Agenda item

That it be recommended to Council*:

1.    That an HRA capital budget of £900,000 be approved to implement works on plant upgrades funded by and on behalf of Partnership for South Hampshire (PfSH).

That subject to Council approval of the budget:

2.    That capital expenditure of up to £200,000 be approved, funded by the Ministry of Housing, Communities and Local Government (MHCLG) via Partnership for South Hampshire (PfSH), for feasibility and initial works.

3.    That capital expenditure of up to £700,000 be approved, funded by MHCLG via PfSH, for the implementation of works on further plant upgrades following agreed business cases with PfSH.

4.    That authority be delegated to Strategic Director and Director – Legal, in consultation with Cabinet Member for Place and the Local Plan, the authority to enter into necessary agreements with Fareham Borough Council on behalf of PfSH in order to receive the grant funds and establish working arrangements to implement the project and sell credits generated.

5.    That the procurement of any works or services be delegated to the Strategic Director and that the Strategic Director be authorised to award contracts and enter into all necessary legal agreements with the preferred bidder(s).

*NB recommendations to Council are not subject to call-in.

As noted above, Councillor Becker declared a pecuniary interest in response of this report and left the room during its consideration and took no part in discussion or decision thereon.

Councillor Porter introduced the report providing a background to the proposals to work with PfSH to meet the challenges to tackling nutrient pollution.  She advised that the report provided detail on the impact and anticipated credit generation.

Ian Tait spoke during public participation as summarised briefly below.

Mr Tait welcomed the proposals to sell surplus nutrient credits but queried whether the estimated revenue from these sales was too low.  He also asked why the proposal was for any surplus to be used for other nutrient schemes across the PfSH region rather than being returned to the council.  He also sought confirmation that no sewage had been discharged from council owned sewage treatment works (STWs).

At the invitation of the Leader, Councillors Lee and Horrill addressed Cabinet as summarised briefly below.

Councillor Lee

He drew attention to acceleration of the climate crisis and the importance of addressing this whilst enabling housing development.  He highlighted that nutrient pollution also occurred from other sources such as agricultural run-off, insufficient progress by water companies and individuals and businesses use of harmful cleaning and other products that entered the water system.  He supported the proposed improvements to STWs but queried whether any future surplus could be used to target improvements within the Winchester district.

Councillor Horrill

She requested further clarification about how the monitoring of the credit scheme would work and confirmation that the legal and finances resources required could be met within existing resources.  She asked for further information on the water efficiency projects referenced in paragraph 11.17 of the report.  Finally she requested clarification on the proposed approach to credits from third parties and how these would be used.

Councillors Porter, Tod and Cutler together with the Strategic Director and the Team Leader Planning responded to the questions raised by public and invited councillors.  The response included confirmation that the future monitoring arrangements were being discussed with PfSH and that no sewage had been discharged from council owned STWs.  The nutrients credit market was uncertain and it was likely that current prices would reduce in the future and the involvement of PfSH helped mitigate the risks involved.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RECOMMENDED (TO COUNCIL):

1.           That an HRA capital budget of £900,000 be approved to implement works on plant upgrades funded by and on behalf of Partnership for South Hampshire (PfSH).

RESOLVED:

That subject to Council approval of the budget:

2.           That capital expenditure of up to £200,000 be approved, funded by the Ministry of Housing, Communities and Local Government (MHCLG) via Partnership for South Hampshire (PfSH), for feasibility and initial works.

3.           That capital expenditure of up to £700,000 be approved, funded by MHCLG via PfSH, for the implementation of works on further plant upgrades following agreed business cases with PfSH.

4.           That authority be delegated to Strategic Director and Director – Legal, in consultation with Cabinet Member for Place and the Local Plan, the authority to enter into necessary agreements with Fareham Borough Council on behalf of PfSH in order to receive the grant funds and establish working arrangements to implement the project and sell credits generated.

5.           That the procurement of any works or services be delegated to the Strategic Director and that the Strategic Director be authorised to award contracts and enter into all necessary legal agreements with the preferred bidder(s).