Agenda item

The minutes of the Executive of 5 October 2023 were presented by the Leader, Councillor Bialyk, and taken as read.

 

In respect of Minute No. 89 (Overview of General Fund Revenue Budget 2023/24 - Quarter 1), the Leader, in response to Members’ queries regarding identified risks that not all areas would meet the income generating targets, including the potential loss of car parking income, advised that he, with all Portfolio Holders, reviewed budget performance at weekly meetings including ongoing assessment of future budgets. Regarding car parks, he referred to changing social habits such as working from home which could impact on income from this source.

 

The Leader moved and Councillor Wright seconded the recommendations and following a vote, the recommendations were carried.

 

In respect of Minute No. 90 (2023/24 General Fund Capital Monitoring Statement - Quarter 1) the Leader, in response to a Member’s query regarding whether sufficient progress was being made on outstanding projects rather than taking on new projects, suggested that, notwithstanding the ability to identify specific preferred projects which could be progressed at the expense of others, it was still necessary to operate within financial constraints. The quarterly reports to Executive set out progress on all projects.

 

The Leader moved and Councillor Wright seconded the recommendations and following a vote, the recommendations were carried.

 

In respect of Minute No. 91 (2023/24 HRA Budget Monitoring Report – Quarter 1), the Leader moved and Councillor Wright seconded the recommendations and following a vote, the recommendations were carried.

 

In respect of Minute No. 92 (Net Zero Exeter Update), Councillor Moore moved and Councillor M. Mitchell seconded the following two additional recommendations:-

 

 (1)    Council reaffirms its commitment to tackling climate change and the goal of Net Zero for the city and to work collaboratively with communities, other organisations and local business to achieve this; and 

(2)     Review of the Net Zero Plan 2030 with stakeholders and communities to prioritise those actions most impactful and develop a delivery plan.

 

Councillor Moore, in speaking to the amendment to the recommendations, made the following points:-

 

·         the additions were to strengthen the proposals being put forward;

·         whilst reference is made to the city’s institutions also working on the Net Zero target, it is essential that communities, charities and other businesses are involved in this challenge to work on solutions with the existing partners; and

·         the second amendment sets out a constructive way of moving forward by prioritising actions that can be most impactful allied to an action plan.

 

During the discussion the following points were made:-

 

·         the amendments did not add anything substantive to the recommendation;

·         there was a concern that, whilst not disagreeing with the initial four recommendations, their tone might not convince the public that sufficient  progress was being made to achieve the Council’s Net Zero 2030 goal. The additions were therefore sought to enhance the Council’s aspirations.

 

The amendment was put to the vote and LOST.

 

During the discussion on the original recommendations the following points were made:-

 

·         actions with partners were set out in the recommendations as an inclusive approach with key stakeholders, businesses etc.;

·         working with local partners would be key, including the County Council who had led on a Citizens Assembly and also possessed a Carbon Reduction Plan for the whole of Devon and the wider Devon community;

·         the recommendations were presented to build on the work of both Exeter City Futures and officers and to set out the next steps;

·         a joined up approach would be championed by the Chamber of Commerce following on from the Exeter Transport Summit held on 17 October 2023;

·         the recommendations were not strong enough and did not contain mechanisms that lead to actions. Outputs from Exeter City Futures (ECF) were non-existent and the Exeter Data Centre was wound down in September 2002 with no information provided. The recommendations were not sufficient to progress actions that can be done locally such as planting more trees and more focused planning conditions;

·         outputs from the work of ECF, whilst not an easy thing to do, were not sufficient to move the work on, such as prioritising the District Heating Network and developing a greenhouse gas inventory. No assessment has been made of the carbon emissions of any future developments, as discussed during consideration of the Exeter Development Fund;

·         further scrutiny of how proposals for achieving Net Zero was important in order to inform the public of progress and this should have included oversight of Council representatives on Exeter City Living (ECL) and other bodies the Council is represented on; and

·         commend the proposal to extend retrofitting across the city and will support the recommendations and work with others in a constructive way. 

