CABINET

 

MINUTES of a meeting held on 21st November, 2007.

 

Present:  Councillor Ms. M.E. Alexander (Chairman); Councillor N. Moore (Vice-Chairman); Councillors R.F. Curtis, N.J. Gibbs, Mrs. V.M. Hartrey,

G. John, Mrs. M. Randall, Mrs. M.R. Wilkinson and C.J. Williams.

 

 

C3267                        APOLOGY FOR ABSENCE -

 

This was received from Councillor S.C. Egan.

 

 

C3268                        MINUTES -

 

RESOLVED - T H A T the minutes of the meeting held on 7th November, 2007 be approved as a correct record.

 

 

C3269                        DECLARATIONS OF INTEREST -

 

Councillor C.J. Williams declared an interest in Agenda Item No. 5 - OneVale Programme - in that a member of his family worked in the Contact Centre - and vacated the room for the consideration thereof.

 

 

C3270                        USE OF THE CHIEF EXECUTIVE’S EMERGENCY POWERS (CX) (SCRUTINY - AS INDICATED BELOW) -

 

RESOLVED - T H A T the exercise of emergency powers as indicated below be accepted:

 

(a)            Authority to implement an increase to allowances under Joint Education Services Circular No. 151 for Structured Professional Assessments.

 

            (Scrutiny - Corporate Resources.)

 

(b)            Authority to comply with the insurance requirements and put in alternative arrangements for schools due to flooding.

 

            (Scrutiny - Corporate Resources.)

 

(c)            Authority to implement the LGE Teachers’ Pay Award for 2006-2007.

 

            (Scrutiny - Corporate Resources.)


 

 

(d)            Authority to pay the travel costs incurred in providing emergency cover in the absence of the Headteacher at Cadoxton Nursery School.

 

            (Scrutiny - Lifelong Learning.)

 

(e)            Authority to implement the pay award in accordance with the J.N.C. circular dated 28th September, 2007 for Chief Executives of Local Authorities Pay and Terms and Conditions 2007/08.

 

            (Scrutiny - Corporate Resources.)

 

(f)            Authority to approve an upgrade to the Vale Community Alarm Service (VCAS) - BT 21CN by October, 2007.

 

            (Scrutiny - Community Wellbeing and Safety.)

 

(g)            Authority to facilitate payment of a grant of £10,000 to Cowbridge Food Festival Limited by 27th October, 2007.

 

            (Scrutiny - Economy and Environment.)

 

(h)            Authority to implement the Major Repairs Allowance (MRA), Housing Capital Works Programme 2007/08.

 

            (Scrutiny - Community Wellbeing and Safety.)

 

Reason for decision

 

To inform Cabinet.

 

 

C3271                        ONEVALE PROGRAMME - IMPLEMENTATION CONTRACT (CX) (SCRUTINY - CORPORATE RESOURCES) -

 

The implementation contract for 2007/08 had been awarded to Oracle Corporation UK Ltd.  The following Oracle modules were being implemented during 2007/08:

 

·                    Oracle Financials

·                    Oracle i-Procurement 

·                    Oracle Advanced Collections.                                 

 

In addition to those modules, the Council had commenced implementing Oracle i-Recruitment and HR Self Service although implementation had been temporarily delayed for reasons set out in the report.  The main focus at this stage was to deliver the financial system by 1st April, 2008 including Advanced Collections.  It was noted that i-Procurement would be delivered on a phased approach basis from April 2008.  The additional implementation costs to date were attributable to configuration changes required to the Financials, i‑Procurement and Advanced Collections modules and equated to £60k.  Authorisation to the Change Controls had been obtained under the Chief Executive’s Emergency Powers since some changes had been required to commence during October 2007.  It was also noted that, in addition, the OneVale programme had experienced problems in appointing staff to key positions in ICT which had led to an under-resource resulting in a capacity strain on the OneVale programme.  In view of the foregoing and to deliver the modules in readiness for the 1st April deadline, further implementation costs of up to £120k. would be required.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the use of the Chief Executive’s Emergency Powers in respect of configuration changes required to the Financials, i-Procurement and Advanced Collections modules be noted.

 

(2)       T H A T the variation to the contract of £120k. for the OneVale programme for 2007/08 (as part of the OneVale Business Case) be approved.

 

Reasons for decisions

 

(1)       To update Cabinet on the implementation of these modules and the associated change controls to date.

 

(2)       To ensure the Oracle financials system is implemented by 1st April, 2008 deadline.

