Overview and Scrutiny Committee - Tuesday, 24th February, 2026 7.00 pm - Agenda and draft minutes

To confirm the Minutes of the Meeting held on 5th February 2026 (copy attached).

The minutes of the Meeting held on 5th February, 2026 were agreed as a correct record.

To consider the Work Plan for the 2025/26 Municipal Year (copy attached).

An update would be provided on the recommendations raised at the meeting on 11th December, 2025.

The Committee noted the current Work Plan and were provided with an update on matters raised at the meeting of the Committee on 11th December, 2025.

·         Housing Oversight Group (formally Registered Providers Task and Finish Group) – The First meeting had been held on 2nd February, 2026 with an increased Membership of seven Members from the original five Members. Meeting frequency had also been increased to quarterly.  The work programme included key housing issues which covered all tenures, social housing, leaseholder and private rented housing. It also included the review of any registered provider (RP) performance issues at every meeting, with the ability to escalate any major concerns to individual performance management or scrutiny meeting with an RP if needed. The Portfolio Holder would provide an annual report to the Committee, and this was included in the updated terms of reference. The updated terms of reference and work plan would be shared with the Committee for information.

·         Walk this Waste Pilot – it was reported that since the meeting of the Committee in December, where a number of key observations were made, the Cabinet had decided not to continue with the scheme and were considering other options to address the issue of fly tipping and removal of bulky waste.

·         Letter to Hampshire County Council – it was noted that a letter had been sent to the Leader on Hampshire County Council (HCC) on 23 January, 2026, a copy of which would be shared with Members. Currently, the Council were still awaiting a response.

ACTION:

With regard to future meetings, it was noted that an email would be shared with a list of potential items for the meeting in March 2026, and it was noted that a request was made to consider Rough Sleeping at that meeting.

ACTION:

In response to a query regarding Call-in procedures, it was advised that the Committee would normally consider any decision that had been called in to the Committee within ten working days of the Corporate Manager – Democracy being notified of the request.

To receive a presentation from Executive Director, Karen Edwards and Development Manager, Johanna Cohen on the key considerations within Report No. REG2601.

Report No. REG2601, alongside any Exempt Appendices, will be available, once published, to the Cabinet and will be accessible via the following link Cabinet - 3rd March 2026.

The following Exempt documents are available for reference:

Cabinet 11 February 2025 – Exempt Report No. REG2501

Cabinet 8 July 2025 – Exempt Report No. REG2503

Cabinet 14 October 2025 – Exempt Report No. LEG2505

Any recommendations arising from the Committee, would then be considered by the Cabinet at its meeting on 3rd March, 2026.

The Committee welcomed the Portfolio Holder for Healthy Communities and Active Lives, Cllr Sophie Porter, Executive Director, Karen Edwards, Rosie Plaistowe-Melham, Service Manager – Finance and Deputy S151 Officer and Johanna Cohen, Development Manager who were in attendance to advise Members on the detail of Report No. REG2601.

Also in attendance were representatives from development partner Alliance Leisure, Sarah Watts, Chief Executive and Founder and Steve Rose, Project Delivery Manager, who provided an overview of their business model and responsibilities throughout the project.

Members acknowledged that there had been a large amount of information to go through prior to the meeting which had been shared as soon as it had become available. However, following a round table discussion, multiple Members felt they had had insufficient time to carry out full scrutiny, but the majority felt they could move forward with the support of officers in the room.

Members were provided with a presentation which set out a summary of the decision and key considerations for the Cabinet at its meeting on 3rd March, 2026, and an overview of the content of the Report and Appendices. Key project milestones were also noted, and in response to a query, it was advised that estimated revenue financial implications, of the £8.8m of additional borrowing to enable the project, had been included in the Medium-Term Financial Strategy, which would be presented at the Full Council Meeting on Thursday 26th February, 2026. Key risks and mitigation were also addressed.

During discussion, the Committee noted that in the initial years following project completion, revenue costs outweighed operational income. However, from year four onwards, there would be a net positive revenue position to enable debt costs of the project to be covered and an income for the Council. Payback (breakeven) would be achieved in 2041/42, at the end of the initial 15 year operator contract.

Members reviewed financial modelling criteria carried out on a number of different scenarios. It was noted that the level of external funding available (Levelling Up funding of £18.5m) helped secure the delivery of the project, and without the funding the Council wouldn’t be in such a positive position. In addition, it was requested that financial modelling be undertaken on 3-4% increased interest rates and a combination scenario.

ACTION:

A discussion was held on the options for borrowing. The current forecasts accounted for long term borrowing of the £8.8m, however this position may change when the time came to borrow the additional amount. Local Government Reorganisation (LGR) could mean that funds may not need to be borrowed, or alternative short-term borrowing could be considered.

In response to a query regarding a Climate Impact Assessment for this project, it was noted that these assessments were in the process of being introduced and a written response would be provided by the Cabinet Member on the latest position.  ...  view the full minutes text for item 33.

RESOLVED: That, taking into account the public interest test, the public be excluded from the meeting during the discussion of the under mentioned item to avoid the disclosure of exempt information within the paragraph of Schedule 12A to the Local Government Act, 1972 indicated against the item:

Minute           Schedule      Category

No.                  12A Para.

                        No.

33b                 3                      Information relating to financial or business affairs

During the in private discussion, it was advised that a full review of the financial position of both Alliance Leisure and Pellikaan had been undertaken and the Section 151 Officers had assured that both companies were a low risk to the Council.

The Committee also discussed social value and were advised that Pellikaan would work to add social value but nothing specific had yet been agreed. Any social value would be shaped by the Council and an allocation made to support it. It was suggested that any surpluses generated by the new Farnborough Leisure Centre could be prioritised for reinvestment into improving other leisure provision within the Borough.

The Committee were apprised of the options to protect financial risk within the contract which had been provided by the Council’s Contract lawyer and Regeneration and Development Consultant. In response to a query regarding a Parent Company Guarantee (PCG), the Council’s Interim Corporate Manager Legal would be asked to whether a PCG could be considered alongside any other offer.

With regard to other risk, it was noted that once the contract had commenced the level of risk to the Council would reduce.