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TRUST COMMITTEE

 

Minutes of a meeting held on 22nd July, 2013.

 

Present:  Councillor F.T. Johnson (Chairman); Councillor H.C. Hamilton (Vice-Chairman); Councillors N.P. Hodges, T.H. Jarvie and A. Parker.

 

 

284     APOLOGY FOR ABSENCE -

 

This was received from Councillor K.P. Mahoney.

 

           

285     MINUTES -

 

RESOLVED - T H AT the minutes of the meeting held on 28th January, 2013 be approved as a correct record.

 

 

286     DECLARATIONS OF INTEREST -

 

Councillors T.H. Jarvie and A. Parker reminded the Committee that they were School Governors of Cowbridge Comprehensive School.

 

 

287     RETENTION FOR ABNORMAL GROUND CONDITIONS ON THE SALE OF THE FORMER COWBRIDGE SCHOOL SITE, TOWN MILL ROAD (MD) -

 

The report sought to update the Committee in respect of the £75,000 retention in relation to possible abnormal ground conditions at the lower school site, the retention amount having previously being negotiated on behalf of the Trustees by Rawlins and Madley with Taylor Wimpey.  This retention sum was to be held subject to the buyer obtaining within six months of completion a ground inspection report carried out by an independent consultant indicating whether the ground conditions were suitable for the development Taylor Wimpey proposed.  If they were not suitable then the retention sum would be permanently retained or otherwise the retention sum would be reduced to cover any works recommended in the consultant's report which the buyer would need to carry out to make the ground conditions suitable and any balance remaining returned to the Cowbridge Comprehensive Trust. 

 

Set out at Appendix A was a summary of the abnormal costs provided by Taylor Wimpey and it was reported that a full technical survey was available for inspection should the Committee wish so.  The technical survey recommended that an amount of £21,479.85 should be retained of the original retention amount of £75,000 by Taylor Wimpey.  Subject to the agreement of the Trustees, and amount of £53,520.15 (plus interest at 3.5% per annum in line with the Contract) would be returned to the Cowbridge Comprehensive School Trust and the sum excluding interest would be available for reinvestment.  The interest generated as indicated above would be released as revenue income to the Trust's accounts.

 

It was further indicated that the amount would be invested with Transact to be invested in accordance with recommendations of Bluefin (Independent Financial Advisor), Minute 776, Trust Committee held on 28th January, 2013.

 

Having given consideration to the above matter it was

 

RESOLVED -

 

(1)       T H A T the costs to cover abnormal ground conditions recommended in the Independent Consultant's Ground Conditions Report in the sum of £21,479.85 be agreed.

 

(2)       T H A T the remaining sum of £53,520.15 plus interest be released to the Cowbridge Comprehensive School Trust and that the £53,520.15 be paid over to Transact to be invested in accordance with the recommendations of Bluefin Independent Financial Advisor and the interest generated on this sum being released as revenue income into the Trust's accounts.

 

Reasons for decisions

 

(1)       To apprise the Committee on the position with regard to the retention amount for abnormal ground conditions on the sale of the former Cowbridge School, Lower School Site, Town Mill Road.

 

(2)       To ensure the Trustees are aware of the balance available for re-investment.

 

 

288     MATTERS WHICH THE CHAIRMAN HAD DECIDED WERE URGENT -

 

RESOLVED - T H A T the following matters which the Chairman had decided were urgent for the reason given in the minute heading be considered.

 

 

289     COWBRIDGE COMPREHENSIVE SCHOOL TRUST (HLS AND HARM) -

(Urgent by virtue of the desirability of settling the future of the Cowbridge Comprehensive School Trust as soon as possible)

 

The Council as Trustee of the above Trust had held the assets of the Trust under the terms of a Scheme settled in 1983 by the Charity Commission.  This Scheme provided for the provision of a secondary school on the site of the former Lower School and for the application of the Charities Income to the Sir Thomas Mansel Franklen Trust.  This required the income generated to be paid to the Trustees of the Sir Thomas Mansel Franklen Trust.  The objects of the Sir Thomas Mansel Franklen Trust were the provision of special benefits for Cowbridge Comprehensive School of a type not normally provided by the Local Authority and the promotion of the education, including social and physical training, of persons who are or were pupils of Cowbridge Comprehensive School and who are in need of financial assistance.  The object of the Scheme in relation to the provision of a secondary school due to the sale of the Lower School Site was no longer capable of being completely fulfilled. 

