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CABINET

 

 

MINUTES of a meeting held on 19^th December, 2007.

 

Present: Councillor Ms. M.E. Alexander (Chairman); Councillor N. Moore (Vice-Chairman); Councillors S.C. Egan, N.J. Gibbs, Mrs. V.M. Hartrey, G. John and Mrs. M.R. Wilkinson.

 

 

C3329                        APOLOGIES FOR ABSENCE -

 

These were received from Councillors Mrs. M. Randall and C.J. Williams.

 

 

C3330                        MINUTES -

 

RESOLVED - T H A T the minutes of the meeting held on 12^th December, 2007 be approved as a correct record.

 

 

C3331                        DECLARATIONS OF INTEREST -

 

No declarations were received.

 

 

C3332                        SOCIAL SERVICES CHANGE PLAN - RISK IMPLICATIONS (REF) -

 

Scrutiny Committee (Corporate Resources) at its meeting held on 9^th October, 2007 requested the Corporate Management Team to undertake a risk assessment review with a view to ascertaining the overall risk implications for the Council and its services in the event of savings associated with the above Change Plan not being achieved, including any assessment of risk to the Council as a consequence of un-earmarking reserves for those projects and the findings of the review be reported to a future meeting of this Scrutiny Committee (Minute No. 422 refers).   Consequently the results of the review of the overall risk implications for the Council and its services as referred to above were set out for Member consideration.

 

The Committee, on 11^th December, 2007 noted the issues related to the financial risk to the Council associated with the level of Social Services expenditure which had recently formed the basis of a number of key reports to both Cabinet and Scrutiny Committee over the past few years. 

 

More recently, the 2006/07 Medium Term Financial Plan highlighted that “even with the added pressure of finding efficiency savings that all Council services now face, the immediate challenge that must still be addressed is that of the Social Services overspend”.  The Plan also emphasised that it would be “essential that Members develop a firm review of the future resources required to run Social Services in the light of the overall resources available to the Council”. 

 

The subsequent approval of the Social Services Change Plan and its attendant targets for savings formed the Council’s response to the above challenge.  As a consequence, the 2007/08 Final Revenue Budget Proposals had due regard to the financial impact of both this and the many other cost pressures facing the Council.  In particular, the need to use £4.050m. of reserves to support the 2007/08 Budget necessitated a fundamental examination of the level of reserves to ascertain the adequacy and strategy for use.

 

In order to achieve this, the review examined Specific Reserves to identify those that could be un-earmarked from the purposes for which they were originally set aside and repaid into the General Reserve.  As a result, a number of revenue and capital reserves were reduced and / or deleted and the funds released, used to bolster the General Reserve.

 

The ongoing nature of financial constraints facing the Council also meant that a number of other reserves were identified for potential un-earmarking to meet future pressures.  These reserves were as follows:

 

 

 

In addition to the above the 2007/08 Final Budget Proposals also warned that un-earmarking Specific Reserves meant the Council no longer had the funding set aside for those purposes.  Further, interest on reserves held by the Council assisted in funding the revenue budget.  The report further stated that whilst Services’ budgets were generally under pressure, they remained a particular risk in the Social Services budget and the Service must take the action necessary to achieve its financial targets as a matter of the highest priority.

 

It was noted that Social Services had slipped in the delivery of £2m. savings required in 2007/08 under their budget action plan, with a total of £1.3m. savings anticipated to date.  In addition, continued pressure on the Service had resulted in estimated additional costs of £1.7m. in excess of the allocated budget for the year.  In addition, it was further noted that the above figures excluded the £1.1m. anticipated additional costs following the recent increase in the interim fee for residential and nursing homes to £390 per bed per week.  This sum would be funded from reserves for 2007/08 and was reflected in the amended original budget reported to Cabinet on 21^st November, 2007.  All these actions, however were likely to have the further detrimental impact upon the level of reserves. 

 

Notwithstanding the above matters, the prospect of a particularly bleak settlement for 2008/09 had necessitated proposals to further reduce Services’ expenditure in 2007/08 via a combination of financial saving targets totalling £1.1m. and a moratorium on filling vacant posts.  This had consequent risks of maintaining service delivery and if continued in 2008/09 was likely to have implications for employees and then there could be a reduction in jobs.

 

There were still nine other Corporate issues that posed a significant risk to the Council.  The most pressing of these had been assessed as the “impact of job evaluation and equal pay conditions on work force planning”.  However, £1m. of the £3m. reserves set aside for this purpose had been previously identified as potentially needed to support the General Reserve.  It was also further noted by no means certain that even the original sum set aside would be sufficient to meet the eventual level of costs involved.  This risk had also been highlighted in 2007/08 Final Revenue Budget Proposals.  All of the remaining risks also had the potential to add significant financial costs attributed to them.

 

The 2007/08 Medium Term Financial Plan predicted a revenue shortfall of some £6.5m. by 2010/11.  The 2008/09 provisional Revenue Support Grant settlement recently announced did little to improve the situation. 

 

Having regard to the above it was clear that the overall risk implications for the Council were not limited to just those connected with the Social Services Change Plan.  Reduced external funding, coupled with existing use of reserves to support the base budget and additional cost pressures facing other key services would inevitably place the Council in a position where the number and level of competing demands could not now be met, irrespective of the work done to identify cost and efficiency savings etc.  In this respect, the Council’s Risk Management Strategy the perceived risk of insufficient funding to poor Council services was now classified as “high” in terms of both magnitude and likelihood.  In the event of Social Services continuing to fail to restrict their expenditure to the allocated budget, this would inevitably impact upon the overall resources available to the Council to maintain other services and as a consequence Members would need to decide upon the relative priorities for future service deliveries. 

 

Discussion ensued on a number of matters associated with the risk of Social Services not meeting their budget targets as detailed in the Action Plan.  Of particular concern to the Scrutiny Committee was the reduction in reserves; the consequential impact in terms of the loss of interest accrued on those reserves; the adverse impact on the Council’s other services given additional efficiency savings had to be made half way through the current financial year; the fact that there was no absolute assurance that the identified £1.3m. savings would actually be achieved by the end of the financial year; the consequential impact on staff morale and with the potential of job losses; the effect of un-earmarking reserves on those projects; concerns regarding Change Plan slippage and the responsibility of Corporate Management Team (CMT) to appropriately manage the ongoing budgetary situation within Social Services so as to avoid recurring budgetary deficits which were unsustainable.

 

Whilst the Committee acknowledged the importance of Social Services, it was however incumbent on service budget holders to manage their budgets within margins set. Chairman indicated that it was unrealistic to expect the other Directorates within the Council, who also provided important services, to find additional savings to cover the ongoing budgetary shortfall within Social Services.

 

Reference was made to the general under funding of Social Services throughout the UK and it was for the Assembly and UK governments to resolve the funding issues relating to this function.

 

Councillor N. Moore, who spoke with the consent of the Committee, referred to the ongoing progress being achieved in relation to the Change Plan and in particular to the following matters:

 

·                    Review of Care Packages had been prioritised

·                    Budgets had now been delegated down to Operational Manager level and Team Managers so that expenditure could be appropriately monitored

·                    Whilst there had been a reduction on expenditure in respect of Older People’s Services, there had been an increase in respect of Learning Disabilities.  However, a new contract had recently been let which should provide expenditure reductions

·                    Budgets had been extrapolated in detail to provide Cabinet with information for monitoring purposes.

 

Having regard to the above and related issues, Scrutiny Committee

 

RECOMMENDED -

 

(1)       T H A T this Scrutiny Committee register its serious concern at the ongoing Social Services budget overspend and that the report be referred to Cabinet for consideration.

 

(2)       T H A T the Corporate Management Team be requested to consider how Social Services can be brought to manage their affairs within the budget set and that a further report be submitted to this Committee in January 2008.

 

(3)       T H A T this Scrutiny Committee emphasises its concern regarding the ongoing use of capital reserves, the need to un-earmark reserves to fund the Social Services overspend and the consequential risk implications for the Council’s general ability to deliver services to its community in the future.

 

Cabinet, having considered the recommendations of Scrutiny Committee (Corporate Resources) it was

 

RESOLVED - T H A T the recommendations of Scrutiny Committee (Corporate Resources) be noted.

 

 

C3333                        INITIAL REVENUE BUDGET PROPOSALS 2008/09 (REF) -

 

Scrutiny Committee (Corporate Resources), on 11^th December, 2007 were advised that the Council had been provisionally advised that for 2008/09 it would receive from the WAG a Revenue Support Grant (RSG) of £110,924,000 and Non-Domestic Rates (NDR) of £30,973,000.  Together, these sums constituted the Council Aggregate External Finance (AEF) and represented an increase of 3.6% over that received for 2007/08 and was net of an assumed 1% efficiency saving.  It was noted that the provisional settlement included additional resources of £89,000 in respect of increased charges, which would fall on the Council as a result of a change in the fees on Court cases in Family Court.  WAG had advised that there would be other adjustments and these would be incorporated into the final settlement.

 

WAG had also announced that the Council would provisionally continue to receive a Deprivation Grant of £167,000 and a Performance Incentive Grant of £1,239,000.  These were both unhypothecated grants.  WAG was presently consulting with Local Authorities in respect a new Local Authority Business Growth Incentive (LABGI) grant scheme to be introduced from 1^st April, 2008. 

 

In addition 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 this movement was due to revisions to the Accounting Code of Practice that required deferred Government Grant income to be released to revenue services which offset the asset rent already charged.

·                    Recharges Etc. - Movement in charges between internal Council services.

·                    Budget Transfers - Budget adjustments to reflect transfers of functions and responsibilities between services.  Primarily, this related to:

-                     The transfer from Human Resources and Equalities to Finance - TransAct staff (£227,000) and to Chief Executive - Equalities (£191,000).

-                     Transfers within Social Services had taken place but had a nil net value.

-                     Transfers between Planning and Transportation and Economic Development and Leisure had taken place but had a nil net balance.

-                     The transfer from Visible Services to General Policy - General savings adjustment not required (£115,000).

-                     The transfer from Legal, Democratic and Registrars to Chief Executive - Contact Centre (£21,000).

-                     The transfer from Public Protection to Chief Executive - Contact Centre (£30,000).

 

In addition to the above matters, pressure arising from the increased price of care home fees could not be predicted at the beginning of the year.  It had been considered unrealistic at this point in the year to expect Social Services to cover such costs within their existing budgets.  Therefore, it had been proposed that an additional allocation of £1.11m. be provided to Social Services in 2007/08 to cover these costs and those of the arbitration.  It was noted that this increase was for 2007/08 only and Social Services would need to identify savings to cover the additional costs in future financial years. 

 

It was essential that early measures were taken to bring down spending, in view of the predicted poor settlement and current financial position.  Consequently, following discussions with the individual Directors, it was proposed to set an additional saving target for 2007/08 as follows:

 

 

 

The target savings above totalled £1.1m.  They equated to approximately 2% of the individual budgets.  These changes were reflected in adjustments as detailed in Appendix 1 to the report presented to the Committee. 

 

Social Services had not been given an additional savings target and would need to bring a revised Budget Action Plan to Cabinet setting out how they intended to bring their expenditure down to their revised target.  However, a moratorium on the filling of all vacant posts within the Directorate had been put in place with the exclusion of staff in residential homes and in other exceptional circumstances.

 

With regard to Learning and Development, the Directorate had similarly not been given an additional savings target.  The bulk of their target had already been delegated to schools for 2007/08.  Consequently the Directorate would need to produce a Budget Action Plan setting out how the expenditure within Lifelong Learning and Catering would be brought within budget.  A moratorium on the filling of all vacant posts within this Directorate had been put in place with the exclusion of exceptional circumstances.

 

Consideration was also given to the amended original budget and estimated outturn for 2007/08.  The overall deficit of £168,000 would need to be funded from reserves, in addition to the £4,050,000 required to balance the 2007/08 budget.  General Reserves as at 1^st April, 2007 amounted to £5.7m. and consequently it was a prudent minimum level for the General Reserve was £4m., some specific reserves would need to be “un-earmarked”. 

 

The Cabinet at its meeting on 25^th July, 2007 as part of the 2007/08-2010/11 Medium Term Financial Plan approved the Budget Strategy and timetable for 2008/09.  The detail of the strategy was detailed in the report.

 

The summary of the overall base budget for 2008/09 was attached at Appendix 2 to the report before the Committee and had been arrived at by adjusting the 2007/08 budget for items such as inflation and unavoidable growth.  It was noted that inflation amounted to £3.463m. of which £1.522m. related to pay awards and £1.941m. for general price increases.  It was further noted that these figures excluded inflation for Schools, which was dealt with as a cost pressure. 

 

Committed growth totalled £5.759m. and related to the following matters:

 

·                    Environmental and Economic Regeneration

Visible Services - £364,000 for Landfill Tax annual decrease.

 

·                    General Policy - £4,050,000 use of balances during the 2007/08 budget process: reduction in interest receivable of £200,000 as a direct result of the use of balances and £300,000 increased cost of funding the Capital Programme.

