Agenda item

TO CONSIDER a report from the Director of Community Services (Canterbury).

The report was introduced by Richard Samuel, Chief Executive of Thanet District Council.  He drew attention to paragraph 1.2, which set out what the four councils were aiming to achieve and how the proposal would lead to improvements in customer service whilst delivering savings to reinvest into the new organisation.  He drew attention to financial data that set out what each council expected to achieve in the way of savings.  He said based on a minimum target of 10%, the outcome was approximately £1 million of cashable savings from the joint housing arrangement, with more to follow in due course from efficiencies in the use of accommodation and ICT.

He said since the last report, Ashford BC had withdrawn from the project because the savings were not as significant for them.  He said a lot of work had been undertaken to compare the proposed arrangement with other arms length management organisations (ALMOs) across the country, which was referred to in the report.  The report also contained details of consultation with tenants and leaseholders; this area of work was ongoing and not finalised.  He said the tenant’s representatives had recently written to the project team and a response back would follow in due course.

Attention was drawn to the draft resolution from the Joint Scrutiny Committee.  The following response was recommended to the committee –

(i)                 A further amendment was made to recommendation one, which was accepted by the Members.  This is set out in full in the recommendation (1) below;

(ii)               To accept the amendment to recommendation five – that four elected members be nominated by the local authority on the board of the company;

(iii)             To accept the amendment to recommendation  seven – that provisions be added for internal audit to the draft memorandum of articles was accepted.

(iv)              A further amendment was made to recommendation eight, that authority be made by the Chief Executives in consultation with the Leaders.  This was accepted.

Amendments to the proposed recommendations were discussed.  The committee said they were happy with the recommendations as proposed to be amended.  In respect of consultation with tenants, attention was drawn to paragraphs 6.2 and 6.3 of the report, which were felt to adequately deal with the matters raised by the Joint Scrutiny Committee.

Members of the committee acknowledged receipt of the letter from Unison dated 17 December 2009.  They welcomed Unison's participation in the process and in noting the comments, stated that there was nothing in the letter that persuaded them to change to recommendations set out in the report, as amended.

The committee thanked Members of the East Kent Joint Scrutiny Committee for their contribution in progressing the project to this point.

It was RECOMMEDED -

[For ease of reference the amendments are shown in italics below]

That the East Kent District Councils of Canterbury City Council, Dover District Council, the District Council of Shepway and Thanet District Council ("the East Kent Authorities") are recommended to merge the delivery of housing management landlord service between two or more of them through agreement of the following:

1.       that the arms length housing shared service option be confirmed as the preferred method for sharing landlord services in East Kent subject to final agreement by each individual council following the undertaking of appropriate consultation with tenants to satisfy the requirements of S27 of the Housing Act 1985

2.       that any vacancies related to the housing management activities to be undertaken by the Housing Shared Service Vehicle be managed to minimise potential severance costs

3.       that the housing management functions set out in Appendix A, Annex 2 are approved activities to be undertaken by the Housing Shared service Vehicle

4.       that the housing shared service vehicle is set up as a company limited by guarantee.

5.       that the board of the company will comprise twelve people – four elected members nominated by the local authority, four independents and four tenant/leaseholder representatives

6.       that Area Boards be set up in each participating council area.

7.       that the draft Memorandum and Articles for the SSV company reflect the governance and legal issues set out in Appendix A, Annex 3, subject to the addition of provisions for internal audit.

8.       that each council’s Chief Executive be authorised, to make any changes necessary to these proposals, in consultation with the Leader, and to pursue the project up to final council approval to join the Housing Shared Service