Agenda and minutes

To receive any apologies.

It was noted that apologies had been received from Councillors Claisse, McEwing and D Thomas. 

To authorise the signing of the minutes of the Council Meeting held on 16th May 2018, attached.

RESOLVED that the minutes of the AGM Council meeting held on 16^th May 2018 be approved and signed as a correct record.

Matters especially brought forward by the Mayor and the Leader.

(i)  Members stood in a minutes silence to mark the 20^th year anniversary of the tragic death of former City Councillor and Mayor Michael Andrews, who served as a City Councillor from 1976 – 1998 and was Mayor from 20th May 1998 until his death whilst serving on Mayoral duties on 27^th July 1998.  The Mayor announced that as a mark of respect the City flag would fly at half-mast on the anniversary date;

(ii)  The Mayor announced that this was the last Council meeting before the departure of Suki Sitaram, Chief Strategy Officer who had given the Council her unstinting commitment, loyalty and hard work over many years.  Tributes were made from Members across political parties;

(iii)  The Leader made the following statement.  In the short period since I became Leader, there have been many competing demands and one of the key issues I decided to prioritise was that of the Kentish Road Respite Centre.  Adult Social Care has been described as the burning platform of Local Government across the country and it will continue to challenge all councils on how to best provide that care.  With that in mind, I would like to offer an apology for the difficulties experienced by the families who used Kentish Road.  This has not been the council’s finest hour and its right to acknowledge this.  I have spent time listening to the families, visiting respite centres and speaking to charities.  The common thread in all these conversations was that a one-size fits approach to care doesn’t work.  At Cabinet in April, we committed to keep Kentish Road open and offer care on a temporary basis, while discussions were ongoing with the voluntary sector partners about the future of the site.  I am pleased to announce, that we have done, Kentish Road is open and on schedule, offering weekend care to a number of families.  We have had good feedback from the service users so far.  I have reviewed the voluntary sector plans and it is clear that none of those organisations offer the ideal solution for the Council.  So today, I am announcing that the Council will retain responsibility for delivering respite care at Kentish Road in order to meet the needs of people with learning disabilities.  Simply keeping everything the same as it’s always been is not an option.  However, by retaining the site, this gives us the opportunity to deliver the right mix of Adult Social Care options in the future.  We have listened and we will continue to do so with service users, their families and our partners as we develop services delivered at the centre. 

To receive any requests for Deputations, Presentation of Petitions or Public Questions.

It was noted that no requests for deputations, petitions or public questions had been received. 

Report of the Leader of the Council. 

The report of the Leader of the Council was submitted setting out the details of the business undertaken by the Executive.

The Leader and the Cabinet made statements and responded to questions.

The following questions were submitted in accordance with Council Procedure Rule 11.1. 

1.  Pedestrianisation of Guildhall Square

Question from Councillor Fitzhenry to Councillor Hammond. 

Can the Leader confirm his commitment to the pedestrianisation of Guildhall Square as quickly as possible? 

Answer

It was never agreed the Northern Above Bar side of Guildhall Square would be entirely traffic free – but that a review would be undertaken.  Now that the galleries are open we are undertaking monitoring of the traffic and will consider the options of pedestrianisation as part of the LTP4 consultation.   

2.  One New Home Every Day

Question from Councillor Fitzhenry to Councillor Hammond.

Can the Leader confirm his commitment to the Labour election pledge of one new home every day?

Answer

This pledge was made in 2012 since then we have been faced with changes to affordable homes legislation, Brexit, three Leaders (ourselves and the Opposition), the context is very different today.  In our latest manifesto, we set the target of providing 1000 new homes over the next five years.   

3.  Telephone Answering

Question from Councillor Laurent to Councillor Chaloner

Eastleigh Council answer the telephone and deal with queries at the same point immediately and efficiently.  Why cannot Southampton Council do the same?

Answer

We have been investing significant time and effort into improving our customer services, to increase the efficiency with which we deal with customer enquiries. As an example last month we dealt with around 45,000 calls and answered these in an average time of 2 minutes 28 seconds. This is an improvement on the position in June 2017, the average speed of answer was 4 minutes 12 seconds.

Dealing with customer issues at the first point of contact is a key part of our strategy for improvement. We have recently introduced a new customer satisfaction survey for the contact centre and one of the questions monitors our performance in this area by asking whether customers were able to successfully do what they called for on that occasion. The latest data shows 72.5% of customers responding positively to this question. However, there will always be a proportion of customer enquiries which require referral to a specialist team, for example where the information provided indicates a social care assessment is needed.

We are continuing to make changes to systems and processes to improve customer experiences both online and via traditional channels.

4.  Reduced operating hours at Housing and Gateway cash offices

Question from Councillor Fitzhenry to Councillor Chaloner

Given the Council’s strategic approach towards digitalisation and reduction in customer facing interactions, can the Cabinet Member confirm if the reduced hours of service at our housing and Gateway cash offices has increased our rent/payment arrears and/or increased our costs of recovery?

Answer

Part 1 – Impact of reduced hours.

The following stats compare the use of  ...  view the full minutes text for item 26.

(a) Councillor Galton to move:

The Council acknowledges that the state of Southampton’s roads and pavements falls below that expected by many of our residents.

In light of this, the council will commit to review its current defect intervention levels, with a view to expanding the criteria of defect repaired within both the 24 hour and 28 day periods.

The council will also review its policy on city and district centre paving to ensure these high footfall areas are repaired more swiftly to protect residents and support businesses.

(b) Councillor Bogle to move:

This Council celebrates the 70th birthday of our National Health Service and welcomes the ongoing commitment of the thousands of people who work in these important services in the city.

This Council notes the rising pressures from an aging population and many more people living with complex conditions that is impacting both the NHS and adult social care.

This Council also notes that health outcomes and inequalities in the city are not where we would want them to be.

This Council is committed to working in partnership with all providers in the city to innovate and seek to be a centre of best practice for improving health, care and wellbeing in the country. 

This Council is committed to embedding health and wellbeing outcomes in all our policies, and will continue tocommit to using all its powers through other determinants of health such as employment, housing and the environment to help improve health outcomes.

(a)  The state of Southampton’s roads

Councillor Galton moved Councillor Fuller seconded:

The Council acknowledges that the state of Southampton’s roads and pavements falls below that expected by many of our residents.

In light of this, the council will commit to review its current defect intervention levels, with a view to expanding the criteria of defect repaired within both the 24 hour and 28 day periods.

The council will also review its policy on city and district centre paving to ensure these high footfall areas are repaired more swiftly to protect residents and support businesses.

Amendment moved by Councillor Rayment and Councillor Furnell seconded:

At the end of the first paragraph add “and that this is an important priority for them.”

Add a new second paragraph that reads: “The Council, therefore, warmly welcomes this administration’s commitment of over £30.5 million capital investment into the City’s road, footway and cycleway maintenance in 2017/18 and current financial year – more than five times the amount invested in 2012/13.”

Final paragraph, first line delete ‘will also review its’ and replace with ‘supports efforts to improve the pothole standards and we are reviewing its current defect intervention levels, with a view to expanding the criteria of defect repaired within both the 24 hour and 28 day periods.’

Final paragraph, second line delete ‘to protect residents and support businesses.’

Amended Motion to read:

The Council acknowledges that the state of Southampton’s roads and pavements falls below that expected by many of our residents and that this is an important priority for them.

The Council, therefore, warmly welcomes this administration’s commitment of over £30.5 million capital investment into the City’s road, footway and cycleway maintenance in 2017/18 and current financial year – more than five times the amount invested in 2012/13.

The Council supports efforts to improve the pothole standards and we are reviewing its current defect intervention levels, with a view to expanding the criteria of defect repaired within both the 24 hour and 28 day periods. The Council has a clear policy on city and district centre paving to ensure these high footfall areas are repaired more swiftly.

UPON BEING PUT TO THE VOTE THE AMENDMENT IN THE NAME OF COUNCILLOR GALTON WAS DECLARED LOST.

UPON BEING PUT TO THE VOTE THE AMENDMENT IN THE NAME OF COUNCILLOR RAYMENT WAS DECLARED CARRIED.

UPON BEING PUT TO THE VOTE THE AMENDED MOTION WAS DECLARED CARRIED.

RESOLVED that the amended motion be approved.

(b)  70^th Birthday of the National Health Service

Councillor Bogle moved Councillor Leggett seconded:

This Council celebrates the 70th birthday of our National Health Service and welcomes the ongoing commitment of the thousands of people who work in these important services in the city.

