Agenda Item No.











Approval was sought to terminate the contract with Hafod Community Care for the provision of older people's residential care in the Vale.


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.


The terms of the agreement in 1991 were as follows: 

  • Under the terms of the Leases to Hafod, the Council received a lease rental payment; and
  • The staff group in the homes were employed by the Council and Hafod made a contribution to these staffing costs, although this did not meet the full costs.

The two long term arrangements – care management contracts and lease – were due to end in July 2016.  The Council sought legal advice in relation to this contract as the working of the current contract was 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


Via the Council’s Legal Services section, formal communications had 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.


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


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

The homes would have to be registered with the Care and Social Services Inspectorate Wales to operate and Hafod held this registration.  The Council would apply to take this over.  No problems were envisaged with this application as the Council was already registered to provide care in two other older people's homes in the Vale.


At the meeting the Cabinet Member for Adult Services commented that the Hafod contracts and leases had been agreed by the South Glamorgan County Council and that this was just one of the examples of a past decision made that did not work for the people of the Vale of Glamorgan.


He further commented that the Council had sought legal advice in relation to the contract as the working of the current contract was financially very disadvantageous to the Council and that a new agreement would result in significant savings as set out in the Part 2 report. 


This was a matter for Executive decision.




(1)             T H A T the proposal outlined in the 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, be approved.


(2)             T H A T delegated authority be granted 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)             T H A T delegated authority be granted 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)             T H A T Part 1 and Part 2 of this report be referred to the Scrutiny Committee (Social Care & Health) for information.


Reasons for decisions


(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 could be made from April 2015.


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


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



Attached as Appendix – Report to Cabinet – 9 FEBRUARY 2015