Issue - meetings

The Sub Committee received a report that explained the call in process and included the original call in notice signed by Councillors Joel Charles and Clive Souter.

In accordance with point (i) of the meeting procedure, Councillor Charles outlined the reasons for the call in. These were as detailed in the call in notice signed by himself and Councillor Clive Souter. He reiterated the request of the call in notice, that the decision be referred back to Cabinet for reconsideration.

In accordance with point (ii) of the meeting procedure, Councillor Clempner provided an explanation for the Cabinet’s decision on 17 September. He stressed that the decision was informed by a detailed and independent assessment of the available options; it was not an attempt to impose political dogma. Councillor Clempner had prepared a document that aimed to answer all of the questions raised in the call in notice. The Sub Committee felt that it would not be practical to consider Councillor Clempner’s note and asked instead that he answer its questions directly.

In accordance with point (iii) of the meeting procedure, the Sub Committee asked a series of questions of attending witnesses.

Councillor Charles asked a series of questions on the proposed governance arrangements for the LATC, including details of recruitment of Board Members/Directors; level of Councillor involvement in LATC management; stakeholder engagement; compliance with EU procurement legislation; strategies for ensuring retention of current Kier Harlow Ltd staff; managing conflicts of interest; accountability and customer contact under the LATC; and performance management. Councillor Charles asserted that certainty of such detailed matters is necessary before the Council can make a decision on whether or not to create a LATC and felt that the report to Cabinet on 17 September 2015 did not include sufficient detail to enable the Cabinet to achieve such certainty.

Councillor Souter asked a series of questions on the Council’s transition/exit arrangements from the JVCo. They included questions on service specification; staffing and TUPE; transfer of assets such as vehicles, plant and machinery; condition surveys of Mead Park Depot; and ICT requirements.

Councillor Simon Carter asked a series of questions on the financial aspects of the Cabinet’s decision. Councillor Carter asked why a full business plan for the LATC had not yet been produced. He also asked Councillor Clempner if he agreed that the decision of the consultant to use the same cost base for all options (in the financial appraisal of the appraisal report) represented a fundamental flaw in the options appraisal.

Councillor Clempner and Graham Branchett responded to each question in turn. The following is a summary of the main points that were made in response to the questions:

(i)    Some questions regarding detailed arrangements for governance processes are premature. This is because best practice guidance recommends that a LATC be set up in a staged approach and issues such as governance arrangements, supply chain and preparation of a full business plan comprise the latter stages of this process. Therefore it was not necessary  ...  view the full minutes text for item 4

Councillors are reminded that a briefing on this matter will take place at 7.30pm on Monday 14 September in the Council Chamber. This meeting will not be open to members of the public.

RESOLVED that:

A     The services currently provided by Kier Harlow Ltd be provided by the Council from the termination of the current contract between the Council andKier Harlow Ltd through a Local Authority Trading Company (LATC).

B    Subject to A above, all staff and assets transfer to the LATC as per the transition arrangements put in place for the termination of the current contract between the Council and Kier Harlow Ltd.

C    Subject to A above, Cabinet receives a report on the governance arrangements for the LATC at its meeting in October 2015.

D    Subject to A above, the Chief Executive, in consultation with the Leader ofthe Council, is delegated authority to negotiate and agree all matters in respect of the termination of the contract for the provision of services by KierHarlow Ltd, the transfer of the relevant assets and staff to the LATC, and allnecessary actions to ensure the successful commencement of the services through the LATC .

E     Subject to A above the Chief Executive, in consultation with the Leader of the Council, is delegated authority to negotiate and agree all matters in respect of the winding up/solvent liquidation of Kier Harlow Ltd.

F     Subject to A above Cabinet receives a report in 2020 to demonstrate that the LATC is achieving value for money.

The Cabinet received a report that proposed that following expiry of the Council’s contract with Kier Harlow Ltd on 31 January 2017, the services currently provided by Kier Harlow Ltd be provided by the Council through a Local Authority Trading Company (LATC).

During consideration of this item, attending press and members of the public were temporarily excluded to allow discussion of information of commercial sensitivity, through the following motion:

RESOLVED that part of this item is taken in private session on the grounds that it is likely to involve the disclosure of exempt information as specified under Paragraph three of Part One of Schedule 12A of the Local Government Act 1972, if and so long as in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information. Paragraph 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information.

The exclusion motion was passed at 7.56pm; members of the press and public were invited to return to the meeting at 8.26pm.

Proposed by Councillor Jon Clempner (seconded by Councillor Mike Danvers) Cabinet:

RESOLVED that:

A         The services currently provided by Kier Harlow Ltd be provided by the Council from the termination of the current contract between the Council andKier Harlow Ltd through a Local Authority Trading Company (LATC).

B         Subject to A above, all staff and assets transfer to the LATC as per the transition arrangements put in place for the termination of the current contract between the Council and Kier Harlow Ltd.

C         Subject to A above, Cabinet receives a report on the governance arrangements for the LATC at its meeting in October 2015.

D         Subject to A above, the Chief Executive, in consultation with the Leader ofthe Council, is delegated authority to negotiate and agree all matters in respect of the termination of the contract for the provision of services by KierHarlow Ltd, the transfer of the relevant assets and staff to the LATC, and allnecessary actions to ensure the successful commencement of the services through the LATC .

E         Subject to A above the Chief Executive, in consultation with the Leader of the Council, is delegated authority to negotiate and agree all matters in respect of the winding up/solvent liquidation of Kier Harlow Ltd.

F          Subject to A above Cabinet receives a report in 2020 to demonstrate that the LATC is achieving value for money.

RESOLVED that:

A     Options 4, 6 and 7 from the report submitted for the future delivery of the services currently provided by Kier Harlow Ltd are shortlisted for further analysis and development of procurement strategies.

B    Cabinet will receive a further report in July 2015 to determine the final option and procurement strategy.

The Cabinet received a report that explored several options for how the Council could procure and deliver services currently provided by the Joint Venture Company, from 1 February 2017.

Proposed by Councillor Jon Clempner (seconded by Councillor Rod Truan) Cabinet:

RESOLVED that:

A     Options 4, 6 and 7 from the report submitted for the future delivery of the services currently provided by Kier Harlow Ltd are shortlisted for further analysis and development of procurement strategies.

B    Cabinet will receive a further report in July 2015 to determine the final option and procurement strategy.