To review arrangements for Planning Obligation Agreements.

The Planning Policy Manager presented a report which reviewed arrangements for Planning Obligation Agreements. He referred to information which had been requested by the Committee, paragraph 4 of the report refers. He drew Members attention to paragraphs 5 to 14 of the report which gave details of the planning obligations. He emphasised that planning obligations are used to address the impact of any development. Therefore, the planning file would contain details showing where Section 106 monies would be utilised. He informed Members that copies of the Section 106 agreements were held by the Legal service and the Land Charges section.

Councillor R Mills referred to the perception that the Head of Planning and Transportation Services had the responsibility to account for Section 106 monies received but that this aspect was questionable.

The Head of Planning and Transportation Services informed Members that the Supplementary Planning Document (SPD) contained the policy which had been approved by Council and was followed in respect of Section 106 agreements. There was a clear route to which the monies would be used and the service departments were the recipients of the monies so that  they track receipt and expenditure. The SPD suggests, however, that there should be a more central and corporate procedure on tracking and receipt of the monies. The Service had not yet appointed a Monitoring officer who would provide the new procedure. Due to the current economic climate, the appointment had been delayed. Arrangements were being put in place to appoint the officer to be in post in April 2009. After discussions with the Director of Resources, it had been agreed that the Monitoring officer would have a centralised role linking up the various issues arising from Section 106 agreements.

Councillor A Oliver wanted to make reference to a particular Section 106 agreement.

The Assistant Chief Executive Legal and Democratic advised the Committee that it was not the remit of the Committee to discuss individual Section 106 agreements.

In answer to a Member’s question, The Head of Planning and Transportation Services stated that Section 106 agreements set out the projects where such monies would be spent.

The Chairman asked what would happen if developers decided not to adhere to the contents of a Section 106 agreement.

The Planning and Policy Manager  informed the Committee that a housing developer, for example, would not be able to sell properties on a site if they did not adhere to the Section 106 agreement. The Council could if necessary pursue the non compliance of a Section 106 agreement through the Courts.

The Head of Planning and Transportation Services stressed that it was important that Section 106 agreements were complied with. The agreements were flexible to the extent that they could be amended where circumstances prevail in a development. In the current economic climate, some developments remained at the planning approval stage for some time and, therefore, did not provide the trigger point for the Section 106 agreement to take effect. Payments were being secured as a consequence of the SPD although, due to the economic downturn, few developments were commencing and therefore, since April 2008 no Section 106 monies had been received. He also emphasised that his service ensured that local communities and parish councils were consulted with regard to the needs of the area.

The Planning Policy Manager reminded Members that copies of Section 106 agreements were kept on the planning file appertaining to a development and were public documents available for perusal by members of the public.

Councillor RH Smith referred to a report received from the Chief Internal Auditor which referred to a most unsatisfactory audit finding on Section 106 agreement procedures in February 2004 and similar findings of further audit work had been highlighted in July 2005 and 2006/07. He considered that the questions before the Committee were now corporate governance issues. He also considered that the Committee wanted confirmation that comprehensive and accurate records exist of Section 106 agreements enacted and approved both before and since the approval of the SPD, that planning obligations were being discharged and for the purposes defined in the respective agreements and that there was a clear and satisfactory mechanism being applied whereby ward members and town and parish councils were consulted. He was, however, of the view that planning officers should decide ultimately where monies will be expended. He was also of the view that the Planning Policy Manager had satisfactorily answered these questions.

In answer to a question, Councillor JG Jarvis informed Members that approximately 90 per cent of Section 106 agreements were put before Committee and that the remainder were dealt with by officers in accordance with delegated powers.

The Director of Regeneration informed Committee that a new planning system would be implemented in August 2009 which would give important help to the new Monitoring officer. He expressed the view that local Members and parish councils needed to discuss and set out priorities as to where they consider Section 106 monies should be spent before developments are considered by the Council.

The Planning Policy Manager informed the Committee that he was unaware of any historic Section 106 agreement monies which had remained unpaid.

The Chairman asked that the Monitoring officer be requested to attend the May 2009 meeting of the Committee.

RESOLVED:   that

(i)                 the current arrangements for Planning Obligations be noted and that a further report be submitted at the end of the current financial year, and

(ii)        the Planning Monitoring officer attends the May 2009 meeting of the Committee.