Knowlegate “Flog it” – some “answers”

Response to Freedom of Information request”

“Thank you for your request for information. Please find the response to your query below.

“Recently an email from a Conservative councillor was released into the public domain regarding the purchase of a “very large table in the members room” as a result of “an auction of council furniture, chattels, etc” to the benefit of members and EDDC staff. The email went on to state “I have been told that I have been successful in my bid so the table along with the 8′ extension is heading back to Exmouth to sit in (address of councillor), Exmouth in its rightful town (some may say)” and then stated arrangements for its removal date in order that it could be used for the Councillor’s Christmas dinner for 22 family members. Subsequently on 21st December 2018, the Leader of the Council made a statement about the disposal of a range of items, including this table. He said the large table “attracted little professional interest with one valuer estimate of just £50”. I would like to know:

1. If one valuer’s estimate was £50, what were the other estimates?
Other valuers viewed but were not interested in estimating for the table due to its low value

2. What are the names of the valuers who gave estimates for the table?
The other agents who attended to provide estimates were;
Potburys
Whittons
Lyme Bay
MST

3. Does EDDC audit not require a range and record of estimates for the disposal of council assets, as well as a record of disposals?
It is not clear what specific information is being requested here. Bids and disposal receipts will be recorded.

4. EDDC, like other councils, should have a written policy and procedure for the disposal of assets such as used equipment, furniture and other plant, What is that policy and procedure?
There is a link below to the ‘Property Matters’ section of the Council Constitution which is on our website, specifically items 15 & 16;

15. Authority (after consultation with the relevant Portfolio Holder) to dispose of property assets which have a market value which does not exceed £30,000.
16. Sale of vehicles, equipment or machinery surplus to the Council’s needs where the consideration does not exceed £30,000.

http://eastdevon.gov.uk/media/2537547/cj…

5. Who was the Councillor that successfully bid for “the very large table in the members room”?
This information is exempt from disclosure under s40 of the Freedom of Information Act as being personal data.

6. How much did the Councillor pay?
The bid was £400

7. Was the ornate clock on the mantel piece (as shown on the cover of the Residents Magazine, December 2018) part of this disposal process?
The clock in question originally belonged to Honiton Rural District Council and has been offered to Honiton Town Council.
If so, what was the valuation given? ? See above
What price was paid? ? See above
Who bought this clock? ? See above

8. How much money was raised from this sale of “items of sentimental interest or practical use”?
The items have not been sold yet so no information is currently held. We anticipate that a figure in the order of £2,000 will be raised which will be ring-fenced in the Civic Fund.

9. What are the “other sales” Councillor Thomas refers to?
The vast majority of items are office furniture (desks, chairs, cabinets). Items will be disposed of in a number of ways. These include via public auction, items given to local groups, town and parish councils in return for donations and income from bulk clearance.

10. How much money was raised from each of these “other sales”?
No information held

11. What is the total now of the Chairman’s Civic Fund?
The Civic Fund is a budget and therefore there is no ‘total’ fund as such. The ring-fenced fund is currently £0 as the items have not been made available for collection / payment.

12. Information about the Chairman’s Civic Fund is not easily accessible on the EDDC website; a word search on the site produces “no result”. Where can details of this fund and its administration be found?
Civic Fund and Civic Expenses are agreed as part of the Council’s annual budget: this is identified in the Councils approved Budget book for 2018/19:
http://eastdevon.gov.uk/media/2413383/re…
The relevant items can be found on page 7 and page 24.

I hope this information is helpful but, if you feel dissatisfied with the way we have responded to your request, please contact our Monitoring Officer, Mr Henry Gordon Lennox, to request an internal review [email address]

You may also approach the Information Commissioner for advice at http://www.ico.org.uk

https://www.whatdotheyknow.com/request/auction_of_council_furniture_cha#incoming-1300789

EDDC: “Relocation cost, No Deal Brexit, electric charging points and climate change motions rejected from being discussed”

Owl says: remember, the Chief executive, Mark Williams, is supposed to be a NEUTRAL civil servant and yet ALL of the refused motions are from ALL the minority groups ONLY……!

“Motions to support recycling, to call for a new property ombudsman to streamline complaints against shoddy builders, and for East Devon to get its fair share of the police precept rise will be discussed at next Wednesday’s full council meeting.

But motions over the full relocation costs of the move from Sidmouth to Honiton, to put electric charging points in all car parks, what to prioritise in a ‘No Deal’ Brexit and on climate change will not be discussed.

Various motions that councillors had put forward for debate at East Devon District Council’s full council meeting on Wednesday, February, were rejected by the council’s chief executive, as either the agenda already provides the opportunity for debate or the wording of the motions were inaccurate.

RELOCATION

Cllr Cathy Gardner had proposed a motion calling for the council to commit to publish an annual ‘summary of accounts’ for the relocation project until break-even is reached as relocation from Sidmouth to Honiton was proposed and predicated on the basis that the project would breakeven within 20 years and deliver cost-savings to the council tax payers of East Devon.

Cllr Gardner said: “Whilst some of this information is already available we feel it is vital for the ongoing costs to be published to show confidence that this project will breakeven. A majority of Councillors voted for relocation on the basis that money would be saved on energy bills. We are left unsure of whether breakeven will ever be proven.”

But an EDDC spokesman said: “The rejected motion contained inaccuracies and omissions that had the potential to mislead councillors and it was also premature. It is however proposed to bring a report to the next meeting of the Cabinet that will summarise the position reached with regard to the sale of the Knowle and the relocation. Cllr Gardner can raise the matters she is concerned about as part of the debate into that report.”

The motion would have called for the accounts to include

energy costs for the Knowle for the past 20 years (for comparison);

energy costs for both Blackdown House and Exmouth Town Hall per year;
the capital receipt for the sale of the Knowle;

a Red Book valuation of Blackdown House as of 1 March 2019;

the full costs for the relocation project since its inception, including: project management; removal, furnishing and equipment;

staff retraining and travel expenses;

new-build costs for Blackdown House; refurbishment costs for Exmouth Town Hall; and any other associated costs.”