 

·                    Chief Executive - £845,000 full year effect of the Contact Centre implementation of single number.

 

With regard to cost pressures for 2008/09 these had been identified by Services and were detailed in Appendix 3 to the report.  In total these amounted to £12.607m. and some would need to be met from Services.  These excluded the cost of redundancies, which may be incurred in order to maintain the budget within resources available.  However it was noted that such costs could be significant.

 

The base budget for 2008/09 based on the provisional Revenue Support Grant settlement and assuming no increase in Council Tax income, the total resources available for 2008/09 was £185.224m.  After adjusting for transfers of specific grant into resettlement this was £0.676m. less than the requirement set out in the initial 2008/09 base budget and did not take into account any of the £12.607m. of cost pressures.

 

Scrutiny Committee had

 

RECOMMENDED -

 

(1)       T H A T this Scrutiny Committee notes the Initial Revenue Budget Proposals for 2008/09, subject to recommendation (2) - (4) below and be referred to Cabinet.

 

(2)       T H A T the recommendation of the Scrutiny Committee (Community Wellbeing and Safety) be noted.

 

(3)       T H A T the recommendations of the Scrutiny Committee (Economy and Environment) be endorsed.

 

(4)       T H A T the recommendation of the Scrutiny Committee (Lifelong Learning) be noted.

 

Cabinet, having considered the recommendations of Scrutiny Committee (Corporate Resources)

 

 

RESOLVED - T H A T the above recommendations be referred to the Budget Working Group for consideration.

 

 

C3334                        INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (REF) -

 

Details of the progress on the 2007/08 programme for the period 1^st April to 31^st October, 2007 and the Initial Capital Programme Proposals for 2008/09 were submitted to Scrutiny Committee (Corporate Resources) on 11^th December, 2007.  Progress on the Capital Programme as at 31^st October, 2007 was appended to the report.  In respect of amendments to the 2007/08 Capital Programme, it was noted that Cabinet had approved the following changes and, where indicated, referred the same to Council for approval:

 

Directorate of Environmental and Economic Regeneration -

·                    Victoria Park Restoration - increase the Capital Programme by £65,000 to reflect additional grant funding

·                    Barry Regeneration Partnership - increase the Capital Programme by £5,000 to match fund grant aid

·                    Rhoose and Llantwit Major Vale of Glamorgan Line - increase the Capital Programme by £18,000 in order to complete the scheme

·                    Barry Central Station - Council approval was sought for an additional committed cost of £195,000 over the existing budget.

 

Directorate of Legal, Public Protection and Housing Services -

·                    Vale Community Alarm System (VCAS) - the Chief Executive had exercised his Emergency Powers to approve the purchase of a VCAS communication system - increase the Capital Programme by £203,000 in order to initially fund the procurement of the system.

 

Directorate of Social Services -

·                    Woodland Day Centre - increase the Capital Programme by £200,000 in order to enable the work required to complete the transfer of facilities from the above day centre

·                    Flying Start Grant - increase the Capital Programme by £34,500 in order to undertake works related to the establishment of outdoor play areas at Camau Cyntaf Nursery (£7,601), Kidzone (£16,209) and provision of storage area at the Flying Start offices at Skomer Road (£10,592).

 

Policy -

·                    Civic Office Car Park Improvement Works - reduce the Capital Programme by £22,000 given that the associated works were completed during 2006/07.

 

Council, on 12^th October 2005, gave Cabinet the authority to withdraw a budget from a Capital Programme if a scheme was not contractually committed within 18 months of being included in the Capital Programme.  In the event of this arising, a new bid would have to be submitted as part of the coming year’s budget setting process to reintroduce the scheme into the Capital Programme.  Having regard to this, the following schemes remained contractually uncommitted 18 months after approval but the services had requested that the schemes remained in the Capital Programme and be slipped from 2007/08 into 2008/09.  Appendix A and B to the report before the Committee detailed the matters below, based on the assumption that this request being approved:

 

Directorate of Social Services -

·                    EMI Beds - Social Housing Grant funding would not been spent in the current financial year and accordingly it was requested that £500,000 be slipped into 2008/09 to enable this funding to be considered as part of this development

·                    Adult Respite Care - the current year allocation of £500,000 was intended for the purchase of a property in order to provide day care facilities for adults with learning disabilities.  Problems had arisen whilst attempting to progress the purchase of an appropriate property and accordingly £500,000 be slipped into 2008/09.