This Council notes the rising pressures from an aging population and many more people living with complex conditions that is impacting both the NHS and adult social care.

This Council also notes that health outcomes and inequalities in the city are not where we would want them  ...  view the full minutes text for item 27.

To consider any question of which notice has been given under Council Procedure Rule 11.2.

It was noted that no requests for Questions from Members to the Chairs of Committees or the Mayor had been received.

To deal with any appointments to Committees, Sub-Committees or other bodies as required.

As the Putting People First Group no longer wished to be regarded as a political group on the Council under the Local Government and Housing Act 1989. Accordingly, all 3 sitting councillors had become Independents. As a result the seats they had on committees were lost and had been reallocated.  In addition Councillor Fielker had vacated her seat on Overview and Scrutiny Management Committee and Governance as she had been appointed by the Leader to Cabinet.  

RESOLVED that Councillors Bell, Kataria and Mitchell be appointed to Overview and Scrutiny Management Committee and Councillor Whitbread to Governance Committee.   

The report of the Leader of the Council was submitted providing an update on activity to deliver the Council Strategy 2016-2020 and an update following the LGA Peer Challange.

RESOLVED:

(i)   To approve the key areas of focus within each outcome (Appendix 1)

(ii)  To approve the Executive’s Commitments (Appendix 2)

(iii)  To thank the LGA Peer Challenge team for their report (Appendix 3) and accept their recommendations.

(iv)  To note the council’s responses to the LGA Peer Challenge recommendations and that actions relating to them have been incorporated into the draft Outcome Plans (Appendix 4).

(v)  To approve the draft Outcome Plans (Appendix 5) and delegate authority jointly to the Interim Deputy Chief Executive and the Service Director, Finance and Commercialisation to finalise and make any further changes to the agreed Outcome Plans, following discussion with Leader and Cabinet.

(vi)  To note the explicit alignment and linkage between Council Strategy, Medium Term Financial Strategy, Workforce Development Strategy, Customer Strategy and the Digital Strategy as shown in Appendix 6.

Report of the Cabinet Member for Environment and Transport seeking approval for funding awarded to Southampton City Council (SCC) from the DfT’s Joint Air Quality Unit (JAQU).

The report of the Cabinet Member for Environment and Transport was submitted seeking approval for funding awarded to Southampton City Council and the DfT’s Joint Air Quality Unit (JAQU).

RESOLVED to approve expenditure of the full £2,116,677 (£1,731,677 from the Government’s Clean Air Zone Early Measures Fund and £385,000 from the Council’s LTP Capital budget) by the end of 2018/19 for the delivery of cycle infrastructure and promotional activities, Legible Cycle network wayfinding signage, marketing and communications work linked to the promotion of cycling and the National Clean Air Day and feasibility and design work for cycle route development in the east of the New Forest District linked to Southampton.

Report of the Cabinet Member for Children's Social Care detailing the Corporate Parenting Annual Report 2017/18.

The report of the Cabinet Member for Children’s Social Care detailing the Corporate Parenting Annual Report 2017/18 was noted. 

To consider the report of the Cabinet Member for Finance. The purpose of this report
is to summarise the overall General Fund and Housing Revenue Account revenue
outturn for 2017/18. It compares actual spending against the working budget noted at Council in February 2018 adjusted for approved changes made since that date. The report also considers any requests for carry forwards and the allocation of funds for corporate purposes or other additional expenditure.

The report of the Cabinet Member for Finance was submitted summarising the overall General Fund and Housing Revenue Account revenue outturn for 2017/18. 

RESOLVED to:

(i)  Note the final General Fund outturn for 2017/18 detailed in paragraph 6 is a balanced position following the transfer to earmarked reserves and the revenue grants reserve;

(ii)  note that the level of General Fund balances at 31 March 2018 was £11.3M;

(iii)  note the performance of individual Portfolios in managing their budgets as set out in paragraph 6 and 7 of this report and notes the significant variances in Appendix 1;

(iv)  note the accounts for the Collection Fund in 2017/18 as detailed in paragraphs 27 to 33 and in Appendix 3;

(v)  note the HRA revenue outturn for the financial year 2017/18, as set out in Appendices 4 and 5;

(vi)  note the performance of the Property Investment Fund (PIF) as detailed in paragraphs 20 to 23 and appendix 6.

