Agenda item

Local Authority Controlled Company - Final Decision

Minutes:

E.57/16          

Members were presented with a report that set out how the Council had been exploring the possibility of establishing a Local Authority Controlled Company (LACC) jointly with West Devon Borough Council.  A Joint Steering Group (JSG) consisting of Members from both Councils had been formed to consider further detailed information and to make a final recommendation to the Council in respect of the LACC Proposal.  Having fully considered the matter, the JSG had concluded that there were no legal or technical matters that would prevent the Councils implementing a LACC. 

 

However, there were significant additional initial costs (particularly Pensions contributions) in establishing a LACC and therefore the recommendation to both Councils was to not proceed with the implementation of a LACC as currently proposed.  The full JSG recommendations were set out in Appendix 1 to the presented report.   The JSG recognised the value of holding regular meetings to discuss matters affecting both Councils (such as shared services arrangements and particularly around exploring further options to meet both Councils’ financial challenges) and recommended that these meetings continue to consider future opportunities.

 

The Leader presented the report and, with the Executive Directors, responded to questions.  He also introduced an additional recommendation to formally propose that the Council did not proceed with a LACC in its current proposed form.  A JSG Member stated that a lot of good work had been undertaken by the JSG and it was important to retain that effort in moving forward.

 

One Member was concerned that, if agreed, the role of the JSG Members would be in line with the responsibilities of Executive Members.  Whilst a number of his concerns had been addressed by the Monitoring Officer, he felt that it was appropriate for the Terms of Reference of the revised JSG to be approved by full Council.  A number of Members agreed and the Leader proposed an amendment to the published recommendation accordingly.  This was duly accepted and it was agreed that the Terms of Reference would be presented to the Special Council meeting on 2 March 2017.

 

Another Member noted that there would be an inconsistency if the remainder of the recommendations were to be approved at the February meeting of Council, but the Terms of Reference at the March meeting of Council.  It was therefore proposed that the whole report be deferred to the March meeting of Council and that revised Terms of Reference would be included within the agenda papers for that report.

 

Members sought specific detail in respect of monies spent on this project and assurances were given that the total cost would be in the public domain once negotiations had been completed.

 

It was then:

 

RESOLVED

 

That Council be RECOMMENDED at its meeting on 2 March 2017 that:

 

1.   The recommendations of the Joint Steering Group (attached at Appendix 1) are noted;

1A.  Not to form a LACC in its current proposed form at this time;

2.  The Joint Steering Group continues to meet with revised terms of reference being put into place to consider all options in respect of shared arrangements and financial challenges;

3.  The revised terms of reference for the Joint Steering Group are discussed between the Executive Director (Strategy and Commissioning) in consultation with the Leader of the Council with a view to being presented to the meeting of Special Council on 2 March 2017 and to be attached as an appendix to that report; and

4. The remaining funding for the LACC project be earmarked to fund further work by the JSG within their revised terms of reference.

 

Supporting documents: