Why is Wirral Council being charged £49,047.35 a month for VAT on school meals by Edsential Community Interest Company?

Why is Wirral Council being charged £49,047.35 a month for VAT on school meals by Edsential Community Interest Company?

Why is Wirral Council being charged £49,047.35 a month for VAT on school meals by Edsential Community Interest Company?

                                                   

Wirral West Constituency Committee 30th June 2016 Left Cllr Jeff Green Chair Right David Armstrong Assistant Chief Executive
David Armstrong (right) Assistant Chief Executive (a company director of Edsential Community Interest Company) at a recent meeting of the Wirral West Constituency Committee (30th June 2016)

Updated 15#47;8#47;16 following responses by Edsential and Wirral Council

Below is an invoice from Edsential Community Interest Company to Wirral Council for school meals in December 2015 and operation charges from December 2015 to March 2016.

Edsential invoice to Wirral Borough Council 2nd January 2016 Wirral Schools meals and operation charges £404084.10
Edsential invoice to Wirral Borough Council 2nd January 2016 Wirral Schools meals and operation charges £404084.10

I’m puzzled as to why the school meals element for £245,236.75 attracts VAT at 20%, when Her Majesty’s Revenue and Custom’s guidance note on VAT on school meals would seem to (at least by my reading) state that school meals (apart from those to staff and visitors) are exempt from VAT.

Therefore I’m puzzled why this element of the bill attracts VAT of £49,047.35, when surely the amount should be different than this (if it was just for staff and visitor meals)?

However Wirral Council’s paid the VAT on the school meals charge from Edsential. This is per a month (and some of December no school meals will be served because of the Christmas holidays), so over the year it means the VAT could be a few hundred thousand?

This is well below the level of materiality or triviality which is why it probably doesn’t get picked up routinely, after all Edsential is a relatively new arrangement.

But when the taxpayer is funding free school meals, what’s the correct tax situation?

Both Wirral Council and Edsential have been in touch since this article was written and their responses are below.

Wirral Council reclaim the VAT back from HMRC and state that no VAT is charged to pupils for school meals, Edsential claim the VAT they charge Wirral Council is correct.

Updated 13/8/16 A reader, h/t to Nigel Draper points out this explanation about how VAT on school catering works from a different local authority.

Updated: 12/8/16 some replies on Twitter state that if Wirral Council was providing these services to schools then the catering services would be exempt from VAT, however the issue of whether schools are exempt from paying VAT on catering services are in related to a limited company owned by two local councils rather than the Wirral Council itself.

Updated 15/8/16:

Ian McGrady (Managing Director) of Edsential has responded with, “As a matter of policy we do not comment on commercially confidential relationships with our customers. However, I can confirm that our management of VAT complies with all HMRC guidance appropriate to our status as a Community Interest Company.”

Peter Molyneux of Wirral Council confirmed that when Metro Catering (an arm of Wirral Council) were providing a school meals service then VAT was not chargeable. Now Wirral Council contract with Edsential, Edsential charge Wirral Council VAT which Wirral Council then claim back from HMRC.

So Wirral Council do pay the VAT, but then claim it back on their monthly VAT return.

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What is in 13 Merseytravel/Liverpool City Region Combined Authority contracts and hundreds of pages of invoices relating to the 15/16 financial year?

What is in 13 Merseytravel/Liverpool City Region Combined Authority contracts and hundreds of pages of invoices relating to the 15/16 financial year?

What is in 13 Merseytravel/Liverpool City Region Combined Authority contracts and hundreds of pages of invoices relating to the 15/16 financial year?

Councillor Steve Foulkes (Labour) (right) speaking at a recent meeting of the Birkenhead Constituency Committee (28th July 2016) while Councillor Pat Cleary (Green) (left) listens
Councillor Steve Foulkes (Labour) (right) speaking at a recent meeting of the Birkenhead Constituency Committee (28th July 2016) | Councillor Pat Cleary (Green) (left) listens. Cllr Steve Foulkes is Merseytravel’s Lead Councillor for Finance and Strategy.