 

 

C3272                        APPROVAL TO SUBMIT EXTERNAL FUNDING APPLICATION (CX) (SCRUTINY - CORPORATE RESOURCES) -

 

In accordance with the approved procedures for the way in which the Council accessed and co-ordinated its bids for external funding, the Corporate Management Team had submitted the first business plan required to enable access to WAG / European funding to deliver the Vale of Glamorgan “Rural Local Funding Development Strategy” (LDS).  It was explained that the LDS was an integrated strategy for the regeneration of the rural Vale covering the period 2007-2013 and it had already been approved by the WAG.  The draft business plan covering funds for the first three years (2008-2010) was appended to the report.  The core themes of LDS contained within the report together with the specific projects being worked on (and appended to the report) had been developed following extensive consultations in the rural Vale. It was noted that each of the projects was at a different stage of development but that all would be ready for submission to the WAG by the end of November.  It was further noted that each project would be reported to Cabinet prior to implementation and authority sought to proceed.  It was noted that the delivery of the LDS required four additional officers but that all staffing matters would be reported to Cabinet for authorisation to proceed. 

 

This was a matter for Executive decision.


 

 

RESOLVED -

 

(1)       T H A T the submission of the business plan to the Welsh Assembly Government by the closing date of 30th November, 2007 be approved.

 

(2)       T H A T the final details of specific projects, as appended to the report, be reported to a future meeting of Cabinet for approval together with the staffing implications of their implementation.

 

Reasons for decisions

 

(1)               To maximise the resources available to the Council to support the delivery of the Council’s corporate objectives.

 

(2)       To agree final specific projects after negotiations with the WAG are concluded, amend the Capital Programme as necessary, and authorise employment of essential staff.

 

 

C3273                        VALE OF GLAMORGAN LOCAL SERVICE BOARD (CX) (SCRUTINY - ALL) -

 

As reported to Cabinet in March 2007,  Local Service Boards (LSBs) would be established in all local authority areas in Wales to develop the work of Community Strategy Partnerships (which they would replace) to improve delivery of shared objectives.  The inaugural meeting of the Vale Local Service Board had been held on 1st October, 2007 when a draft report on the structure of the LSB, including Terms of Reference and Membership, had been considered.  That report, was revised to reflect comments made at the meeting and subsequently, was appended to the report. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the consultation paper “Establishing a Vale of Glamorgan Local Service Board” as appended to the report be endorsed.

 

Reason for decision

 

To ensure that the LSB has the full support of the Council.

 

 

C3274                        “LOCAL VISION: PREPARING COMMUNITY STRATEGIES” - WELSH ASSEMBLY GOVERNMENT DRAFT GUIDANCE (CX) (SCRUTINY - CORPORATE RESOURCES) -

 

Members were apprised of WAG’s draft guidance on preparing Community Strategies and gave consideration to the Council’s response as appended to the report. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the Council’s response to the Welsh Assembly Government draft guidance on preparing Community Strategies be endorsed.

 

Reason for decision

 

To inform WAG of the Council’s view.

 

 

C3275                        INITIAL REVENUE BUDGET PROPOSALS 2008/09 (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Cabinet’s approval for the amended original budget for 2007/08 and the initial revenue budget proposals for 2008/09 was sought in order that they might be submitted to the Scrutiny Committees for consultation. 

 

The Council’s budget was largely determined by the Revenue Support Grant (RSG) settlement set by the Welsh Assembly Government (WAG). 

 

Cabinet was informed, by means of a supplementary report, of the contents of the provisional Revenue Support Grant (RSG) Settlement which had now been received.  For 2008/09, the Council’s provisional Standard Spending Assessment (SSA) had been notified as £188,160,000.  It was explained that the 2008/09 increase included adjustments to account for transfers of specific grant into / out of the settlement as follows:

 

 

 

£’000

Transfers Out

 

 

Integrated Pollution Prevention Control

1

 

Better Schools Match Funding

25

 

 

 

Transfers In

 

 

Early Years

707

 

LEA Partnership Agreements

5

 

Cymorth

203

 

Civil Contingencies

103

 

Trading Standards

11

 

 

 

 

The Council had provisionally been advised that, for 2008/09, it would receive RSG of £110,924,000 and Non-Domestic Rates (NDR) of £30,973,000.  Together, those sums constituted the Council’s Aggregate External Finance (AEF) and represented an increase of 3.6% over that received for 2007/08, although it was noted that despite the percentage increase being the highest in Wales, the settlement was extremely tight since the threshold had been very low.  The Council was still the third lowest funded in Wales.  That sum was net of an assumed 1% efficiency saving and included additional resources of £89,000 in respect of increased charges that would fall on the Council as a result of a change in the fees on court cases in family courts.  WAG had advised that there would be other adjustments which would be incorporated into the final settlement.  WAG had further announced that the Council would provisionally continue to receive a Deprivation Grant of £167,000 and a Performance Incentive Grant of £1,239,000 (both being unhypothecated grants).  Attention was also drawn to the fact that the WAG was currently consulting with Local Authorities in respect of a new Local Authority Business Growth Incentive grant scheme to be introduced from 1st April 2008.  Based on the provisional RSG settlement and assuming no increase in Council Tax income, the total resource available for 2008/09 was £185.224m.  After adjusting for transfers of specific grant into the settlement, that would be £0.676m. less than the requirements set out in the initial 2008/09 base budget and did not take into account any of the £12.607m. of cost pressures.

 

Appendix 1 to the report set out the necessary transfers to the original estimate for 2007/08 which were required to be made as follows:

 

·                    Asset Rents - the main reason for movement was due to revisions to the Accounting Code of Practice which required deferred government grant income to be released to revenue services which offset the asset rental already charged.

·                    Recharges etc. - movement in charges between internal Council services.

·                    Budget Transfers - adjustments to reflect transfers of functions and responsibilities between services, details of which were contained within the report.

 

It was accepted that the additional pressures arising from the increased price of care home fees could not be predicted at the beginning of the year and that it was unrealistic at this time to expect Social Services to cover those costs within their existing budget.  It was therefore proposed that an additional allocation of £1.11m. be given to Social Services in 2007/08 to cover those costs and those of the arbitration for 2007/08 only.  It was noted that Social Services would need to identify savings to cover the additional costs in future years and, in view of the current financial position and the need to take early measures to bring down spending, additional savings targets for 2007/08 were proposed as follows: 

 

Environmental and Economic Regeneration

£650,000

Legal, Public Protection and Housing Services

£200,000

Finance, ICT and Property

£200,000

Chief Executive

£60,000

 

The total target savings above totalled £1.11m. and equated to approximately 2% of the individual budgets.  Social Services had not been given an additional savings target and were instead required to bring a revised Budget Action Plan to Cabinet setting out proposals to bring expenditure down to the revised target.  Similarly, Learning and Development had not been given an additional savings target.  The Budget Action Plan setting out how expenditure within Lifelong Learning and Catering would be brought within budget would be submitted to Cabinet. 

 

The amended original budget was compared with the projected outturn for 2007/08, and reasons for the variances provided within the report and outlined below:

 

Learning and Development -

 

(a)            Education and Schools - expenditure on placements in independent schools included in the Access and Inclusion budget was forecast to be £130k. less than estimated.  In addition, within the Strategic Planning and Performance budget, there was a projected saving of £137k. on home to school transport. 

 

(b)            Lifelong Learning - the service continued to predict a potential adverse variance of £147k. 

 

(c)            Catering - an adverse variance of £120k. was predicted for the service.

 

Social Services -

 

(a)            Children’s Services - the probable outturn was currently showing a favourable variance of £52k., a reduction of £277k. on the projection for September.

 

(b)            Community Care and Health - the service was projected to outturn with a deficit of £1.688m. at year end. 

 

Policy - The underspending of £1.468m. was mainly attributable to the additional external interest earned.

 

There was an estimated Council Tax surplus for 2007/08 of £700k. which would be transferred to the General Fund.

 

The currently projected overall deficit of £168k. would need to be funded from reserves in addition to the £4.050m. required to balance the 2007/08 budget.  General Reserves as at 1st April, 2007 amounted to £5.7m. and, consequently, as a prudent minimum level for the General Reserve was £4m., it was accepted that some specific reserves would need to be “un-earmarked”.

 

The budget strategy for 2008/09 outlined that:

 

·                    services should prepare initial revenue budgets for next year based on the cost of providing the current level of service and approved policy decisions (including the cost of price increases and pay awards)

·                    since increases to budgets approved during the course of a financial year could restrict the freedom of the Council to allocate its resources to priorities during the following budget cycle:

-                supplementary estimates would only increase the base budget if Council had given specific approval to that effect

-                increases met by virement within the year would not be treated as committed growth

-                Directors should find the cost of increments and staff changes from their base budget unless the relevant specific approval had been given for additional funding

-                the effect of replacing grant from outside bodies that had discontinued would not be treated as committed growth.  In addition, before any project or initiative to be met either wholly or partly by grant might proceed, the exit strategy must be approved

-                certain items of unavoidable committed growth would continue and those included the effect of interest changes and the financing costs of the Capital Programme, increases in taxes, increases in levies and precepts charged by outside bodies and changes to housing benefits net expenditure

-                services would be expected to identify and achieve recurrent efficiency savings equivalent to at least 2% of their budget and Schools should plan for efficiency savings of at least 0.3%.

·                     The costs of service development would need to be met from within the respective services from savings identified;  in addition works might need to be prioritised within a service to meet any higher priority demands.

 

A summary of the overall base budget for 2008/09 was appended to the report.  Inflation amounted to £3.463m. of which £1.522m. related to pay awards and £1.941m. for general price increases.  It was noted that the aforementioned figures excluded inflation for Schools. 

 

Committee Growth totalled £5.759m. as follows:

 

·                    Environmental and Economic Regeneration:

Visible Services - £364k. for Landfill Tax annual increase.

