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Decision Maker: Executive Councillor for Planning, Building Control, and Infrastructure
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Approval of Section 106 Administration Fee
Matter for Decision: Approval of Section 106 Administration Fee
Why the Decision had to be made (and any alternative options): The proposal creates new policy around the use of planning obligations to fund the cost of existing Section 106 Monitoring Officers within the Greater Cambridge Shared Planning service.
To ensure the timely payment of contributions and provision of onsite infrastructure, many local planning authorities seek contributions towards the cost of the monitoring of section 106 agreements.
The Cambridge City
Planning Obligations Strategy SPD[1] adopted
March 2010 established a monitoring charge based on the following:
Financial
contribution clause - £150
Infrastructure
provision clause or condition - £300
Areas of Major
Change developments - Strategy to be considered on a development-specific basis
but likely to include a requirement for funding of development-specific or Area
of Major Change -specific, dedicated monitoring officer(s) throughout the
period of implementation of development.
The Cambridge City
Draft Planning Obligations Strategy Supplementary Planning Document dated June
2014 proposed a new approach to the Monitoring charge and which approach was
used by the City Council during 2014.
Monitoring charges
on financial and non-financial planning obligations - The management and
administration charge will be 5% of the total contribution(s) (subject to a
maximum charge of £50,000).
Large Scale
Development - To be considered on a case by case basis. May be agreed by negotiation,
subject to an additional management and administration charge. The default
position for administration charge will be 5% of total contribution(s)
A High Court
Judgement dated 3rd February 2015 determined that on straight forward matters
(i.e. one off financial payments), securing a s106 monitoring fee would not
meet the tests set out in R122 of the Community Infrastructure Levy Regulations
2010 (amended) and the City Council has not, since then, secured contributions
on non-strategic sites for Section 106 monitoring.
Planning guidance
now specifically permits local planning authorities securing monitoring fees to
cover the associated cost so long as they are proportionate and reasonable and
reflect the actual cost of monitoring.
Officers have undertaken
a detailed analysis of the time required to administer section 106 agreements
and recommend a new set of fees be introduced across Greater Cambridge as
follows:
· A fee of £700 for agreements with no payment
of contributions, long term monitoring requirement or solicitor enquiries.
· A fee of £2,200 per standard residential
development comprising affordable housing, open space and contributions.
· A fee of £500 where the Council is required
to confirm compliance of each obligation
· A fee of £250 per each deed of variation or
supplemental agreement
· Monitoring fees associated with strategic
developments which should continue to be negotiated on a case by case basis.
Around £111,000 can
be expected to be received each year to cover the officer costs associated with
the administration and monitoring of section 106 agreements (with a further
£8,000 for the cost of software) thereby creating a cost neutral position.
Reason for the decision: To ensure the roles of Section 106 Monitoring Officers are cost neutral.
Scrutiny Consideration: The Chair and Spokespersons of the Planning and Transport Scrutiny Committee were consulted prior to the action being authorised.
Report: A section 106 Administration Fee Proposal report can be viewed at the link
Library_ S106 Monitoring Fee Summary Recommendation Report
Conflict of interest: None
Comments: No adverse comments were received from the Chair
or Opposition Spokes.
Publication date: 28/07/2022
Date of decision: 28/07/2022