Agenda and minutes

Apologies for absence were received from Randall Anderson, Nicholas Bensted-Smith, Deputy John Chapman, Dominic Christian, Alderman John Garbutt, Deputy Brian Harris, Tom Hoffman, Chris Punter, Angela Starling and Mark Wheatley.

The Chairman and Alderman Malins declared a standing interest as Members of the Board of Governors of the Museum of London, which was the subject of agenda item 15.

To agree the public minutes of the meeting held on 21 September 2016.

The public minutes of the meeting held on 21 September 2016 were considered and approved as a correct record.

MATTERS ARISING

New Covent Garden Market Visit (page 2) – The Chairman reported that the Director had met with the Managing Director of New Covent Garden to discuss a future Markets Committee visit to the site. Due to ongoing changes at the market it was not felt that it would be appropriate for the Committee to visit at this time but the Director would look to progress this further later in the New Year.

ClearChannel Delegated Authority (page 3) – The City Surveyor reported that the heads of terms with advertising hoarding company ClearChannel were likely to be agreed next week. The Committee therefore agreed further delegated authority for the Town Clerk, in consultation with the Chairman and Deputy Chairman of the Markets Committee, to sign off on this matter.

Debt Settlement Targets (page 4) – In response to a suggestion made at the last Markets Committee meeting regarding the possibility of tightening targets around debt settlement beyond the corporate level, the Director reported that he believed that this would result in further, unnecessary administrative burden for Officers for relatively little gain given the low level of debts involved.

Billingsgate Market – Chairman of the Market’s Tenants Association (page 5) – The Chairman confirmed that he had written to the Chairman of the Market’s Tenants Association to offer him his best wishes on behalf of the Committee.

Spitalfields Market – Waste Contract Tenders (page 6) – The Chairman reported that tenders were now in for the Spitalfields Market waste disposal contract but that these were yet to be assessed. Members were informed that this would form the subject of a further report to the next meeting of the Markets Committee.

To receive the public minutes of the meeting held on 22 November 2016 (TO FOLLOW).

The public minutes of the Reference Sub (Markets) Committee held on 22 November 2016, which were separately circulated, were received.

Joint report of the Chamberlain and the Director of Markets and Consumer Protection.

The Committee considered a joint report of the Chamberlain and the Director of Markets and Consumer Protection seeking approval to the latest revenue budget for 2016/17 and provisional revenue budget for 2017/18, for subsequent submission to the Finance Committee.

The Chairman, on behalf of the Committee, thanked the Chamberlain for a very comprehensive report and for helpfully summarising the key information within a table at the beginning of the report.

RESOLVED – That, the Committee:

1.    are content that the latest 2016/17 revenue budget reflects their objectives and       approve the budget for submission to the Finance Committee;

2.    are content that the provisional 2017/18 revenue budget reflects their objectives and          approve the budget for submission to the Finance Committee;

3.    approve the draft capital budget; and

4.    authorise the Chamberlain to revise these budgets to allow for changes to the         Additional Works Programme and in respect of recharges as well as any changes      from Markets Service Reviews, City of London Procurement initiative savings and     Carbon Trading Allowances. If the revisions vary by more than 10% of total             expenditure a further report will be submitted to the Markets Committee for approval.

Report of the City Surveyor.

The Committee received a report of the City Surveyor providing Members with a summary of progress on the City’s trial to increase the operating temperature of Smithfield Market’s Water Cooling System, which provides cooling to the Market Tenants’ refrigeration equipment.

The City Surveyor confirmed that the system was now operating at 24 degrees Celsius with no complaints or reports of problems to date. He added that the final increase to 25 degrees Celsius would take place next week.

The Committee were informed that a pump breakdown had been reported in West Market on the evening of 23 November 2016, maintenance engineers were called on site and restored the system after four hours. Investigations into the cause of the breakdown were still continuing although the suspected cause was a power surge.

Finally, the City Surveyor highlighted that some of the tenants’ condensers were still under sized which could lead to problems in the future.

A Member questioned what plans were in place to address this issue or further issues that might arise again as a result of warmer weather in the Summer. The City Surveyor reported that the pumps were due to be replaced before the Summer period and that the operating temperature could also be temporarily reduced if problems arose.