 

As regards to the 2008/09 Capital Programme, WAG had announced provisional General Capital Funding of £8,198,000, an increase of £23,000 (0.28%) over the current year.  It was noted that the final settlement was expected to be announced during January 2008.  It was further noted that the Major Repairs Allowance had not yet been announced by WAG and that Cabinet would be advised of the same as soon as possible.  In addition to the funding from WAG, the Council would finance part of the Capital Programme from its own resources and the table below detailed the General Capital Funding and the 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
		8,198
Council Resources
Capital Receipts	3,666
Reserves/Leasing	1,942
		5,608
Net Capital Resources		13,806

 

In addition to the above, Appendix B outlined the indicative 2008/09 Capital Programme which included allocations already approved by Council and the slippage requests referred to previously.

 

Indicative asset renewal budgets had been included as set out below and were further detailed in Appendix B to the report:

 

·                    Education                              £800,000

·                    Social Services                    £150,000

·                    Visible Services                    £800,000

·                    Leisure Services                    £150,000

·                    Miscellaneous Buildings            £200,000

 

The above constituted an un-earmarked general provision. Directors had made specific bids which had been classed as asset renewal.  Due to the inclusion of the indicative asset renewal budgets, these specific bids had been shown as a separate heading as detailed in Appendix C to the report, which listed the unsuccessful bids.  Specific asset renewal schemes would be reported to a future Cabinet for approval.

 

In addition to the capital bids detailed in Appendix B, Appendix C listed capital bids received that were unsuccessful and consequently had not been put forward for inclusion in the 2008/09 programme.  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.

 

Bids had been received for schemes that were 100% grant funded even though grant approval had not yet been received.  Whilst the following schemes had no cost to the Council, it was proposed that they be not included in the programme at the current stage since it was uncertain whether approval would be received:

 

·                    Central Station Land Purchase - £1,400,000

·                    Dinas Powys Bus Prioritisation Lane - £500,000

·                    Five Mile Lane Highway Improvements - £250,000

·                    Safety Cameras - £50,000.

 

It was noted that, should grant funding be approved, Cabinet had delegated authority to include those schemes in the Capital Programme.

 

Included in the unsuccessful bids were also number of schemes which required match funding from the Council in the sum of £2,008,000.

 

Having considered the initial budget proposals contained in the report, the comments of the other Scrutiny Committees referred to previously, and the views expressed at this meeting, Scrutiny Committee had

 

RECOMMENDED -

 

(1)       T H A T the Initial Capital Programme Proposals for 2008/09 be noted, subject to recommendations (2)-(4) below and referred to Cabinet.

 

(2)       T H A T the recommendation of the Scrutiny Committee (Community Wellbeing and Safety) be noted.

 

(3)       T H A T the recommendation of the Scrutiny Committee (Economy and Environment) be noted.

 

(4)       T H A T the recommendation of the Scrutiny Committee (Lifelong Learning) be noted.

 

Cabinet, having considered the recommendations of Scrutiny Committee (Corporate Resources)

 

RESOLVED - T H A T the above recommendations be referred to the Budget Working Group for consideration.

 

 

C3335                        INITIAL HOUSING REVENUE ACCOUNT BUDGET PROPOSALS 2008/09 AND REVISED BUDGET 2007/08 (REF) -

 

The Initial Housing Revenue Account Budget proposals were before the Scrutiny Committee (Corporate Resources) on 11^th December, 2007 for consideration together with the revised budget for 2007/08.  The table below compared the original budget with the proposed revised estimate.

 

	2007/08 Original Budget	2007/08 Proposed Revised Estimate	Variance (+)Favourable (-)Adverse
	£’000	£’000	£’000
Housing Revenue Account	(421)	(868)	447

 

The net decrease of £447,000 in the budget had been due to several reasons.  The budget had been adjusted to reflect more accurately the capital financing charges (£250,000), a decrease in security measures at Harbour View (Penarth Heights) would save (£53,000), and the amount payable to the Welsh Assembly Government in respect of Housing Subsidy was likely to reduce by (£117,000).  General efficiency savings and vacancies accounted for the remaining balance of the reductions.

 

Cabinet had approved the budget strategy and timetable for 2008/09 on 25^th July, 2007 as part of the 2007/08 - 2010/11 Medium Term Financial Plan (Minute No. C3160).  The Budget Strategy had outlined that in order to establish a baseline, services should prepare revenue budgets for the following year based on the cost of providing the current level of services and approved policy decisions and the cost of price increases and pay awards would be included.  In respect of the Housing Revenue Account due to the nature of it being ringfenced any growth would have to be funded from the balance and no cost pressures had been formally identified.