 

Accordingly, the Committee was apprised that it was no longer necessary for the Council to have a Trustee role in the absence of any involvement in the running of a school land holding and the Charity Commission had confirmed that it would be agreeable to the effective replacement of the Council as Trustee of the Scheme and the appointment in its stead of the Sir Thomas Mansel Franklen Trustees.  The 1983 Scheme required that questions relating to the Scheme were determined by the Charity Commission but the Commission had indicated that the way forward proposed would meet with its approval. 

 

In addition to the above, it was also indicated that also comprised in the Scheme were the playing fields; under the terms of the 1983 Scheme the Council was the Holding Trustee of any land belonging to the Charity.  This would not automatically change when the new Trustees were appointed.  Therefore, the new Trustees would be required to vest in this land in the Official Custodian of Charities land under the terms of the Charities Act 2011.  The Official Custodian would hold the legal title to the land only and would have no say in its management. 

 

Having given consideration to the above it was

 

RESOLVED -

 

(1)       T H A T the Trustees of the Sir Thomas Mansel Franklen Trust be approached to ascertain whether they would be willing to take on the role of Trustees of the Cowbridge Comprehensive School Trust.

 

(2)       T H A T, in light of the fact that the objects of the 1983 Scheme governing the Cowbridge Comprehensive School Trust were no longer completely fulfilable, (the principal object being the provision of a secondary school) that the running of the Trust be transferred to new Trustees namely the present Trustees of the Sir Thomas Mansel Franklen Trust (subject to their agreement).

 

(3)       T H A T the Council as present Trustee and the Sir Thomas Mansel Franklen Trustees enter into an appropriate form of Deed whereby the Council ceases its role as Trustee and the Sir Thomas Mansel Franklen Trustees are appointed as new Trustees.

 

(4)       T H A T the Head of Legal Services and the Head of Accountancy and Resource Management submit a further report to the Committee as matters progress.

 

Reasons for decisions

 

(1)       The agreement of the Trustees of the Sir Thomas Mansel Franklen Trust take on the role of Trustees of the Cowbridge Comprehensive School Trust is necessary.

 

(2)       The sale of the lower school site meant that the Council had no reason to remain in the position as Trustees; the Scheme in question would be better operated by other Trustees who were closely involved with the object of the Cowbridge Comprehensive School Trust.

 

(3)       The transfer of responsibilities to new Trustees must be agreed and recorded in an appropriate Deed.

 

(4)       To update the Committee on the progress.

 

 

290     FORMER SIXTH FORM SITE, COWBRIDGE (HLS AND HARM) -

(Urgent by virtue of the desirability of settling the future of the Trust as soon as possible)

 

The Committee was apprised of the results of research, enquires and discussions with the Charity Commission in relation to the former Cowbridge Comprehensive School Sixth Form site in order that consideration could be given to the future of the site which was subject to a Trust limiting use of the site for the provision of a secondary school.

 

The Committee was advised that the Trust had failed and accordingly it was necessary to develop a Scheme that was as near as possible to the original objects.  Any Scheme had to be approved by the Charity Commission.

 

As the object of the Scheme was the provision of a secondary school at Cowbridge, it was considered that the Scheme could be developed under which the objects of the existing Sir Thomas Mansel Franklen Trust would be sufficiently approximate to the failed Trust's objects to form the basis of a new Scheme.  Those objects which would apply the income of the Trust in providing special benefits for Cowbridge Comprehensive School of kinds, not normally provided by the Local Authority and provision of the education, including social and physical training, of persons who are or were pupils at the School and who were in need of financial assistance.

 

Once the objects of the new Scheme had been drafted, positive consultation would be required and the result of the consultation considered before the Scheme could be submitted to the Charity Commission for approval.

 

Having given consideration to the above it was

 

RESOLVED – 

 

(1)       T H A T the former Sixth Form site which is subject to the terms of a 1912 Scheme be the subject of an application to the Charity Commission for a new Scheme as set out in paragraphs 4 and 5 enabling the disposal of the land and application of resulting proceeds of sale under the terms of the new Scheme.

 

(2)       T H A T consultation in relation to the new Scheme must be carried out and the Charity Commission’s approval to the terms of the new Scheme obtained.

 

(3)       T H A T approval of expenditure from the Trust be delegated to the Head of Accounting and Resource Management in consultation with the Chair of the Trust Committee.

 

Reasons for decisions

 

(1)       Disposal of the Sixth Form Site means that the Council has no reason to remain in the position as Trustee, the Scheme in question will be better operated by other Trustees.

 

(2)       It is a requirement of the Charity Commission that a new Scheme be promoted given the failure of the original Trust.

 

(3)       In order that costs are correctly allocated.