Agenda item - Beach Huts - licence terms and conditions

Report of the Executive Director Economy, Environment & Culture

RESOLVED:

That the committee defers the item to the next meeting of the committee so that the proposed new licence agreement may be properly considered.

13.1   The Committee considered a report of the Executive Director Economy, Environment & Culture which included a proposal to increase the beach hut transfer fee.

13.2   Councillor Nemeth confirmed that his ward had the highest number of beach huts in the city and he criticised the last minute way that Councillors had received the proposed new licence – with one working day allowed to pursue it and he also criticised the lack of consultation with beach hut owners.  He confirmed that the last minute nature of receiving the draft licence had also revealed that there was a problem in the original proposal and that the previous licence did not allow for the sales tax.  Councillor Nemeth confirmed that he would have preferred a proper briefing in advance so that the licence could offer a fresh start to the beach hut owners.  He criticised the current wording, which he perceived as a threat.  He also confirmed that he had three queries on the term “rightful owners” as it was used within the wording. He confirmed that he felt that the Item should be deferred in order for Councillors to consult with beach hut owners and fully consider the report.

13.3    The Chair confirmed that no threatening letters had been sent out and he asked the Executive Director Economy Environment & Culture who confirmed that all letters should be done in a non-threatening way and that the outcome sought was the same as before.

13.4    Councillor Mears seconded the motion proposed by Councillor Nemeth and highlighted the wording on page 137 point 7.2 and confirmed that under the Conservative administration the Council actually built beach huts and that there was an income received from them.  She disagreed with the wording in this paragraph as it was a financial contract. She noted that this had been agreed in January and now supported the proposal to defer it. 

13.6    Councillor Morris stated that he did not understand Councillor Nemeth’s objections to the licence itself.  He criticised the phrase used on p. 137 which described a beach hut as a luxury item and asked Councillor Nemeth to clarify which parts he objected to.

13.7 Councillor Nemeth replied that there were small amendments to terminology that were required, where terms such as “paid in Advance” conflicted with “to be paid on 1^st April “ and “paid in full” within the same document.  Councillor Nemeth also confirmed that the document should require consulting with beach hut owners – which would be a small exercise for something that would last a long time. Councillor Nemeth also questioned whether this document had already been checked by the Council’s Legal department and the Senior Solicitor confirmed that it had been considered by a Property Lawyer.

13.8    Councillor Druitt referred to page 136 – Paragraph 7 and confirmed that the increase in the fee had already been previously agreed and that Brighton & Hove beach huts seemed to be good value and that the Council has realised the current contract did not allow them to implement the agreed increases. 

13.9    The Executive Director Economy Environment & Culture confirmed that regarding the increases implemented by the Committee in January, he suggested that the committee could have a meeting to consult with beach hut owners and he would be happy to facilitate that.

13.10  Councillor Allen confirmed that in his opinion a beach hut was a luxury item.  He confirmed there it would be positive to consult with the beach hut owners and that he said that his instinct was not to make a decision and therefore he was inclined to abstain.

13.11  Councillor Platts wanted clarification on the letter sent to beach hut owners and Item 5.1 and said that this would not take place in the 18/19 financial year. Councillor Nemeth replied that this referred to the Licence fee.

13.12  Councillor Platts also commented on the fact that she couldn’t find anything about crushing beach huts within the report. She felt that the owners did have sufficient time to decide and make up their minds.   The Head of Sport & Leisure and Jane Pinnock- the Seafront Estates Surveyor confirmed that initially a letter went out in early February   as a result of the January committee, advising that the licence fee and the transfer fee would increase from April.  It was pointed out that these letters went out several days too late. The Senior Solicitor also explained that if a hut was not removed – then under the current licence the Council has to give at least one months’ notice to terminate the licence.  Councillor Mears confirmed that this was agreed in paragraph 3.5

13.13  Councillor Morris confirmed that these are licenses and that owners would have to pay a transfer fee if the beach hut is sold on. The Seafront Estates Surveyor confirmed that this is true and Councillor Nemeth confirmed that the fee is £82. The Executive Director Economy, Environment & Culture confirmed that the Council did write to beach hut holders and then wrote a second letter confirming that they would not implement this until later in the year.  So in terms of consultation, he confirmed that there had been no further letter since February.

13.14  The Head of Sport & Leisure confirmed he had received five to six responses including a reply from Callaway estate agents who wanted to clarify the rationale behind these changes and he confirmed that he had responded to clarify.

13.15  Councillor Cattell stated she was confused regarding paragraph 3.4 / 5

regarding disposal of the hut and she queried whether dispose meant destroy. The Head of Sport & Leisure confirmed that he was not aware of such action ever being taken as the value of the hut is generated by the location on the seafront – not the hut itself.  Councillor Platts also questioned whether huts had been crushed and clarified that the increase from £82   was the admin/transfer fee - not the licence fee. 

13.16  Councillor Nemeth replied that it should be noted that due to the increase we would now have the highest beach huts sales tax in the country and that regarding the consultation – there had been zero consultation up to this point.  He confirmed that they now needed to sit down and consult with the beach hut owners in order to clarify their views.

13.17  The Chair then asked the Members to vote on the amendments and they voted five in favour, three against with two abstentions that this item would now be deferred until September. 

13.18  RESOLVED: That the Committee defer the item to the next meeting of the committee.