its sale will be explored. The relevant assistant Director shall determine whether to sell the item(s) commercially (preferred option where possible) or offer the items for sale to staff throughout the Council by advertising within the Tuesday Bulletin. Where a commercial sale is selected the Head of Service shall approve whatever sale method is considered to produce the most income for the Council. In determining the sale value it should be borne in mind that most such disposals will require VAT to be applied.
19.11
Where the provisions identified above are applied but do not identify the sale of surplus items, consideration can be given to the disposal of items to voluntary groups for no payment. Consideration must be given to the donation of items to voluntary groups formally supported by the Council (The Council maintains an annual grant process that provides funding for voluntary groups that can be used to identify potential recipients of surplus items). Where the provisions do not identify a new owner for the surplus items they may be destroyed / disposed of through Council waste systems.
19.12
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(128)
FPR20
Acquisition and Disposal of Land and Buildings
The purpose of this Financial Procedure Rule is to ensure that all acquisitions and disposals of land and buildings by the Council are fully considered and in accordance with the Councils Property Strategy. 20.1 Proposals for the acquisition and disposal of land or buildings, whether freehold or leasehold, shall be referred to the Assistant Director (Public Access). The acquisition and disposal of land or buildings by Assistant Directors should have due consideration to the Councils strategic approach to capital and be executed as part of the Revenue Budget or Capital Programme as appropriate. All such transactions must only be after consultation with the Assistant Director (Public Access) and the completion of a detailed financial appraisal which has been authorised by the Corporate Director (Resources). The Assistant Director (Public Access) has responsibility for advising on land and building issues and as such: a) the Assistant Director (Public Access) shall have maintained a detailed record of all land and buildings owned by the Council; b) Assistant Directors are responsible for providing information in a form specified by the Assistant Director (Public Access) to ensure that this record is accurate, complete and up to date; c) The Assistant Director (Public Access) is required to advise the Capital Accountancy Team of any acquisitions or disposals, to enable all transactions to be recorded to the applicable accounting standards. The Assistant Director (Public Access) is responsible for the maintenance of the Councils Asset Register to reflect all transactional activity in a timely manner. 20.4 Note that the acquisition or lease (of more than 7 years) of land or disposal of land must be agreed by Cabinet where the market value exceeds 500,000, in line with the Leaders Executive Scheme of Delegation. If the property in question is to be disposed of, or acquired by the means of an auction, then the market value should be estimated in advance by the responsible Assistant Director through the office of the Valuer to the Council for the purpose of this reservation.
20.2
20.3
. FPR21 Small Value Assets (Inventory)
Small value assets are those such as cameras and instruments which are held by Service Groups to assist in the delivery of services
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21.1
Service Groups hold a number of small value assets. Whilst the total value of these assets is likely to be small relative to the overall value of the Councils assets, there would nonetheless be an expectation that the items are securely held and accounted for so long as they have a value to the service. Assistant Directors should ensure that Service Managers have maintained an inventory of items with a value greater than 100. However, there is an overriding requirement that service areas maintain their assets (e.g Chairs, tables) which may have a value of less than 100 but have been paid for by the public and, as such, there is an expectation of proper use and a level of security maintained which avoids fraud, abuse or waste. For items with a value greater than 100 the Service Manager should ensure that a record of these items indicating the date on which they were purchased, their cost, their location, and, if appropriate, how they were disposed of (in line with FPR 19). This record should be revised and updated at half yearly intervals.
21.2
21.3
21.4
FPR22
Stocks and Stores
The Council holds a variety of assets pending their use or sale. The purpose of this Financial Procedure Rule is to ensure that these are held securely and used in an appropriate manner. 22.1 Stocks and stores are those assets held for a period pending use or sale. The assets may be individually valuable or collectively valuable and controls are necessary over their receipt, storage, issue and use. There are two elements to this FPR: o A reference to stores held mainly as consumables with relatively low value; and o Stock/stores with a value greater than 5,000 which include items principally used in delivering revenue services or capital projects typically highways and transport stores. 22.3 In relation to consumables a member of staff should be identified by the relevant manager as being responsible for the store. It would be their responsibility to ensure that there is restricted access to the store with an appropriate level of security (e.g. items with a value away from the workplace should be securely stored outside office hours. In relation to stocks/stores which have a significant value (e.g. greater than 5,000) Assistant Directors are required to nominate a member of staff who is responsible for the store and the stock contained within it