 

The Leader moved the recommendations stated that there was much work to be done following the closure of ECF and that discussions would be held with Portfolio Holders. It would be important for all Members to work together on this emotive issue.

 

The Leader moved and Councillor Wright seconded the recommendations and following a vote, the recommendations were carried unanimously.

 

 

The meeting adjourned at 19:56 and reconvened at 20:10.

 

 

In respect of Minute No. 93 (Review of Exeter City Living), Councillor Moore moved and Councillor M. Mitchell seconded the following amendments:-

 

Recommendation (3) to read

 

that, notwithstanding the recommendation from Local Partnerships to wind down the operations of ECL, officers recommend that the company be retained for the limited purpose of holding and managing property and a mechanism for the oversight of the shareholder’s representative to be set up;

 

Recommendation (4) to read

 

The Chief Executive and Section 151 Officer report to the Executive the shortfall, it’s implications and recommendations for decision with regard to the writing off of the debt.

 

Items (a), (b) and (c) would remain the same.

 

Recommendation (8) to read

 

agree that SMB reflect on the Local Partnerships report as well as work being undertaken by the District Councils Network on commercial companies owned by local authorities to produce a report in due course setting out principles for how the Council will enter into any commercial ventures in the future to reflect on the auditor’s report which highlighted the lack of oversight of the shareholders representative to Exeter City Living (ECL) and consider the necessity for oversight of the shareholders representative on all Council connected companies.

 

Recommendation 10 to read:-

 

agree to receive a report setting out a site disposal strategy in the likely event of a shortfall on the ECL loan after the Council acquires ECL’s assets by the end of December 2023.

 

Councillor Moore, in speaking to the amendment to the recommendations, made the following points:-

 

·         oversight of the shareholders representative to ECL was important to ensure that the management agreement with ECL was undertaken in a proper way and, even if the company winds down, the Council would still need to ensure that the necessary oversight continues in respect of the six leasehold flats in the Guildhall Shopping Centre. Even with a much reduced capacity, the company would need to operate properly;

·         removing the delegated authority as reporting back to Executive and Council was necessary so that decisions on any winding up and property disposal were clearly understood; and

·         item 10 reinforced the need for a report on this important matter.

 

In response, the Leader referred to the importance of retaining a collegiate approach and assured Members that they would be advised of decisions made under delegated powers. He stated that the Group Leaders had been kept appraised of developments with ECL and that it was not possible to change recommendations at this late change.

 

The amendment was put to the vote and LOST.

 

During the discussion on the original recommendations a number of Members acknowledged that the difficulties faced by ECL was highly regrettable noting that causes had included the Pandemic, the cost of living crisis as well as the current difficult economic circumstances. Other authorities had also encountered difficulties in respect of private companies engaged to provide badly needed solutions to the housing crisis. The City Council decision to set up ECL had been taken with the right intentions to provide housing for the city and to retain an element of control rather than leaving private developers to maintain their hold on the housing market which often led to further student housing rather than homes for families.

 

A Member referred to the need for mechanisms to ensure that the Council and Executive has proper oversight of all Council controlled and Council connected companies. Oversight of the shareholder representative to ECL to ensure that the management agreement with ECL therefore remained an important consideration. The importance of appropriate checks and balances had also been referred to in the Audit and Governance Committee. Another Member commented that the creation of ECL and its subsequent work should have been subjected to greater scrutiny through the Council’s Committee structure.

 

Other Members praised the original vision for bringing forward ambitious plans for additional housing in the city, noting that a pragmatic approach had been adopted to retaining Northbrook for open space rather than pursuing housing for this area. Providing quality housing remained a key strategic priority with 53 flats for affordable rent provided at Edwards Court, 21 new Passivhaus flats at Hamlin Gardens and proposals for 92 flats at The Gardens Whipton, and the continuation of the Vaughan Road scheme through the HRA as evidence of this.

