To consider any decisions made by the Cabinet at its last meeting that have been called-in.
Minutes:
The Chairman informed the Committee that Cllrs: Mrs J Roach, Cllr D J Knowles, Cllr F W Letch, Cllr R M Deed and Cllr R Wright had called in two decisions made by the Cabinet at its meeting on 25th October 2018 (with regard to the Medium Term Financial Plan and the Modernisation of Council Homes 2018-2023) for consideration by the Scrutiny Committee in accordance with the Council’s Constitution.
To consider:
a) Medium Term Financial Plan
· This report is listed as having been 'noted’, the proposals in paragraph 8.2 of the report be endorsed'. Paragraph 8.2 in the report contains possible actions the Council could take to remain solvent. There is little evidence to demonstrate how and why these might or could be adopted. Without clear objectives and an overall plan a satisfactory outcome is doubtful.
· An allocation of 11 million pounds for 75 affordable homes is an SPV project which appears to be funded by MDDC.
· On page 89, there is a further allocation of funds to the SPV for the Tiverton Roundhill site. Is MDDC funding the SPV or not?
The Chairman asked the lead member who had called in the decision for the reasons why she felt that a call in was appropriate.
The lead member explained that she had missed the member briefing and the Cabinet meeting and did not feel that the Medium Term Financial Plan or the allocation of funds to SPV had been sufficiently discussed.
The Deputy Chief Executive (S151) explained that two reports had been sent to Cabinet and a member briefing had been arranged which had detailed the funding arrangements for 3 Rivers Developments Ltd. He further explained that Full Council had been fully informed of the arrangements and that this had been approved. He reiterated that Council could borrow money at a low rate and this had been lent to 3 Rivers at the market rate which would see the Council realise a profit on the monies lent. The Council was not funding 3 Rivers Developments Ltd out of the General Fund. He explained he was happy to provide the member with further information if she required.
In answer to a question about the Deputy Chief Executive’s (S151) role as both Finance Director for the Council and a Director of 3 Rivers Developments Ltd he explained that Members had approved the Memorandum of Association which had confirmed the governance arrangements between the two entities.
Members present who had attended the briefing about 3 Rivers Developments Ltd stated that they were clear of the governance arrangements and that they had full confidence in the Council and the Deputy Chief Executive (S151).
The Chairman recommended and the Committee agreed that the discussion about the funding for 3 Rivers Developments Ltd was closed at that point and no recommendation or proposal was made to the Cabinet.
With regard to the Medium Term Financial Plan the lead member of the call in stated that she had concerns that she could not see a long term strategy for the Council.
The Chairman again questioned the validity of a call in as the lead member was not questioning the process the Council took to approve the Medium Term Financial Plan.
The Deputy Chief Executive (S151) outlined the Medium Term Financial Plan and explained to members in further detail:
· A strong strategy and history of delivery
· Council had balanced its books against lower funding
· Services had remained the same or had been improved
· Clear strategy as evidenced in PDG papers
· Joint service agreement with DCC for waste was saving £200k per annum
· Investing to save with the refurbishment of leisure centres
· Reviewing current and future property asset requirements
· Maximisation of procurement contracts
The Chief Executive explained to the Committee that the Council would always be changing and evolving and that he worked closely with other authorities to share knowledge and best practice.
There was a general discussion on the commercial aspects of the Council and the need to make efficiencies due to less funding from Central Government.
The Chairman of the Audit Committee spoke to the Committee and stated that change management was now the norm and was to be expected. He explained to the Scrutiny Committee that he and the members of the Audit Committee had received very good guidance and advice prior to recommending the Medium Term Financial Plan to Cabinet. He explained that when compared to neighbouring authorities the Council was doing very well and was successful.
The Chairman recommended and the Committee agreed that no proposal or recommendation in relation to the call in be made to the Cabinet with regard to the Medium Term Financial Plan.
In response to
b) Modernisation of Council Homes 2018-2023
· A challenge in May to the way the kitchen contract had been awarded.
· This contract was for replacement kitchens and bathrooms and upgrading of electrical circuits. The report states that the Council is required to replace kitchens and bathrooms and sort electrical circuits. The same requirement of the May contract. Why is there a need to have two contracts with two different suppliers?
The lead member for the call in explained that she had now been informed of the difference between the two contracts, in that the May contract was to supply kitchens and the November contract was to install them. She said that she felt that this was not made clear on the reports approved by Cabinet. She wanted to know how many kitchens formed part of the contract.
The Director of Operations explained that the contract awarded was an indicative spend and that the exact number of kitchens supplied and fitted could not be known in advance. The number of units supplied and fitted would depend on the need (or not) to change kitchens when properties were vacated and the desire of tenants to have the works done. He confirmed that the budget was sufficient for what was needed to be done based on historical numbers. He confirmed that the May contract was for the Supply of Kitchens and the November contract was for the Modernisation of Council Homes 2018-2023
At this point the lead member for the call in stated that she wanted to raise another point about the Modernisation of Council Homes 2018-2023 report appendix which had been provided to Cabinet on 25th October 2018 and the handling of exempt information related to the decision.
The Solicitor confirmed that the appendix was exempt information and that it remained exempt information and therefore could not be discussed in open session.
On advice of the Solicitor present discussion took place whether it was necessary to pass the following resolution to exclude the press and the public having reflected on Article 15 15.02(d) (a presumption in favour of openness) of the Constitution. The Committee decided that in all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.
It was therefore:
RESOLVED that under Section 100A (4) of the Local Government Act 1972 the public be excluded from the next item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 5 respectively of Part 1 of Schedule 12A of the Act, namely information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.
(Proposed by the Chairman)
Discussion then took place regarding the incident and there were no recommendations or proposals made as a result of the discussions.
The meeting returned to open session.
Supporting documents: