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Agenda, decisions and minutes

Venue: This meeting is being held remotely; to view the meeting, please click here

Contact: Victoria Lower
020 8726 6000 x14773  Email: 
victoria.lower@croydon.gov.uk

Items
No. Item

84/20

Minutes of the previous meeting pdf icon PDF 198 KB

To approve the minutes of the meeting held on 19 October 2020 as an accurate record.

Minutes:

Councillor Jason Cummings noted that the minutes had not detailed the questions asked by Shadow Cabinet Members, and requested that the minutes provided more detail.

 

The Chief Executive Officer and Monitoring Officer agreed for the minutes of the Cabinet meeting held on 19 October 2020 to be revised and brought back for approval at the next Cabinet meeting.

85/20

Disclosure of Interests

In accordance with the Council’s Code of Conduct and the statutory provisions of the Localism Act, Members and co-opted Members of the Council are reminded that it is a requirement to register disclosable pecuniary interests (DPIs) and gifts and hospitality to the value of which exceeds £50 or multiple gifts and/or instances of hospitality with a cumulative value of £50 or more when received from a single donor within a rolling twelve month period. In addition, Members and co-opted Members are reminded that unless their disclosable pecuniary interest is registered on the register of interests or is the subject of a pending notification to the Monitoring Officer, they are required to disclose those disclosable pecuniary interests at the meeting. This should be done by completing the Disclosure of Interest form and handing it to the Democratic Services representative at the start of the meeting. The Chair will then invite Members to make their disclosure orally at the commencement of Agenda item 3. Completed disclosure forms will be provided to the Monitoring Officer for inclusion on the Register of Members’ Interests.

Minutes:

There were none.

86/20

Urgent Business (If any)

To receive notice of any business not on the agenda which in the opinion of the Chair, by reason of special circumstances, be considered as a matter of urgency.

Minutes:

There were no items of urgent business.

87/20

Croydon Renewal Plan

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED:

 

Minutes:

The Leader introduced the report and explained that there were two parts to the report, and the discussions would be taken separately, following the joint introduction. It was explained that the first report was an overview of the improvement work and the second report was on the financial recovery plan, focused on the savings proposals in the coming years. The Interim Chief Executive highlighted the summary of the report, as it detailed the proposed changes to the council; ensuring continuous improvement, and having a combination of economy, efficiency and effectiveness within a financially sustainable budget. She further highlighted to the Cabinet that significant consultation had been had with council staff members; a staff survey, well-attended focus groups, and weekly webinars with the Leader of the Council and the Interim Chief Executive. She noted that there was a lot of upset and anger from staff members, and it was crucial to recognise how the staff were feeling, and to consider all the actions and suggestions outlined within the report. She concluded by stating that it was not the end of the engagement, and there would be further opportunity for people to add to the report and to consider improvements.

87/20a

Croydon Renewal Improvement Plan and the Croydon Renewal Improvement Board pdf icon PDF 274 KB

Cabinet Member: Leader of the Council, Councillor Hamida Ali

Officer: Interim Chief Executive, Katherine Kerswell

Key decision: no

Additional documents:

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To

 

1.     Agree to recommend to Full Council the approval of the development of the Croydon Renewal Improvement Plan, noting the first high level draft at Appendix A of the report.

 

2.     Agree to recommend to Full Council the approval for consultation on the terms of reference and membership for the Croydon Renewal Improvement Board at Appendix B of the report.

 

3.     Agree to recommend to Full Council to delegate to Cabinet in January 2021 approval of the final version of the Croydon Renewal Improvement Plan.

 

4.     Recommend that the feedback on the terms of reference and membership for the Croydon Renewal Improvement Board following consultation and feedback from Scrutiny & Overview Committee (S&O), General Purposes & Audit Committee (GPAC), Staff, Partners and MHCLG is presented to Full Council in January 2021.

 

5.     Note the outcome of the recent staff survey and staff focus groups and that their contents are reflected in the high-level draft Croydon Renewal Improvement Plan at Appendix C of the report.

 

6.     Agree to recommend to Full Council that the Interim Chief Executive is delegated authority to submit to MHCLG the proposal for a capitalisation direction, in consultation with the Leader of the Council, Cabinet Member for Croydon Renewal, Cabinet Member for Resources and Financial Governance, the Director of Finance, Investment and Risk, and that an update be presented to the next relevant Cabinet meeting when this is completed.

 

7.     Agree to recommend approval to Full Council; the adoption of the new Council Priorities and Ways of Working in Appendix D and that this replaces the Council’s Corporate Plan 2018-2022, which forms part of the Council’s policy framework.

 

8.     Note that the Interim Chief Executive in her statutory role as Head of Paid Service will, in accordance with her Section 4 duty under the Local Government and Housing Act 1989; commence consultation on a restructure of the Council’s management arrangements. Following formal consultation, the proposals will be brought back to Cabinet and Full Council for final decision.

Minutes:

The Cabinet Member for Communities, Safety & Resilience, Councillor David Wood, highlighted the proposed work in regards to the Croydon Communities Board, which would form an important part of the Croydon Renewal Improvement Board. The intended membership of this Board included a proposal to invite representatives from the voluntary sector, different faiths, tenants and residents, associations, businesses and communities. He requested that Councillors recommend anyone within their ward who could be considered as a representative of the Board. He added that it was an important part of the improvement plan delivery, and it was crucial to have resident and community engagement.

 

The Cabinet Member for Economic Recovery & Skills, Councillor Manju Shahul-Hameed, gave an update in regards to the economy and the shaping of the new priories in regards to this, noting that 99% of the businesses were SMEs (small and medium-sized enterprises), micro-businesses and family run businesses. The first lockdown was the worst recession on record, and businesses were beginning to recover from this, but then the second lockdown in Croydon was announced. She explained that the impact from COVID-19 and the S114 notice was impacting the economy and businesses significantly, and expressed the importance of business partnership during this time. The Croydon Renewal Improvement Board would provide reassurance to Croydon residents and business owners and assist during the implementation of the changes required, specifically, the need for greater transparency and openness. She further noted that the partners she had spoken to had confirmed their support for the Croydon Renewal Plan, and were willing to contribute to the process where possible.

 

The Cabinet Member for Children, Young People & Learning, Councillor Alisa Flemming, expressed the importance of partnerships during the ongoing work around the structural deficit within the council. She noted that this was not just between Members and Officers, but also with community organisations. She thanked everyone involved with this ongoing work, including the Local Strategic Partnership and the Safeguarding Board, in particular the Independent Chair, Di Smith, for her work towards ensuring the lives of the most vulnerable in the borough were safeguarded.

 

The Shadow Cabinet Member for Safer Croydon & Communities, Councillor Andy Stranack, raised concern to the Cabinet Member for Communities, Safety & Resilience regarding the proposed representation on the Croydon Renewal Improvement Board; it was felt the members from the Croydon Communities Board, in particular regard to Voluntary Services, was “tokenistic”.

 

In response, the Leader explained that the Board had been assembled to provide additional support and give further reassurance and engagement to residents and partners. The Cabinet Member for Communities, Safety & Resilience also clarified that the report stated that the Communities Board could have a representative on the Board; however, this was a draft version of the Terms of Reference, and it could be reviewed.

 

The Deputy Leader of the Opposition & Shadow Cabinet Member for Finance & Resources, Councillor Jason Cummings, asked when the final submission to MHCLG would be available to the Shadow Cabinet.

