Top

Top

Agenda Item No

The Vale of Glamorgan Council

Cabinet Meeting: 9 February, 2015

Report of the Cabinet Member for Adult Services

Provision of Older People's Residential Care - Hafod Contracts and Leases

Purpose of the Report

1. To seek approval to terminate the contract with Hafod Community Care for the provision of older people's residential care in the Vale. 

Recommendations

1. That Cabinet agrees the proposal outlined in this report (a) to negotiate termination by mutual agreement of the contracts with Hafod Community Care for the provision of older people's services at Ty Dyfan and Ty Dewi Sant and (b) to negotiate termination of the Leases (co-terminus with the contracts) in respect of Ty Dyfan and Ty Dewi Sant.

 

2. That delegated authority is given to the Managing Director, Leader, Deputy Leader and Director of Social Services to take the required action to terminate the contracts and leases on the terms outlined in the Part II report on this matter submitted to this meeting.

 

3. That delegated authority be given to the Managing Director, and Director of Social Services and the Head of Legal Services to negotiate and agree, and for the Head of Legal Services to sign and execute as appropriate, the Agreement evidencing the termination of the contracts and the surrenders of the leases.

 

4. That Part 1 and Part 2 of this report are referred to the Social Care & Health Scrutiny Committee for information. 

Reasons for the Recommendations

1. To support Social Services to make the budget reductions required to meet the savings identified in the Budget Programme.

 

2. To ensure that savings to the budget can be made from April 2015.

 

3. To enable formal documentation of contracts termination and lease surrender.

 

4. To ensure that the Social Care and Health Scrutiny Committee is aware of these proposed changes.

Background

2. The former South Glamorgan County Council entered into 25 year contracts and leases with Hafod Community Care in 1991 in relation to 10 older people's residential care homes.  Of this number, two – Ty Dyfan and Ty Dewi Sant - were in the Vale of Glamorgan.  Following the reorganisation of Local Government in 1996, the contracts relating to these two homes transferred to this Council to manage.

 

3. The terms of the agreement in 1991 are as follows:

• Under the terms of the Leases to Hafod, the Council receives a lease rental payment ; and

• The staff group in the homes are employed by the Council and Hafod makes a contribution to these staffing costs, although this does not meet the full costs.

 

4. In 2009, the contract for Ty Dyfan was renegotiated as part of the plans to increase the number of dementia care beds available in the Vale.  To support this change, the home was upgraded by Hafod and the capital costs met by them.  The registration of the home with CSSIW was changed to provide support and accommodation to older people with dementia-related illnesses.

 

5. The two long term arrangements – care management contracts and lease – are due to end in July 2016.  The Council has sought legal advice in relation to this contract as the working of the current contract is financially very disadvantageous to the Council.  Discussions took place with Hafod to renegotiate the terms of the contract but at that time Hafod were not willing to look at either the placement fees or the level of reimbursement given to the Council regarding staffing costs. 

Relevant Issues and Options

6. Discussions have been ongoing with Hafod about bringing to an end the current contracts and leases regarding Ty Dewi Sant and Ty Dyfan.  Via the Council’s Legal Services section, formal communications have been made stating the Council’s intention to bring the current contracts to an end before the official date of July 2016.  These were confirmed in meetings with Hafod in September and November 2014

 

7. Since that time, negotiations have continued as both parties acknowledged that the contracts and leases would be terminated early if terms could be agreed.

 

8. The financial details of the negotiations are contained in a Part 2 report to this Cabinet meeting.  Both parties have been able to agree terms that will enable the contract to end on 31st March 2015.  Under the terms of this agreement, the management of the two homes will wholly revert to the Council from April 2015 and the leases will be surrendered.

 

9. An action plan has been developed to ensure that the transfer of the homes is achieved within the timescale required and with minimal disruption to the residents.

Resource Implications (Financial and Employment)

10. The Social Services Budget Programme has included a requirement to renegotiate the agreement with Hafod with regard to the two older people's homes.  This agreement will result in significant savings as set out in Part 2 of this report.  If the agreement is not approved, social services will be required to find alternative savings to ensure a balanced budget. 

 

11. The staff in the two homes are employed by the Council and so there are no TUPE implications as a result of this proposal.

Sustainability and Climate Change Implications

12. There are no sustainability or climate change implications arising directly from this report.

Legal Implications (to Include Human Rights Implications)

13. In accordance with legal requirements, the homes have to be registered with the Care and Social Services Inspectorate Wales to operate and Hafod currently hold this registration.  The Council will apply to take this over.  No problems are envisaged with this application as the Council is already registered to provide care in two other older people's homes in the Vale.

 

14. It will be necessary to enter into a formal document or exchange of letters setting out the terms of the agreement between the Council and Hafod Care Services.

 

15. It will be necessary to enter into deeds of surrender in respect of the leases of both homes.

 

16. For the purposes of Section 123 of the Local Government Act 1972, the surrender of a lease is a disposal and the Council must obtain the best consideration reasonably obtainable.  Accordingly, it will be necessary for the surrender to be certified as complying with Section 123.

Crime and Disorder Implications

17. There are no crime and disorder implications arising directly from this report.

Equal Opportunities Implications (to include Welsh Language issues)

18. The two homes will continue to provide residential care to older people, including those with dementia.

Corporate/Service Objectives

19. Key outcome of the Council addressed by this report are:

• Citizens of the Vale of Glamorgan are healthy and have equality of outcomes and, through appropriate support and safeguards, the most vulnerable members of our community maximise their life opportunities.

• Citizens of the Vale of Glamorgan can easily access efficiently managed services that are focused around their needs, have confidence in how decisions are made and are proud to live in the Vale.

Policy Framework and Budget

20. This is a matter for Executive decision.

Consultation (including Ward Member Consultation)

21. The proposal has been negotiated with officers from Hafod Community Care.

 

22. Residents and their families will be consulted about how the transfer of responsibilities will be achieved. The disruption should be minimal as the staff are currently employed by the Council and so there will be minimal change for residents.

Relevant Scrutiny Committee

23. Social Care and Health.

Background Papers

Cabinet report - 9th February 2015 - Part 2 Report Hafod Contract and Leases

Contact Officer

Carys Lord

Officers Consulted

Head of Finance

Principal Lawyer

Responsible Officer

Philip Evans, Director of Social Services

Share on facebook Like us on Facebook