Minutes of a meeting held on 28th January, 2013.
Present: Councillor F.T. Johnson (Chairman); Councillor H.C. Hamilton (Vice-Chairman); Councillors N.P. Hodges, T.H. Jarvie, K.P. Mahoney, A. Parker and A.G. Powell.
Also present: Ms. J. Lord, Independent Financial Advisor.
774 MINUTES -
RESOLVED – T H A T the minutes of the meeting held on 27th November, 2012 be approved as a correct record.
775 DECLARATIONS OF INTEREST -
No declarations were received.
776 PERSONALISED REPORT AND RECOMMENDATIONS PREPARED FOR THE COWBRIDGE COMPREHENSIVE SCHOOL TRUST –
Ms. Lord took Members through the above document, referring to the additional £2,400,000 available to invest. Trustees had indicated that they required a 50/50% split between lower and higher risk assets which, it was expected, would generate an estimated revenue income of circa 3% per annum and an overall return of 6%. The Head of Financial Services indicated that matters pertaining to the mechanics of the payment of the investment fee remained to be resolved and the views of the Charity Commission had been sought. Members indicated that those matters needed to be resolved expeditiously given the desire to implement the investment strategy as soon as possible.
RESOLVED – T H A T Ms. Lord be thanked for her report, that her recommendations be approved and that the Head of Financial Services be authorised to resolve the matters referred to above in consultation with the Chairman.
Reason for decision
To recognise the contribution from Ms. Lord and to approve her recommendations and to expedite the resolution of matters relating to the mechanics of the payment of the investment fee.
777 LETTER OF ENGAGEMENT FOR BLUEFIN – INDEPENDENT FINANCIAL ADVISERS TO THE COWBRIDGE COMPREHENSIVE SCHOOL TRUST (MD) –
Chambers Morgan James, appointed as Independent Financial Adviser to the Cowbridge Comprehensive Trust in 2006, had subsequently become part of Bluefin Personal Consulting Ltd. In order to progress the investment recommendations approved by this Committee in November 2012, Bluefin Consulting Ltd. required an appropriate Letter of Engagement to be in place. A copy of the aforementioned letter was appended to the report. Following a query in relation to the fees, the Head of Financial Services confirmed that they remained as previously.
RESOLVED – T H A T the Letter of Engagement be approved and signed by the Head of Legal Services.
Reason for decision
To review the terms of the agreement with Bluefin and ensure that the appropriate documentation is in place to support the agreement.
778 SALE OF THE FORMER COWBRIDGE SCHOOL LOWER SCHOOL SITE, TOWNMILL ROAD (MD) –
The Head of Financial Services took Members through the report which related to the costs which had been set against the proceeds from the above sale and provided an analysis of such costs. The sale had realised £2,512,768 and it had been agreed that £75,000 would be held on retention subject to the buyer obtaining within six months of the completion date a ground inspection survey. A suggestion made that there was a need for a further ground inspection and to indentify the area of abnormal ground conditions. Members were informed that the retention monies related to the possibility of abnormal ground conditions under the existing buildings. It was agreed that the Committee be updated on this matter at the next meeting.
The report also referred to interest of £20.22 which would not be treated as proceeds of sale but as unrestricted income received in the year. The costs attributable to the sale, including the costs of independent solicitors, totalled £35,010.25 and had been incurred over the financial years 2010/11, 2011/12 and 2012/13. The proceeds of sale available for reinvestment by the Trust were, therefore, £2,402,757.75.
(1) T H A T the costs set against the proceeds of sale and the monies currently available for reinvestment be noted.
(2) T H A T the update report referred to above be submitted to the next meeting of the Committee.
Reasons for decisions
(1) To update the Committee and to be aware of the balance available for reinvestment.
(2) To ascertain the position.