Agenda and minutes

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Contact: Suzanne Bennett Governance Services - Telephone: 024 7697 2299  E-mail:  suzanne.bennett@coventry.gov.uk

Items
No. Item

20.

Declarations of Interest

Minutes:

There were no disclosable pecuniary interests.

21.

Minutes pdf icon PDF 254 KB

Minutes:

The Minutes of the meeting held on 28th September were agreed and signed as a true record.

 

There were no matters arising.

22.

Resolution to Exclude Public

Minutes:

RESOLVED that the press and public be excluded under Sections 100(A)(4) of the Local Government Act 1972 for the consideration of the item of business contained in Minute 24 below relating to “Coventry Municipal Holdings – Annual Performance Report Year Ended 31 March, 2022”on the  grounds that the items involves the likely disclosure of information defined in Paragraph 3 of Schedule 12A of the Act and that in all circumstances of the cases, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

23.

Scrutiny Management

Councillor N Akhtar, Chair of the Scrutiny Co-ordination Committee, attended the meeting of Cabinet Member for Strategic Finance and Resources held on 4 October, 2022 for consideration of an item relating to “Coventry City of Culture Trust - Temporary Loan Funding Support” Councillor Akhtar agreed that the decision was urgent and that call in should not apply.

 

In accordance with the Constitution, this matter is reported to inform the Committee of the reason for urgency which is that that the loan was required to provide immediate cashflow support to the City of Culture Trust. If the decision was delayed, this would be a threat to the Trust being able to remain in a positive cashflow position.

Minutes:

The Scrutiny Co-ordination Committee noted that Cllr N Akhtar attended the meeting of Cabinet Member for Strategic Finance and Resources held on 4 October, 2022 for consideration of the item relating to “Coventry City of Culture Trust - Temporary Loan Funding Support”

 

Councillor Akhtar had agreed that the decision was urgent and that call in should not apply. In accordance with the Constitution, the matter was reported to inform the Committee of the reason for urgency, which was that the loan is required to provide immediate cashflow support to the City of Culture Trust. If the decision was delayed, this would be a threat to the Trust being able to remain in a positive cashflow position.

24.

Coventry Municipal Holdings - Annual Performance Report year Ended 31 March, 2022 pdf icon PDF 105 KB

Briefing Note of the Managing Director for Coventry Municipal Holdings Limited

Additional documents:

Minutes:

Councillor Duggins, Leader of the Council, introduced the item by explaining the importance of understanding the workings of Coventry Municipal Holdings to the Council, in terms of makings sure that the business case was sound and that there was enough resource for the investment programme. This included making sure Tom White Waste Limited was cleaner and greener and fitted in with the climate change agenda and also making the most of Coombe Abbey Park Limited’s improved position to spread their wings elsewhere.

 

The Scrutiny Co-ordination Committee considered a presentation by the Director of Streetscene and Regulatory Services on the Performance Report of Coventry Municipal Holdings as required by the Group Governance Agreement. The presentation covered the following areas:

  • Review of 2021-2022 Coventry Municipal Holdings Group Performance
    • Tom White Waste Limited (TW), including the culture change from a family business to a corporate Small and Medium-sized Enterprise, rebranding, increased costs due to higher material disposal costs, driver availability and correction of historic accounting practices.
    • Coombe Abbey Park Limited (CAPL), including the diverse nature of CAPL, impact of covid restrictions, on-going availability of staff trained and experienced in high end hospitality
    • Revenue from non-hotel operations exceeded expectations and there was a strong balance sheet.
    • People update, plans for the IXL arena and catering outlets in parks
    • Coventry Technical Resources Limited (CTR)
    • Coventry Municipal Holdings (CMH)
  • Business activity in 2022/23
  • Return on investment
    • Tom White Group – to replace obsolete and high maintenance plant with modern plant, enhanced environmental performance of commercial material arising in Coventry. This would lead to the Council receiving dividends due to increased financial performance on top of interest income.
    • Coombe Abbey Park Group – refinanced loads to ease cashflow. The Council receives a commercial return on the loan financed.
    • No dividends had yet been declared. Awaiting on final audited accounts.
  • Future priorities
    • Tom White Waste Limited – site development, growth of core business, expanding value added services and executing decarbonisation strategy
    • Coombe Abbey Park Limited – core business consolidation, sales focus on traditional business, system digitalisation, minor refurbishments, additional management contracts of other venues.
  • Compliance with Group Governance and Procurement Policy
    • Value for money report by Grant Thornton was available on company governance

 

The Committee questioned officers and received responses on the following range of issues:

  • Amendments to accounting practices at TW. Officers gave assurance that due diligence had been sought and that the company had been complying with existing accounting practices. The Directors had then taken the decision to change the accounting processes, with full advice.
  • Whether the costs of replacing older plant, machinery and vehicles was known when the company was purchased as it was showing as a greater loss than expected and that the machinery had depreciated more quickly due to a higher use of landfill than expected.
  • That the Council took independent advice on the value of the company, which included more than just the assets on the balance sheet, which was commensurate with other offers in the marketplace.
  • The importance of due diligence  ...  view the full minutes text for item 24.

25.

Scrutiny Co-ordination Committee Work Programme and Outstanding Issues 2022/23 pdf icon PDF 355 KB

Report of the Director of Law and Governance

Minutes:

The Scrutiny Co-ordination Committee considered their Work Programme and Outstanding Issues for the current Municipal year.

 

RESOLVED that the Scrutiny Co-ordination Committee note the Work Programme and Outstanding Issues.

26.

Any Other Items of Public Business

Any other items of public business which the Chair decides to take as a matter of urgency because of the special circumstances involved.

Minutes:

There were no additional items of urgent public business.

27.

Coventry Municipal Holdings - Annual Performance Report year Ended 31 March, 2022

Minutes:

Further to Minute 24 above, the Scrutiny Co-ordination Committee noted confidential commercially sensitive information in relation to this item.