 

In response, the Leader explained that the submission was currently being drafted, but the  ...  view the full minutes text for item 87/20a

87/20b

Croydon Renewal Financial Recovery Plan and the submission to MHCLG for the Capitalisation Direction pdf icon PDF 785 KB

Cabinet Member: Leader of the Council, Councillor Hamida Ali

Officer: Interim Chief Executive, Katherine Kerswell

Key decision: no

Additional documents:

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To

 

1.     Note that the in-year savings options approved at Cabinet and Full Council in September 2020 to reduce the forecast overspend this year and amend the 2020/21 budget have been reviewed and revised as part of the quarter 2 financial monitoring from £27.9m to £10.2m.

 

2.     Note and recommend to Full Council the latest in-year forecast revenue budget overspend of £30m and the further risks that are likely to materialise which could increase the overspend up to £67m in this financial year.

 

3.     Consider the additional in-year savings for 2020/21 that will be presented to the extraordinary meeting of Full Council on 1 December 2020 to respond to the S.114 notice.

 

4.     Consider and recommend to Full Council the savings proposals for consultation as set out in this report for the Medium Term Financial Strategy and 2021/24 and note that consultation will begin on 9 December 2020. To note that the outcome of this consultation will be brought back to Cabinet and Full Council as part of the 2021/22 budget setting process in February / March 2021.

 

5.     Delegate to the Executive Director of Place authority to commence the statutorily defined and required consultation to review the provision of library services.

 

6.     Note that the September Cabinet and Full Council noted that an in-year review and future review of the capital programme was underway and that it would be reported back to the November cycle of meetings. Pressure of work has resulted in this report needing to be deferred. It will be reported to the December cycle of meetings.

Minutes:

The Cabinet Member for Culture & Regeneration, Councillor Oliver Lewis, explained to Cabinet that savings were to be sought through the closure of libraries and a change in service provision, and the following had been considered whilst drafting the proposal; footfall, book issues, PC sessions, geography, and the cost of repairs and maintenance. There would be a consultation on the closure of the libraries in Broad Green, Bradmore Green, Sanderstead, Shirley and South Norwood. He noted that the libraries had been invested in since being brought back in-house which had resulted in technological improvements, increases in the book fund, and enhanced partnerships through the Libraries Consortium; however, consolidation was necessary in response to the Council's financial situation. The Cabinet Member for Culture & Regeneration also explained to the Cabinet that COVID-19 had a huge impact on leisure providers, therefore, Croydon Council would be focused on working in partnership with the GLL to enhance sustainability. He explained that this could result in some facilities operating differently to how they did before, and other facilities may cease operation altogether. Croydon would continue to seek a share of the Government's £100m fund and would engage with communities and stakeholders when necessary. In regards to the museums and archive service, the Cabinet Member for Culture & Regeneration explained that they would begin to work closely with the libraries, and would deliver their statutory services jointly. He added that the proposals allowed Croydon to protect its involvement in the London Borough of Culture for 2023.

 

The Cabinet Member for Families, Health & Social Care, Councillor Janet Campbell, informed Cabinet that the proposed budget would allow the necessary repositioning of Adult Social Care, whilst still delivering the service and meeting the financial targets. Following consultation with residents, the Cabinet Member sought to carefully reduce demands by 5%; Croydon Council would be working closely with internal staff, the community, partners, volunteers, and infrastructure groups to provide alternative services. She assured Cabinet that she would ensure progress was measured, and that the council would spend accordingly to what could be afforded. The Cabinet Member for Families, Health & Social Care added thanks to the council staff and the LGA for their continued commitment to serve the public. She concluded by outlining the eight core focuses in Adult Social Care:

 

-       To ensure good quality information and advice for people.

-       To work closely and creatively with service residents and families to find alternative ways to care for them.

-       To give residents control over their spending, such as direct payments.

-       Good commissioning of accommodation and care.

-       Working closely with partners, especially in health and the voluntary sector.

-       Conducting an appraisal of in-house services, and establishing how best to use them.

-       Maximising efficiency from our contracts and to renew or end them appropriately.

-       To improve the planning work with young people before they come through to Adults, Services and Transitions.