 

·                    General Policy:

£4.050m. use of balances during the 2007/08 budget process; reduction in interest receivable of £200k. as a direct result of use of balances and £300k. increased cost of funding the Capital Programme.

 

·                    Chief Executive:

£845k. full year effect of the Contact Centre and implementation of single number.

 

A list of the 2008/09 cost pressures as identified by Services was appended to the report.  That list included costs relating to Social Services which were a continuation of the level of overspending in 2007/08.  Altogether, those cost pressures totalled £12.607m. although excluded from that total was the potential cost of any redundancies which might be incurred in order to maintain the budget within the resources available.

 

Following consultation with the various Scrutiny Committees, meetings of the Cabinet Budget Working Group would be held with the relevant Cabinet Members and officers to consider the budget proposals in order that Cabinet might make its final budget proposals no later than 6th February, 2008.  The Cabinet’s final budget proposals would be considered by Council at a meeting to be held by 13th February, 2008. 

 

The proposals for making the budget did not need to be referred to Council.  However, the setting of the final 2008/09 budget would require approval of Council.

 

RECOMMENDED -

 

(1)       T H A T the amended original budget for 2007/08 as set out in the table at paragraph 9 of the report, and outlined above, be approved.

 

(2)       T H A T Social Services bring a revised Budget Action Plan for 2007/08 to 2009/10 to a future meeting of Cabinet.

 

(3)       T H A T the Directorate of Learning and Development bring a Budget Action Plan for Lifelong Learning and Catering to a future meeting of Cabinet.

 

(4)       T H A T the initial Revenue Budget proposals for 2008/09 be approved for consultation with the Scrutiny Committees.

 

Reasons for decisions

 

(1)       To facilitate monitoring of the budget.

 

(2&3)  To update Cabinet in respect of the Budget Action Plans.

 

(4)       To inform Cabinet of the comments of the Scrutiny Committees before making a final proposal on the budget.

 

 

C3276                        INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (DFICTP) (SCRUTINY - ALL) -

 

Approval was sought for the revised Capital Programme for 2007/08 and the initial capital proposals for 2008/09 prior to their submission to the various Scrutiny Committees for consultation.  Progress on the Capital Programme as at 31st October, 2007 was appended to the report. 

 

Details were presented of changes to the Capital Programme and Cabinet approval requested for the same together with their referral to Council for approval where appropriate.  Those changes related to the following schemes:

 

·                    Victoria Park Restoration

·                    Barry Regeneration Partnership (BRP)

·                    Rhoose and Llantwit Major Vale of Glamorgan Line

·                    Barry Central Station

·                    Vale Community Alarm System (VCAS)

·                    Woodlands Day Centre

·                    Flying Start Grant

·                    Civic Offices Car Park Improvement Works.

 

Cabinet had been given the authority to withdraw a budget from the Capital Programme if the scheme were not contractually committed within 18 months of being included in the Capital Programme.  Attention was drawn to the fact that the following schemes remained contractually uncommitted 18 months after approval, but that the services had requested that the schemes remain in the Capital Programme and slipped from 2007/08 into 2008/09:

 

·                    EMI Beds - £500k. to be slipped into 2008/09

·                    Adult Respite Care - £500k. to be slipped whilst the Service considered the most appropriate way forward.

 

As regard the 2008/09 Capital Programme, the Welsh Assembly Government had announced the provisional 2008/09 General Capital Funding with the provisional allocation being £8.198m.  The final settlement was expected to be announced during January 2008.  Attention was also drawn to the fact that Cabinet would be advised as soon as an announcement had been made in respect of the Major Repairs Allowance (MRA).  Appendix B to the report outlined the indicative 2008/09 Capital Programme which included allocations already approved by Council and the slippage requests referred to earlier in the report.  The table below detailed the General Funding and internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2008/09 Capital Programme

£,000

£,000

 

General Fund Resources from Welsh Assembly Government

 

 

Supported Borrowing

6,161

 

General Capital Grant

2,037

 

 

Council Resources

 

8,198

Capital Receipts

3,666

 

Reserves / Leasing

1,942

 

 

 

5,608

 

Net Capital Resources

 

13,806

 

Indicative asset renewal budgets had been included in Appendix B as follows:

 

·                    Education                                          £800k.

·                    Social Services                                £150k.

·                    Visible Services                                £800k.

·                    Leisure Services                                £150k.

·                    Miscellaneous Buildings                    £200k.

 

It was noted that the above constituted an un-earmarked general provision.  In addition, Directors had made some specific bids which had been classed as asset renewal.  Due to the inclusion of the indicative asset renewal budgets, those specific bids had been shown as a separate heading in Appendix C which listed the unsuccessful bids. 