The report of the Cabinet Member for Finance was submitted outlining the General Fund and Housing Revenue Account capital outturn position for 2017/18 and seek approval for the proposed financing of the expenditure.

RESOLVED to:

(i)  note the actual capital spending in 2017/18 as shown in paragraphs 3 to 5 and notes the major variances detailed in paragraphs 9 to 89 and Appendix 1;

(ii)  notes the revised estimates for 2018/19, adjusted for slippage and re-phasing and additions contained within this report, as shown in Appendix 2;

(iii)  notes the proposed capital financing in 2017/18 as shown in paragraph 6;

(iv)  notes that the capital programme remains fully funded up to 2021/22 based on the latest forecast of available resources although the forecast can be subject to change; most notably with regard to the value and timing of anticipated capital receipts and the use of prudent assumptions of future government grants to be received;

(v)  approve the addition and spend of £0.07M in 2018/19 to the Communities, Culture & Leisure programme; to be funded from grants. As detailed in paragraph 96;

(vi)  approve the addition and spend of £0.80M in 2018/19 to the Education & Children’s Social Care programme; to be funded from government grant. As detailed in paragraph 97;

(vii)  approve the addition and spend of £0.05M, £0.04M in 2017/18 and £0.01M in 2018/19 to the Environment & Transport – City Services programme; to be funded from S106 contributions. As detailed in paragraphs 98 and 99;

(viii)  approve the addition and spend of £0.44M in 2018/19 to the Finance programme; to be funded from council resources. As detailed in paragraph 100;

(ix)  approve the addition and spend of £0.20M in 2018/19 to the Leaders programme; to be funded from capital receipts. As detailed in paragraph 101;

(x)  approve the addition and spend of £1.87M in 2018/19 to the Transport programme; to be funded £1.73M from government grants and £0.14M council resources. As detailed in paragraphs 102 and 103;

(xi)  approve the addition and spend of £4.50M in 2018/19 to the HRA programme; to be funded from MRA and council resources. As detailed in paragraphs 104 and 105 and appendix 2;

(xii)  note the addition of £0.24M to the programme since the last reported position in February 18, under delegated powers. As detailed in paragraph 109 and Appendix 3;

(xiii)  approve the revised General Fund Capital Programme, which totals £196.46M (as detailed in paragraph 107) and the associated use of resources (as detailed in paragraph 110).

(xiv)  Approve the revised HRA Capital Programme, which totals £216.89M (as detailed in paragraph 114) and the associated use of resources (as detailed in paragraph 117).

The report of the Cabinet Member for Finance was submitted to inform Council of the Treasury Management activities and performance for 2017/18 against the approved Prudential Indicators for External Debt and Treasury Management. 

RESOLVED to note that:

(i)  borrowing activities had been undertaken within the borrowing limits approved by Council on 21 February 2018;

(ii)  current Investment strategy is to continue to diversify into more secure and/or higher yielding asset classes and move away from the increasing risk and low returns gained from short term unsecured bank investments.  Returns during 2017/18 were £1.41M at an average rate of 3.73%;

(iii)  the Council’s strategy was to minimise borrowing to below its Capital Financing Requirement (CFR), the difference representing balances, reserves, provisions and working capital.  This approach lowers interest costs, reduces credit risk and relieves pressure on the Council’s counterparty list.  Throughout the year, capital expenditure levels, market conditions and interest rate levels were monitored to minimise borrowing costs over the medium to longer term and to maintain stability;

(iv)  the differential between debt costs and investment earnings continued to be acute, resulting in the use of internal resources in lieu of borrowing often being the most cost effective means of financing capital expenditure. As a result the average rate for repayment of debt, (the Consolidated Loans & Investment Account Rate – CLIA), at 3.31%, is lower than that budgeted and slightly lower than last year (3.33%).This includes £30M of short term debt which was taken during the year. No new long term loans were taken during the year due to slippage in the capital programme and higher than expected balances.  The predicted forecast rate for longer term debt is already showing a steady increase. It is likely that any new long term borrowing will be taken out above this rate, leading to an increase in the CLIA rate. In line with the current Treasury Strategy it is the intention to continue to borrow in the short term markets during 2018/19 to take further advantage of the current interest environment;

(v)  in achieving interest rate savings the Council is exposed to interest rate risk by taking out variable debt.  This was and continues to be very financially favourable in current markets but does mean that close monitoring of the markets is required to ensure that the Council can act quickly should the situation begin to change;

(vi)   net loan debt decreased during 2017/18 from £278M to £254M (£24M) as detailed in paragraph 14; and

(vii)  there has been full compliance with the Prudential Indicators approved by Full Council on 21 February 2018.