22.2
22.4
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(130)
FPR23 Fleet Management Fleet assets are those vehicles and plant maintained and owned by the Council to deliver services. Ownership includes those assets purchased, leased or hired by the Council. 23.1 Staff are responsible for maintaining proper care when using fleet, plant and equipment and are responsible for ensuring adequate security measures are taken. Staff are responsible for ensuring they have the proper training / certification to use fleet, plant and equipment. The relevant service Assistant Director (the User) shall ensure all staff using fleet assets are properly trained and where appropriate certificated in their use, eg driving licences and insurance for vehicles, training and health and safety for plant and equipment. The Assistant Director responsible for the fleet and plant shall: o Ensure there is a business need (a business case completed by the relevant service Assistant Director) before any item of fleet or plant is purchased, leased or hired. The business case for each item of plant or vehicle must be retained. A review of the business need for all vehicles, plant and equipment must be undertaken on an annual basis. o Assess the most appropriate form of hire, lease or purchase to meet the service need and shall ensure insurance records are updated. This should always include considering the use of existing plant, equipment and vehicles. o Maintain effective security for all vehicles and plant, and where appropriate fit real time tracker devices and security measures. o Maintain a Drivers Instruction leaflet outlining the key issues for fleet users. Changes to the Instruction leaflet shall be agreed with the S151 Officer and Internal Audit. o Ensure all assets are serviced and maintained safely. o Ensure the following information is recorded for all vehicles and plant: Type of vehicle or plant, eg van, saloon car, Flat bed lorry etc What and when the vehicle or plant item will be used (in particular the use of the vehicle must identify whether the
(131)
23.2 23.3
23.4
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service need is 24/7 or whether the vehicle might be available for others to use) Duration of need with start and finish dates Where vehicle is to be kept overnight (only with express written permission of the service Assistant Director shall the vehicle not be kept at the depot or other secure location maintained by the Assistant Director responsible for fleet) Name of Assistant Director to approve acquisition and budget code
o A month in advance of the hire / use period ending the Assistant Director responsible for the fleet shall contact the Client (copied to the Assistant Director), arranging the return of the vehicle or the approval of a hire extension. Any extension should confirm why the service need is ongoing. o Send an annual asset register to Finance by 15th April. 23.5 When the client collects the vehicle fleet staff shall: Check the clients driving licence (full 2 part license must be produced) and take a copy for their records Ask the client to read the Drivers Instruction leaflet and sign it, with the driver retaining one copy and Fleet Management retaining one copy. Hand over the keys
BUYING GOODS AND SERVICES (PROCUREMENT) FPR24 Orders for Goods and Services The purpose of this Financial Procedure Rule is to ensure that all payments made by the Council are: a) lawful b) properly authorised by an appropriate officer c) within the amount provided by the Councils budget. Preliminary 24.1 Each Assistant Director should ensure that an authorised and appropriate scheme of financial delegation has been established and is being operated effectively. The scheme will identify officers with delegated authority, and any limit which applies to that authority.
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Each Assistant Director is responsible for orders issued by their Service Group. 24.2 Access to ordering systems is through the Sales and Purchasing Hub and orders can only be authorised by those roles set out within the Financial Scheme of Delegation for the relevant service area. All users of the ordering system must be appropriately trained and must make themselves aware of this financial procedure rule along with the relevant user guidance. Access should not be requested which would over-ride the segregation of duties. For example, the same user cannot raise and authorise orders.
24.3
New suppliers 24.4 Procuring officers should have due regard to the existing contracts already in place and every endeavour should be made to use current suppliers in the SAP SRM system. These existing suppliers should provide good value for money and therefore officers are required to balance their use and testing the market for more competitive suppliers. Where the market is tested by quotes or tenders any new suppliers to be used will be added to the system. New suppliers may provide opportunity to move spend to better terms if contracts allow. Existing suppliers may provide a cost effective solution avoiding the need for quotations / tenders If a supplier has not previously been used by the authority, officers shall make no commitment to purchase until the supplier has been approved by the authority. Officers should consider any requirement for quotations or tenders, along with any unusual terms and conditions requested by the prospective supplier. Officers should note that the process of creating a supplier in the authoritys financial system includes authorisation from the Procurement Team in respect of quotation/tendering rules and from the Head of Procurement in respect of payment terms not in accordance with policy (30 days). Any other concerns about the prospective supplier should be referred to Legal Services.
24.5
24.6
24.7