 

In addition to the capital bids shown in Appendix B, those capital bids received which had been unsuccessful and therefore not put forward for inclusion in the 2008/09 programme were listed in Appendix C.  Due to the shortage of capital funding, the only addition to the indicative Capital Programme for 2008/09 was that of the Relocation of Road to Dunraven Bay, whereby further costs were required on an already committed scheme.   Council, having previously approved the School Investment Strategy, had also approved that the School Development Budget be increased by £1m. from 2008/09 onwards, having also approved that the £9m. one-off School Building Improvement Grant and £1.4m. of existing useable capital receipts be utilised for the School Investment Strategy.  Those budgets were also included in Appendix B.  Approval had also been given for capital receipts generated by schools to be ringfenced for the Investment Strategy up to £6.5m. and that unsupported borrowing of up to £7.3m. could be undertaken.  Also included in the scheme shown in Appendix B were works that were a requirement of previous planning applications.  It was noted that as capital funds were very restricted and to ensure that all capital commitments were included in the programme, that it was proposed that bids for schemes should include all costs, including those that were a condition of planning consents to avoid the Council committing to future expenditure that it would be unable to fund.  Attention was also drawn to the fact that bids had been received for schemes which were 100% grant funded even though grant approval had not yet been received.  Whilst those schemes had no cost to the Council, it was proposed that they were not included in the programme at the current stage as it was not certain whether approval would be received.  Details of those schemes were listed in the report and it was noted that, should grant funding be approved, Cabinet had delegated authority to include the schemes in Capital Programme. 

 

The following unsuccessful bids which related to the required matchfunding for various grant applications in the sum of £2.008m. over three years were included in Appendix C:

 

Proposed Scheme

Council

Funding

Grant

Funding

Total

 

£’000

£’000

£’000

Enveloping the Hydraulic Pumphouse

925

925

1,850

Rural Local Development Plan

118

* 3,712

3,830

Holton Road Public Realm Improvements

20

80

100

Holton Road Commercial Renewal Area Grants

125

* 625

750

Barry Town Hall Artwork

20

80

100

Innovation Quarter Marketing and Infrastructure

100

100

200

Penarth Pier Pavilion Restoration

700

1,200

1,900

Total

2,008

6,722

8,730

 

            (* Also includes external contributions)

 

It was noted that should any of the above bids prove successful and the Council wished to proceed with the scheme, the Council would have to identify additional resources. 

 

Cabinet was informed that the next stage for the estimates would be consideration by the Scrutiny Committees, with the Scrutiny Committee (Corporate Resources) being the lead committee.  The responses of the Scrutiny Committees were required no later than 14th December, 2007 following which the final proposals would be presented to Cabinet no later than 6th February, 2008 and considered at a meeting of the Council to be held by 13th February, 2008.

 

The proposals for the making of the budget did not need to be referred to Council.  However, the setting of the final 2008/09 budget would require approval of Council. 

 

RESOLVED -

 

(1)       T H A T the initial budget proposals for the 2008/09 Capital Programme be approved for consultation with Scrutiny Committees.

 

(2)       T H A T Council be requested to approve the following:

 

·              Barry Central Station - increase the 2007/08 capital programme to £730,000 (increase of £195,000), funded initially from capital receipts.

·              Civic Offices Car Park Improvement Works - reduce the 2007/08 Capital Programme by £22,000.

 

(3)       T H A T the following changes to the 2007/08 Capital Programme be approved:

 

·              Victoria Park restoration - increase the current year budget by £65,000 to reflect grant funding.  In addition a further allocation of £150,000 be transferred into this scheme from the Visible Services Asset Renewal budget 2007/08.  Hence, the revised scheme value is £245,000.

·              Barry Regeneration Partnership - increase the current year budget to £327,000 (increase of £5,000), funded by an additional WAG grant.

·              Rhoose and Llantwit Major Vale of Glamorgan Line - increase the 2007/08 Capital Programme to £18,000 funded from the Visible Services Maintenance Fund.

·              VCAS system - increase the 2007/08 Capital Programme by £203,000 funded from the Computer Fund.

·              Woodlands Day Centre - increase the 2007/08 Capital Programme by £200,000 funded from the Miscellaneous Buildings Fund.

·              Flying Start Grant - increase the 2007/08 Capital Programme by £34,000 funded by a WAG grant.

 

Reasons for decisions

 

(1)       To allow full consultation on the future Capital Programmes.

 

(2)       To amend the 2007/08  Capital Programme and allow the use of capital receipts.

 

(3)       To amend the 2007/08 Capital Programme.

 

 

C3277                        LOCAL AVERAGE INTEREST RATE (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Cabinet received a report which recommended the rate of interest to be charged on Council mortgages. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the Council declare an unchanged rate of interest on all new loans and existing variable housing loans, including the sale of Council dwellings, of 6.89% with effect from 1st November, 2007.

 

Reason for decision

 

Interest rate recalculated in accordance with statutory requirements.