To move that in accordance with the Council’s Constitution, specifically the Access to Information procedure Rules contained within the Constitution, the press and public be excluded from the meeting in respect of any consideration of the confidential report number 16.

Report and appendix are considered to be confidential, the confidentiality of which is based on

·  Information relating to the financial or business affairs of any particular person (including the authority holding that information) (paragraph 3)

·  Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings (paragraph 5)

·  Information which is subject to any obligation of confidentiality (paragraph 7A)

If the content of this report were to be treated as a public document it would reveal information that is both commercially sensitive and detrimental to the business affairs of the Council.

RESOLVED that in accordance with the Council’s Constitution, specifically the Access to Information Procedure Rules contained within the Constitution, the press and public be excluded from the meeting in respect of any consideration of the confidential report referred to in minute number 37 below.

Report and appendix are considered to be confidential, the confidentiality of which is based on

·  Information relating to the financial or business affairs of any particular person (including the authority holding that information) (paragraph 3)

·  Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings (paragraph 5)

·  Information which is subject to any obligation of confidentiality (paragraph 7A)

If the content of this report were to be treated as a public document it would reveal information that is both commercially sensitive and detrimental to the business affairs of the Council.

Exempt report of the Leader of the Council detailing the future of Strategic Services Partnership.

The confidential report of the Leader of the Council was submitted detailing the future of the Strategic Services Partnership.

RESOLVED that:

(i)  the Council terminates the Strategic Services Partnership contract with Capita by exercising its right under clause 51 of the contract dated 20 August 2007 to terminate for convenience;

(ii)  the Chief Executive is given delegated authority, after consultation with the Leader of the Council, to make the necessary arrangements for service of the termination notice on Capita;

(iii)  the services covered by the Strategic Services Partnership are brought back in-house by the end of the notice period so that they are then fully subject to Cabinet decision-making and under direct management control of senior council officers;

(iv)  the Chief Executive is given delegated authority, after consultation with the Leader of the Council, to undertake and conclude all negotiations with Capita that are necessary to give effect to the resolution to terminate the contract;

(v)  the Service Director for Digital and Business Operations establishes consultative arrangements including Members and trade unions to support the successful implementation of the project to transfer services back to the council;

(vi)  the amendments to the Council General Fund Revenue Budgets detailed in the financial implications in Appendix 2 are approved; and

(vii)  the Service Director for Finance and Commercialisation is given delegated authority, after consultation with the Cabinet Member for Finance and the Service Director Legal and Governance, to implement any changes to budgets and take all consequential actions required to implement the decision and subsequent negotiations.

The report of the Leader of the Council was submitted recommending that the Council note and discuss the proposals relating to the establishment of a Local Authority Trading Company for Some Council Services that is scheduled for consideration at the 18^th July meeting of Council. 

RESOLVED:

(i)  To consider and take into account the outcome of the Best Value Consultation undertaken in fulfilment of s.3(2) Local Government Act 1999;

(ii)  To consider and take into account the outcome of the staff consultation and the ballots carried out by the recognised Trade Unions in relation to the establishment of a LATCo;

(iii)  Having considered (i) and (ii) above, as well as the contents of this report, to

(a)  endorse the temporary postponement of the formal establishment of the LATCo as a company limited by shares;

(b)  support the continued implementation of Business Academy workshops and the commercialisation of Council services; and

(c)  endorse the development and implementation of a trading capability within the Council in support of practical application of (b) above, until such time that a recommendation for the formation of a company limited by shares (LATCo) is brought back to Council for its consideration and endorsement;

(iv)  To delegate authority to the Chief Executive, following consultation with the Leader of the Council, to take all the necessary steps required for developing and implementing a trading capability within the Council as a pre-cursor to a LATCo.