Burton Bradstock Parish Council

Report on the Lease of Burton Bradstock Library

Meeting on 6 July 2011

 

1.    Dorset County Council has contacted our Solicitors with amendments to the proposed lease and associated terms as described below and requires that the Parish Council resolves to enter into the revised lease before they will grant it. The revised documents reflect the last proposals for changes that I discussed with our solicitors, and contain new changes connected with the recent consultation of the library service.

 

2.    The revised documents have been emailed to all Parish Councillors and are available by email to others on request.

 

3.    As a general background reminder, the proposed lease term is for 99 years, and while the DCC provides a library service from the premises a community use agreement subsists, which effectively places an obligation on the tenant (BBPC) to not interfere with DCC in its provision. BBPCÕs intention is to become the tenant but to allow the Friends of Burton Bradstock Library (FBBL) to run the premises, including funding all costs under the lease with the exception of building insurance (which BBPC agreed to take on at its meeting on 6 October 2010).

 

4.    The amendments fall into two categories:

 

4.1. Changes to the provisions around sub-letting.

4.1.1.      In the last version considered by the Council there was a prohibition on sub-letting throughout the lease term. While the Council provided a library service from the premises, the intention was to share the occupancy with FBBL. The bar on sub-letting once the library service had ended, which was not understood until September 2010. This caused considerable concern as it would mean that business rates of nearly £1,000 pa would need to be added to the buildingÕs running costs, as subletting to a charity and obtaining rate relief would not be possible. While a library service was being provided, as the main ÒoperatorÓ of the premises FBBL had hoped to obtain charitable rate relief during the period of shared occupation. In the event, this turned out to be difficult with indications from West Dorset District Council (the relevant local authority) that it would not be forthcoming.

 

4.1.2.      Negotiations with DCC have lead to a position where:

á           Changes to the lease (clauses 3.9.1 to 3.9.4) now mean that the PC would be able to sub-let the premises, subject to DCC approval of the terms but not to be unreasonably withheld; and

á           DCC is prepared for the PC to grant a sub-lease to FBBL in the form drafted by our solicitors.

 

4.2. Changes to the User Agreement that relate to the recent consultation on and anticipate changes to the future of the library service in the village. The main changes are:

4.2.1.      to add the phrase Òfor so long as the County Council participates in the provision of a Library Service from the PremisesÓ or Òbut shall not be obligedÓ in many places in the documents. These have little or no real effect but clarify the drafting.

 

4.2.2.      The exclusion from the dispute resolution procedure of any decisions by DCC to reduce or withdraw the library service from the premises. I have discussed this with our solicitor and in practice we think that it is a change that in practical terms would have little effect and in any event is one that we cannot resist if we want to enter into the lease.

 

4.3. Councillors should note that the risks for the Parish Council set out by the then Chairman in his report to the Council meeting on 29 July 2010 remain. The risk assessment considered by the Committee at that meeting is attached to this report, and the CouncilÕs decision in relation to those risks was: ÒAfter discussion which also involved the parishioners the Parish Council unanimously agreed to accept the small risks involved in accepting the lease and community agreements, as they stand for the Burton Bradstock Library. The Parish Council Finance and General Purposes Committee will monitor the risks involved.Ó

 

4.4. NB in the light of recent decisions, once the lease in entered into monitoring these risks will fall to the two Councillors nominated to oversee the work of the now defunct Finance & General Purposes Committee.

 

Recommendation

4.5. In order to fulfil the CouncilÕs objective of securing the use of the Library premises for continuing library and community use, I recommend that the Council resolves to enter into the lease and associated arrangements with DCC in a form substantially as currently proposed and acting through the Chairman and the Parish Clerk.

 

Dr Graham Moody

Chairman

BBPC

4 July 2011

 

Report Considered by BBPC at its meeting on 29 July 2010

 

Risk Assessment _ Burton Bradstock Library

 

Background

 

The announcement of pending closure was made in 2007. The village has fought to retain a library as an asset in the village. There was opposition to the sale of the building as a private dwelling. Despite the Library section of DCC arguing that there would be significant cost savings, the village created a ÒFriends of Burton Bradstock LibraryÓ charity (FBBL). This group agreed to pay the costs of the building after a lot of work was done to ascertain what these were. The Parish Council agreed to give a £1000 donation towards the costs – limited to a five year period. (It is unclear when this period ends) The PC has not paid anything towards the running costs despite accruing the amount each year. Until an agreement there will be NO requirements to pay anything.

A new IT system has been installed which creates a virtual self service environment but the DCC library service still uses one person to staff up in addition to volunteers from FBBL. Effectively the library is open for extra hours due to the volunteers – the only change in the working arrangements of the library. DCC has agreed a significant upgrade of the building to ensure that there are no items left outstanding on a maintenance list (Except the mural where the issue is open, although the most recent information is that the damage is not great and could be repaired for a few hundred pounds. FBBL have stated that they would pay.) DCC have installed movable book shelves which should enhance the community use of the building.

Although there has been a change of government there seems to be no change in policy direction (The Big Society). Libraries are specifically mentioned in CameronÕs speech.

This is attempt at risk analysis before the council meets with legal advisors.

 

Risk

Risk Factor

Comments

The charity FBBL folds very soon after any agreement is reached between PC and FBBL

Low

The PC has a break clause which could be invoked at this stage. The likely costs are no more than 6 months running costs, assuming DCC accept the building back

Legislation has an impact on the building design

Low

It is unlikely that the present government would create an environment where costs in such buildings would be incurred, But when the government changes!

The PC is left with obligations as tenant of the building – particularly for community use.

Low to Medium

The current plans do not envisage a lot of community use – at least until the building has been handed over.

The PC creates further community use plans

Medium

The building would be leased as opposed to owned. There would be no accrual of capital value. Plans for increased community use would depend on whether FBBL existed. It may be that another Managing Agent would be required although the PC may decide to exit (see point above) The village would be anti any moves that would not retain the asset.

The PC is left with a high cost asset should the DCC decide to close further library services in the village.

Medium

The PC is not in control of DCC decisions so this would remain a high possibility. The break clause would HAVE to be operated by the PC if this should occur.

 

 

The overall conclusion is that there are many unknown variables which could leave the PC with a high cost asset which it leases. Most probably the village would agitate for maintaining the facility in some format. At this point the PC would need a referendum to ensure that the majority agreed with maintaining the facility, with help from volunteers. It does seem that the PC should agree that as long as FBBL existed, the PC should remain unaffected, but if FBBL folded then the PC should have agreed to automatically exercise the break clause, waiting for a referendum result.

 

AHM

24-7-10