Another Member questioned what powers the City had to address the fact that a number of tenants’ equipment was still deemed to be a risk to the efficient operation of the system. The City Surveyor confirmed that a total of 12 refrigerators with undersized condensers were currently on the City’s ‘at risk’ list and that the Superintendent would be writing again to the tenants concerned suggesting that they upgrade their equipment in the strongest possible terms. However, as the equipment was owned by the tenants, any upgrades were at

Report of the Director of Markets and Consumer Protection.

The Committee considered a report of the Director of Markets and Consumer Protection regarding a future Strategic Review of the City’s Wholesale Markets.

The Deputy Chairman stated that the review objectives should make it explicitly clear that the suitability and long-term sustainability of each site as well as the potential consolidation of the markets would be covered.

A Member commented that the report did not provide any real detail on cash flow and how, for example, a new site might be purchased and built on whilst continuing to maintain the existing sites. The Members went on to question whether the Policy and Resources and Corporate Asset Sub Committee should also be sighted on this report from the outset.

The Deputy Chairman confirmed that the report would be submitted to the Policy and Resources Committee in due course and that there was already dialogue with the Chairman and Deputy Chairman of Policy and Resources on this matter. Members noted that the Markets Committee had sought to undertake a similar review approximately 14 years ago but that this had been rejected by the Policy and Resources Committee. Members wanted to ensure that this would not be repeated before any costs were incurred.

In response to a question regarding costs, the Director reported that there had been no costs associated with producing this initial report except for Officer time. He was now looking at the necessary budget for the actual review and discussing how this might be funded with the Chamberlain.  

RESOLVED – That, Members approve the draft Specification for the Review of the City of London Wholesale Markets.

Report of the Director of Markets and Consumer Protection.

The Committee received a report of the Director of Markets and Consumer Protection providing Members with assurance that risk management procedures in place within the Department of Markets and Consumer Protection are satisfactory and that they meet the requirements of the corporate Risk Management Framework.

The Chairman highlighted that the risk relating to ‘HGV Unloading Operations’ had moved from an amber to a red risk. This was due to a lack of suitable and sufficient training and adequate management controls to Heavy Good Vehicle banksman activities, undertaken by staff employed by Smithfield Market tenants. The Superintendent of Smithfield Market confirmed that he was currently in discussion with tenants to resolve this as quickly as possible. The Chairman reported that, as a red risk, this matter would be referred back to every meeting of the Markets Committee. He asked that the narrative to the risk and the actions taken to date be updated accordingly.

A Member commented that the SMTA had agreed to take this responsibility on board. He was now concerned that, in identifying this risk, the City were at risk in not fully addressing and controlling it. He suggested that, if the tenants were not fulfilling their role here, control should be taken back in-house and this should be added to the tenant’s service charge.

The Superintendent reassured the Committee that Officers were continuing to manage the risk and that the number of incidents/accidents relating to HGV Unloading Operations were very low at the Market. He added that the SMTA were aware that the Superintendent was now pushing for tenants to fully address this.

Whilst accepting that the number of incidents relating to HGV Unloading Operations at the Market were low, a Member quoted the Health and Safety Executive website which listed reversing vehicles as accounting for a disproportionate

Superintendents to be heard.

The Committee received oral updates from the Market Superintendents as follows:

Billingsgate Market

The Superintendent reported that tenants were now threatening to withdraw part of the service charge for the Seafood School. £38,000 in charges were currently paid for the School who had indicated that they would continue to pay £18,000 of this but would need to find an additional £20,000 going forward. He reported that the School might now write to individual tenants to seek contributions.

With regard to the long-term sickness case the Committee had been made aware of, the Superintendent reported that the associated court case had now concluded and a sentence had been pronounced. The Superintendent and Corporate HR would now be meeting with the member of staff concerned later this week to discuss a return to work programme.

The Committee were informed that the Chairman of the Tenants Association remained in hospital after being admitted back in June 2016. He was now awaiting transfer to a rehabilitation centre but was unlikely to be out of hospital before Christmas.

