Agenda and minutes

Venue: Bromley Civic Centre

Contact: Philippa Gibbs  020 8461 7638

Items
No. Item

18.

APOLOGIES FOR ABSENCE AND NOTIFICATION OF SUBSTITUTE MEMBERS

Minutes:

Apologies for absence were received from Councillors Mary Cooke and Russell Mellor.  Councillors Gary Stevens and Keith Onslow attended as their respective substitutes.

19.

DECLARATIONS OF INTEREST

Minutes:

Councillor Simon Fawthrop declared an interest as an employee of British Telecom.

20.

QUESTIONS FROM COUNCILLORS AND MEMBERS OF THE PUBLIC ATTENDING THE MEETING

In accordance with the Council’s Constitution, questions that are not specific to reports on the agenda must have been received in writing 10 working days before the date of the meeting. 

 

Questions specifically on reports on the agenda should be received within two working days of the normal publication date of the agenda.  Please ensure that questions specifically on reports on the agenda are received by the Democratic Services Team by 5pm on Thursday 27th June 2019

 

Minutes:

No questions were received.

21.

MINUTES OF THE EXECUTIVE AND RESOURCES PDS COMMITTEE MEETING HELD ON 14 MAY 2019 (EXCLUDING EXEMPT ITEMS) pdf icon PDF 130 KB

Minutes:

The minutes of the meeting held on 14th May 2019, were agreed and signed as a correct record.

 

A member queried whether it was now possible to access the Contracts Database.  The Chairman requested that an update be provided before the Special Meeting due to take place on 30th July 2019.

 

 

 

22.

MATTERS ARISING AND WORK PROGRAMME pdf icon PDF 83 KB

Minutes:

Report CSD19093

 

The Committee considered a report setting out matters outstanding from previous meetings and the proposed work plan for 2019/20.

 

Members noted that information concerning senior staff on interim contracts had been circulated earlier in the day.

 

A Member suggested that scrutiny of the Leader should take place more than twice a year.  In response the Chairman indicated that bi-annual scrutiny was sufficient; the Leader attended most meetings and could respond to any urgent issues that may arise.  In addition Members had the opportunity to submit questions at Executive meetings.

 

RESOLVED: that

 

  1. Progress on matters outstanding from previous meetings be noted; and

 

  1. The Work Programme for 2019/20 be noted.

 

23.

FORWARD PLAN OF KEY DECISIONS pdf icon PDF 78 KB

Minutes:

The Committee noted the Forward Plan of Key Decisions covering the period July 2019-October 2019.

24.

QUESTIONS TO THE PORTFOLIO HOLDER FROM MEMBERS OF THE PUBLIC AND COUNCILLORS ATTENDING THE MEETING

In accordance with the Council’s Constitution, questions that are not specific to reports on the agenda must have been received in writing 10 working days before the date of the meeting. 

 

Questions specifically on reports on the agenda should be received within two working days of the normal publication date of the agenda.  Please ensure that questions specifically on reports on the agenda are received by the Democratic Services Team by 5pm on Thursday 27th June 2019

Minutes:

No questions had been received.

25.

RESOURCES, COMMISSIONING AND CONTRACTS PORTFOLIO - PRE-DECISION SCRUTINY

Portfolio Holder decisions for pre-decision scrutiny.

Minutes:

The Committee considered the following reports where the Resources, Contracts and Commissioning Portfolio Holder was recommended to take a decision.

25a

TREASURY MANAGEMENT - ANNUAL REPORT 2018/19 pdf icon PDF 149 KB

Additional documents:

Minutes:

Report FSD19069

 

The Committee considered a report summarising treasury management activity during the March quarter, including the Treasury Management Annual Report for 2018/19, which was required to be reported to Full Council.  Investments as at 31st March 2018 totalled £311.6 million and there was no external borrowing.

 

In response to a question concerning the property portfolio, the Director of Finance highlighted that the Treasury Management Annual report focused on cash investments but that information about the property portfolio could be provided to Members if necessary.

 

A Member noted that alternative investments were performing well and questioned whether it was time to move more from cash investments into alternative investments.  The Director of Finance confirmed that this was being reviewed but a cautious approach was being taken as a result of the current markets.

 

In response to a question concerning why other Local Authorities would borrow from LB Bromley rather than from the Public Works Loan Board, the Director of Finance reported that to his knowledge the Public Works Loan Board was for longer term borrowing and was more restrictive.  It was agreed that a more detailed answer would be provided following the meeting.