 

The Cabinet Member for Sustainable Croydon, Councillor Muhammad Ali, thanked the staff who had been working on the  ...  view the full minutes text for item 87/20b

88/20

Strategic Review of Companies and other investment arrangements - Brick by Brick Croydon Ltd ("BBB") Shareholder decision - Directors and articles of association pdf icon PDF 320 KB

Cabinet Member: Leader of the Council, Councillor Hamida Ali

Officer: Interim Chief Executive, Katherine Kerswell

Key decision: yes

Additional documents:

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To

 

1.     Note the recommendations set out in the report by PwC, and refer the report to the December meeting of the Scrutiny and Overview Committee for their challenge and assessment.  A report from that meeting to be presented at the January Cabinet meeting alongside an action plan.

 

2.     Authorise the initial further work required on the options identified by PWC regarding the Council’s interest in BBB in order to best inform further consideration of those options at the January Cabinet meeting.

 

3.     Agree that funding of BBB shall continue in line with current loan arrangements and conditions, provided that all funding for construction, and completed unit purchases shall be reviewed on a site by site basis.

 

4.     Agree that all site transfers to BBB, be halted until the Council has completed the options appraisal.

 

RESOLVED: That the Cabinet, on behalf of the Council, exercising its functions as sole shareholder of BBB to:

 

5.     Approve the special resolutions contained in Appendix [2] of the report to amend the articles of association of BBB to

                          I.          allow quorate meetings to take place with any two Directors present, removing the requirement for an Executive Director to be present and

                        II.          provide for the provision of all unanimous or majority decisions taken by the Directors and minutes of all Directors meetings to the Council as sole shareholder.

 

6.     Approve the ordinary resolutions contained in Appendix [2] of the report to appoint two Non-Executive Directors to the Board of BBB (both with a finance background), also noting and agreeing that BBB shall indemnify those new Directors in accordance with the company’s articles of association and by utilising the company’s own insurance policy.

 

7.     Approve the ordinary resolutions contained in Appendix [2] of the report to remove the two current Directors of BBB, in their capacity as Directors (also noting Executive Directors are employees of the company).

 

8.     Approve the ordinary resolution contained in Appendix [2] of the report to provide for the right of the Council as sole shareholder to inspect any of the Company’s accounting or other records or documents at any time.

 

RESOLVED: To recommend to Council that it note the recommendations set out above, which are to be considered by Cabinet on 25th November 2020 and that Council shall receive a verbal update in respect of the outcome, in accordance with recommendation xii of the “Croydon Renewal Plan and amendments to the 2020/21 General Fund Budget” report to Council of 21st September 2020.

Minutes:

The Leader of the Council introduced the report that presented the strategic review, which was commissioned by Cabinet in September 2020 and conducted by PwC; she thanked PwC for their hard work in completing the review in time for consideration at Cabinet. She explained that the strategic review was commissioned to look at the council's company structures following the external auditors report in the public interest which raised a number of questions and concerns about the nature of relationships between the company structures. The report primarily focused on Brick by Brick Croydon Ltd. (“BBB”); however, the review also included other company structures such as Croydon Affordable Homes, Growth Zone, the Revolving Investment Fund (RIF), and the Asset Investment Fund (AIF).

 

The Leader informed Cabinet that the review found a number of concerns regarding the financial governance within the organisation of BBB, which had led to a strong recommendation to appoint a Finance Director to oversee the relationship between the council as a sole shareholder. This had also been an area of concern highlighted in the report in the public interest. The Leader also highlighted that the report identified a number of options that could be available to the council, based on the findings of the strategic review. The recommendations included a request to commission further work to advise the council of the best options in regards to BBB. The report raised concerns for the governance and the need to strengthen this; however, it did not recommend any structural changes at this time. The report recognised the impact of the financial situation on the capacity to continue investment, however, it recommended that the Growth Zone should remain in place with increased reviewing.