 

The proposed 2008/09 budget was set out at Appendix A to the report. It was noted that the charges for rent and other services provided by the Housing Division were reviewed on an annual basis and as such would be subject to a future report once the information had been received from the Welsh Assembly Government.  The report however further highlighted that a consultant was currently undertaking a Rent Review which was due to be finalised by December 2007.  The change in the budget was therefore itemised as follows:

 

2007/08 Original Budget	Inflation/ Pay Award	Committee Growth / Savings	Estimated Rent Increase	2008/2009 Proposed Budget
£’000	£’000	£’000	£’000	£’000
(421)	102	346	(540)	(513)

 

The committed growth of £346,000 had been due to the increases in subsidy repayable to WAG, a reduction in rent income due to right to buy sales reducing the stock levels and an increase in the cost of security at the hostel and general budget adjustments, the estimated capital financial recharge, a reduction in central recharges and a reduction in the security provision at Penarth Heights.  The Committee considered that in light of the fact that the true settlement had not been received from the Welsh Assembly Government it was difficult to make any comments on the proposals and

 

RECOMMENDED -

 

(1)       T H A T the report be noted and referred to the Scrutiny Committee (Corporate Resources) for consideration.

 

(2)       T H A T this Committee receive a report on the increases suggested for rent and other services, as and when available, from the Welsh Assembly Government.

 

Cabinet, having considered the recommendations of Scrutiny Committee (Corporate Resources)

 

RESOLVED - T H A T the above recommendations be referred to the Budget Working Group for consideration.

 

 

C3336                        CARDIFF BAY ADVISORY COMMITTEE -

 

The following minutes of a meeting held on 14^th November, 2007 were submitted:

 

Present: 

 

Councillor N.J. Gibbs (Chairman)	Penarth Town Council
Mrs. C. Dimond (Vice-Chairman)	Cardiff Flood Action Committee
Councillor Mrs. V.M. Hartrey	Vale of Glamorgan Council
Councillor N. Howells	Cardiff County Council
Mr. P. Barry	Cardiff Yacht Club
Mr. T. Davies	Royal Yachting Association
Ms. S. Newbold	British Marine Federation
Mr. J. Taylor	Glamorgan Anglers
Mr. J. Reeves	Environment Agency Wales
Mr. R. Harvey	Welsh Canoeing Association.

 

Also Present:

 

Mr. D. Lowe	Cardiff Harbour Authority
Mr. C. Hope	Vale of Glamorgan Council.

 

 

(a)            Apologies for absence -

 

These were received from Mr. A. Parker, Mr. S. Jones (Quay Marinas Ltd.); Councillor J. Norman (Cardiff County Council), Mr. Simon Howell and Mr. J. Harrison (Environment Agency Wales).

 

 

(b)            Minutes -

 

AGREED - T H A T the minutes of the meeting held on 12^th September, 2007 be approved as an accurate record.

 

 

(c)        Cardiff Harbour Authority Progress Report -

 

The following progress report was received from Mr. Lowe:

 

Barrage

 

Barrage Embankment:  An internal review of settlement that includes level surveys and ground water readings was undertaken in November.  No major movement was observed.  Monitoring of levels and ground water will continue monthly with photographic records being made annually.  The overall review of all data will continue to be undertaken annually.

 

Barrage Embankment Bay Edge:  The remedial bay edge works are complete.  These include placing of gabions and reinstatement of stone that had moved on the bay access edge that is used to collect litter.

 

Local Gate Painting:  The first phase of a three year lock gate painting contract is complete.  This first phase concentrated on the painting of Lock 1 and was completed to programme and within budget.

 

Barrage Security:  A review of Barrage security is being undertaken in light of recent threats such as Glasgow Airport.  Both short term and medium term improvements are being considered following a full risk appraisal of the existing system.

 

Water Transport Commuter Service:  The bids for the provision of a commuter service serving the Penarth to Mermaid Quay and Penarth to the City Centre routes are due back in six weeks.  The operational commuter service is scheduled for commencement in April 2008.

