Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: March 3, 2025

Purpose:

Content: The Cabinet considered a report of the Executive Director (Environment and Place) presenting an update on the progress drafting new Partnership and Management Agreements between the Council and South Essex Homes.   Resolved:   1. That the progress made on drafting/reviewing the new Partnership and Management Agreements (Service Level Agreements) between Southend-on-Sea City Council and South Essex Homes (SEH) to date, be noted.   2. That the following next steps for the Partnership and Management Agreements, be approved:   (a) That the Council’s Internal Audit Team undertakes a review of the existing governing documents for the partnership.   (b) That resolution 2(a) above informs the negotiations and updating of the partnership governance documents (SLAs) between both the Council and South Essex Homes.   (c) That the new partnership governance documents (SLAs) come back to Cabinet for approval, once drafted.   Reasons for decision:   The review process and updated partnership documents are required to ensure that they reflect the changes in priorities to the regulatory landscape over the past 4 years.   Other options:   1. Undertake the review in house, within the Council’s Strategic Housing team. It is believed that through utilising PWC and the Council’s Internal Audit team there will be greater objectivity and impartiality achieved within the review process.   2. Do nothing. Given the changes to operational elements of the partnership and changes to the regulatory framework a review is necessary, rather than exercising the extension allowed under the current agreement.   3. End the arrangement with South Essex Homes and bring housing management back into direct Council delivery. SEH has operated effectively for almost 20 years and has a good handle on the housing management process and is fully across compliance and regulatory requirements. Moreover, they have an established relationship with the Council’s tenants, and their sub-contractors, and it has been demonstrated through earlier Internal Audit reviews (Management of the SEH Partnership Agreement was rated as Highly Assured by Internal Audit Service in November 2023) that the partnership arrangements are effective. Also, it should be noted that evidence from other local authorities where Arms-Length Management Organisations (ALMOs) have been wound up and services brought in house has shown that cost benefits have not been delivered, in the majority of instances and, along with the above reasons, this option is not recommended.   Note: This is an Executive Function Not eligible for call-in Cabinet Member: Cllr A Jones