Merseytravel and the Liverpool City Region Combined Authority were the last public body to respond to my request to inspect and receive copies during the 30 working day period which was originally supposed to run starting on the 1st July 2016.

Interestingly the public notice for Merseytravel published on their website and the public notice for Liverpool City Region Combined Authority published on Merseytravel’s website, a Julie Watling (Merseytravel) stated in response to a FOI request on the 8th August 2016, that “This notice is not unfortunately on our website at this present time.”.

This was interesting as the 30 working day period isn’t allowed to start until the public notice is published!

However the FOI request went to an internal review and Julie Watling of Merseytravel responded on the 11th August stating that, “However I had been mistakenly informed that the information was not on the website, when in fact it was available at the following links:-”

Merseytravel public notice 15/16 FY

Liverpool City Region Combined Authority public notice 15/16 FY

But then, is it reasonable to expect an organisation to know what’s published on its own website and to answer Freedom of Information Act requests accurately or am I asking too much?

Which is the correct answer?

However the information (or to be more accurate part of the information) I requested arrived in the post yesterday (postage around £6.20 as it was special delivery guaranteed by 1pm) with a covering letter from a trainee solicitor and DVD.

Below is what was on the DVD. I did get a further email yesterday with a contract that had been mistakenly left off the DVD too.

Although the internal review clears up the issue about the public notice on Merseytravel’s website, for the Liverpool City Region Combined Authority it should’ve been published on the Liverpool City Region Combined Authority’s website, not Merseytravel’s.

So part of my objection I sent to the auditors yesterday still stands.

The invoices are split by the thirteen accounting periods that Merseytravel used during the 2015 2016 financial year, although why spoil the surprise when you can read for yourself below?

There are some interesting matters to be gleaned from the invoices and contracts, however I don’t have the time at present to blog about them in detail.

Invoices 2015 to 2016 financial year (Merseytravel and Liverpool City Region Combined Authority).

11.3 MARCH3-810124407-0001 Merseytravel LCRCA invoices 2016

11.2 MARCH2-810124324-0001 Merseytravel LCRCA invoices 2016

11.1 MARCH1-810124215-0001 Merseytravel LCRCA invoices 2016

10 FEBRUARY-809164910-0001 Merseytravel LCRCA invoices 2016

9 JANUARY-809164746-0001 Merseytravel LCRCA invoices 2016

8 DECEMBER-809164624-0001 Merseytravel LCRCA invoices 2015 2016

7 NOVEMBER-809164505-0001 Merseytravel LCRCA invoices 2015

6 OCTOBER-809164348-0001 Merseytravel LCRCA invoices 2015

5 AUGUST-810123950-0001 Merseytravel LCRCA invoices 2015

4 JULY-809164206-0001 Merseytravel LCRCA invoices 2015

3 JUNE-809164104-0001 Merseytravel LCRCA invoices 2015

2 MAY-809164000-0001 Merseytravel LCRCA invoices 2015

1 APRIL-809162613-0001 Merseytravel LCRCA invoices 2015

Contracts

1 contract with BLACC Consulting LLP (50 pages)

2 contract with Arriva Merseyside Ltd (14 pages)

3.1 Subsidised Bus Service Contracts (42 pages)

3.2 Subsidised Bus Service Contracts (148 pages)

4. Rolling Stock Project Engineering Consultancy Service Agreement Halcrow Group Limited (38 pages)

5. contract with Bircham Dyson Bell LLP (15 pages)

6. Deed to confirm the Consolidated Concession Agreement relating to the services for the carriage of passengers by railway to be provided by Merseyrail Electrics 2002 Limited (348 pages) (this was an additional contract not originally on the DVD received by email from Merseytravel on the afternoon of Thursday 11th August 2016)

7. TOC Related Services for the Design, Supply and Installation of Passenger Improvements at various Stations as part of the National Stations Improvement Programme (Merseyrail Electrics 2002 Limited) (25 pages)

8. Local Growth Fund (LGF) for Liverpool City Region Sustainable Transport Enhancement Package (Wirral Metropolitan Borough Council) (62 pages)