 

Water Bus Speed Trial:  Following a water bus trial that involved consulting stakeholders and interested parties and involving these parties in the trial itself, a review of the speed of low wash water buses has been undertaken and a recommendation made to increase the speed on the River Taff to a maximum of 8 knots.  This speed compares with the upper reaches on the Thames where there is rowing and other water paddle sports.  Risks to the environment, the health and safety of other users and noise have been considered.  It is proposed a trial with the low wash water buses operating at 8 knots commences in December for six months.

 

Environment

 

Dissolved Oxygen:  Levels have been maintained at or above the statutory minimum of 5mg/l for 99,9% of the time since April 2007.

 

Algae:  No algal scums have been recorded in the Bay this year.

 

Water Quality:  The compliance with the European Bathing Water standard for the periods April to June and July to September was approximately 77% and 54% respectively.

 

Debris:  A total of 151 tonnes of litter and debris has been removed from the Bay since April 2007.

 

General

 

Olympic Standard Canoe Slalom Facility:  A provisional offer has been received from the Welsh Assembly Government regarding the funding arrangements for the proposed Olympic Standard Canoe Slalom facility.  This is currently being reviewed and discussions with the Assembly are ongoing.

 

Inner Harbour to Barrage Walkway/Cycleway:  The Harbour Authority is working closely with the Assembly, Associated British Ports and Igloo (Roath Basin Developer) to open up a walkway/cycleway between the Inner Harbour and the Barrage.  It is intended that this be opened in Spring 2008.

 

Pont Y Werin:  The Harbour Authority has been working very closely with Cardiff Council, the Vale of Glamorgan and Sustrans, the sustainable transport strategy, regarding its £50m. bid to the National Lottery, for the construction of 79 walkway and cycleway schemes around the UK.  These schemes, known as the Connect2 Programme, include the Pont Y Werin (the People’s Bridge) which will provide a safe route for pedestrians and cyclists over the River Ely between Penarth and the International Sports Village, and complete a key section of the Harbour Authority’s Bay Edge Walkway project.  Sustrans Connect2 Programme is competing against three other schemes and the winner will be decided by a public vote.  If the Connect2 Programme wins, Sustrans will contribute a sum of £1.15m. towards the cost of building the bridge.

 

Online voting will begin on 26^th November, 2007 at

http://www.thepeoples50million.org.uk/

 

During the week commencing 3^rd December, 2007, each of the four schemes competing for the £50m. prize will be featured in separate programmes on ITV and telephone voting will be possible on 7^th and 8^th December, 2007.  The telephone numbers will be announced on 6^th December, 2007.  The National Lottery will announce the winner during the following week.

 

Events

 

The Welsh Sailing Games were held in the Bay from Cardiff Bay Yacht Club on the 20^th and 21^st October, 2007.

 

The first Welsh Schools Indoor Rowing Championships were held at Cardiff Bay Water Activity Centre on Friday, 26^th October, 2007.  The Welsh Indoor Rowing Championships were held on the following day and over 300 competitors from all over the UK took part.

 

A ‘Find Santa’ lantern procession was held in Cardiff Bay on 10^th November, 2007.  The event was very popular with a few thousand people attending.

 

The Harbour Authority is working closely with the Waterfront Partners with respect to a series of events leading up to and during the forthcoming festive season.

_______________

 

 

(d)            Environment Agency Progress Report -

 

Mr. J. Reeves from the Environment Agency provided the following update:

 

Water Quality

 

Water quality was well maintained.

 

Acoustic Survey

 

The acoustic survey had been successfully completed in October and a report on the outcome would be placed before the Committee in due course.

 

Zebra Mussels

 

It was reported that, as an experiment, anti-fouling paint had been used on the walls of the fish-pass chamber in an attempt to prevent the encrusting of the pass by zebra mussels.

 

The experiment had proved successful, with no environmental impact and the use of the anti-fouling paint would be extended to the other chambers.

 

A warning about zebra mussels had been posted on the Environment Agency’s website.

 

Mr. J. Taylor reported that he had received sightings of crayfish.

 

Mr. Lowe responded that risk assessments had been undertaken on the incidence of crayfish, but no reported sightings had been received.  Mr. Taylor was requested to provide details of the sightings.

 

 

(e)       Draft Fishing Strategy for Cardiff Bay -

 

Members of the Committee were advised of the contents of an e-mail received from Mrs. S. Jones:

 

“I have a couple of comments on the Draft Fishing Strategy.

 

Firstly, I do not think that fishing from boats should be discounted as an option without further discussion.  In the report it is stated that anchoring would cause a problem with the aeration systems.  I accept that.  However, boats would not need to anchor.  If the CHA want to restrict fishing from boats then they should say so and give a good reason why.  Otherwise, they should have a policy for boat fishing.