Finally, the Superintendent updated the Committee on trade at the Market. As far as vehicles entering the market were concerned, this was 8% down on last year. Members were informed that customers were charged for parking at the site which gave an indication as to numbers entering the market. Data here suggested that numbers were 13% down on last year. The amount of fresh fish coming in to the market was 2% down versus the previous year. The Superintendent added that one trader had recently been through two rounds of redundancies involving many staff. Members were informed that, whilst the premises was still fully occupied at present, there were now far fewer enquiries as to potential vacancies.

Spitalfields Market

The Superintendent was pleased to report that the

There were no questions.

With the Chairman’s permission, the Committee considered the following two late, separately circulated, urgent items of business:

NORTH – SOUTH CYCLE SUPERHIGHWAY PHASE 2: THE CITY’S RESPONSE

The Committee received a report of the Director of the Built Environment concerning the City’s response to the North-South Cycle Superhighway Phase 2.

The Committee were informed that Officers in DBE had been working alongside colleagues at Smithfield, the SMTA and TfL to finalise proposals to extend their North-South Cycle Superhighway. Officers believed that the revised proposals offered significant road safety benefits and highlighted that 15 of the 17 road traffic injury collisions that had occurred at the Farringdon Street/West Smithfield junction in the past three years could have been prevented if the current proposals were implemented.

However, Members were informed that the SMTA and the Department of Markets and Consumer Protection had expressed concern at the proposed banned left turn into West Smithfield and were requesting that TfL permit this left turn during the main hours of market operation. They felt that a ban on this would unnecessarily increase congestion and traffic around the Market. Officers reported that vehicles turning left into West Smithfield equates to about 25 vehicles per hour during the main market operating hours and that this was considered to be very low.

The Streets and Walkways Sub Committee would be encouraged to support the revised proposals as set out in the report at their meeting next week but to also direct Officers to continue to work with TfL to establish if a timed suspension of the banned left turn was practicable during key market operating times.

The Chairman reported that this Committee would like to see the ban lifted from 9pm – 5am every weekday so as not to disrupt operations at the market. The Committee asked that

MOTION - That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

RESOLVED – That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part I of Schedule 12A of the Local Government Act as follows:-

To agree the non-public minutes of the meeting held on 21 September 2016.

The non-public minutes of the meeting held on 21 September 2016 were considered and approved as a correct record.

To agree the non-public minutes of the meeting held on 22 November 2016 (TO FOLLOW).

The non-public minutes of the Reference Sub (Markets) Committee held on 22 November 2016, which were separately circulated, were received.

Report of the City Surveyor.

The Committee received a report of the City Surveyor updating Members on the Museum of London proposed relocation works and heads of terms.

Report of the City Surveyor.

The Committee received a report of the City Surveyor regarding the Poultry Market Major Repairs Project.

Joint report of the City Surveyor and the Director of Markets & Consumer Protection.

The Committee considered and approved a joint report of the City Surveyor and the Director of Markets & Consumer Protection seeking approval to final terms of the letting of unit 206 to an alternative tenant, where the originally approved tenant has withdrawn, approval to final terms of a letting of unit 210-213, and approval to final terms of a letting of unit 224.

Report of the City Surveyor.

The Committee considered and approved a report of the City Surveyor regarding the Spitalfields Market bulk lease renewal.

Report of the Director of Markets and Consumer Protection.

The Committee received a report of the Director of Markets and Consumer Protection informing Members of invoiced income raised and outstanding as at 30^th September 2016 from 31 days to 121+ days.

Joint report of the Director of the Built Environment and the Director of Market and Consumer Protection.

The Committee considered and approved a joint report of the Director of the Built Environment and the Director of Markets and Consumer Protection recommending short, medium and long term strategies for the on-going management of the City’s five public car parks.  

Report of the Superintendent of Smithfield Market.

The Committee received a report of the Superintendent of Smithfield Market informing members of the use of Smithfield car park.

Members posed questions on the anticipated cost of a Strategic Review of the Markets and on the departure of the Superintendent of Smithfield Market.

There were no additional, urgent items of business for consideration in the non-public session.