 

 

C3278                        INITIAL HOUSING REVENUE ACCOUNT BUDGET PROPOSALS 2008/09 AND REVISED BUDGET 2007/08 (DLPPHS AND DFICTP) (SCRUTINY - COMMUNITY WELLBEING AND SAFETY AND CORPORATE RESOURCES) -

 

Approval was sought for the revised estimates 2007/08 and the initial budget proposals for 2008/09 prior to their submission to the relevant Scrutiny Committees. 

 

Cabinet was notified that, when comparing the original budget with the proposed revised estimate, a net decrease of £447k. was indicated.  It was pointed out that the budget had been adjusted to reflect more accurately the capital financing charges (£250k.), a decrease in security measures at High View would save £53k., and the amount payable to the WAG in respect of Housing Subsidy was likely to reduce by £117k., with general efficiency savings accounting for the balance of the reductions.

 

The Budget Strategy for 2008/09 outlined that services should prepare revenue budgets for the next year based on the cost of providing the current level of service and approved policy decisions, including the cost of price increases and pay awards.  Attention was drawn to the fact that, due to the nature of Housing Revenue Account (HRA) in that it was ringfenced and that any growth had to be funded from the balance, no Cost Pressures had been formally identified.  The proposed 2008/09 budget was set out at Appendix A to the report under the following headings:

 

(a)       HRA (General)

(b)            General Management

(c)            Special Services

(d)            Housing Repairs Fund Contribution

(e)            Central Support & Operational Building Charges

(f)            Capital Financing.

 

The charges for rent and other services provided by the Housing Division were reviewed annually and would be subject to a future report once further information had been received from WAG.  It was noted that a consultant was currently undertaking a Rent Review which was due to be finalised in December 2007 and that, for the purpose of the initial budget proposal, annual rent levels would continue to be linked to pre-2005/06 Council Tax bands.  In summary, the change in budget was itemised as follows:

 

2007/2008 Original Budget

Inflation / Pay Award

Committed Growth / Savings

Estimated Rent Increase

2008/2009 Proposed Budget

£’000

£’000

£’000

£’000

£’000

(421)

102

346

(540)

(513)

 

It was explained that committed growth of £346k. was due to increases, such as an increase in the subsidy repayable to WAG, a reduction in rent income due to the right to buy sales reducing the stock level and an increase in the cost of security at the hostel together with general budget adjustments.  Also, it was pointed out, reductions in costs such as the estimated capital financing recharge, a reduction in central recharges, and a reduction in the security provision at High View off set that.

 

The next stage was for the estimates to be submitted to the relevant Scrutiny Committees for consideration, with responses from those Committees made by 14th December, 2007 so that Cabinet could make its final recommendations on the budget proposals by 6th February, 2008.  Those proposals would then be considered at a meeting of the Council to be held by 13th February, 2008.  Attention as also drawn to the fact that the Housing Business Plan would be submitted to Cabinet for consideration on 28th November, 2007.

 

It was noted that whilst the initial proposals did not require to be referred to Council, the setting of the final 2008/09 budget would require the approval of the Council.

 

RESOLVED -

 

(1)       T H A T the revised estimate 2007/08 be approved.

 

(2)       T H A T the initial budget proposal for 2008/09 be approved for consultation with the relevant Scrutiny Committees.

 

(3)       T H A T the increase suggested for rent and other services be subject to a future report as soon as the necessary information became available from the Welsh Assembly Government.

 

Reasons for decisions

 

(1)       To facilitate monitoring of the revised budget.

 

(2)       To inform Cabinet of the comments of the Scrutiny Committees before making a final proposal on the budget.

 

(3)       To meet the statutory deadline to notify tenants of the new charges as required by Statute.

 

 

C3279                        CATERING BUDGET AND REVIEW (DLD) (SCRUTINY - LIFELONG LEARNING) -

 

The Catering Service had transferred to the Education Department effective 1st April , 2007 and, for the financial year 2007/08, there was currently a projected budget deficit of £120k.  Efforts were in hand to identify efficiencies to address the projected overspend and, to date, efficiencies of £30k. had been identified.

 

It was noted that the review of Catering Service would focus on the whole service which comprised school meals, social services welfare meals and corporate catering.  The scope of the review was summarised as follows:

 

·                    Clarity of current financial arrangements for the Catering Service taking on board:

a)            implications of Welsh Assembly Government requirements in terms of nutritional standards

b)            current costs of service provision

c)            statutory requirements e.g. in relation to free school meals.

·                    Implications of the School Catering Service on schools:

a)                 Primary schools - costs of administration, meal preparation and servicing, roles and responsibilities

b)            Secondary schools - trading arrangements, financial management information.

·                    Current levels of marketing and awareness raising of the school meals.

·                    Implications of initiatives such as healthy eating and school breakfast clubs.

·                    Identifying practices and approaches of school catering services in other authorities.

·                    The structure of the Catering Service as a whole.