 

The Leader of the Council explained that she was recommending that all recommendations outlined in the strategic review were accepted, and that an action plan was drawn up, which would inform the Croydon Renewal Improvement Plan. The report also suggested a number of other actions in regards to the council being the sole shareholder of BBB, this included the appointment of two non-executive Directors to the Board, who were known to have strong backgrounds in finance, as a way to ensure there was capacity to inspect the BBB accounts, Board minutes and reports.

 

The Cabinet Member for Croydon Renewal, Councillor Stuart King, highlighted recommendation 1.3 in the report and explained that, until the review was completed, the council were minimising any further funding to BBB. It had been recognised that a little more would need to be spent to protect a far greater sum, and it had been stated in the report that there were approximately 20 schemes currently on site with existing funding agreements. He explained that if funding was to be stopped to BBB, the risk could be that cash flow problems would be created, ultimately increasing the risk to both the council and the taxpayers.

 

The Cabinet Member for Croydon Renewal continued by reassuring Cabinet that the £30m identified as a risk within the budget report  ...  view the full minutes text for item 88/20

89/20

Scrutiny Stage 2 Responses to Recommendations arising from Scrutiny & Overview Committee on 22 July 2020 and Scrutiny & Overview Committee on 25 August 2020 pdf icon PDF 213 KB

Cabinet Member: All Cabinet Members

Officer: Executive Director of Resources, Jacqueline Harris Baker

Key decision: no

Additional documents:

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve the response and action plans attached to the report at Appendix A and that these be reported to the Scrutiny and Overview Committee or relevant Sub-Committees.

Minutes:

The Chair of Scrutiny & Overview Committee, Councillor Sean Fitzsimons, noted that there was currently a problem with time efficiency in regards to these responses being reported to Cabinet, and he would liaise with the relevant officers to solve this.

 

The Chair of Scrutiny Children & Young People Sub-Committee, Councillor Robert Ward, noted the difficulties of receiving diagnostic information, and stated that Scrutiny Committees should receive the information requested in a timely manner.

 

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve the response and action plans attached to the report at Appendix A and that these be reported to the Scrutiny and Overview Committee or relevant Sub-Committees.

90/20

Investing in our Borough pdf icon PDF 193 KB

Cabinet Member: Cabinet Member for Resources & Financial Governance, Councillor Callton Young

Officer: Executive Director of Resources, Jacqueline Harris Baker

Key decision: no

Additional documents:

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve the awards of the Gas & Electricity Supplies Contracts in accordance with the recommendations set out in the report at agenda item 8a, as set out in section 4.1.1 of the report.

 

RESOLVED: To note

 

1.    The contracts between £500,000 and £5,000,000 anticipated to be awarded by the nominated Cabinet Member, in consultation with the nominated Cabinet Member for Resources and Financial Governance or, where the nominated Cabinet Member is the Cabinet Member for Resources and Financial Governance, in consultation with the Leader, as set out in section 4.2.1 of the report.

 

2.    The list of delegated award decisions made by the Director of Commissioning and Procurement, between 25/09/2020 – 19/10/2020, as set out in section 4.2.2 of the report.

Minutes:

The Cabinet Member for Resources & Financial Governance, Councillor Callton Young, introduced the report and highlighted that the report included the contracts on electricity and gas supplies. He informed Cabinet that the council’s Contracts and Commissioning Board recommended that the award of the corporate contracts were approved, and that the framework agreements for electricity and gas supply set out in Part B of the report be agreed for three years, with the option to extend for one further year.

 

In response to the Shadow Cabinet Member for Finance & Resources, it was confirmed that an asset fire sale was not essential, but was good practise to ensure the expertise were sought to receive the correct advice on valuations.