 

RESOLVED: That the Portfolio Holder and Council be recommended to:

 

  1. Note the Treasury Management Annual report for 2018/19; and

 

  1. Approve the actual prudential indicators within the report.

 

25b

BUDGET MONITORING 2019/20 - DRAWDOWN OF CARRY FORWARDS FROM CENTRAL CONTINGENCY pdf icon PDF 104 KB

Minutes:

Report FSD19059

 

The Committee considered a report requesting approval for drawdown from the central contingency of underspends carried forward from 2018/19 to be allocated to the Resources, Commissioning and Contract Management Portfolio.

 

The Chairman expressed concern that GDPR appeared twice under both HR and IT.  The Director of Finance agreed to circulate a response from the Head of IT following the meeting.

 

The Chairman also suggested that the £24,300 for the Biggin Hill Noise Action Plan should be held in contingency until it was required.  The Director of Finance confirmed this could be done but that once drawn down there would be rigor in the use of the funding as it could not be released until full details of the use of the funding had been approved by the Portfolio Holder.

 

RESOLVED: That the Portfolio Holder be recommended to:

 

1.  Agree the drawdown from the Central Contingency of 2018/19 carry forward sums totalling £598.3k as detailed in the report; and

 

2.  Place £24.3k in contingency for the Biggin Hill Noise Action Plan to fund contracted specialist expert acoustic advice if and when it is need.

 

25c

CONTRACT AWARD: CIVIC CENTRE PROGRAMME AND OFFICE ACCOMMODATION PROPOSALS CONSULTANCY SERVICES

Minutes:

Report DRR19/039

 

The Committee considered a Part 1 summary of a report which provided an overview of the tenders received for the consultancy services for works to the Civic Centre and Central Depot.  The Part 2 report made recommendations for the award of contract.

 

RESOLVED: That the Portfolio Holder be recommended to award the Consultancy Services contract in accordance with the recommendations made in the part 2 report.

 

26.

PRE-DECISION SCRUTINY OF EXECUTIVE REPORTS

Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on Wednesday 10th July 2019.

Minutes:

The Committee considered the following reports on the Part 1 agenda for the meeting of the Executive on 10th July 2019:

 

(6)  BUDGET MONITORING 2019/20

  Report CSD19119

 

The Committee considered the first budget monitoring position for 2019/20 based on expenditure and activity levels up to the end of May 2019.  The report also highlighted significant variations which would impact on future years as well as early warnings that could impact on the final year end position.

 

The Director of Finance noted that growth pressures and the full year effect had to be carefully monitored.

 

The Chairman highlighted that on the whole the picture was positive and the financial position had been far worse in previous years.

 

Members noted the significant income received from property investments and requested a report on the performance of property investments at the next meeting. 

 

 

RESOLVED: That the Executive be recommended to:

 

1. Consider the latest financial position;

2. Note that a projected net overspend on services of £2,084k is forecast based on information as at May 2019;

3. Consider the comments from Chief Officers detailed in Appendix 2 of the report;

4. Note a projected variation of £696k debit from investment income as detailed in sections 3.6 and 3.7 of the report;

5. Note the carry forwards being requested for drawdown as detailed in section 3.3 of the report;

6.  Note a projected reduction to the General Fund balance of £2,788k as detailed in section 3.4 of the report;

7.   Note the full year cost pressures of £3.7m as detailed in section 3.5 of the report;

8.  Agree to the release of £70k from the 2019/20 Central Contingency relating to street lighting costs as detailed in para. 3.2.2 of the report;

9.  Agree to the release of £52k from the 2019/20 Central Contingency relating to additional Exchequer and TFM contract costs as detailed in para. 3.2.4 of the report;

10.  Agree to the release of £584k credit from the 2019/20 Central Contingency relating to savings allocated to the review of staffing as detailed in para. 3.2.5 of the report;

11.   Note the return to the Central Contingency of £898k as detailed in para. 3.2.6 of the report;

12.  Agree to allocate £900k from the Health and Social Care Initiative Reserve to support additional Children’s Social Care costs as detailed in para 3.10 of the report;

13.   Recommend to Council that £1m transferred from the Health and Social Care Initiative Reserve to support the BCCG with their transformation plan for 2019/20 as detailed in para. 3.10 of the report;

14.  Identify any issues that should be referred to individual Portfolio Holders for further action.

 

(7)  CAPITAL PROGRAMME MONITORING – 1ST QUARTER 2019/20

  Report FSD19067

 

The Committee considered the current position on capital expenditure and receipts following the 1st quarter of 2019/20.  The report also sought the Executive’s approval to a revised Capital Programme.