 

The Leader, in concluding, referred to the original decision to proceed with a housing development company on part of the Clifton Hill site with much of the green space also retained, for which there had been corporate support and reiterated the comments of Members regarding the Council’s achievements in delivering new houses. It remained the aspiration to bring more homes forward for the people of Exeter. He reassured Members that the appropriate mechanisms were in place to ensure robust scrutiny with report back to Members.

 

The Leader moved and Councillor Wright seconded the recommendations and, following individual votes on each recommendation as set out below, all were carried as indicated. 

 

RECOMMENDED that Council:-

 

(1)  note the findings of the Local Partnership LLP report presented at the meeting - carried unanimously;

(2)  note ECL’s achievements to date - carried unanimously;

(3)  that, notwithstanding the recommendation from Local Partnerships to wind down the operations of ECL, officers recommend that the company be retained for the limited purpose of holding and managing property - carried unanimously;

(4)  grant delegated authority to the Chief Executive, in consultation with the Leader of the Council to facilitate recommendation in (3) above to reduce ECL’s activities as follows:

 

a)    the Council enters into a business sale agreement with ECL, whereby the Council acquires all of ECL’s assets (with the exception of the six leasehold flats in the Guildhall Shopping Centre), including any work in progress in return for proper consideration, in the form of a release of ECL from its obligations under the Loan Agreements. The sale agreement shall include a novation of all contracts save those that may be terminated by ECL with the Council’s agreement;

 

b)    in the likely event that the value of the assets to be acquired from ECL is not sufficient to repay the loan to the Council, then delegated authority be granted to the Chief Executive, in consultation with the Leader and Section 151 officer, to write off any shortfall; and

 

c)    thereafter, ECL, in a much reduced capacity shall continue for the purpose of holding and managing property and, in particular, the six Guildhall flats.

Carried;

(5)  agree that any staff implications are dealt with in accordance with its Organisational Change Policy - carried unanimously;

(6)  extend the ECL appointments of the Interim Managing Director and the two non-Executive Directors until such time as they are no longer required to assist with the reduction of the company’s activities, with the termination of those appointments delegated to the Chief Executive - carried unanimously;

(7)  grant delegated authority to the Service Lead - Legal Services to amend the Management Agreement to reflect the changes to the remit of ECL - carried unanimously;

(8)  agree that SMB reflect on the Local Partnerships report as well as work being undertaken by the District Council’s Network on commercial companies owned by local authorities to produce a report in due course setting out principles for how the Council will enter into any commercial ventures in the future - carried unanimously;

(9)  agree that the Chief Executive be tasked to liaise with One Public Estate to negotiate an amendment to the grant conditions with the aim of retaining the Brownfield Land Release Funding (BLRF) funding where possible - carried unanimously; and

(10)   agree to receive a report, if necessary, setting out a site disposal strategy in the likely event of a shortfall on the ECL loan after the Council acquires ECL’s assets - carried.

 

In respect of Minute No. 94 (Consultation of the Local Council Tax Support Scheme for 2024/25), the Portfolio Holder for Council House Development and Support Service welcomed the work undertaken, particularly in respect of support for care leavers, as discussed in Min. No. 64 above.

 

The Leader moved and Councillor Wright seconded the recommendation and following a vote, the recommendation was carried unanimously. 

 

In respect of Minute No. 98 (Food Law and Health and Safety Enforcement Service Plan 2023/24), a Member commended the City Council’s Enforcement team for their very rigorous approach to assessments and noted that the City Council had a 99% compliance level with food hygiene law.

 

The Leader moved and Councillor Wright seconded the recommendation and following a vote, the recommendation was carried.

 

In respect of Minute No. 99 (Air Quality Annual Status Report), the Leader moved and Councillor Wright seconded the recommendation and following a vote, the recommendation was carried unanimously.

 

RESOLVED that the minutes of the Executive held on 4 October 2022 be received and, where appropriate, adopted.