Payment through Procurement Card 24.8 Where officers make use of Procurement cards to pay for goods or services they should ensure both that orders are made for such goods or services and that such transactions are properly accounted for. Where goods and services are made through contracts where the Procurement team have an agreed supplier with an embedded
24.9
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(133)
procurement card normal approval processes will not apply. Such arrangements are only entered into where there are large numbers of small value transactions. By placing an order under such arrangements the payment is approved in advance and officers should ensure that there is both sufficient budget available and that goods are properly coded within cost centres.
Issuing an order 24.10 Prior to raising an order, the officers involved should ensure that the order will comply with any rules relating to tenders and quotations. If the authority has a contracted supplier for the goods/services in question, this supplier must be used unless there is prior agreement from the Head of Procurement. In the absence of a contracted supplier, officers are expected to make every effort to secure the best terms for the authority. All orders must be raised via the Sales and Purchasing Hub within the Finance team and must be authorised before issue to the supplier. Any other ordering systems (including verbal instruction) must be authorised by the Corporate Director (Resources). No goods should be ordered without going through this process. All orders must be authorised by an officer employed by the Council. Authorisers are those listed within the Financial Scheme of Delegation and should not be the same officer who has raised the order. In a genuine emergency an order may be raised in other ways, but an official SAP order must be issued as a priority on the next working day. All officers must make themselves aware of the process for procuring goods and services through the Sales and Purchasing Hub. Officers should allow for sufficient time to be available for any order to be set up. In requesting an order, officers must ensure that the correct price is quoted, taking account of any relevant discounts as agreed by the supplier in the quotation or tender. Officers should also ensure that the category coding of orders is appropriate for the goods/services being procured. Authorisers must always ensure that there is sufficient budget before allowing an order to be issued. This requires that the cost assignment used on the order is correct.
24.11
24.12
24.13
24.14
24.15
24.16
24.17
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(134)
24.18
Officers involved in issuing orders should ensure that they have no conflict of interest regarding the order being issued. Any suspected conflict should be referred through line management. An order must only be issued once to avoid duplication of cost and payment. If an order is in error it should be amended as soon as possible. In the rare event that an order is in error and needs to be raised again, the original order must be cancelled to ensure that no further invoices can be processed and the replacement order must not include any cost already invoiced on the original order.
24.19
Receipt of goods/services 24.20 All goods must be checked on receipt. If satisfactory, this should be noted on the financial system by referring to the MDEFS work list and complete the goods receipting section of the e-form for the appropriate quantity against the order at the earliest opportunity. Delivery notes should be retained by the ordering department in order to support any goods receipt. In respect of services received, goods receipting should be undertaken on a reasonable basis. It will often be sufficient to goods receipt based on discussion and agreement with the supplier of amounts to be billed, but it may be necessary to complete estimated goods receipting at year/month end if the unbilled amounts involved are considered to be significant. Note that if goods receipting is not completed in the accounting period when goods/services were delivered, the relevant finance team should be informed if the value is significant. If goods/services received are considered to be unsatisfactory, the relevant officer should notify the supplier at the earliest opportunity and agree remedial action. Goods received into stock shall be held in a suitable location to safeguard against loss.
24.21
24.22
24.23
24.24
Dealing with invoices 24.25 All orders must require suppliers to send their invoices directly to Central Payments. (This is automatically printed on SAP orders.) If an invoice is received in the ordering service in error, the recipient must advise the supplier of their error and immediately pass the invoice to the Central Payments team. When the invoiced quantity exceeds the quantity goods receipted, the invoice will be processed and automatically blocked for payment. Similarly when the invoiced unit price exceeds (within tolerance) the
24.26
24.27
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(135)
authorised unit price on the order, the invoice will be processed and automatically blocked for payment. 24.28 Blocked invoices generate an automatic email to the Sales and Purchasing Hub, who will contact the officer who authorised the order. These emails must be acted on promptly by the ordering department, either by contacting the supplier to agree an appropriate credit note and/or by increasing the goods receipting and/or order price to allow the invoice to be paid. Officers should also regularly review blocked invoices for their service area via SAP, and take appropriate action. Invoices received by Central Payments which do not quote sufficient information to enable them to be processed or are otherwise inappropriate (for example written in pencil) will be returned to the supplier requesting submission of a valid replacement invoice. No employee of the authority or its contractors should amend or alter invoices other than to clarify information required to enable payment. Certificates for contract payments will not be accepted as invoices the supplier must submit VAT invoices for the certified amount. Invoices will be retained for a minimum of six years by Central Payments.
