Issue - meetings

This report advises the Council, following a report to Cabinet on 12 January 2016, that the acquisition and disposal of property are executive functions and as such must be dealt with by the Leader and Cabinet subject to budget and policy framework rules. The Council’s Constitution should be revised to reflect this.

Discussion:

This report advised the Council that the acquisition and disposal of property were executive functions and as such must be dealt with by the Leader and Cabinet, subject to budget and policy framework rules. The effect of this would mean that any general land or property acquisitions exceeding £1 million in value would be a matter for the Cabinet in future. As such, the Council’s Constitution needed to be revised to reflect this as set out in Appendix A to the report. 

Following Cabinet on 12 January 2016, the Leader had confirmed and extended the authority delegated to the Assistant Director, Legal and Corporate Services at the Council meeting on 15 October 2015, which would enable the disposal (in addition to acquisition, management and letting) of suitable non-operational investment properties funded by a £2million sum added to the Capital Programme.

The Portfolio Holder for Corporate Services, Councillor Mackness, supported by the Portfolio Holder for Resources, Councillor Gulvin, proposed the recommendations as set out in the report.

Councillor Maple proposed the following amendment:

“Delete paragraph 7.2 of item 16 of the Council agenda and replace it with:

That the Council notes the proposal in paragraph 6.5 of the report and in order to maintain a similar level of transparency that the Constitution is amended as proposed with the addition of the requirement for a report from the Cabinet to be given for information to the Council of land and property transactions over £500,000 agreed by the Cabinet.

And

Add the following to paragraph 5.1 of Appendix A to item 16 of the Council Agenda:

·         Cabinet land and property transactions over £500,000 to be reported to the next Council meeting for information.”

Under Council Rule 11.4.2 and with the consent of the Council, Councillor Mackness and the seconder of the proposal agreed to alter the proposal to include the proposed amendment.

Decision:

a)    The Council  noted advice that, in law, the acquisition and disposal of land and property are executive functions and as such must be dealt with by the Leader and Cabinet unless contrary to the policy framework or contrary to or not wholly in accordance with the budget approved by Full Council.

b)    The Council noted the proposal in paragraph 6.5 of the report and in order to maintain a similar level of transparency agreed that the Constitution is amended as proposed (in paragraph 7.2 and Appendix A to the report) with the addition of the requirement for a report from the Cabinet to be given for information to the Council of land and property transactions over £500,000 agreed by the Cabinet.

c)    The Council agreed to add the following to paragraph 5.1 of Appendix A to the report:

            “Cabinet land and property transactions over £500,000 to be reported to the next Council meeting for information.”

Background:

This report advised the Cabinet that the acquisition and disposal of property were executive functions and as such must be dealt with by the Leader and Cabinet, subject to budget and policy framework rules. The Council’s Constitution therefore needed to be revised to reflect this and a report would be submitted to Full Council on 21 January 2016 accordingly.

This report also notified the Cabinet that the Leader intended to confirm and extend the authority delegated to the Assistant Director, Legal and Corporate Services at the Council meeting on 15 October 2015, which would enable the disposal (in addition to acquisition, management and letting) of suitable non-operational investment properties funded by a £2million sum added to the Capital Programme.

It was further clarified that the intention was to exempt any investment property transactions from the £100,000 threshold, which required a report to Cabinet. This would enable action to be taken quickly in terms of the Council’s portfolio of investment properties. The threshold would remain in relation to any other property and land acquisitions and disposals.

Reasons:

This report advises the Cabinet of decisions which must be taken by the Council and Leader of the Council to reflect the fact that the acquisition of land and property are executive functions which must not be exercised by the Council.