Agenda item

The Joint Committee received a report which included the draft Deed of Variation appended to the report.  

The terms of the draft Deed of Variation had been developed to allow the current parties to the Consortium to exit the regional arrangements and to terminate the Joint Committee Agreement dated 16th July 2014.

The newly appointed Monitoring Officer from Swansea City Council introduced herself and her colleague Deputy Monitoring Officer also from Swansea City Council who had been working on the contractual arrangements in relation to the Deed of Variation.

The Committee was reminded that in November 2020 [minute 6.1 refers] and March 2021 [Minute 6 & 7 refers], changes to the Joint Committee Agreement was agreed, this allowed both Neath and Port Talbot and Ceredigion Councils to access agreed services.  In addition, in relation to governance arrangements the agreed changes enabled facilitation and dissolution and termination of ERW to address any subsequent liabilities or indemnities of all present and former Authorities and to facilitate a reduced notice period.  It was reported that following the Committees agreement, each Constituent Authority took a report to their Cabinet whereby Delegated Authority was given to the Chief Legal Officers and in some Authority’s the Director of Education to put into the Deed of Variation and any wording necessary to achieve the resolution

The report sought guidance from the Joint Committee for the Constituent Councils to act by finalising the terms of the Deed of Variation and give notice using the previously approved delegated powers.

The following comments/queries were raised:-

·      Concern was raised in relation to the short timescale available for the four Cabinets to approve the Deed of Variation.  Clarity was requested on some of the elements to enable this to be achieved. 

·      In addition, it was suggested that it be made clear within the Deed that all partners would be terminating the arrangements on the same day at the end of August.

·      A further point was raised in that prior to the signing of the Deed of Variation some outstanding matters would need to be resolved and/or required clarity before approval.

The Monitoring Officer, in response to the points raised above referred to the delegation that was in place which enabled the Chief Legal Officer to approve subject to the Constituent Authority’s authorisation, thus negating the need to refer to Cabinet. 

In terms of the end of August termination date, it was reported that a report had already been received which stated that the Statement of Accounts would be returned to this consortium for approval/sign off.  However, it was highlighted that it was unlikely that this would not take place prior to the end of August 2021, requiring ERW to continue for a short term after the end of August.  In addition, in terms of the new regional consortium, a new Joint Committee Agreement would be required to be finalised which would require approval/sign off following each Constituent Authorities consideration and approval.

It was explained that a Constituent Authority would not be able to leave the consortium unilaterally and that it would have to be agreed in accordance with the Deed of Variation.  Currently the Deed of Variation was drafted that all authorities are to leave at the same time.  However, there was scope to, subject to the agreement of all parties, to allow an Authority to leave the consortium earlier but the terms of this arrangement would need to be included in the Deed of Variation. 

It was emphasised that a minimum of two Authorities would need to remain in the ERW consortium to enable the Joint Committee to continue, the liabilities would need to be finalised in order for ERW consortium to finalise its business before ceasing.

RESOLVED:-

11.1   to recommend to each of the constituent Councils that:

i)    a decision is made to sign the Deed of Variation and serve notice to withdraw from the Consortium in accordance with each Council’s constitution and that the notice is duly served on the Chair of the Joint Committee.

ii)Any decision by the Councils is coordinated and appropriately timed to reflect the need to finalise outstanding ERW business.

11.2 that subject to recommendation 11.1, authorise the S.151 officer for the Consortium to undertake further work to clarify the liabilities of the current and former parties to the Consortium and in conjunction with the Lead Director to liaise with Neath Port Talbot and Ceredigion Councils confirming the detail of any liability arising as a result of their withdrawal from the regional arrangements.