Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 19 September 2017.

The Minutes (copies of which had been circulated) of the meeting held on 19 September 2017 were approved as a correct record and signed by the Chair subject under minute 11 “Alliance Agreement - Stockport Together” to the inclusion of the word “not” in the second paragraph:

“The Leader of the Council reported that as there had not been sufficient time to consult the Adult Social Care and Health Scrutiny Committee, members of that Scrutiny Committee would be invited to comment on the Alliance Agreement prior to consideration by the Cabinet on 3 October.”

Councillors and officers to declare any interests which they have in any of the items on the agenda for the meeting.

Councillors and officers were invited to declare any interests they had in any of the items on the agenda for the meeting.

No declarations were made.

To consider call-in items (if any)

There were no call-in items to consider.

To consider whether it is in the public interest to exclude the public during consideration of the appendix to Agenda Item 7 – ‘Civic Estates’ and all of Agenda Item 12 – ‘Strategic Investment Manchester Airport Group’ as the reports contained information which had been classified as not for publication by virtue of Category 3 ‘Information relating to the financial or business affairs of any particular person (including the authority)’ as set out in the Local Government Act 1972 (as amended).

RESOLVED – That in order to prevent the disclosure of information which was not for publication, the disclosure of which would not be in the public interest, would not be fair and would be in breach of Data Protection principles, the public be excluded from the meeting during consideration of the ‘not for publication’ reports in respect of the following agenda items:-

To consider a report of the Deputy Chief Executive. 

The Mid-Year Portfolio Performance and Resource Report for the Reform and Governance Portfolio is presented for consideration by the Committee. This provides a summary of progress in delivering the portfolio priorities, reform programme and other key projects in the first half of the year, with a particular focus on the second quarter (July to September). It includes forecast performance and financial data (where this is available) for the Portfolio, along with an update on the portfolio savings programme.

The Scrutiny Committee is recommended to:-

·         Consider the Mid-Year Portfolio Performance and Resource Report;  

·         Review the progress against delivering key projects, priority outcomes, targets and budgets for 2017/18;

·         Highlight key areas of and responsibility for taking forward corrective action to address any performance or resource issues;

·         Highlight any significant issues or changes to be fed back to the Cabinet alongside the Corporate Performance and Resource Report;

·         Identify how areas of strong performance and good practice can be shared in other services.

Officer contact: Peter Owston on 0161 474 3274 or email: peter.owston@stockport.gov.uk or Susan Wood on 0161 218 1032 or email: susan.wood@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) in relation to the Mid-Year Portfolio Performance and Resource Report for the Reform and Governance Portfolio providing a summary of progress in delivering the portfolio priorities, reform programme and other key projects in the first half of the year, with a particular focus on the second quarter (July to September). It included forecast performance and financial data (where this is available) for the Portfolio, along with an update on the portfolio savings programme.

The Cabinet Member for Reform & Governance (Councillor David Sedgwick) attended the meeting to present the report and answer members’ questions.

The following comments were made/ issues raised:

·         The Scrutiny Committee noted that in respect of Q2 performance statistics in relation to the percentage of requests under the Freedom of Information Act (FOI), the reported figure of 62.5% of responses by deadline was wrong and the actual performance for Q2 was 68%.

·         Members congratulated the ‘Digital by Design’ team on winning the “Granicus Digital Achievement Award”.

·         In respect of Q2 performance statistics in relation to Contact Centre contacts received digitally, it was noted that remained fairly static and members requested a breakdown of contacts made by telephone and digitally as well as details of initiatives to improve contacts received digitally.

·         The development of proposals in relation to the use of Chadkirk Chapel (including proposed consultation with the Friends of Chadkirk Chapel and Estate) were welcomed.

·         It was suggested that an indication of where a caller was in the queue when they telephoned the Contact Centre would be helpful.

·         The Scrutiny Committee noted that the membership and governance arrangements for the Work and Skills Commission would be announced shortly.

RESOLVED – (1) That the report be noted.

(2) That a report be submitted to the next meeting of this Scrutiny Committee outlining what steps were being taken to meet the Council’s target of 90% compliance with statutory deadlines for responding to FOI requests including a breakdown of requests including where possible those which are legally exempt or where substantial information has been requested which that cannot be provided within 20 days.

(3) That a report be submitted to the meeting of the Scrutiny Committee on 28 January setting out those efficiencies achieved to date under the ‘Digital by Design’ programme together with a breakdown of contacts made by telephone and digitally as well as details of initiatives to improve contacts received digitally.

(4) That the Deputy Chief Executive be requested to write to all Councillors providing an update in relation to the problems experienced with the telephony system including when the failing hardware would be replaced.

(5) That the Cabinet Member for Reform & Governance be requested to write to members of this Scrutiny Committee providing details of the use of counsel and work being placed with private practices and the costs incurred by the Council.

To consider a report of the Leader of the Council and the Cabinet Member for Reform & Governance.

At the 3 October Cabinet Meeting an update on the Council’s Inclusive Growth and Reform Programme was presented. This was the latest report outlining the Cabinet’s response to the Medium Term Financial Plan and built on a summer review of the MTFP and initial cabinet response which was discussed at Cabinet in August.

In particular this report outlines further proposals relating to Children and Young Peoples Services, Place Services and considerations relating to local taxation. The Cabinet have carefully considered what contribution local taxation should make to support the public services that people in Stockport rely on. This report summarises these proposals. Remaining proposals regarding the pooled budget will be shared at the next round of scrutiny.

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Holly Rae on 0161 474 3014 or email: holly.rae@stockport.gov.uk

The Leader of the Council and the Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) updating the Scrutiny Committee on the Council’s Inclusive Growth and Reform Programme which had been considered by the Cabinet at its meeting on 3 October.

This was the latest report outlining the Cabinet’s response to the Medium Term Financial Plan (MTFP) and built on a summer review of the MTFP and initial cabinet response which was discussed at Cabinet in August. In particular this report outlined further proposals relating to Children and Young Peoples Services, Place Services and considerations relating to local taxation. The Cabinet had considered what contribution local taxation should make to support the public services that people in Stockport rely on and the report summarised these proposals. The remaining proposals regarding pooled budget would be presented to the Scrutiny Committee on 5 December 2017.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive.

The purpose of this report is to confirm that following closure of the canteen area the proposal is to revert to accommodation that can be made available to suitable occupiers to achieve a valuable rental income.

The report provides detail to support the business case that the area is a viable source of rental income once a fit out has taken place for suitable third party occupation.

The Scrutiny Committee is invited to provide comments on the recommendations that will be submitted to the Cabinet for approval at its meeting on 31 October 2017, namely:-

·         That the 4th floor canteen area be declared as surplus to SMBC accommodation requirements and made available to  suitable organisations to secure a valuable rental income, and

·         That expenditure for the fit out  works as detailed in Part 2 of this report are approved, and

(1) That authority be delegated to the Deputy Chief Executive and Borough Treasurer to enter into a lease transaction, as profiled in the tables in Part 2 of this report.

(2)   Subject to negotiation with the incoming tenant on the length of the lease and deciding on the period of borrowing agreed through the delegation.

(NOTE: This report contains a confidential Appendix which has been circulated to members of the Scrutiny Committee only).

Officer contact: Charlotte Cordingley on 0161 474 4240 or email: charlotte.cordingley@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) confirming that following closure of the canteen area it was proposed to revert to accommodation that can be made available to suitable occupiers to achieve a valuable rental income. The report provided detail to support the business case that the area is a viable source of rental income once a fit out has taken place for suitable third party occupation.

RESOLVED – That the Cabinet be recommended to:

·         Agree that the 4th floor canteen area be declared as surplus to the Council’s accommodation requirements and made available to  suitable organisations to secure a valuable rental income.

·         Approve the expenditure for the fit out works as detailed in Part 2 of the report.

·         Delegate authority to the Deputy Chief Executive and Borough Treasurer to enter into a lease transaction, as profiled in the tables in Part 2 of the report subject to negotiation with the incoming tenant on the length of the lease and deciding on the period of borrowing agreed through the delegation.

To consider a report of the Borough Treasurer.

The Annual Insurance Report provides a summary of insurance performance for the financial year April 2016 to March 2017.  The report can be found at Appendix 1.  The report includes comparisons with the previous four financial years in order to allow for a meaningful comparison of trends.  The information is used to understand the claims profile and recognise any areas where further risk management can assist in reducing claims and also those areas that have benefited from effective risk management.

The Scrutiny Committee is recommended to consider and comment on the Annual Insurance Report 2016/17

Officer contact: John Pearsall on 0161 474 4033 or email: john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing a summary of insurance performance for the financial year April 2016 to March 2017.  The report included comparisons with the previous four financial years in order to allow for a meaningful comparison of trends.  The information was used to understand the claims profile and recognise any areas where further risk management can assist in reducing claims and also those areas that have benefited from effective risk management.

RESOLVED – (1) That the Annual Insurance Report 2016/17 be noted.

(2) That the Insurance Team be congratulated on the reduction in the number of claims received and the increase in the percentage of highways claims repudiated which was forecasted to achieve a surplus of £1m in respect of the Insurance Fund for the current financial year.