9. Funding Agreement for Liverpool South Parkway Real Time Information (Merseyrail Electrics 2002 Limited) (26 pages)

10. Merseytravel Consultancy Services Framework Agreement 2015-2019 For Consultancy Services (Various Lots) Kenyon Fraser Ltd (68 pages)

11. Framework Agreement for Consultancy Services for the Design of Travel Marketing Literature Kenyon Fraser Ltd (80 pages)

12. Lease for Mann Island HQ, Liverpool with Commerz Real Investmentgesellschaft mbH (acting on account of its open-ended fund Hausinvest) (74 pages)

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What are 10 invoices paid by Merseyside Recycling and Waste Authority totalling £4,758,470.23 for?

What are 10 invoices paid by Merseyside Recycling and Waste Authority totalling £4,758,470.23 for?

What are 10 invoices paid by Merseyside Recycling and Waste Authority totalling £4,758,470.23 for?

                                

Below are ten A4 images of invoices I requested during the 2015-16 audit of Merseyside Waste Disposal Authority (that goes by the name of Merseyside Recycling and Waste Authority).

They are in order from Mersey Waste Holdings Ltd, Veolia ES Merseyside & Halton Limited, FCC Recycling (UK) Limited, Wirral Council, JLT Speciality Limited and Liverpool City Council.

Some are for payments made to do with contracts, the one with Wirral Council is to do with a loan (MRDF stands for Merseyside Residual Debt Fund which MWDA’s share of the former Merseyside County Council’s debts), insurance and business rates to Liverpool City Council for the Gilmoss Waste Transfer Station in Stonebridge Lane.

Amounts for these invoices are for £2,136,797.83, £1,253,141.93, £650,990.21, £472,906.96, £182,600, £37,741.30 and £24,892 (total £4,758,470.23).

However, a good proportion of that ~£4.8 million is VAT as well as a small amount of insurance premium tax. Interestingly one of the invoices shows they are already processing kitchen waste in February 2015, which is part of a 6 week Wirral Council consultation on introducing kitchen waste collections to the Wirral as well as changes to the green bin collections.

I will point however that the costs of dealing with waste on these invoices is at the county level of Merseyside (possibly with Halton added too). Wirral Council’s share will be a fraction of what the total costs are).

Matters involving the current consultation by Wirral Council on food waste and changes to the green bin collection were recently the subject of a call in public meeting (26th July 2016) when opposition councillors requested that the Cabinet decision be reviewed. You can watch footage from that meeting below which discusses the proposed changes to the green bin collections and proposed new food waste collection.

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Environment Overview and Scrutiny Committee (Wirral Council) 26th July 2016 Call in of Cabinet decision on consultation on green bins and food waste


0 Merseyside Waste Disposal Authority Mersey Waste Holdings Ltd £2136797.83 Landfill Services Contract Page 1 of 1 February 2015
0 Merseyside Waste Disposal Authority Mersey Waste Holdings Ltd £2136797.83 Landfill Services Contract Page 1 of 1 February 2015
1 Veolia ES Merseyside and Halton Limited £1253141 93 Waste Management and Recycling Contract Page 1 of 2 March 2015
1 Veolia ES Merseyside and Halton Limited £1253141 93 Waste Management and Recycling Contract Page 1 of 2 March 2015
2 Veolia ES Merseyside and Halton Limited £1253141.93 Waste Management and Recycling Contract Page 2 of 2 March 2015
2 Veolia ES Merseyside and Halton Limited £1253141.93 Waste Management and Recycling Contract Page 2 of 2 March 2015
3 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 1 of 2 February 2015 min
3 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 1 of 2 February 2015 min
4 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 2 of 2 February 2015
4 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 2 of 2 February 2015
5 FCC Recycling (UK) Limited £472906.96 Interim Waste Services Management Agreement Page 1 of 1 February 2015
5 FCC Recycling (UK) Limited £472906.96 Interim Waste Services Management Agreement Page 1 of 1 February 2015
6 Wirral Council £182600 MRDF 2nd instalment 14 15 Page 1 of 1
6 Wirral Council £182600 MRDF 2nd instalment 14 15 Page 1 of 1
7 JLT Speciality Limited £37741.30 Comined Liability Insurance Page 1 of 1
7 JLT Speciality Limited £37741.30 Comined Liability Insurance Page 1 of 1
8 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 1 of 2
8 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 1 of 2
9 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 2 of 2
9 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 2 of 2