 

RESOLVED: That Executive be recommended to:

 

1.  Note the report, including a total rephasing of £45,868k from 2019/20 into future  ...  view the full minutes text for item 26.

27.

SCRUTINY OF THE RESOURCES, COMMISSIONING & CONTRACT MANAGEMENT PORTFOLIO HOLDER

Minutes:

The Portfolio Holder for Resources, Commissioning and Contract Management, Cllr Graham Arthur, addressed the Committee outlining activity across the Portfolio since the last update:

 

  • A Finance Seminar for Members had been held on Monday 24th June and had provided useful information.  Another seminar was scheduled for September and would focus on Pensions.
  • The Budget forecasted a projected overspend but it was early in the financial year and management action was planned to address the overspend.
  • Going forward the income received by the Council was projected to increase marginally.  There now needed to be a focus on controlling growth areas such as Adult Social Care, Children’s Social Care and Homelessness. 
  • Pensions were now moving into a position where commitments were fully funded and this had been helped by the gifting of the Mears Scheme to the Pension Fund.
  • Mears ‘Mark 2’ would follow a different model and would not be gifted to the Pension fund.
  • There needed to be a sharp focus on homelessness going forward.
  • There were a number of graduates and apprentices employed across the Council.  Two of the Council’s Care Leavers who had secured apprenticeships were now being taken on as employees of Amey.
  • Amey was regularly monitored and scrutinised by the Dep Rep Forum.
  • Registrars had won Team of the Year at the recent Bromley Stars event.  At the event there had been a special award for the Finance Team.  Ron Shockness who had recently retired also received a Lifetime Achievement Award for is service to LB Bromley.
  • Work was ongoing in terms of resident engagement.
  • Consideration needed to be given to where the Council would find itself in 5-10 years’ time and the impact that innovations such as electric vehicles and artificial intelligence would have across the Borough.

 

28.

RISK MANAGEMENT pdf icon PDF 72 KB

Additional documents:

Minutes:

Report FSD19065

 

The Committee considered the current Risk Registers for Chief Executive’s, Finance, Human Resources, and Corporate Services.

 

The Chairman stated that in relation to the risk around the Transformation Programme it would be helpful for the Interim Chief Executive to set out ‘Plan B’ and mitigation on the Risk Register.  The Interim Chief Executive agreed to take the comments back to his leadership meeting and provide an update for the next Risk Management report in October 2019.

 

A Member thanked the report writer for the helpful way in which the salient amendments made to the Chief Executive’s, Human Resources and Corporate Risk Registers were presented in section 3.5 of the report.

 

RESOLVED: That the report be noted.

 

29.

CONTRACTS REGISTER AND CONTRACTS DATABASE pdf icon PDF 150 KB

Additional documents:

Minutes:

Report CEO18010

 

The Committee considered a report presenting July 2019’s Corporate Contracts Register for consideration.  Members noted that the Contracts Register presented in Part 2 of the agenda included a commentary on each contract.

 

The Director of Finance agreed to arrange for an update on the Mortuary Contract to be provided following the meeting.  The Chairman of the Public Protection and Enforcement PDS Committee suggested that the contract was progressing well and Officers had been working hard to get the best deal.  A report would be presented to the PPE PDS Committee in September. 

 

The Chairman noted that in relation to the Funeral Services contract, more work should be done to facilitate small funeral directors bidding for the contract or elements of the contract.

 

RESOLVED: That the report be noted.

 

30.

SECTION 106 AGREEMENTS: UPDATE pdf icon PDF 100 KB

Additional documents:

Minutes:

Report FSD19058

 

The Committee considered a report which provided an update on Section 106 agreements.  A Member suggested that there should be greater scrutiny of s.106 monies and it was noted that how s.106 money was spent was an issue for the ERC PDS Committee to scrutinise.  There was a need to ensure that the s.106 money in the Borough was spent.

 

The Portfolio Holder for Resources, Commissioning and Contract Management  agreed that there was a need for greater rigor and imagination around the use of s.106 money.

 

It was agreed that consideration should be given to establishing a Task and Finish Group to review use of s.106 money.  Terms of Reference, Membership and Officer Support could be agreed at the Committee’s meeting in September.

 

A Member noted that one issue with s.106 money was that it tended to inflate the costs of land resulting in modest developers being priced out of land they may develop.

 

RESOLVED: That the report be noted.

 

31.

TMF AUDIT REPORT RECOMMENDATION SPOT CHECKS pdf icon PDF 65 KB

Additional documents:

Minutes:

Report DRR19/040

 

The Audit Sub-Committee met on 4th June 2019 and considered the Audit report on Total Facilities Management. One of the recommendations had been accepted by management in principle, but without any action being proposed. Members expressed concern regarding this, and asked for the matter to be referred back to the ER&C PDS Committee for their attention and scrutiny.

