Agenda item

The Committee was asked to consider recommending to Council the adoption of a policy to determine Minor Property Transactions by delegating authority to Officers.

Currently all acquisitions and disposals of property were decided by the designated Cabinet Member.  This resulted in relatively minor matters becoming delayed and significant management and Member time being committed in processing such transactions.  Previously, the Council adopted a policy to manage minor matters through a simplified procedure, delegated to Chief Officers.  It was proposed to reintroduce such a system.

Members considered that the time it took for these properties to go through the process was longer and endorsed the change of scheme of delegation.  This was with the condition that ward members were aware of the delegated decision.

It was suggested that a register of the list of minor properties could be published for information.  There was however concern that the Cabinet Member should have some kind of involvement with private financial transactions which may result in Newport City Council losing money.  Newport Norse however made assurances that there was value for money in place, Officers and Norse would agree the terms of sale in the first instance.  The process then was governed by other Standing Orders.

Members had agreed to the minor issues outlined in the report however councillors would need to be informed on any larger purchases.  The Monitoring Officer advised that the more important transactions would go to the Cabinet Member.  In general, the market price would be reflected in transactions however prices were not always guaranteed, although the market price would be on the asset register.

Members referred to a purchase of land in Pillgwenlly and the possible pitfalls should certain transactions be delegated to officers.

Members asked whether ward members would be out of the loop in cases of private sale.  These were normally not under negotiation as they were either by auction or private tender.  In other cases, councillors might be told on a confidential basis if they needed to know.

Discussion ensued regarding property with an annual value, as long as it did not have an annual value exceeding £1,000 then it would be delegated.  Anything above that cost would go to Cabinet Member for a decision.

Members reiterated that they would like more information on any transactions within their wards, whether they were large or small, as there had only been information at the point of purchase and not before. 

Members also asked who would decide to sell the land.  This would be the Head of Service, which would then be forwarded on to the Cabinet Member for Assets, again, with the changes to the scheme of delegation, smaller issues would be delegated to officers.

The Chair suggested to the committee that it appeared that those present agreed in principal to the report and would generally prefer information rather than consultation.  It was reiterated by the Chair as outlined in the report that responsible officers would inform ward councillors.  It was generally agreed that it would firm up the process with the caveat in place that in appropriate cases ward members would be consulted.

Clarity was requested within the report to refer to any transaction below £10,000 as of monetary value which could be worth something to the council.  This would be covered in the matters in the proposed delegation.

Agreed:

To recommend to council adoption of the policy for Minor Property Transactions set out in this report to speed up and simplify minor property transactions and reduce management costs, with the following conditions -

§  £1,000 was the annual value

§  £10,000 would be a suggested cap value

§  Ward members to be consulted on all minor property transactions under the scheme of delegation

§  An update to be presented at a future meeting on how the information would be circulated to ward members