Agenda item

Termination of shared CEO arrangements with East Devon District Council and proposed future management arrangements

Meeting of South Somerset District Council, Thursday 16th July 2015 7.30 pm (Item 24.)

Decision:

RESOLVED:	That Council agreed:
	1.	to terminate the existing agreement with EDDC to receive the services of the joint chief executive for the purpose of the council’s functions in accordance with section 113 of the Local Government Act 1972 with effect from 31st July 2015; (Voting: 56 in favour, 4 abstentions)
	2.	that a sum of £42,124.87 be paid to East Devon District Council in lieu of 12 months formal notice of termination being given and to be funded from the 2015/16 salary saving; (Voting: 51 in favour, 2 against, 7 abstentions)
	3.	that £88,700 be added to the Medium Term Financial Plan as a saving for 2016/17; (Voting: 31 in favour, 1 against, 27 abstentions)
	4.	that:- a working group of 6 be appointed, consisting of the Leader of Council, Deputy Leader of Council, Leader of the Conservative Group, spokesperson of the Independent Group and both SSDC Strategic Directors. (Mendip DC to form a similar arrangement of up to 4 Members and 2 officers); the working group be given delegated authority to act on behalf of the Council in progressing discussions with Mendip DC in the first instance and all other options; the working group be authorised to commission a joint independent evaluation of both Councils in the first instance, which would result in a feasibility appraisal of the concept, subject to the approval of SSDC’s S151 Officer. Subject to availability, that work to be carried out by Local Partnerships, an organisation created jointly by the Treasury and Local Government Association; (Voting: unanimous in favour)
	5.	that the role and function of the CEO be rotated on a monthly basis (subject to leave arrangements) between SSDC's existing Strategic Directors, at no uplift in salary, for an interim period pending the outcome of exploratory talks on future alternate management arrangements. Specific projects to continue to have individual Director leads; (Voting: unanimous in favour)
	6.	to note that there would be regular reports to Council on the progress of the discussions referred to in recommendation 4 and that Council notes that any final decision on any option will need to be reported to Council for formal approval before it can be implemented. At that point the full and actual financial consequences of any decision would be known and available. (Noted)
Reason:	To agree that the current arrangements with East Devon District Council (EDDC) in relation to the sharing of a Chief Executive be terminated and that exploratory talks are initiated with Mendip District Council.

Minutes:

The Leader of Council introduced the report and explained the discussions which had taken place with East Devon DC to terminate the existing CEO arrangement and the tentative discussions with Mendip DC to form a closer working arrangement. Following those discussions, he proposed an amendment to recommendation 4 to set up a working group to progress the closer working arrangement and to commission a joint independent evaluation of both Councils

Councillor Tim Inglefield, as Leader of the Conservative Group, confirmed that he had been part of the discussions and he proposed that each of the recommendations of the report be voted upon individually.

In response to questions from Members the Leader of Council confirmed that:-

· The termination of the shared CEO arrangement with East Devon DC had been mutually agreed with a 6 month pay settlement.

· The start of a new Council term was the logical time to make such changes.

· He anticipated the outcome of discussions with Mendip would be clearer by September 2015.

· He expected the temporary CEO role to last up to December 2015.

During discussion, it was agreed to amend recommendations 4 and 5 to clarify that discussions would be with Mendip DC in the first instance and all other options would be considered. Also, that there would be no uplift in in the Strategic Directors salaries whilst they undertook the role and function of CEO for a temporary period.

At the conclusion of the debate, each recommendation was voted upon in turn.

RESOLVED:	That Council agreed:
	1.	to terminate the existing agreement with EDDC to receive the services of the joint chief executive for the purpose of the council’s functions in accordance with section 113 of the Local Government Act 1972 with effect from 31st July 2015; (Voting: 56 in favour, 4 abstentions)
	2.	that a sum of £42,124.87 be paid to East Devon District Council in lieu of 12 months formal notice of termination being given and to be funded from the 2015/16 salary saving; (Voting: 51 in favour, 2 against, 7 abstentions)
	3.	that £88,700 be added to the Medium Term Financial Plan as a saving for 2016/17; (Voting: 31 in favour, 1 against, 27 abstentions)
	4.	that:- a working group of 6 be appointed, consisting of the Leader of Council, Deputy Leader of Council, Leader of the Conservative Group, spokesperson of the Independent Group and both SSDC Strategic Directors. (Mendip DC to form a similar arrangement of up to 4 Members and 2 officers); the working group be given delegated authority to act on behalf of the Council in progressing discussions with Mendip DC in the first instance and all other options; the working group be authorised to commission a joint independent evaluation of both Councils in the first instance, which would result in a feasibility appraisal of the concept, subject to the approval of SSDC’s S151 Officer. Subject to availability, that work to be carried out by Local Partnerships, an organisation created jointly by the Treasury and Local Government Association; (Voting: unanimous in favour)
	5.	that the role and function of the CEO be rotated on a monthly basis (subject to leave arrangements) between SSDC's existing Strategic Directors, at no uplift in salary, for an interim period pending the outcome of exploratory talks on future alternate management arrangements. Specific projects to continue to have individual Director leads; (Voting: unanimous in favour)
	6.	to note that there would be regular reports to Council on the progress of the discussions referred to in recommendation 4 and that Council notes that any final decision on any option will need to be reported to Council for formal approval before it can be implemented. At that point the full and actual financial consequences of any decision would be known and available. (Noted)
Reason:	To agree that the current arrangements with East Devon District Council (EDDC) in relation to the sharing of a Chief Executive be terminated and that exploratory talks are initiated with Mendip District Council.