CLIMATE CHANGE

Cllr Matthew Booth’s motion had called for the council to recognise that Climate Change and Global Warming are the key issues of our time, to acknowledge the strong concerns of young people in particular the recent walk out of school children and for the council to commit to introducing a policy of carbon measurement and reduction within all aspects of its own activity.

He said: “I personally do not care how we begin to do this, or who does it, but that we act now not wait for some planned strategy in the future.”

An EDDC spokesman said that the issue of climate change emergency is acknowledged to be of critical importance but that it would be appropriate to wait to see what Devon County Council decides. They added: “Currently, however, the County Council is considering its position and will shortly debate the matter. As we are in a two tier area it is appropriate for the District Council to assess the position taken by the upper tier authority and then respond accordingly. The public would expect us to work in partnership with the County Council rather than unilaterally.”

ELECTRIC VEHICLE CHARGING

Cllr Eleanor Rylance had submitted a motion calling for the council to plan for and implement over the next five years a full rolling renovation programme of its car parks estates to fit and bring into operation electrical charging points at every space for domestic cars, and cycle parks with charging points for all types of cycle and that there should be mandatory EV charging points for the parking spaces of every new-built house in East Devon.

She added: “This council should approach the future of electrically-powered domestic vehicles with enthusiasm and proactivity, play a positive role in helping develop the use of electrical and should make this infrastructure, that will be a necessity within the next ten years, available in advance of full electrification of domestic vehicles in 2042.

But an EDDC spokesman said: ““The agenda already provides an opportunity for this issue to be raised so this motion was inappropriate.”

BREXIT

Cllr Rylance had also submitted a motion that said in the event of a No Deal Brexit or a version of Brexit that causes significant disruption, the council should approach this event as a situation of emergency in respect of its most vulnerable residents, dedicating any available human, material and financial resources required to palliate any negative outcomes for these groups, but the motion was rejected.

Talking about all the motions, a council spokesman said: “The council agenda for February contains the most important annual decision, namely the setting of the budget and the approval of the Council Tax for the forthcoming year. The process leading to this meeting has included several meetings where members were encouraged to raise all items of future relevance so these could be assessed as part of our service planning process and for assessment as part of the budget.

“It is unfortunate that some members did not take these opportunities and have chosen instead to submit their proposed motions.

“It is also noted that the wording of the motions was not checked in advance with relevant officers who would have been able to give timely advice as to their wording.”

But motions on the police precept, protection for new home owners and supporting recycling will be discussed.

POLICING

Cllr Tom Wright’s motion says: “In view of the £24 per band D property increase in policing precept, this council urges the Chief Constable to recognise the needs of East Devon when deciding how to allocate extra resources. East Devon residents are the biggest contributors to the police budget in Devon, other than Plymouth. It is only fair that we should get a fair share of the larger cake.”

NEW HOMES

Cllr Douglas Hull’s motion says: “The Government has stated that it would therefore be introducing as a priority a new property ombudsman to streamline complaints against shoddy builders. As a council that not only provides an excellent and highly regarded building control service but also has seen significant levels of new building in its district, we call on the government to fulfil its pledge to provide this much needed remedy for homeowners as a matter of the highest priority.”

RECYCLING

Cllr Peter Burrows’ motion says: “This Council continues to support the fine work done by the EDDC Recycling team in achieving the best results in Devon and to support and encourage local Organisations and voluntary groups who are involved in trying to reduce the amount of single use plastics used in their communities & beaches by making resources and expertise available, where appropriate. The order of priority should be – Reduce, Reuse, Recycle. To actively help promote such activities through the Councils social media platforms.”

The full council meeting will be held at East Devon District Council’s new Honiton Heathpark HQ on February 27 at 6pm.”

https://www.devonlive.com/news/devon-news/relocation-cost-no-deal-brexit-2557565

“Knowlegate”: Del-Boy and the Trotters spring to mind – but just the fools (no horses that we know of)

“East Devon District Council’s senior management team have been rebuked by scrutiny councillors after failing to consider the public perception over the sell-off of assets from their former Knowle HQ.

The council this week completed its move from its former Sidmouth home at the Knowle, to Exmouth town hall and the new Honiton Heathpark HQ, and as part of the move, they had to find homes for various items that are unsuitable for its new building.

But a furore erupted just before Christmas when it was first revealed that council staff and members, but not the general public, were given the chance to bid on various items, and then when an email was leaked claiming a councillor managed to buy a large mahogany dining table and 20 chairs for £50 at the internal staff auction, instead of allowing it to be publicly auctioned for the best possible price.

A council spokesman had said that this leaked information was totally incorrect with the bid being for £400 and only including some of the chairs, and that the bid was withdrawn when Exmouth Town Council, who initially declined the offer of the table originally, changed their view just before Christmas and are now expected to take ownership of the table.

Cllr Ian Thomas, Leader of East Devon District Council, had previously said in a statement: “Our council relocation team has been working with professional auctioneers, Sidmouth Town Museum, charities and clearance specialists, to value and dispose of a wide range of items from our old East Devon District Council offices at The Knowle in Sidmouth.

“As part of this process, we offered our staff and elected members the chance to bid for items that may be of sentimental interest or practical use, but are of negligible commercial value.

“The value of items to be disposed were identified based on the view of experienced professionals. They included the large table from the Members area, which attracted little professional interest with one valuer estimate of just £50.

“All proceeds from this sale and those raised from other sales will go to the Chairman’s Civic Fund, to be donated to nominated charities.”

East Devon District Council’s scrutiny committee considered the disposal of the contents of the Knowle at their meeting last Thursday.

Richard Cohen, the Deputy Chief Executive, produced a report that outlined the process of disposal of items from the Knowle prior to handover to PegasusLife for demolition.