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Why was Merseyside Fire and Rescue Service’s Kieran Timmins (former Deputy Chief Executive/Treasurer and in charge of the Saughall Massie fire station plans in 2014 & 2015) paid £144,500 for “compensation for loss of office” when he was made redundant in 2015?

Why was Merseyside Fire and Rescue Service’s Kieran Timmins (former Deputy Chief Executive/Treasurer and in charge of the Saughall Massie fire station plans in 2014 & 2015) paid £144,500 for “compensation for loss of office” when he was made redundant in 2015?

Why was Merseyside Fire and Rescue Service’s Kieran Timmins (former Deputy Chief Executive/Treasurer and in charge of the Saughall Massie fire station plans in 2014 & 2015) paid £144,500 for “compensation for loss of office” when he was made redundant in 2015?

                                            

Kieran Timmins (former Deputy Chief Executive, Merseyside Fire and Rescue Service) taken in 2014
Kieran Timmins (former Deputy Chief Executive, Merseyside Fire and Rescue Service) taken in 2014

The author of this piece is an Appellant in a First-tier-Tribunal (Information Rights) case in which Merseyside Fire and Rescue Authority is the Second Respondent.

Below are three invoices (for £3,000 each consisting of £2,500 + VAT so £9,000 in total) from a Todd and Ledson LLP to Merseyside Fire and Rescue Service for the Saughall Massie fire station project.

Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 30th December 2015 Saughall Massie Pre Contract Professional fees
Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 30th December 2015 Saughall Massie Pre Contract Professional fees
Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 30th September 2015 Saughall Massie Pre Contract Professional fees
Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 30th September 2015 Saughall Massie Pre Contract Professional fees
Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 31st August 2015 Saughall Massie Pre Contract Professional fees
Invoice £3000 Todd and Ledson LLP Merseyside Fire and Rescue Services Merseyside Fire and Rescue Authority 31st August 2015 Saughall Massie Pre Contract Professional fees

Merseyside Fire and Rescue Service (on behalf of Merseyside Fire and Rescue Authority) have submitted two planning applications associated with this project.

The most recent dated 20th July 2016 is for a screening opinion which if I’m correct Wirral Council as Local Planning Authority have to make a decision on within 3 weeks of the application, this is SCR/16/00994.

The related planning application to the above submitted on the 15th July 2015 is APP/16/00985 which is described as, “A single storey two bay community fire station incorporating operational and welfare accommodation, offices and meeting space, external drill and training facilities and associated car-parking. | Land adjacent to SAUGHALL MASSIE ROAD, SAUGHALL MASSIE ”.

The land is currently owned by Wirral Council, who are constructing a Youth Zone on land next to Birkenhead Fire Station.

Below are two invoices to Merseyside Fire and Rescue Service from their solicitors Weightmans LLP connected to that.

Invoice £660.00 Weightmans LLP Transfer of land at Birkenhead Fire Station to Wirral Council 28th September 2015 Clive Bleasedale
Invoice £660.00 Weightmans LLP Transfer of land at Birkenhead Fire Station to Wirral Council 28th September 2015 Clive Bleasedale
Invoice £697.20 Weightmans LLP Transfer of land at Birkenhead Fire Station to Wirral Council 26th October 2015 Clive Bleasedale
Invoice £697.20 Weightmans LLP Transfer of land at Birkenhead Fire Station to Wirral Council 26th October 2015 Clive Bleasedale

Although at one stage a “land swap” was suggested by former Deputy Chief Executive of Merseyside Fire and Rescue Service Kieran Timmins (that is a swap of the land held by Wirral Council for the land adjacent to Birkenhead Fire Station), Merseyside Fire and Rescue Service state that no such land swap with Wirral Council was agreed follow Mr Timmins’ proposal. In an event Mr Timmins left the employment of Merseyside Fire and Rescue Service in 2015 having been made redundant and he received £144,500 in redundancy payment in compensation (see note 30 to the accounts (Officers’ Remuneration) on page 66 of the 2015-16 accounts for Merseyside Fire and Rescue Authority).

