Agenda Item No 5
The Vale of Glamorgan Council
Trust Committee: 30th September 2013
Report of the Managing Director
Costs Associated with the Former Cowbridge Sixth Form Site, Aberthin Road
Purpose of the Report
1. To update Trustees on costs incurred by the Council on securing the Sixth Form Site since the land and buildings were handed back by the school in September 2010, and agree arrangements for future costs incurred on the site.
1. That Trust Committee notes the expenditure incurred on the Former Sixth Form Site by the Council.
2. That Trust Committee agree to the Council's proposal for the Council to pay in full those costs which were incurred by it prior to the 22nd July 2013.
3. That Trust Committee accepts the Council's proposal to initially discharge all future costs incurred after 22nd July 2013 on the Former Sixth Form Site as agreed by the Chair of the Trust. The Council to be reimbursed in full in due course.
Reasons for the Recommendations
1. To ensure that Trustees are aware of the costs incurred by the Council securing the site to date.
2. To ensure that Trustees are aware of the funding arrangement for the costs incurred to date of this meeting.
3. To ensure that the Trust is able to manage its financial position until sufficient funds are received.
2. Cowbridge Comprehensive School handed back the sixth form site in September 2010 following the transfer to the new school site. Once received from the school the Council secured the site using Sitex. boards at doors and windows and subsequently have put in place various repairs and additional security measures on the site. An analysis of the costs incurred to date is shown at Appendix A.
3. At the Trust Committee on 22nd July a report was presented by the Head of Legal Services and the Head of Accountancy and Resource Management advising Trustees that the former Sixth form site is subject to the terms of a 1912 scheme. It was resolved at this meeting that an application be made in the future to the Charity Commission to obtain approval to the terms of a new scheme enabling the disposal of the land and application of resulting proceeds of sale.
4. There will be a timing difference between costs of sale and receipt of the sale proceeds which will be used to fund them. This would result in a cash flow problem for the Trust, as the Trust only has a land and building asset.
5. In addition Trust committee recommended that approval for expenditure incurred after the meeting of the 22nd July 2013 be delegated to the Head of Accounting and Resource Management in consultation with the Chair of the Trust Committee.
Relevant Issues and Options
6. An analysis of the expenditure incurred to date is shown at Appendix A.
7. The Council's proposal is that costs associated with securing the former Cowbridge Sixth Form site and other categories of expenditure incurred prior to the report on 22nd July will be met by the Council in full.
8. Costs of sale and for securing the site incurred after the report of the 22nd July with the agreement of the Chair of the Trust committee will be initially paid by the Council. These amounts are to be fully reimbursed in due course to the Council on ultimate sale of the site. There will be a liability in the Trust accounts and a corresponding debtor in the Vale of Glamorgan's accounts. This arrangement would be reviewed in 12 months time.
9. The Council does not propose to recharge the costs for either Insurance of the site which has been paid by the Council or for the Council's Management of the site to the Trust.
10. As the initial costs of securing the site have been met by the Council, future costs that could be incurred by the Trust are likely to be associated with securing the site after a break in and costs associated with the disposal of the site.
11. If the Council's proposal is not accepted the Trust would need to arrange to borrow monies to manage its cash flow, until such time as the proceeds of sale are received.
Resource Implications (Financial and Employment)
12. Appendix A sets out the costs incurred by the Council on the site to date.
Sustainability and Climate Change implications
13. There are no sustainability and climate change implications
Legal Implications (to Include Human Rights Implications)
14. The Trust is required to abide by the provisions of the Charities Act 2011.
Crime and Disorder Implications
15. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
16. There are no equal opportunities implications.
17. The sole concern of the Trustees is to act in the best interests of the Trust.
Policy Framework and Budget
18. Not applicable.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
Head of Legal Services.