Michael Cullen (Borough Treasurer) will attend the meeting and make a presentation in relation to a replacement Levy allocation agreement (Inter-Authority Agreement – IAA) A to apply from the 2019/20 financial year and the transitional arrangements being used to cushion the financial impact of changes in the 2018/19 financial year.

The Borough Treasurer made a presentation in relation to a replacement Levy allocation agreement (Inter-Authority Agreement – IAA) A to apply from the 2019/20 financial year and the transitional arrangements being used to cushion the financial impact of changes in the 2018/19 financial year.

It was noted that the proposal in respect of cost allocation for household waste recycling centres was significantly better for Stockport than the default position (tonnage and council tax base).

RESOLVED – (1) That the presentation be noted. and the Cabinet and Council Meeting be recommended to approve the proposals.

(2) That the Borough Treasurer be thanked for his assistance in ensuring the proposals achieved a fair outcome and retained incentives to recycle.

To consider a report of the Borough Treasurer.

This report provides Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2017/18.

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Lorna Soufian on 0161 474 4026 or email: lorna.soufian@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing the Scrutiny Committee with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2017/18.

RESOLVED – That the report be noted and the Cabinet and Council Meeting be recommended to approve the recommendations.

To consider a report of the Borough Treasurer.

The report provides details of the Council’s high level corporate risks.  Emerging risks and opportunities that have been identified in the period are listed alongside the usual commentary on the Corporate Risk Register. 

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: John Pearsall on 0161 474 4033 or email: john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing details of the Council’s high level corporate risks.  Emerging risks and opportunities that have been identified in the period are listed alongside the usual commentary on the Corporate Risk Register.

RESOLVED – That the report be noted.

(2) That a report be submitted to the next meeting of this Committee detailing the results of the recently undertaken health check of the IT function, infrastructure and data security.

To consider a report of the Democratic Services Manager.               

The report sets out planned agenda items for future meetings of the Committee and Forward Plan items that fall within its remit.

The Scrutiny Committee is invited to consider the information in the report and put forward any agenda items for future meetings.

Officer contact: Craig Ainsworth on 0161 474 3204 or email: craig.ainsworth@stockport.gov.uk

The Democratic Services Manager submitted a report (copies of which had been circulated) setting out the planned items for the Scrutiny Committee’s next meeting and Forward Plan items which fell within the remit of the Scrutiny Committee.

RESOLVED – (1) That the report be noted.

(2) That the Asset Management Plan Capital Programme being considered at the next meeting should include the outcome of the survey commissioned to determine which properties requiring an ‘Energy Performance Certificate’ and work required as requested by this Committee on 19 September.

(3) That the following reports be added to the ‘Planned Agenda Items’:

·         a report to the next meeting outlining what steps were being taken to meet the Council’s target of 90% compliance with statutory deadlines for responding to FOI requests including a breakdown of requests including specifically those which are legally exempt or where substantial information has been requested which that cannot be provided within 20 days

·         a report to the next meeting detailing the results of the recently undertaken health check of the IT function, infrastructure and data security.

·         a report to the meeting on 28 January setting out those efficiencies achieved to date under the ‘Digital by Design’ programme together with a breakdown of contacts made by telephone and digitally as well as details of initiatives to improve contacts received digitally.

To consider a report of the Borough Treasurer.

The report sets out the investment proposals of the Manchester Airport group companies to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business.

The Cabinet is recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for the City; 

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·         Approve the increase in capital expenditure supported by prudential borrowing.

Officer contact: Jonathan Davies on 0161 218 1025 or email: jonathan.davies@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the investment proposals of the Manchester Airport group companies to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business.

RESOLVED – That he Cabinet be recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for the City; 

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·         Approve the increase in capital expenditure supported by prudential borrowing.

To consider a report of the Borough Treasurer.

(NOTE: This item has been circulated to members of the Scrutiny Committee only).

The Borough Treasurer submitted a report (copies of which had been circulated) in relation to the capital investment by Manchester Airport Group (MAG) and the associated funding structure, including the proposed shareholder loans.

RESOLVED – That the Cabinet be recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation projects through the form of further shareholder loans, as set out in this report;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for Greater Manchester;

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Note the extensive due diligence that has been completed and the conclusions of that exercise as set out in the section 4 of the report;

·         Approve an increase in capital expenditure of between £9.6m and £11.3m (depending on the amount of the funding package) supported by prudential borrowing;

·         Approve the proposals for the shareholder loan, subject to approval of the capital expenditure supported by prudential borrowing;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the shareholder loan, and to progress the financial and legal work associated with it;