The officer at Merseyside Fire and Rescue Service in charge of land matters following Mr. Timmins’ departure from the organisation in August 2015 is Deputy Chief Fire Officer Phil Garrigan.

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Why am I angry at Wirral Council for allegedly breaking more laws to cover up a 3 year investigation and subsequent decision by three councillors as to why Councillor Steve Foulkes broke the Code of Conduct and should apologise for leaking information about Councillor Jeff Green to the press?

Why am I angry at Wirral Council for allegedly breaking more laws to cover up a 3 year investigation and subsequent decision by three councillors as to why Councillor Steve Foulkes broke the Code of Conduct and should apologise for leaking information about Councillor Jeff Green to the press?

Why am I angry at Wirral Council for allegedly breaking more laws to cover up a 3 year investigation and subsequent decision by three councillors as to why Councillor Steve Foulkes broke the Code of Conduct and should apologise for leaking information about Councillor Jeff Green to the press?

                                        

Councillor Steve Foulkes (Labour) (right) speaking at a recent meeting of the Birkenhead Constituency Committee (28th July 2016) while Councillor Pat Cleary (Green) (left) listens
Councillor Steve Foulkes (Labour) (right) speaking at a recent meeting of the Birkenhead Constituency Committee (28th July 2016) while Councillor Pat Cleary (Green) (left) listens

17/8/16 Amended to correct name of Phil Goodman to Peter Goodman.

Firstly, I’m cross with Wirral Council.

What is it this time you may wonder?

Well I have a long list of grievances, but not being a Wirral Council employee no formal route (ok I could bring some of these up with my trade union) to take these to a grievance hearing, nor the time or inclination at this stage to get the judiciary involved.

I’m cross at being denied (along with my wife) to be present at what I perceive to be (in part) to be a public meeting of the Standards Panel on the 28th June 2016 in Committee Room 2 at Wallasey Town Hall, Brighton Street, Seacombe, CH44 8ED starting at 6.00pm.

I’m cross at being shouted at by junior public facing employees of Wirral Council who I will gladly name here from what I remember as Shirley Hudspeth (Legal and Member Services) and Peter Goodman (whatever the facilities management side of Wirral Council is called as frankly I’ve lost track of restructures? Is it infrastructure, asset management something like that?) with their view that it was a private meeting, but I’m not cross at them in a major way because I’m more cross at what I presume are their senior manager/s or senior manager/s from another department at Wirral Council who told both of them to say this to me (even though it isn’t true) as it seems a senior manager/s at Wirral Council would stoop that low as to instruct junior employees to do what they (senior manager/s) should have the guts to do face to face themselves.

I’m cross at Wirral Council for its website not working as I write this at democracy.wirral.gov.uk so I can’t include links or refer to the details. But yeah, whoever’s job it is to fix it may be on holiday.

I’m cross at a senior manager (Joe Blott) and his external legal adviser (whose name I can’t recall without checking Wirral Council’s website that isn’t working). Yes the external legal advisor is the guy in this photo as I wasn’t allowed to be at or film him at the public bit of the Standards Panel meeting (and just as an aside this law allows me to film such public meetings even if I’m not physically in the room, which I suppose next time if I’m not allowed actually in the room for a public meeting I’ll have to do the filming either through the meeting room door or from the car park outside!)

However in Joe Blott’s defence I don’t think he understood why the legal advice he got was flawed and had the external legal advisor pointed out why it was flawed he’d have had to have criticised his client (Wirral Council) which is a big no-no if he ever wants further work from Wirral Council in the future.

