Agenda and minutes

Apologies for absence were submitted on behalf of the Mayor (Councillor Mary Wilson) and Councillors Andrew Birchall, Alan Cain, Magda Cullens, Doreen Dickinson, Dennis Edgerley, Marie Gray, Margaret Lees, Roy Lees, Christopher Snow and John Wilson.

Councillors Alan Cain, Dennis Edgerley, Marie Gray and Christopher Snow were ineligible to participate in the debate and vote on Minute 07.C.34    (Housing Stock Transfer Agreement) by virtue of their membership of the Chorley Community Housing Shadow Board.

The Deputy Mayor informed the Council of the recent death of Councillor Margaret Lees’ father and the Members requested that their sincere condolences be conveyed to Councillor Mrs Lees and her family.

The Deputy Mayor reminded the Members that this would be the last Council meeting attended by Colin Campbell in his capacity as Executive Director –Environment and Community, pending his retirement at the end of March 2007.

The Deputy Mayor paid tribute to Mr Campbell’s long period of service with the Council, during which he had risen to his present Deputy Chief Executive status and had played an instrumental role in guiding the Authority through a number of important and complex transactions (eg the transfer of the housing stock; the town centre developments; and the Buckshaw Village development).

The Deputy Mayor’s sentiments were echoed by Councillors Peter Goldsworthy, Kenneth Ball, Daniel Gee, Anthony Gee and Ralph Snape, who all thanked Mr Campbell for his past services and wished him and his wife, Mary, well in their retirement.

Members of the Council are reminded of their responsibility to declare any personal interest in respect of matters contained in this agenda in accordance with the provisions of the Local Government Act 2000, the Council’s Constitution and the Members Code of Conduct.  If the personal interest is a prejudicial interest, then the individual Member should not participate in a discussion on the matter and must withdraw from the Council Chamber and not seek to influence a decision on the matter.

There were no declarations of interest by Members of the Council in any of the items on the Council agenda.

The Council is requested to appoint a Councillor to the Development Control Committee following the resignation of Councillor K Ball

Councillor Kenneth Ball submitted his resignation from the membership of the Development Control Committee, and the Council’s instructions were sought on the appointment of a replacement member.

RESOLVED – That Councillor Ball’s resignation from the Development Control Committee be received and that the appointment of a replacement member be deferred to await the reappointment of the Committee at the next Annual Meeting of the Council on 15 May 2007.

To consider the exclusion of the press and public for the following item of business on the ground that it involves the likely disclosure of exempt information as defined in Paragraph 1,3 and 4 of Part 1 of Schedule 12A to the Local Government Act, 1972.  

RESOLVED – That the press and public be excluded from the meeting for the following item of business on the ground that it involves the likely disclosure of exempt information as defined in Paragraphs 1, 3 and 4 of Part 1 of Schedule 12A to the Local Government Act 1972.

A confidential summary report from Trowers and Hamlins, the Council’s Legal Advisors, on the provisions of the Housing Stock Transfer Agreement is attached, together with a confidential report of the Executive Leader as Chairman of the Housing Stock Transfer Committee.

It is intended that the report of the Council’s Legal Advisors will help to inform the debate during the informal session of the Council when Members can question the Consultants and representatives of Chorley Community Housing on the terms of the proposed Agreement. 

The report of the Executive Leader will then be considered under this agenda item of the formal Council meeting, when Members will be requested to consider the recommendations and determine whether to proceed (or otherwise) with the transfer of the housing stock to Chorley Community Housing.    

The Council considered a confidential report of the Executive Leader and the Chair of the Housing Transfer Committee recommending Members’ formal approval of the transfer of the Council’s housing stock to Chorley Community Housing Limited, subject to delegated authority being granted to the Housing Transfer Committee to agree all outstanding matters in relation to the transfer.

The report was the culmination of a lengthy process of negotiation between the Council’s Officers and its consultant advisors with Chorley Community Housing and its funders, following the substantial majority of tenants having voted in favour of the stock transfer in the summer of 2006.

The Council had been provided with a note prepared by the Council’s legal consultants, Trowers and Hamlins, outlining and commenting on the principal elements, terms and provisions of the draft Transfer Agreement.  The Agreement covered all financial, operational and resource aspects of the transfer process, and the two reports highlighted the most significant risks to both the Council and Chorley Community Housing in concluding the transfer, together with the means by which those risks would be mitigated through the provision of various warranties and indemnities within the terms of the contract and through appropriate insurance cover.

The report clarified that, while good progress had been made to date in the agreement of the principal terms of contract, a number of financial issues still under negotiation would require formal agreement prior to completion of the stock transfer on the envisaged date of 26 March 2007.   Consequently, in the light of the Officer’s expected positive outcome of the negotiations on the outstanding matters, the Council was recommended to approve the transfer on the basis of the draft transfer contract as now reported and to grant delegated authority to the Housing Transfer Committee to approve all outstanding and consequential matters.

The Executive Leader, in proposing agreement to the transfer of the Council’s housing stock, thanked all of the Members, Officers and tenants who had been involved in the long and complex process and negotiations, the purpose of which ultimately would be to ensure the continuing improvement of the housing stock for the benefit of existing and future tenants.

It was moved by the Executive Leader (Councillor Peter Goldsworthy), seconded  by the Lead Member for Housing (Councillor Francis Culshaw), and unanimously RESOLVED:

(1)    That subject to the consent of the Secretary of State, approval be given to the transfer of the Council’s housing stock to Chorley Community Housing Limited on the best acceptable final terms that can be negotiated as based upon the draft terms and provisions outlined in the Council’s legal consultants’ report.

(2)    That full delegated authority be granted to the Housing Transfer Committee to approve all outstanding matters in relation to the stock transfer and Contract, including any consequential variations that may be required to complete the transaction.