 

It was intended that the review would identify a number of options which would enable the Council to develop a strategy to provide school meals which were both cost effective and to ensure that the welfare of pupils in terms of nutrition was being safe-guarded. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the review into all aspects of the Service be approved and an update provided to Cabinet by the first quarter of 2008.

 

Reason for decision

 

To enable Cabinet to consider options for the Catering Service.

 

 

C3280                        CHARGES FOR NON-RESIDENTIAL SERVICES (IDSS) (SCRUTINY - COMMUNITY WELLBEING AND SAFETY) -

 

Approval was sought for proposed changes to the charges levied for non-residential community care services provided directly by the Council.

 

Community care services were currently provided through a range of providers and a review of the charges levied had highlighted that the users of Council provided services were receiving those services at a subsidised rate.  It was noted that during the current financial year, clients in receipt of home care were being charged £7.85 whilst the average cost of the service in the independent sector was £11.20 per hour.  It was proposed, therefore, that the charge for the internal home care system be increased to £11.20 per hour with effect from 1st January, 2008. 

 

Clients attending Council day centres were also receiving this service at a subsidised rate and it was proposed that those charges be also increased in line with the average charges made for services provided by the independent sector.  For Council run services, that would result in the following charges which it was proposed would take effect from January 2008:

 

Service

Client Group

Current

Charge

Proposed Charge

Rondel House

Older People

£14.42

£15

Gardenhurst

Older People

£26.29

£30

Woodlands

Learning Disability

£26.29

£30

Hen Goleg

Physical Disability

£26.29

£30

 

It was pointed out, that in order to stay within the budget allocation in the current financial year, Social Services had to identify £2m. of efficiencies and improvements in the level of income to be generated was one action that had been agreed.  It was anticipated that the revised charges together with the more rigorous approach to the recovery of debt outstanding would realise the £75k. identified within the budget action plan to address the Social Services budgetary issues. 

 

This was a matter for Executive decision.


 

 

RESOLVED -

 

(1)       T H A T the proposals regarding the revised charges for Council provided services be approved.

 

(2)       T H A T delegated authority be given to the Director of Social Services in consultation with the Cabinet Member for Social and Care Services to review and, if appropriate, to increase charges on an annual basis.

 

Reasons for decisions

 

(1&2)  To contribute to addressing the serious budget situation within Social Services.

 

 

C3281                        SOCIAL SERVICES BUDGET POSITION AS AT 31ST OCTOBER, 2007 (CMT) (SCRUTINY - COMMUNITY WELLBEING AND SAFETY AND CORPORATE RESOURCES) -

 

The figures in Appendix 1 to the report showed the 2007/08 budget projected outturn as at October 2007 and September 2007 and the current variance for each Division of Service together with the figures for 2006/07 for comparison.  Appendix 2 detailed those cost centres forecast to outturn with a variance compared to the original budget, explanations for those variations being shown in Appendix 3.  The current projected deficit of £2.746m. had been arrived at by extrapolating the outturn figures for 2006/07 and using information on current spend and known commitments.  Further details relating to both Children’s Services and Community Care and Health, the former showing a favourable variance of £51.7k. with the latter a deficit of £2.798k. at year end, were contained within the report.  Attention was drawn to the fact that any deficit at the year end would have to be financed from General Balances and that if Social Services spending continued at the current level, the total amount to be found from un-earmarking reserves would be at least £5m.  Attention was also drawn to the fact that, Cabinet having now approved an uplift of £1.11m. for Social Services as part of the Revenue Budget proposals, the projected deficit was currently £1.6m.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the position with regard to the Social Services 2007/08 Revenue Budget be noted.

 

(2)       T H A T the Interim Director of Social Services prepare a revised plan to bring Social Services expenditure back on target.

 

(3)       T H A T the actions of the Deputy Leader and Cabinet Member in order to address the budgetary situation and as evidenced in the Appendices to the report be endorsed and the decision to hold fortnightly meetings of the Budget Working Group endorsed.

 

(4)       T H A T further regular reports be made to Cabinet to assess the progress made in bringing expenditure within budget.

 

Reasons for decisions

 

(1)       That Members are aware of the projected revenue outturn for 2007/08.

 

(2)       To ensure Social Services expenditure outturns on target.

 

(3)       To acknowledge the work undertaken to date and ongoing measures.

 

(4)       To monitor the situation.

 

 

C3282                        COMPLAINT OF MALADMINISTRATION AGAINST THE COUNCIL (MO) (SCRUTINY - COMMUNITY WELLBEING AND SAFETY) -

 

Details were presented of one complaint of maladministration which had been submitted to the Local Commissioner (Ombudsman) which, following consideration, he had declined to investigate. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the report be noted.

 

Reason for decision

 

To inform the Cabinet and Council.

