Issue - meetings

The Leader of the Council introduced a recommendation before the Council to make a loan facility of £21m available to Greenfield School to cover the costs of the acquisition and development of the School’s new site.  The loan facility had been included in the Council’s approved Investment Programme and £11m of the overall sum had already been agreed.  Under the proposals, the School would pay a 1% margin on the loan at a level assumed to be £136,000pa.  The loan would be secured against the School’s property assets.

A number of Councillors expressed concern over the proposals, noting that the sum represented a significant amount of funding against a small margin of return over a long term repayment structure of 50 years.  It was also questioned whether the Council should be providing funds to a private educational facility.  It was argued that the funding would enable the School to increase its intake which in turn would help create more school places in local schools.

Councillor Ashall moved and Councillor Azad seconded the following amendment to the recommendations:

“That from the margin of 1%, 50% is set aside to provide fully funded places at Greenfield School for Woking students.”

The Council was invited to debate the amendment.  It was estimated that the proposal would create between 4 and 5 fully funded places at the School.  However, it was argued that the School itself should provide such opportunities.  Responsibility for the allocation of such a bursary was discussed, noting that the School itself would have in place a means tested policy which could be used in the event the amendment was supported.

In accordance with Standing Order 10.8, the names of Members voting for and against the amendment were recorded.

In favour:                                Councillors S Ashall, A Azad, D Bittleston, K Davis, C Kemp, and C Rana.

Total in favour:                       6

Against:                                  Councillors M Ali, T Aziz, A-M Barker, J Bond, A Boote, M Bridgeman, G Chrystie, G Cundy, W Forster, D Harlow, K Howard, D Hughes, S Hussain, I Johnson, R Leach, L Morales, M I Raja, J Sanderson and M Whitehand.

Total against:                         19

Present not voting:                 Councillors G Elson, L Lyons and N Martin.

Total present not voting:        3

The amendment was therefore lost by 6 votes in favour to 19 votes against.

The Members of the Council continued the debate of the substantive recommendations before them, raising further arguments against the proposals including the lack of clarity over the community use agreement and the low margin of return.  Councillor Bittleston responded to the points made and moved that the item should be deferred to enable further discussions to be held before a report was presented at a future meeting.  The motion was seconded by Councillor Azad and, at the request of Councillor Bond, was put to the Council for debate.

In accordance with Standing Order 10.8, the names of Members voting for and against the amendment were recorded.

In favour:                                Councillors S Ashall, A Azad, D Bittleston, K Davis,  ...  view the full minutes text for item 9

Reporting Person – Leigh Clarke

The Executive received a report which sought approval of the Executive to recommend to Council the provision of a loan facility to be made available to Greenfield School to cover the acquisition and development of its School at the site of the former International School of London (ISL).  It was noted that the required loan facility of £21m had been provided in the Council’s approved Investment Programme.  The Executive was advised that the commercially sensitive Business Plan and Cost Plan for the school were set out in the Part II confidential report later on the Agenda.  A private view of the new school site had been arranged for Members of the Council prior to the Executive.  Councillor Azad reported that Greenfield School would be required, as a condition of the loan facility, to enter into a Community Use Agreement in order to ensure the long term benefit to the wider community from use of the school premises.

The Executive welcomed the report which would support the Council’s objective of securing additional school places in the Borough so as to underpin the economic vitality of the Borough.  The wider financial benefit to the community was highlighted, as the School would pay a 1% margin on its loan facility which was assumed to be £136,000 per annum.  In addition, the proposed Community Use Agreement would provide a long term benefit to the wider community and provide opportunities for community groups.  The challenges faced by schools in securing funding through other lenders, such as banks, was raised.  Regarding security on the loan, it was noted that the Council would take a charge over the School’s property assets.

The Leader highlighted an amendment to recommendation (v).  It was noted that the Chief Executive would be the named Officer referred to in recommendation (v) and that consultation would take place with both the Portfolio Holder for Financial Planning and Policy, and the Portfolio Holder for Cultural and Community Development.

RECOMMENDED to Council

That  (i)    the £21m loan facility, included in the Investment Programme for the provision of school places, be made available to Greenfield School to cover the acquisition and development of its new site to enable it to accommodate the projected increase in pupil numbers;

          (ii)   the loan facility be subject to a 1% margin over the Council’s cost of borrowing and that the borrowing period does not exceed 50 years;

          (iii)  the detailed terms of the loan be determined by the Chief Finance Officer in consultation with the Portfolio Holder;

          (iv)  Greenfield School undertakes to seek to dispose of the assets it proposes in a timely manner; and

          (v)   Greenfield School enter into a Community Use Agreement with the Council to ensure long term wider community benefit from the provision of the loan facility with terms of the Community Use Agreement being approved by the Chief Executive in consultation with the Portfolio Holder for Financial Planning and Policy and the Portfolio Holder for Cultural and Community Development.

Reason:   To secure the provision of  ...  view the full minutes text for item 8

Reporting Person – Leigh Clarke

This item had been dealt with under Part I of the Agenda.

Reporting Person – Douglas Spinks

RESOLVED

That the resolve, as amended by the Executive, set out in the confidential minute be agreed.

Reason:   To secure additional school places to meet current and future education need in the Borough.

RESOLVED

That the recommendations of the Executive in respect of school place provision be agreed as set out in the confidential minutes of the meeting.

Reporting Person – Ray Morgan

REcommended to Council

That the recommendations of the Executive set out in the confidential minute be resolved by Council.

Reason:   To enable the provision of additional school places to meet local need.