Agenda item

Attached for consideration as part of the Call-in on this item, is the Part 2 Portfolio report considered as part of the decision made on 25 January 2019.

The report should be read in conjunction with the Portfolio report attached at Appendix 1 to the Call-In report on the part 1 agenda.

(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person (including the authority holding that information) of Schedule 12A to the Local Government Act 1972 as amended).

Please see the Part 1 agenda.

The Committee received the information provided on the call-in report: Meridian Water- National Grid Overage which had been included in part 2 section of the agenda

NOTED

1.    The information was considered in conjunction with the report on the part 1 agenda.

2.    Councillor Smith set out the reasons for calling in the decision:

·         The report to extinguish the overage is not satisfactory in terms of the information provided to justify the decision.

·         No reference to the original report authorising the purchase of the three sites for the National Grid. No details either of the proposed overage agreement etc.

·         Concern regarding contradictions within the report about the gross development value of Phase 1 of the site.

·         No explanation on how the council will recover the total cost of the site.

3.    The response of Councillor Caliskan, Leader of the Council. She highlighted the following:

·         Details of the overage agreement have been provided in the attachment to the DAR.

·         The gross development value of Phase 1 of the site quoted in the report is an error. The correct value was advised. This does not change the rest of the section or any of the conclusions in the report.

·         An explanation on how the council will recover the total cost of the site is covered in detail in the Part 2 report.

4.    Other issues highlighted by officers in support of the decision included;

·         Further information and clarification on Meridian Water- National Grid Overage deed.

·         Alternative options were discussed and the consequences these would have for Enfield Council. The buy-out of the NG Overage reduces the Council risk and administrative burden.

·         In considering whether to buy out the overage, it is necessary to consider whether the buy-out will be a prudent use of the council’s resources both in the short and long term. The report sets out the reasons why officers are of the view that the buy-out would be in accordance with the Council’s fiduciary duty.

5.    The summing up by Councillor Smith: 

·         He felt that the report was not as comprehensive as it should be in order for the Leader or the Cabinet Member to make an informed decision. He felt that the report lacked sufficient information in order to be able to fully understand the process.

·         Time scales are very limited (5 working days) from when a report is published to address any issues/questions with officers.

·         At this stage he would expect officers and the Administration to have a very clear knowledge of the financial outcome of Phase 1. There is no evidence of the surplus/profit expected to be made. This information could have been included in the report in a simple schedule.

·         He did state however that he did not feel that the decision should be referred back to the decision-making person or body

The Leader, Councillor Caliskan felt that it was a misrepresentation to say that she did not have a clear understanding of the report. This was certainly not the case otherwise she would not have made the decision.

She was pleased to hear that Councillor Smith was not suggesting that the decision be referred back. She did agree however that political debate is very important and there are always lessons to be learnt about any agreement.

Meridian Water is a huge project therefore it is only right and proper that reports are scrutinised and discussed when they come in. But to suggest that every time a key decision is made a report must then be produced that covers every section of everything is disingenuous.

The financial modelling evidences the profit/surplus expected to be made. This overage decision stacks up and is the right deal financially and unlocks potential for more homes on this site.

She also reminded Members that regular updates on Meridian Water are a standard Part 2 Agenda item at Cabinet and therefore suggested that all Members read these reports.

Following the discussion and noting all the comments made a vote took place and the committee voted unanimously to AGREE the original decision.