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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