 

 

C3283                        EXCLUSION OF PRESS AND PUBLIC -

 

RESOLVED - T H A T under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part 4 of Schedule 12A (as amended) of the Act, the relevant paragraphs of the Schedule being referred to in brackets after the minute heading.

 

 

C3284                        AWARD OF CONTRACT FOR BUS SERVICES 145 AND 146: LLANTWIT MAJOR TO BRIDGEND (DEER) (EXEMPT INFORMATION PARAGRAPHS 14 AND 16) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

Six tenders had been returned in respect of the contract for the above bus services operating Mondays to Saturdays.  It was noted that three operators had also submitted a supplementary submission - an option open to all - which offered a different and enhanced level of service. 

 

Having regard to the submissions received and to the criteria used in determining the award of contract, EST Bus Limited had been identified as the preferred option.  

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the contract for Bus Services 145 / 146 be awarded to EST Bus Limited at a rate of £315.21 per day based on the operator’s submission as detailed in the report with effect from Monday, 3rd December, 2007. 

 

Reason for decision

 

To ensure continued service provision after the expiration of the current contract on Saturday, 1st December, 2007.

 

 

C3285                        SEWTA - REAPPOINTMENT OF GIRAFFE COMMUNICATIONS (DEER) (EXEMPT INFORMATION - PARAGRAPH 14) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

Approval was sought to waive the appropriate Council Standing Orders in order to reappoint a private company to undertake the public relations role for the South East Wales Transport Alliance (SEWTA).  SEWTA, a consortium of ten local authorities in South East Wales had been established as a formally constituted joint committee and, when appointing consultants or commissioning additional works, the Standing Orders of the local authorities involved had been used where the officer from that authority headed the relevant working group.  As the Operational Manager Planning and Transportation Policy chaired the SEWTA Communications and Public Affairs Working Group, this Council had been responsible for the appointment of Giraffe Public Relations back in 2005.  Giraffe’s current contract expired on 31st December, 2007.  The SEWTA Management Team had negotiated an extension to the additional contract for an additional three months to 31st March, 2008.  An exemption from the Council’s Contract Standing Orders was therefore required to permit such an extension.  It was noted that there were no direct financial implications to the Council as a result since all the costs associated with the reappointment of Giraffe would be met directly from SEWTA resources. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the waiving of the Council’s Contract Standing Orders to enable SEWTA to reappoint Giraffe Public Relations for January, February and March 2008 at a cost of £8,035.35 to SEWTA plus disbursements be approved.


 

 

Reason for decision

 

To enable the retention of Giraffe Public Relations on behalf of the South East Wales Transport Alliance until March 2008 pending a decision by SEWTA on its budget for 2008/09.

 

 

C3286                        MATTER WHICH THE CHAIRMAN HAD DECIDED WAS URGENT -

 

RESOLVED - T H A T the following matter, which the Chairman had decided was urgent by reason of the need to keep the Llantwit Major Leisure Centre facility open, be considered.

 

 

C3287                        LLANTWIT MAJOR LEISURE CENTRE BAR (DEER) (SCRUTINY - ECONOMY AND ENVIRONMENT) (EXEMPT INFORMATION - PARAGRAPH 14) -

 

Approval was sought to issue a short-term Licence to enable a private operator (NH) to run the bar facility at Llantwit Major Leisure Centre.  Whilst Cabinet had approved the closure of the bar and catering functions within the Council’s Leisure Centres (Minute No. C3166), no firm proposals had been developed in relation to the future use of the bar area at the Llantwit Major Leisure Centre at the present moment due to the proposed development by Metrix at St. Athan.  Having regard to the potential benefits of such an arrangement in terms of utilising the space and providing a service together with receipt of the proposed rental fee which would cover the cost of opening the areas from the Leisure Centre’s perspective, it was

 

RESOLVED -

 

(1)       T H A T NH be granted a Licence for a trial period of six months to operate the bar at Llantwit Major Leisure Centre at a rental of £200 per calendar month.

 

(2)       T H A T the terms and conditions of the Licence be agreed to the satisfaction of the Directors of Environmental and Economic Regeneration, Finance, ICT and Property and Legal, Public Protection and Housing Services.

 

(3)       T H A T a further report be submitted to Cabinet on the implications of the trial period as soon as reasonable in order to make a further decision as to whether to seek tenders formally for the continued operation of the area as a privately run bar.

 

(4)       T H A T, should the above application be approved, the existing bar staff at Llantwit Major Leisure Centre be afforded the option to transfer their employment to the incoming caterer or to proceed with their prospective voluntary redundancy / retirement.

 

Reasons for decisions

 

(1)       To continue with the service at Llantwit Major Leisure Centre.

 

(2)       To ensure that the Council’s interests are adequately protected.

 

(3)       To allow an informed decision to be made at a later date.

 

(4)       To ensure that all staff within Leisure Catering Services are afforded quality choice and treatment regardless of their employment location.