24.29
24.30
24.31
Management of orders 24.32 Officers must ensure that all live orders for their area are reviewed as a minimum once every month. The review must identify and act on any unusual live orders in accordance with the following table (which is not intended to be exhaustive):
Situation
Possible actions
Order with no goods receipt in accordance with delivery expectations. Order with goods receipt recorded but no invoice processed within a reasonable time.
1. Search for another order for the same goods (duplication). 2. Consider whether goods are still required. 3. Chase the supplier for delivery. 1. Search for another order for the same goods (duplication). 2. Confirm that goods have been delivered (refer to delivery notes or physical goods if still available). 3. Ask the supplier to confirm invoicing. 1. Confirm the quantity delivered (refer to delivery notes or physical goods if still available). 2. Query with the supplier.
Orders where the received quantity and invoiced quantity do not match.
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(136)
Situation
Possible actions
Order with invoice but no goods receipt (invoice therefore blocked).
1. Ensure that the requisitioner of the goods/services is aware of the situation and that the supplier has been notified of the dispute.
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(137)
FPR25 Imprest and Petty Cash Accounts 25.1 Methods of procurement should comply with Procurement guidance available on the intranet. As such the use of Imprest/Petty Cash should only be used for urgent or minor payments where other procurement routes are not possible. Where other procurement routes including the use of Procurement Cards are not possible, Heads of Service or Assistant Directors can request the Corporate Director (Resources) to provide an appropriate level of Imprest/Petty Cash. Imprest/Petty cash holders are responsible for ensuring that their accounts are managed in accordance with the Help and Advice on Petty Cash section available on the intranet. Regular reconciliations must be completed by an officer independent of the day-to-day operation of the Imprest/ Petty cash account. Petty cash accounts must never be used to cash personal cheques or make personal loans. On leaving the Councils employment or otherwise ceasing to be entitled to hold a petty cash advance, an employee shall account to the Corporate Director (Resources) for the amount advanced to him or her. Reimbursement of Expenses and Payment of Allowances
25.2
25.3
25.4
25.5
25.6
FPR26
The objective of this Financial Procedure Rule is to ensure that the reimbursement of allowances and expenses to staff and members is in accordance with the appropriate agreements and legislation 26.1 Methods of procurement should be in accordance with the Contract Procedure Rules available on the Intranet All claims by employees for reimbursement of mileage and business expenses shall be submitted to Payroll at monthly intervals on an appropriately authorised, approved form. Receipts must be provided for all expenditure claimed wherever possible. This is a requirement of HMRC. A valid VAT invoice must be obtained where appropriate. All claims for a financial year are to be submitted not later than one month following 31st March in any year, except with the express approval of the Corporate Director (Resources). Authorisation of a claim shall be taken to mean that the journeys were authorised and the expenses properly and necessarily incurred, and that the allowances are properly payable by the Council in accordance with the rates approved by Cabinet. Such authorisation can only be undertaken by officers on the list provided to the Payroll Page 42 of 47
(138)
26.2
26.3
26.4
26.5
team. Claims submitted must provide sufficient information to allow such authorisation to take place. FPR27 27.4 Payment of grants to External Bodies Where grants to external bodies are agreed by the Cabinet it is the responsibility of the relevant Service Group to ensure that the payment is made in accordance with the terms agreed by the Cabinet
PARTNERSHIPS Introduction Partnership arrangements may be used as a means of acquiring goods, works or services and may be of a complex nature. It is therefore necessary that the Corporate Director (Resources) is consulted on the financial implications of such arrangements and must approve that: (a) Costs and income are provided for in the Councils budget; (b) Arrangements are in place for accurate accounting for costs and income; (c) Sufficient controls are in place for the successful operation of the partnership, including arrangements for sufficient access to financial and other records; (d) Carry forward arrangements have been determined. (e) A formal risk assessment has taken place and a management strategy devised (f) An auditing regime has been established. In addition, the following also apply: FPR28 28.1 Voluntary Sector Where the Council enters into partnerships with the Voluntary Sector to provide services to the public a Service Level Agreement (SLA) must be agreed with the relevant community group unless proper contract arrangements are in place. Monitoring of the contract or SLA as appropriate should be on a regular basis and any discrepancies from this will be reported to the relevant Portfolio Holder.
28.2
FPR29 FPR30
Limited Liability Partnerships to be developed Limited Liability Partnerships to be developed