 

The Shadow Cabinet Member for Culture, Leisure & Sport (Job Share), Councillor Vidhi Mohan, noted that the telephone parking contract was going to cost the council approximately £950,000 over four years, and asked how much the council would earn from parking charges above the £950,000 over the course of the next four years. He further asked if a risk assessment had been done in regards to this revenue, and if mitigation measures had been put in place. The Executive Director of Place agreed to respond to Councillor Mohan with an answer.

 

The Shadow Cabinet Member for Transport, Environment & Regeneration, Councillor Gareth Streeter, further asked, on the telephone parking charges, why an equalities assessment was not completed, as it was thought older residents could be impacted by this. The Cabinet Member for Resources & Financial Governance agreed to take a view and feedback any details to Councillor Streeter regarding the equalities work which had been done regarding this contract.

 

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve the awards of the Gas & Electricity Supplies Contracts in accordance with the recommendations set out in the report at agenda item 8a, as set out in section 4.1.1 of the report.

 

RESOLVED: To note

 

1.    The contracts between £500,000 and £5,000,000 anticipated to be awarded by the nominated Cabinet Member, in consultation with the nominated Cabinet Member for Resources and Financial Governance or, where the nominated Cabinet Member is the Cabinet Member for Resources and Financial Governance, in consultation with the Leader, as set out in section 4.2.1 of the report.

 

2.    The list of delegated award decisions made by the Director of Commissioning and Procurement, between 25/09/2020 – 19/10/2020, as set out in section 4.2.2 of the report.

90/20a

Electricity and Gas Supplies Contract Award pdf icon PDF 307 KB

Cabinet Member: Cabinet Member for Resources & Financial Governance, Councillor Callton Young

Officer: Executive Director of Place, Shifa Mustafa

Key decision: yes

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve

 

1.    The award of call off contract under LASER Framework Agreements for gas supply to the supplier, and for the estimated contract values, set out in attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

 

2.    The award of a call off contracts under the LASER Framework Agreements for electricity supply to the supplier, and for the estimated total contract value, set out in the attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

Minutes:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve

 

1.    The award of call off contract under LASER Framework Agreements for gas supply to the supplier, and for the estimated contract values, set out in attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

 

2.    The award of a call off contracts under the LASER Framework Agreements for electricity supply to the supplier, and for the estimated total contract value, set out in the attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

91/20

Exclusion of the Press and Public

The following motion is to be moved and seconded where it is proposed to exclude the press and public from the remainder of a meeting:

 

“That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information falling within those paragraphs indicated in Part 1 of Schedule 12A of the Local Government Act 1972, as amended.”

Minutes:

The following motion was moved by Councillor Callton Young and seconded by Councillor Oliver Lewis to exclude the press and public:

 

“That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information falling within those paragraphs indicated in Part 1 of Schedule 12A of the Local Government Act 1972, as amended.”

 

The motion was put and it was agreed by the Committee to exclude the press and public for the remainder of the meeting.

92/20

Electricity and Gas Supplies Contract Award

Cabinet Member: Cabinet Member for Resources & Financial Governance, Councillor Callton Young

Officer: Executive Director of Place, Shifa Mustafa

Key decision: yes

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve

 

1.    The award of call off contract under LASER Framework Agreements for gas supply to the supplier, and for the estimated contract values, set out in attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

 

2.    The award of a call off contracts under the LASER Framework Agreements for electricity supply to the supplier, and for the estimated total contract value, set out in the attached Part B report, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

Minutes:

The Deputy Leader (Statutory) and Cabinet Member for Croydon Renewal, Councillor Stuart King, took the Chair, as the Leader of the Council experienced some technical issues and was unable to be present.

 

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To approve

 

1.    The award of call off contract under a LASER Framework Agreement for the supply of Gas to Corona Energy with an estimated total contract value of £4,014,610, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.

 

2.    The award of a call off contract under the LASER Framework Agreement for Electricity Supply to Npower, for the estimated total contract value of £20,108,354, for a contract term of 3 years and 4 months with the option to extend for a further 1 year.