I’m not cross with Surjit Tour who seems to have a conflict of interest. But if he does have one, Joe Blott is supposed to deal with it!!!

I am cross with the fact that 5 clear working days notice of the date, time, agenda and reports (if not recommended to be heard in closed session) for the Standards Panel meeting on the 28th June 2016 was not given by the 20th June 2016, but instead yesterday the 3rd of August 2016.

I’m cross that a complaint about a councillor (Cllr Steve Foulkes) as to what happened in July 2013 has taken Wirral Council around three years to resolve.

I’m cross that Patricia Thynne in her report refers to myself as having filmed a YouTube video referred to when I didn’t film it and it was indeed someone else! I’m also cross with myself that relying on Patricia Thynne’s report I then left a comment on the Wirral Leaks blog only to be embarrassed into being told it is a mistake in her report.

I’ve recently learned that Cllr Gilchrist was the Chair of the Standards Panel, I’m cross that I wasn’t allowed to go to the public bit of the Standards Panel meeting where this was decided on the 28th June 2016 to find this out and had to wait around a month to know whether it was Cllr Chris Blakeley or Cllr Phil Gilchrist.

I’m cross that in messing up what’s detailed above Wirral Council is relying on a legal power that was repealed years ago.

I’m cross that for reasons of internal capacity here I didn’t take things further over what happened to us at the meeting on the 28th June 2016 whether by letter or subsequent legal action against Wirral Council.

However, moving to the complaint itself, yes I was there in the public gallery in July 2013 in the adjournment while it happened. Yes Cllr Steve Foulkes came in and spoke with Liam Murphy (referred to as Person C). Yes, I was too far away (at the other end of the public gallery to hear what they were saying). Yes I remember Mr Nigel Hobro coming in to the public gallery at this point and wanting to speak with Liam Murphy but getting the brush off.

Yes, my opinion (not that it matters really) is that I think it is fair that Cllr Foulkes should apologise.

However, isn’t it ironic that as Cllr Foulkes previously made a complaint about Cllr Chris Blakeley talking to the Liverpool Echo about whether Cllr Foulkes should be made Mayor (a complaint that Cllr Chris Blakeley was cleared of as you can read about here) that Cllr Chris Blakeley should then be on the Standards Panel to decide about a complaint about Cllr Foulkes leaking information to a Liverpool Echo journalist? Or is that just karma?

Yes Person C in the report is Liam Murphy. Yes I feel sorry for him, yes it is a breach of journalistic ethics to reveal the source of information, but by the sounds of it he (Liam Murphy) was being used by Cllr Foulkes anyway for political gain.

As to the payoff to Emma Degg, her initial silence (prompted in part it seems by the payment of public money), followed by what I presume was a guilty conscience, well at least she finally did the right thing!

As to the allegation that witnesses “colluded” to bring down Cllr Foulkes, well Patricia Thynne feels this is not credible. I will comment however that unless you are in disguise, nobody knows what you look like or in an echo chamber, it’s frankly foolish in the extreme to bring up anything confidential (whether in conversation or by passing it to them) with a journalist when you have people watching you do it, in a public place, in a public building, in the adjournment to a high-profile public meeting.

However Cllr Foulkes’ explanation is he was under a lot of pressure.

Tip for people reading this, if you want in the future to leak something to me, there’s the post (probably the most secure method), email or telephone (if you want the intelligence agencies to read/listen to it in transit) or other ways of sending it to me online.

Yes you can talk to me or hand me things in person, but there are always people watching!

I did ask Cllr Steve Foulkes in person at the end of the Birkenhead Constituency Committee meeting on the evening of Thursday 28th July 2016 to comment on the complaint. He refused to comment directly on the matter (I presume following Mr. Tour’s advice to councillors to keep their mouth shut) and referred me to Wirral Council instead.

So yes, I’m still cross and Wirral Council is finally well dealing with what should’ve been done properly the first time!!!

By first time, I don’t just mean the original complaint (that this morphed into), but what happened at the Standards Panel meeting too.

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