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(139)
INTERNAL AUDIT ARRANGEMENTS FRAUD AND CORRUPTION FPR31 31.1 Internal Audit The Council shall maintain an adequate and effective Internal Audit Service in accordance with the Accounts and Audit Regulations 2011 and in line with the CIPFA Code of Practice for Internal Audit in Local Government and professional auditing standards. To this end it is the responsibility of Internal Audit to review, arrange and report upon: a) whether operations are being carried out as planned and objectives and goals are being met. b) the adequacy of systems established to ensure compliance with policies, plans, procedures, laws and regulations, i.e. rules established by the management of the organisation, or externally; c) the completeness, reliability and integrity of information, both financial and operational. d) the extent to which the Councils assets, data and interests are properly accounted for and safeguarded from losses of all kinds, including fraud and corruption, waste, extravagance, abuse, ineffective management and poor value for money. e) the economy, efficiency and effectiveness with which resources are employed. 31.2 Internal Audit will have an unrestricted range of coverage of the Councils operations and therefore has authority to: Enter at any time council premises or land subject to any statutory or contractual restrictions that may apply, e.g. health and safety; Have access to all records, documents, correspondence, information and data relating to all areas of business of Milton Keynes Council regardless of how the information is held and to remove any such records as is necessary for the purposes of their work (including that of the Councils agents and contractors); Require and receive such explanations as are necessary concerning any matter under examination; Require any employee or agent of the Council to produce cash, stores or any other Council property under their control.
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31.3
This access applies not only to the Council but also: a) organisations to whom the Council has given grants; b) organisations with whom the Council contracts and c) partner organisations in any scheme for which the Council has responsibility as lead body.
31.4
Assistant Directors in consultation with Strategic Procurement must ensure that where such access is required to safeguard the interests of Milton Keynes Council this is explicit in the appropriate agreements / contracts with the aforementioned external organisations. Internal Audit shall have unobstructed direct access and the right of report to the Chief Executive, Chief Officers, Heads of Service, the Monitoring Officer, the Councils External Auditors, the Cabinet, the Leader, the Cabinet member with responsibility for Audit and the Chair of the Audit Committee. Risk Management and Insurance
31.5
FPR32
The objective of this Financial Procedure Rule is to ensure that the Council manages all potential risks and liabilities and to limit the authority for arranging insurance cover to the Corporate Director (Resources). Risk Management 32.1 The Corporate Director (Resources) shall be responsible for the development, monitoring and review of the Councils risk management policy, which will be approved by Audit Committee, and shall be the Councils principal risk management adviser and coordinator. Each Assistant Director shall be responsible for identifying, assessing, controlling and recording risks within his/her Service Group and will undertake a quarterly review of Service Group risk.
32.2
Business Continuity 32.3 A Business Continuity Plan should be in place for all high value/high risk contracts. Heads of Service through their service managers are responsible for ensuring the continuity of their own services. Assistant Directors shall give guidance on the appropriate service priorities to aid planning and recovery of services.
32.4
32.5
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(141)
Insurance 32.6 The Council maintains various policies and internal risk management measures to protect the Councils interests. This suite of protection is maintained centrally and only the Head of Risk and Insurance has authority to enter into insurance arrangements on behalf of the Council with the exception of Schools who under delegated budget authority can select their own insurance provider. Where incidents occur and Service Groups are required to make claims against insurers they should seek advice from the Insurance team, particularly if the claim is against a third party insurer.
32.7
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(142)
Contacts Corporate Director (Resources) Assistant Director Financial Management Assistant Director Audit and Risk Management Head of Financial Reporting and Projects Head of Financial Planning Head of Internal Audit Ext 2756 Ext 2079 Ext 2089 Ext 4591 Ext 3268 Ext 2227
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(143)
Ward Based Budgets

Councillor ALEXANDER, Paul EXON, Robert 500.00 200.00 200.00 554.50 Bow Brickhill Brownies Wavendon Twinning Association 500.00 HOPKINS, David HOPKINS, David Conniburrow Community Association Beneficiary May Beneficiary June
Newport Pagnell North
Lib Dem
Newport Pagnell Town Council
154.50
Bradwell
Lib Dem
Danesborough Danesborough
Conservative Conservative
Total Spend To Date:
1,054.50
ITEM 9
(144)

Milton Keynes Council Agenda July 2013

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Milton Keynes Council Agenda July 2013

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Democratic Services

SUMMONS TO THE MEETING of the MILTON KEYNES COUNCIL

WEDNESDAY 10 JULY 2013 7.30 PM

COUNCIL CHAMBER, CIVIC OFFICES CENTRAL MILTON KEYNES

David Hill Chief Executive

(a) (b) (c)

L:\Committee\2013-14\COUNCIL\04. 10 JULY 2013\04. ITEM01_DRAFT MINUTES - 12-06-13.doc