He said: “As part of that process and prior to the handover of the old office buildings to the developer, the council needs to clear the buildings. In total there are just over 2,600 separate items in the Knowle.

“The vast majority of these are office furniture: desks, chairs, cabinets etc of varying ages, condition and size. There are also a number of particular items of varying antiquity and value: these involve both furnishings and fixture and fittings. From a perspective of bulk disposal the estimated total weight of all these items is 45 metric tonnes.”

He outlined that Sidmouth Museum and Sidmouth Town Council were both interested in re-home various items, multiple local auction houses were invited in to look over items but that the majority of items were not of interest to them, and that for remaining items an opportunity was offered for council staff and members to bid for items whether for practical or aesthetic reasons.

He said: “These were items that had been attributed little or no sale value by the various professional auctioneers and ranged from standard office furniture items to cupboards, upholstered furnishings, tables, curtains for example. This element of the disposal process involves around seventy separate items and is likely to raise of the order of £2,000 for the Chairman’s chosen charities.”

Mr Cohen added that groups such as Action East Devon, Green Furniture Aid and Hospicare who are all either networked with voluntary groups or can sell furniture via charity outlets were asked whether they had an interest in some of the for the more generic items such desks, chairs and tables, but the response has been largely muted.

Town and parish councils will also be contacted asking them whether they have an interest in any items with the requirement that they transport said items away themselves, he added.

But councillors said that contrary to what Mr Cohen said, a full list of the items for disposal had not been circulated to them.

Scrutiny committee chairman Cllr Roger Giles said: “There has not been a list that we have seen so could someone produce a list that will be circulated very soon.” He also asked wat do town and parish councils know about the process, as the answer he had heard from them is nothing.

Cllr Cathy Gardner added: “Why was the full explanation of the process not circulated to members before we were given the chance to bid for items? The reason there was a furore around the subject as the offer of sale of items internally was offered in isolation and the lack of communication meant there was a lack of understanding of the wider process that this sat.”

Her recommendation, which the scrutiny committee backed unanimously, was that they remind the senior management team of the council to always consider the public perception of actions taken, particularly when it is involves public assets, and the disposal of public assets.

https://www.devonlive.com/news/devon-news/council-management-team-rebuked-over-2545040

Workplace parking charges -will EDDC officers and councillors finally have to cave in

Just about every year, Ottery independent councillor Roger Giles – whose environmental credentials are strong – has petitioned for EDDC councillors and officers to introduce parking charges to encourage them to think more about the need to use their cars. Every year, the Conservative majority has voted him down.

Maybe this will change – though with rural public transport so poor, it seems likely that they may have to stump up the cost! Particularly when what is left of it often stops so early!

Buses from the new Honiton HQ to Sidmouth will end at 8 pm, to Axminster they will end at 6.10 pm and to Seaton at 3.40 pm (yes, that’s right 15.40!).

Owl’s guess – allowances and salaries will be raised to cover the extra cost.

“The AA says plans to charge drivers up to £1,000 a year to park at work could become a “poll tax on wheels”.

Under plans to cut congestion, reduce pollution and raise money for public transport, a workplace parking levy is being considered by at least 10 councils.

The charges would affect businesses with more than 10 parking spaces and the AA said the costs would be passed on to workers.

The levy has already been rolled out in Nottingham where four in 10 companies pass on the costs to staff.

Since it was introduced in 2012, the charge has raised £53.7m which has been used to improve Nottingham’s tram network.

Hounslow Council in west London is proposing to charge between £500 and £1,000 a year for every parking space and at least nine other councils are considering imposing the levy.

Other cash-strapped authorities are likely to consider the measure because of a shortage of funding for road improvements and public transport.”

https://news.sky.com/story/drivers-could-be-charged-up-to-1000-a-year-to-park-at-work-11611486

Knowle Flog It: statement raises more questions than answers

An “explanation” of the Knowle Flog It fiasco appears in today’s Sidmouth Herald. It appears to be printed verbatim from a council statement.

Owl wonders why this statement was printed without challenging some of its very, very vague claims – one hesitates to use the word ‘facts’. “Journalism”? Not as Owl knows it!

Guess some answers MIGHT come from the Freedom of Information request by an Exmouth resident on 8 January 2019:
https://eastdevonwatch.org/2019/01/10/the-knowle-flog-it-scandal-rumbles-on/

In the meantime:

Amongst Owl’s questions:

It seems Councillor Skinner paid £400 for the table he wanted so urgently – earlier reports mentioned it being valued at a very low price, much lower than £400. Which is correct? And including just how many chairs?

Who decided on the “three disposal methods? It does not appear to be the Asset Management Group.

Which councillors have bought items? Have they declared these on their Registers of Interest?

Which groups were offered ‘free’ items, how were they chosen and by whom? Have any of these groups taken items – and if so, which groups and how much did they pay for them?

What exactly is the Chairman’s Civic Fund and how and when has it been used recently and in the past? What are its rules? Who oversees the disbursements?

Which local groups and charities will be able to bid for what is left after officers and councillors have taken their pick? How have they been chosen and by whom?

Are internal and external auditors happy with the procedures?

Will the Scrutiny Committee be scrutinising these actions?

Owl is sure readers have many more questions!

EDDC new HQ: take pics, post and boast on social media and ….

On 10 January 2019 EDDC posted pictures of its glam new shiny HQ building in Honiton

Unfortunately, they didn’t think it through and here are a few comments on that post:

Excellent!! So whilst many many families can’t afford to eat and are having to use food banks, or can’t afford gas and electric, you decide, the best thing to do is to put on your page pictures of your new offices, that the people who can’t afford to eat, have paid for it. …

They do as they please because they’re a law unto themselves. They can do what they want with your money and get away with it. You can argue with them til your blue in the face and NOTHING. They will always win. …

Shame you sold all the stuff from the old building off dirt cheap to the staff and councillors. £50 for a 24 seat mahogany table. Shame shame shame on you. …

My god, the more I see this, the more it’s unbelievable, really EDDC, you should be ashamed, not only is this building an eye sore on our towns landscape, the disgusting amount of money it is costing is nothing short of a disgrace, and then you have the audacity to show off the extravagant interior on Facebook, when there are families struggling to pay your thieving council tax. Let’s hope your illustrious leader, whoever he or she is, comes on here and apologises for this self indulgent, disgraceful post, shame on you EDDC!!!!!

The Knowle “Flog It” scandal rumbles on

Recent Freedom of Information request:

“Dear East Devon District Council,

The following is a request in accordance with the Freedom of Information Act 2000.

Recently an email from a Conservative counsellor was released into the public domain regarding the purchase of a “very large table in the members room” as a result of “an auction of council furniture, chattels, etc” to the benefit of members and EDDC staff.

The email went on to state “I have been told that I have been successful in my bid so the table along with the 8’ extension is heading back to Exmouth to sit in (address of councillor), Exmouth in its rightful Town (some may say)” and then stated arrangements for its removal date in order that it could be used for the Councillor’s Christmas dinner for 22 family members.

Subsequently on 21st December 2018, the Leader of the Council made a statement about the disposal of a range of items, including this table. He said the large table “attracted little professional interest with one valuer estimate of just £50”.

I would like to know:

If one valuer’s estimate was £50, what were the other estimates?

What are the names of the valuers who gave estimates for the table?

Does EDDC audit not require a range and record of estimates for the disposal of council assets, as well as a record of disposals?

EDDC, like other councils, should have a written policy and procedure for the disposal of assets such as used equipment, furniture and other plant, What is that policy and procedure?

Who was the Councillor that successfully bid for “the very large table in the members room”?

How much did the Councillor pay?

Was the ornate clock on the mantel piece (as shown on the cover of the Residents Magazine, December 2018) part of this disposal process?

If so, what was the valuation given?

What price was paid?

Who bought this clock?

The Leader of the Council referred to proceeds of this sale and other sales going to the Chairman’s Civic Fund.

How much money was raised from this sale of “items of sentimental interest or practical use”?

What are the “other sales” Councillor Thomas refers to?

How much money was raised from each of these “other sales”?

What is the total now of the Chairman’s Civic Fund?

Information about the Chairman’s Civic Fund is not easily accessible on the EDDC website; a word search on the site produces “no result”. Where can details of this fund and its administration be found?

Yours faithfully,”

https://www.whatdotheyknow.com/request/auction_of_council_furniture_cha

That Knowle table … sold for £50?

Oh, er – been kicking off on Facebook page!

22 foot mahogany table with 8 foot extension (not sure if included in 22 foot or makes it 30 foot, but probably the latter). Rumour is it was “valued” and was sold for a winning bid of £50 (fifty pounds).

Most councils have a policy on this. Anyone seen East Devon”s?

Plundering of Knowle assets by councillors? Best value?

It appears that councillors and officers have been given first dibs of Knowle assets, in advance of the move to Honiton and one of them has rather jumped the gun on claiming his prize.

Is this best value or equitable, Owl ponders? As does at least one independent councillor.

Note: Neither of these emails were marked private and/or confidential when acquired by Owl.

From a well-known Conservative councillor:

Subject: Re; Large Table In Members Area

Dear Members and SMT,

Subject: Re; Large Table In Members Area

You will all be aware there has been an auction of council furniture, chattels etc of which I bid for a few bits and pieces.

I bid on behalf of my partner for the very large table in the members area along with the 20 green chairs that we all sit around.

I have been told that I have been successful in my bid so the table along with the 8’ extension is heading back to Exmouth to sit in (address of councillor), Exmouth in its rightful Town (some may say).

The relevance of my informing yourselves is that the rightful date of removal is end of January/ beginning of February when we finally ‘pull out of the Knowle.

I would apologise for the short notice but we have 22 family members to Christmas dinner and would like to pick the table up tomorrow as it appears it is the last day of our offices being open, which of course would mean I couldn’t collect it on Monday, 24th, as we will be closed.

We do have one or two meetings between the New Year and our final pull out but I feel it only right to ask members if indeed anybody felt offended if it was collected tomorrow on our last day.

I will fully respect any position any member may feel regarding it being removed earlier and would kindly request your thoughts.

If indeed it were removed earlier I have spoken to Simon Allchurch who feels we could put a few of the red tables on wheels in the place of the table and there is an array of chairs to use for members in the interim so it doesn’t look bare.

I must again apologise for the short notice but with the closing date being the 19th and all that goes with it at this time of year I would like to think you may grant me a little latitude (or not).

Best wishes and a Happy Xmas to one and all.”

And here is the response from an Independent councillor

“I feel I must reiterate my comment from when this started. Who authorised the ‘private sale’ of Council property to staff and members? Why are we not duty-bound to seek the best price at public auction? No-one answered my questions.

Will we ever know the proceeds of this internal sale for the public record?”

I strongly suspect that members of the public would be shocked to know that councillors have been able to buy items in this way. It is somehow appropriate that 22 family members will sit down to feast at this table, assuming the removal goes ahead.”

“Doctors say a new retirement village in Torbay will put too much pressure on care services ‘close to breaking point’ ” – and Sidmouth?

“Doctors are objecting to plans for a retirement village in Torbay because of the pressure extra elderly residents will add to local health and care services “already close to breaking point.”

English Care Villages has submitted plans to Torbay Council for a 159-home “continuing care retirement community” at Sladnor Park, a former holiday park near the village of Maidencombe on the coast between Torquay and Shaldon.

Maidencombe Residents Association says the apartments would be too expensive for locals and the isolated site two and a half miles from the nearest urban centre at St Marychurch would bring in outsiders who would increase pressure on health and care services.

Objections to the plan include one from Torquay GP, Dr Roger Fearnley, who warned health services were already “close to breaking point” and said the Sladnor park development would attract people retiring from outside the local area.

He said in a comment on the planning application: “This influx of people would put significant further strains on health and social care services which are already close to breaking point.

“I am not aware of any meaningful conversations between the developers and local GP practices. There seems to be the assumption ‘we will cope.’ We may not.”

Retired GP Dr Vivienne Thorn, who lives at Maidencombe, objected to the plan mainly because of its impact on local care services, and also questioned whether its isolated site could turn it into a “rich person’s ghetto”. She said the impact on health and social care had not been properly assessed.

Dr Thorn wrote: “An additional 200 elderly people will place an intolerable strain on GP and Community services.”

Richard Whistance, of Sladnor Park Road, near the development site, said approving the scheme would ruin the natural environment of the land and open the door to developing other countryside areas. He said it would affect rare wildlife including legally protected bats, slow worms, badgers, cirl buntings and nesting buzzards.

He said: “This is not to be ignored; especially in these times of rapacious development and ecological destruction, Sladnor Park needs preserving as countryside.” …”

https://www.devonlive.com/news/doctors-say-new-retirement-village-2313490

Sidmouth flood defences delayed so PegasusLife can gobble up car parks and meadows to store building materials!

“A £750,000 scheme to protect hundreds of town-centre homes and businesses from flooding looks set to be delayed until the building of a controversial 113-home retirement community at Knowle is completed.

The news comes after the district council agreed with developers PegasusLife to allow the use of the lower car park and nearby flower meadow for storage space during construction. It is not yet clear on what basis the council’s car park is being used.

The use of the lower car park would mean phase two of the £759,000 Sidmouth Surface Water Improvement Scheme will have to be redrawn as the proposed lagoon feature and above ground storage area are located adjacent to the car park.

Devon county councillor Stuart Hughes said officers will meet the district council on Thursday (November 29) to discuss options at the site.

Cllr Hughes said: “After all the work that’s gone into getting the funding for the scheme, it will be delayed.

“East Devon District Council [EDDC] has agreed to the storage equipment of PegasusLife for their construction and will not allow county to use this area until after construction is complete.

“Hopefully the officers will find out at the meeting which option they prefer and whether we can achieve the level of flood improvements we desire.

“I do hope that we can find an alternative for the lagoon SUDS system so that the 300 properties and businesses in the town will be protected from future flood events.”

An EDDC spokeswoman said the authority is in discussion with the partners involved.

In January, PegasusLife won an appeal to turn EDDC’s headquarters at Knowle into a large scale 113-home retirement community after its application was rejected in December 2016.

Campaigner Ed Dolphin has slammed the use of the car park as a ‘slap in the face’ and claims it is likely to be a blow to Sidmouth’s economy as it might affect the park and walk service into town.

Mr Dolphin said: “Many people objected to the Knowle development as a blight on the green corridor as visitors entered the town. This move will bring it to the forefront, right down to the roadside.

“Even worse, it seems that the developers need even more space and so they are to be given the flower meadow next to the car park as well, the one that was mown by mistake in the summer and which EDDC promised to care for in the future. The meadow is already waterlogged for the winter and storing building materials and machinery on it will probably ruin it for years.

“I do not see why PegasusLife need this extra space, their site has three large car park areas that could be used for storage at various times in the development.”

He called the park and walk car park in Station Road a ‘valuable asset’ as it reduced the strain on the town centre, was popular in the winter and boosted the town’s independent traders.

PegasusLife has been approached for a comment.”

https://www.sidmouthherald.co.uk/news/eddc-pegasuslife-throw-flood-scheme-at-knowle-into-question-1-5798537

Retirement home builders feeling the pinch …

“” … Another profit warning at McCarthy & Stone (MCS.L) triggered a sharp share price fall for the UK’s biggest builder of homes for retirees a 18.8 percent decline. …”

Could this be part of the reason? There are no affordable properties being built at the PegasusLife Knowle site:

“The Mayor of London’s Office has today welcomed a judgment handed down by the High Court that has backed the Mayor’s ‘threshold’ approach to affordable housing.

Following a legal challenge by four retirement homes developers, the Hon Mr Justice Ouseley has ruled that the Mayor’s threshold approach, which allows developments to be fast tracked through the planning system where they provide at least 35 per cent affordable housing, is consistent with the adopted London Plan.

The judge rejected claims by McCarthy and Stone Retirement Lifestyles Ltd, Pegasus Life Ltd, Churchill Retirement Living and Renaissance Retirement Ltd that this policy, contained within the Mayor’s Supplementary Planning Guidance (SPG) on Affordable Housing and Viability, would fail to secure the maximum reasonable level of affordable housing.

Jules Pipe, Deputy Mayor for Planning, Skills and Regeneration, said; “Tackling the capital’s housing crisis is the Mayor’s top priority and this ruling is an important moment for thousands of Londoners who are desperate for genuinely affordable homes to rent and buy.

“Our guidance sets out a clear approach that makes the planning system in London clearer, quicker and more consistent. I am pleased that the Judge has backed this approach which will help us to turn around years of neglect when it comes to building the homes Londoners so desperately need.”

The Mayor’s Draft London Plan includes the same requirements on reviews as the SPG. The judgment confirms that this has weight as it is an emerging plan.

The judgment also rejected the claims of the retirement homes developers that the guidance should have been the subject of Strategic Environmental Assessment and found that the claims that the Mayor had failed to have due regard to his duties under the public sector equality duty of the Equality Act 2010 were unarguable.”

https://www.london.gov.uk/press-releases/mayoral/judge-rules-in-favour-of-mayors-housing-approach

It’s going to take more than a yew tree branch to ward off evil at EDDC new HQ!

And who at EDDC was responsible for this press release that gives the (totally erroneous) impression that the sale of Knowle is 100% financing the new HQ?

https://eastdevonwatch.org/2018/06/16/sums-on-knowle-relocation-not-adding-up-for-us-the-taxpayers/

“A yew tree branch has been placed on top of East Devon District Council’s new HQ to “ward off evil spirits”.

The topping out ceremony took place at Blackdown House in Honiton, which will be the council’s new home by January 2019.

As part of the ceremony, a yew tree branch was attached to the highest point of the building.

The ceremony was completed by council chairman Andrew Moulding and leader Ian Thomas. A council spokesman said it was “an age-old tradition”.

The authority plans to move from its current HQ in Sidmouth to Blackdown House in December 2018. The move will be financed by selling the property to Pegasus Life Ltd for £7.5m, which will turn it into a 113-apartment assisted-living community. …”

https://www.bbc.co.uk/news/live/uk-england-devon-44465408

Sums on Knowle relocation not adding up for us, the taxpayers

“Remaining at Knowle with essential and basic repairs undertaken would have cost the council £ 4.5m over 20 years. In contrast moving to the new HQ in Honiton will provide a cash saving of £ 1.4m over the same period. That’s a difference of £5.9m.’

The above quote is lifted from the EDDC web-site.

So even using their figures, it will take 20 years to recover half the cost of the new building. Only after 40 years will we get our money back.

So if we see a Devon unitary authority in the next 40 years we will lose money.

But, of course, it’s much worse, because the EDDC numbers assume that there will be no ‘essential and basic repairs’ to the new building over those 40 years. Impossible, of course.

Even worse, no-one wanted EDDC to remain in the whole of the Knowle building. Those opposed to the move recommended that EDDC retrench to the modern buildings that were built in the late 1970s and early 1980s. Half the size of the Knowle as it now stands. So, even using EDDC’s figures, half the size would mean half the ‘essential and basic repairs’, so only £2.25 million, and half the ‘cash saving’ of £1.4 million, so a trifling £700,000 over 20 years. Peanuts.

So even using EDDC’s own numbers, the new building cannot produce any savings for 80 years.

Even, even worse, EDDC has borrowed the money to build the new building. The cost of borrowing £11 million, the notional build cost of Blackdown House, is of the order of £400,000 per annum, dwarfing the expected savings.

Even, even, even worse, the costs of the new building do not include the fees charged by various advisers over many years, the cost of the move itself, compensation to staff forced to travel further, new equipment, officer and councillor time, and the cost in terms of disruption. Plus all the costs of disposing of the Knowle.

The true cost of relocation is almost certainly at least £20 million.

Even, even, even, even worse, those EDDC numbers do not take into account the ‘essential and basic’ repairs conducted at their new Exmouth office, which came in at a whopping £1.7 million. Nor the running costs of Exmouth, which will surely be at least £1.4 million over that 20 year period. Almost certainly much more: Exmouth is, of course, an old building from the 1920s, far older than the modern brick buildings at Knowle.

Blackdown House will be a tremendous drain upon the finances of EDDC from the day it opens, and the expected cost savings thereafter will be microscopic compared to the huge borrowing costs.

But the biggest problem of all is that EDDC’s own consultants informed them that the building constructed at a cost of £20 million would only have an open market value on its completion of £3 million. That included the value of the land on which it sits.

So, if Devon goes unitary any time in the next few years, we will have lost £17 million.

The only good news for residents of East Devon is that the whole of Devon will then have to pay the bill and the borrowing costs.

“Elderly and disabled at risk in inadequate housing, human rights watchdog finds”

Owl says: Not to worry – those at the luxurious PegasusLife development at Knowle will be just fine!

“Britain’s planning rules are fueling a housing “crisis” for the elderly and disabled which is forcing the frail to live in dangerous conditions, a leaked report by the Equality and Human Rights Commission seen by the Telegraph has found.

The Commission’s report, due to be released next month, found a “severe shortage of accessible and adaptable housing” with only seven per cent of homes in England offering minimal accessibility features.

It warns that local councils are failing to build enough accessible homes to meet demand and were not taking action against developers who failed to comply with regulations.

The Commission, a human rights watchdog, said that at least ten per cent of all future housing should be built with a growing elderly and disabled population in mind and that local authorities must reduce the bureaucratic hurdles for adapting homes.

The report comes at a time of a growing social care crisis in Britain with many elderly and frail people stuck in hospitals, unable to be discharged due to inadequate housing.

At the same time, younger Britons are struggling to get on to the housing ladder with older people unable to downsize due to a lack of suitable properties.

Following an inquiry into the state of housing for disabled people in Britain, the Commission reported that the “acute housing crisis“ was leaving elderly and disabled people in unsafe homes and leading to accidents and hospital admissions.

The report’s executive summary, seen by the Telegraph, said that some people were forced into “eating, sleeping and bathing in one room” and to rely on family members to carry them between rooms and up stairs.

Local authorities told the Commission that developers are “reluctant to build accessible houses, as they see them as less profitable”, and often failed to comply with accessibility standards.

Disabled older people are being let down and this is a stark reminder that urgent action is needed, which is the least they deserve in a compassionate society.

Despite this, just three per cent of councils took enforcement action against developers who failed to meet these standards, the Commission found.

The report also said that people were forced to wait an average of 22 weeks between application and the installation of home adaptations necessary to live safely and independently, with some waiting for more than a year.

The Commission’s report said that better housing would help ease the health and social care crisis as it found that poor housing led to an “increased need for social care” and “avoidable hospital admissions”.

Responding to the report, charities warned that the lack of suitable housing was exacerbating the NHS crisis as elderly and disabled people were forced to stay in hospital for longer due to a lack of safe accommodation.

Caroline Abrahams, charity director at Age UK said: “Providing accessible homes must be seen as core to reducing pressure on social care and the NHS.

“If these recommendations are implemented they will help many more older and disabled people to receive care and support at home.”

She added: “It’s vital that we build safe, accessible, high quality homes that work for all generations and that don’t undermine our ability to stay independent as we get older.”

George McNamara, director of policy and public affairs at Independent Age, the older people’s charity, said: “These are some of the most vulnerable people but they’re forgotten when it comes to housing policy. They are being discriminated against by a system that doesn’t work for them.

“This issue is only going to become more important as our population ages and people have a greater need for specialist housing that addresses all their health and care needs.

“Disabled older people are being let down and this is a stark reminder that urgent action is needed, which is the least they deserve in a compassionate society.”

Rob Wilson, former Government minister for civil society, said: “This isn’t a new problem, but this is a timely report and reminder that disabled people face enormous challenges with getting appropriate housing.

“Almost every local authority area faces the same difficulty in getting enough wheelchair accessible houses built.

“The Government’s drive to increase house building is very welcome, but clearly there is much more to do for those with these special requirements.”

Cllr Izzi Seccombe, chairman of the Local Government Association’s Community Wellbeing Board, said councils needed “greater planning powers and resources to hold developers to account”.

“Housing is too often unavailable, unaffordable, and not appropriate for everyone that needs it. This includes the availability of homes suitable for older people and people in vulnerable circumstances,” she said.

A spokesman for the Ministry of Housing, Communities and Local Government said: “Our new planning rules make clear that councils must take the needs of elderly and disabled people into account when planning new homes in their area.

“We’re also providing councils with almost £1 billion over the next two years to adapt properties for disabled and older people so they can live independently and safely.”

https://www.telegraph.co.uk/news/2018/04/22/elderly-disabled-risk-inadequate-housing-human-rights-watchdog/

When Northampton County Council went “bankrupt” – Inspectors’ comments on scrutiny an “how others see you”

…”The way that NCC went about its scrutiny function brought very strong words from the inspectors. They noted that a number of councillors told them that they had been refused information. They cite a specific example which I extract below:

Perhaps the clearest demonstration of this unnecessary secrecy during the inspection took place at the Cabinet meeting on 13th February 2018.

3.80 Agenda item 11 was titled Capital Asset Exploitation. This was in fact a proposal to sell and lease back the recently completed HQ building at One Angel Square. This disposal is a potential £50m in value so it would be reasonable to expect a full options appraisal and some clear professional valuation advice as to the likely quantum of proceeds and the ways in which a disposal might be handled to best achieve a best value result. It is likely that much of this information would be exempt information so that there would be a confidential paper appended to the agenda. If that information was not available then it could only be on the basis that it was not being relied on in taking a decision.

3.81 At the meeting a number of questions were raised on these very matters and Cabinet members stated that they were privy to confidential information which supported their recommendation but that it was not available to other members.

3.82 Even if there was a concern about the publishing of confidential information most authorities have protocols and practices which make it possible for key information to be shared and protect the authority. To refuse it outright is just wrong.

Again, during an inspection, it appears that a decision for members to take was incorrectly presented without the necessary evidence.

Lesson 6 – How others see you

A key measure of governance is how well does an authority deal with complaints. During the Inspection the Inspectors commented that most unusually the Local Government and Social Care Ombudsman contacted them. He said that NCC was one of the most difficult authorities to engage with both in time to respond and also in terms of approach to complaints handling learning from mistakes and remedying injustice [32].

Here again the point emerges that services may well be worse than they superficially appear, but there could come a time when the council is on the ropes and at that point others come forward and say what they really think. It is always sensible to treat concerns by the Ombudsman as meriting a chief statutory officers’ agenda spot.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=34806%3Alocalism-best-value-inspections-and-northamptonshire-county-council&catid=59&Itemid=27

Note: this puts Owl in mind of this what judge said when the Information Commissioner v East Devon District Council Knowle confidential information case was decided in court:

“Correspondence on behalf of the council, rather than ensuring the tribunal was assisted in its function, was at times discourteous and unhelpful, including the statement that we had the most legible copies [of the disputed information] possible. A statement which was clearly inaccurate as, subsequently, we have been provided with perfectly legible documents.”

http://www.midweekherald.co.uk/news/election/heads-should-roll-as-judge-criticises-eddc-1-4075293

EDDC HQ builder in trouble – “problems emerged two years ago”

Owl says: due diligence?

September 2017:

“Construction of East Devon District Council’s new headquarters in Honiton is progressing well with groundworks completed and the building foundations underway.

The council is expected to be working in the new premises by December 2018 and contractors, INTERSERVE Construction Ltd, are on schedule to complete on time. …”

http://eastdevon.gov.uk/news/2017/09/foundations-in-place-for-new-east-devon-district-council-hq-in-honitons-heathpark/

TODAY:

Outsourcer Interserve seeks vote for borrowing increase

INTERSERVE will call a meeting of shareholders to seek approval to increase its borrowing limits and prevent it breaching its banking covenants.

The construction and public services group says that it needs higher borrowing levels because of expected “significant balance sheet writedowns”, which it expects to report in full-year results delayed until the last day of this month, only two days after the meeting.

INTERSERVE is one of Britain’s biggest outsourcing companies, cleaning schools, hospitals, government offices and railway stations. It also operates facilities for the ministries of defence and justice. It has annual revenues of £3.2 billion and employs 80,000 people.

It has been feared that INTERSERVE could become another Carillion, a larger rival that went bust at the turn of the year after the failure of several building contracts. Interserve is on the government’s watch list, with Deloitte, the accounting firm, having been brought in to monitor the company. EY, another of the Big Four accountants, is advising Interserve and its lenders.

The business’s problems emerged two years ago after the failure of a venture to build energy-generating incinerators led to it having to pay out £195 million in compensation and penalties.

In a statement to the stock market, Interserve said that at its year-end, its net debt had risen to £513 million. …”

Source: Times (paywall)

A new council HQ? Oh, oh – this looks VERY familiar!

Owl has been doing some digging about how Northamptonshire County Council (NCC) tanked and has come up with some worrying information which resonates somewhat worryingly with our own area …

Remember that NCC built a new HQ and almost immediately had to attempt to buy its way out of debt by selling it and renting it back to themselves.

The new NCC HQ (One Angel Square) was originally going to cost £34 million, then £40 million, then £43 million, then £52 million, then £53 million. It was eventually delivered ‘under budget’!

But as costs rose, the size of the building was reduced by 20%. So effectively the cost doubled!

NCC built their new HQ to replace 12 existing buildings. Those 12 buildings were claimed to be costing £53,000 a week to run. It was later claimed that the new building would save £52,000 a week in running costs. Work that one out!

As soon as the new building opened, staff complained about the lack of space and the 20 minutes every morning sorting out their ‘hot desks’.

http://www.itv.com/news/anglia/2017-10-12/53m-project-combines-12-council-offices-into-one-building/

Some FAQs from the early consultations:

Q4: Isn’t this just building up debt for the county when it can ill afford it?

A4: This is a spend to save scheme. The county council will continue to take
opportunities like these to invest in new infrastructure which will ultimately reduce the debt. By doing nothing the debt position will get worse than undertaking the new build.

Q5: How can the council afford to build a huge new office block on the one
hand but on the other hand plead poverty and cut services or turn off street
lights? Couldn’t this money have been better used to protect services?

A5: It is by taking this step that will help us protect services. By maintaining the status quo and spending increasing amounts of money to maintain and operate old buildings that are no longer fit for purpose the council would be forced to redirect costs from front line services. By taking these proactive decisions now and saving building operating costs in the future it will allow those savings to either reduce debt or be spent on front line services.

Q6: Surely there’s a less expensive solution. Why don’t you convert one of
your buildings – like JDH – so it can take more people? That would be a far
cheaper solution.

A6: The other options have all been professionally evaluated. By looking at all the costs and benefits of the different options a new build at the Angel Street came out as the best option.”

https://www.northampton.gov.uk/download/downloads/id/7116/statement-of-community-involvement-pdf
(page 149)

Which all looks just a bit too familiar…

EDDC “Council decision to sell HQ for £7.5M is worst deal ever, activists”

Activists have branded a council decision to sell its HQ “the worst deal ever” for taxpayers.

East Devon District Council is selling its offices at Knowle in Sidmouth to Pegasus Life Ltd, one of Britain’s largest retirement housing developers, for £7.5 million.

The developable value of the site – divulged in a response to a Freedom of Information request in January-has been set at £50 million, with Pegasus Life Ltd set to make a £10 million profit.

Pegasus is owned by an American firm listed in the so-called Paradise Papers, 13.4 million confidential electronic documents relating to offshore investments that were leaked to German reporters last year. Offshore investments enable companies and individuals to shelter their wealth and avoid tax. They are legal.

Paul Arnott, chairman of the East Devon Alliance campaign group, said: “Why were councillors never told that our last great piece of family silver the Knowle – would be worth a massive £50 million after development?

“If any individual person in East Devon was told their prime location property could be developed and sold on for £50 million they’d never accept £7 million.”

In December 2016, the council’s planning committee rejected Pegasus Life’s planning application for 113 extra care units, but following a four-day inquiry into the developer’s appeal in November, a planning inspector gave the firm approval for the scheme which includes a café and swimming pool. Sidmouth has been allocated only 50 extra care homes in the council’s Local Plan.

The Alliance said it was an “exceptionally bad” deal, because, in accordance with the old land buyer’s rule of thumb, the landowner of a site should expect around a third of its developable value – in this case £16.5 million.
A council spokesperson said the deal was based on the site’s land value – in its current state. The site includes the buildings, terraces and top car parks.

Moving council operations to Honiton, with a satellite office at Exmouth Town Hall, has a budget of £10 million and is being funded out of the council’s coffers and a Public Works Loan Board loan.

The council spokesperson said that “from day one”, council running costs would reduce significantly when it leaves the Knowle and during its first full year of operations at Honiton it will save £135,000, with savings increasing year-on-year.

The Alliance pointed out that because the proposed complex is considered to be a residential/care home development, as opposed to a general residential development, the developer is not required to pay Section 106 money towards providing community services. The developer is only contributing £12,000 to improve access/footpaths to the site from adjacent parkland.

However, the developer could have to comply with what is known as an overage clause: If more than a 20% profit is made from the development, the council will be entitled to 50% of any profit made over and above the 20%, to a maximum of £3.5 million.

A council spokesperson, said: “We have carried out due diligence on Pegasus Life Ltd and are satisfied that they are an established and successful company suitably financed, capable of delivering the promised development and able satisfy their contract with the council.

“Selling the Knowle and moving offices is key to continuing to serve our communities. Services to our communities are what matter, not the vanity of paying to stay in an outdated and expensive building.

Pegasus Life Ltd bosses did not comment when asked whether any of the profit of its Sidmouth development could end up in tax havens. However, Howard Phillips, its chief executive, said: “We pride ourselves on the quality of our developments and the sensitivity of our designs to ensure they fit in with the area’s achitectural vernacular.

“The UK is in the middle of housing crisis and local authorities need to make cohesive eve plans that meet the needs their local towns. This includes provision for people over 60.”

Source: Western Morning Newz

New Knowle owners will benefit from £750,000 taxpayer-funded flood prevention scheme

“The first phase of the project will include drainage improvements, followed by the installation of a massive water storage tank at Knowle.

Funding to the tune of £750,000 has now been secured after a 2013 report found that Sidmouth has a history of flooding, both from rivers and surface water. …

Mr Hughes added: “It is hoped that the surface water drainage improvements can 
be delivered during 2018/19 and storage at the Knowle – which will be subject to landowner agreement and planning approval – to be created in the latter stages of 2019/20. …”

http://www.sidmouthherald.co.uk/news/750k-secured-to-protect-sidmouth-properties-from-flooding-1-5418416