 

The Head of Asset and Investment Management provided assurance that monitoring took place.  There were approximately 400 reactive maintenance tasks per month and Officers were confident that these tasks were monitored through self-reporting.  In addition to this, applications for payment submitted by Amey were scrutinised line by line.  There were very few occasions when the same issue was submitted a number of times as a result of slightly differing descriptions of the same fault.  However these were always picked up through scrutiny of the applications for payment.  It was also possible for the client team to audit the raising of faults and the resources being put into fixing faults.

 

Responding to a question from the Chairman concerning repeat faults, the Head of Asset and Investment confirmed that the Client Team put a lot of effort into analysing trends.  The majority of issues with repeat fault trends were the result of staff behaviours which had previously been discussed at Committee.

 

A Member who had attended the Audit Sub-Committee meeting confirmed that the Audit Team did not have a level of confidence about how the process worked and there were concerns that the system was not robust and relied too heavily on the meetings that took place with Amey on a Monday morning.  The Head of Asset and Investment confirmed that the audit had focused on the process for monitoring.  Amey operated a standard system for fault reporting and the internal checks that were in place were broadly in line with what would be expected.  The Client Team had also put in place other measures for checking and whilst there was always a small risk that something could be doubled charged it was difficult to see what more could be done without adding further resource.

 

The Committee noted that it was a small Client Team (of 3 members of staff) that undertook some checks around the Civic Centre site.  The Chairman indicated that this should have provided some assurance but it was suggested that it would be helpful to conduct more visible checks in the future.

 

A Member highlighted the significant amount of detailed scrutiny that the TFM Contract had been subjected to over the past year and suggested that this level of scrutiny should also be applied to contracts in other portfolios such as Adult Care and Health where there were similar serious concerns that required detailed consideration.

 

Noting that grounds of urgency had been applied in order to ensure that the issues were scrutinised at the earliest opportunity, the Chairman urged all PDS Committee to bring referrals from the Audit Committee forward straight away.

 

RESOLVED: That the report  ...  view the full minutes text for item 31.

32.

LOCAL GOVERNMENT ACT 1972 AS AMENDED BY THE LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION) ORDER 2006, AND THE FREEDOM OF INFORMATION ACT 2000

The Chairman to move that the Press and public be excluded during consideration of the items of business listed below as it is likely in view of the nature of the business to be transacted or the nature of the proceedings that if members of the Press and public were present there would be disclosure to them of exempt information.

Minutes:

RESOLVED that the Press and public be excluded during consideration of the items of business referred to below as it is likely in view of the nature of the business to be transacted or the nature of the proceedings that if members of the Press and public were present there would be disclosure to them of exempt information.

 

The following summaries

refer to matters involving exempt information

 

 

33.

PRE-DECISION SCRUTINY OF EXEMPT RESOURCES, COMMISSIONING AND CONTRACTS PORTFOLIO HOLDER REPORTS

Minutes:

The Committee considered the following reports on the Part 2 agenda where the Resources, Contracts and Commissioning Portfolio Holder was recommended to take a decision.

 

33a

CONTRACT AWARD: CIVIC CENTRE PROGRAMME AND OFFICE ACCOMMODATION PROPOSALS CONSULTANCY SERVICES

Additional documents:

Minutes:

Report DRR19/039

 

The Committee considered a report providingdetails of the tenders received for the consultancy services for works to the Civic Centre and Central Depot.  The report also made recommendations for the award of contract.

 

RESOLVED: That the Portfolio Holder be recommended to approve the recommendations outlined in the Part 2 (exempt from publication) report.

 

 

 

34.

PRE-DECISION SCRUTINY OF EXEMPT EXECUTIVE REPORTS

Minutes:

The Committee considered the following reports on the Part 2 agenda for the meeting of the Executive on 10th July 2019:

 

(23)  EXTENSION TO AGENCY CONTRACT

 

The Committee considered the report and supported the recommendations. 

35.

SECTION 106 AGREEMENTS: UPDATE

Minutes:

Report FSD19058

 

The Committee noted the Part 2 (exempt from publication) addendum to the update on Section 106 Agreements.

 

RESOLVED: That the Part 2 addendum be noted.

36.

PART 2 CONTRACTS REGISTER AND DATABASE

Minutes:

Report CE018011

 

The Committee considered the Part 2 commentary on each contract on the Contracts Register.

 

Original Text: