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ITEM EX12
EXECUTIVE
– 12 NOVEMBER 2002
PROCEDURES
FOR THE ACQUISITION AND DISPOSAL OF PROPERTY
Report by
Director of Environmental Services and Director for Business Support
Introduction
- An officer working
group was set up in April 2002 to review the County Council’s procedures
for the acquisition and disposal of property. The group consists of
officers from Environmental Services, Business Support (Treasury and
Legal Services) and W S Atkins. The group has considered the procedures
in place under the Council’s present Constitution against those of the
former Standing Orders, as well as other relevant guidance and legislation.
The report highlights areas where improvements can be made and makes
appropriate recommendations.
- The recommendations
all relate to the specific powers and functions of the Director of Environmental
Services in relation to property which are set out in Section L of the
Constitution. These are reproduced in Annex
1; the proposals set out in this report are
scheduled in Annex 2. These
proposals will also be affected by the ‘Growing our Corporate Capacity’
organisational changes. Any such effects are however likely to be limited
to the identity of the appropriate officer and can be dealt with in
the composite amendments to the Constitution which will be made in response
to those changes.
Disposal
of Council Property
- Former Standing
Order 27 imposed an express requirement that any property valued over
£5,000 which was surplus to requirements should not be sold other than
by public auction, sealed bid or by tender after public advertisement.
Exceptions could be made only with the authority of the Operations Sub-Committee
(or Council where the value exceeded £500k.)
- No such provision
has been included in the Constitution. Whilst it might be thought that
good practice would ensure that appropriate disposal procedures were
always followed, it would nevertheless be prudent, and consistent with
advice issued by the Local Government Ombudsman (see Annex
3), to condition the provision relating to
property disposals (Annex 1
– paragraph (i) generally as provided by the former Standing Order.
- It is recommended
however that the threshold for seeking competitive bids should now be
increased, as it was set many years ago. £25,000 would appear to be
a reasonable level and in line with a standard threshold adopted in
the Contract Procedure Rules. Above this threshold it is suggested that
any proposal for an exception should be subject to consultation with
the Leader and Deputy Leader of the Council.
Acquisition
of Property
- At present the
Director is authorised to "arrange" leases, tenancies and purchases
up to specific amounts. A need is seen to clarify this provision, so
that the Director has clear authority to act without limitation as to
value, on the basis that the necessary expenditure will need to have
been authorised either by the Executive or by a Director or Head of
Service under delegated powers.
Planning
and Other Consents and Agreements
- The existing list
of delegated powers already includes authority for the Director to seek
planning permission for development – which might be for the County
Council's own development or to establish the market value of surplus
land which is to be sold. This was introduced to ensure that there was
no doubt as to the validity of any application, not least in the event
of an appeal. On the basis of challenges experienced in the context
of planning appeals on this sort of point, it is considered that the
provision should be broadened to include express authorisation for pursuing
applications to appeal, as well as for other consents that may be necessary
in the case of particular developments.
- There is also
a need to reproduce an authorisation given to officers by the former
Operations Sub-Committee to enter into planning obligations where these
are required as a precondition of the grant of planning permission for
sites being disposed of by the County Council. This was not picked up
when the new list of delegated powers was drawn up for inclusion in
the Constitution. It is proposed that any action taken should be reported
to the Executive via the annual report on the performance of the Council’s
property assets. If the planning obligation appeared to raise policy
issues there would of course be a need to seek the authority of the
Executive in any event.
The Crichel
Down Rules
- The Crichel Down
Rules apply where land is acquired from a landowner by, or under threat
of, compulsory purchase, either by Central Government or by a local
authority. In essence the Rules establish the principle that, if the
land acquired subsequently becomes surplus to requirements and at that
stage it has not materially changed in character, fair administration
requires that the former owners or their successors should be given
a right of first refusal to buy back the land should they so wish, at
current market value, before it is sold to any third party.
- The Crichel Down
Rules were included in Local Government Ombudsman Guidance which was
subsequently adopted by this authority some years ago. Strictly applied,
adherence to these rules can lead to delays in disposing of surplus
properties in different situations including where, for example, the
successors to a former owner may not be readily identifiable. It is
recommended that a suitable caveat be added so as to record the presumption
that the Rules will apply, but leaving him discretion not to apply them
where circumstances make it inappropriate to do so. The addition is
set out in Annex 2.(f)(ii).
Other
Amendments
- The proposals
in Annex 2.include proposals
to put the above into effect. Some additional detailed amendments are
also proposed (references are to the existing text in Annex
1):
- Paragraph (b)
is omitted as it is covered by (h);
- Paragraph (d)
is omitted as it now appears in the Contracts Procedure Rules;
- Paragraphs (e)
and (f) are omitted as they are covered by the new (a) in Annex
2..
Responsibility
for Property
- The former Standing
Orders included provisions giving responsibility for property to Service
Departments and Chief Officers. There is no such provision in the present
Constitution. Responsibility for property at member and officer level
is being considered by the Best Value Review for Property Services.
The report of the Review is likely to include appropriate recommendations.
RECOMMENDATIONS
- The Executive
is RECOMMENDED to agree the variation of the Specific Powers and Functions
of the Director of Environmental Services in respect of property (as
presently reflected in the Schedule to Section L of the Constitution)
as described in the report and set out in Annex
2..
DAVID
YOUNG
Director of Environmental Services
CHRIS GRAY
Director of
Business Support
Background Papers 'Disposal of Land - Guidance on good practice’ –
Local Government Ombudsman
Contact Officer: Peter Taylor, Property Client Section, Environmental
Services, 01865 815681
November
2002
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