 

Secondly, I will be passing on the link for viewing the consultation document to all my customers by e-mail on Friday and hopefully this will generate some feedback for the CHA.”

 

Following discussion, Members of the Advisory Committee agreed that fishing from boats should not be permitted in order to prevent damage to the aeration pipes on the bed of the bay.

 

Mr. Taylor expressed concern at the proposal to allow the fishery to continue to develop without any introductions, at least in the short term.  There was a need to introduce diversity of the fishery, and Mr. Taylor stated that the Glamorgan Anglers were willing to make a financial contribution towards the introduction of some species of fish.

 

Mr. Reeves responded by stating that, in the view of the Environment Agency Wales, the fish stocks in the bay were replenishing well.  The decision not to increase the diversity of species had been taken to avoid the accidental introduction of diseases.

 

AGREED - T H A T the draft Fishing Strategy for Cardiff Bay be endorsed.

 

 

(f)         Cardiff Executive Meeting Report - For Information -

 

AGREED - T H A T the report to Cardiff Executive Business Meeting on 8^th November, 2007 relating to Groundwater Monitoring for the period July 2006 to June 2007 be noted.

 

 

(g)            Minutes of Meetings - For Information -

 

AGREED - T H A T the contents of the minutes of the following meetings be noted:

 

(i)            Harbour Events Group - 4^th September, 2007.

(ii)            Environmental Communication Forum - 10^th October, 2007

(iii)            Waterfront Partners - 18^th October, 2007.

 

 

(h)       Any Other Business -

 

(i)      Bay Point

 

The Chairman announced that he had been lobbied by members of Penarth Town Council concerning the affect on wind flows of the proposed Bay Point development.

 

Mr. Barry, in support, stated that he had been submitting formal complaints about high buildings being constructed in areas of mixed leisure and amenity use in view of the affect they had on the wind.  Mr. Barry asserted that this should be a matter for consideration when planning applications for tall buildings were submitted.

 

AGREED - T H A T the observations of the Advisory Committee be passed to the Planning Officer of Cardiff Council and that he be invited to attend the next meeting of the Advisory Committee to explain his Council’s policy on such matters.

 

(ii)     S.E. Wales Rivers Trust

 

Mr. Taylor advised that the S.E. Wales Rivers Trust had recently been established (the official launch would be held in January 2008).

 

The aim of the Trust would be protecting the rivers and educating children:

 

·             the Trust would use a mix of education / young offenders / volunteers working with the Environment Agency;

·             Charitable Status would be sought in some 12 months time with a view to the Trust making application for financial assistance.

 

AGREED - T H A T a future meeting of the Advisory Committee receive a presentation on the work of the S E Wales Rivers Trust.

 

(iii)       Date of Next Meeting

 

The date of the next meeting was confirmed as Wednesday 16^th January, 2008 at 5.15pm in the Cardiff Harbour Authority Offices.

 

______________

 

RESOLVED - T H A T the minutes be noted.

 

 

C3337                        PROPOSED EXPANSION OF THE WELSH PURCHASING CONSORTIUM (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Cabinet approval was sought for the agreement, in principle, to the proposal to expand the membership of the Welsh Purchasing Consortium from the existing 12 local authority members to an all-Wales arrangement. 

 

The Welsh Purchasing Consortium (WPC) had been existence since 1974 and had been reformed in 1996 following Local Government reorganisation to cover the 12 unitary authorities in South Wales.  The Vale of Glamorgan was one of the 12 existing members, the others being Rhondda Cynon Taf, Swansea, Neath-Port Talbot, Bridgend, Merthyr, Blaenau Gwent, Caerphilly, Torfaen, Monmouth, Newport and Cardiff.

 

Each member Authority arranges contracts or framework arrangements on behalf of the Consortium.  There were currently 63 contracts shared between the participating Authorities on a reciprocal basis.

 

The WPC made a successful bid for funding from the Making the Connections fund.  Members of the Consortium felt that greater savings could be achieved by 22 Authorities working together through increased volumes, sharing resources, and increasing the scope of contracts currently negotiated.  It was also felt that an expanded WPC would benefit from independent management.

 

In September 2006, NQ Consulting were appointed to develop a project brief and business case to consider the views of all 22 Welsh Authorities and to identify a way forward.

 

The business case had now been finalised and a letter had been received from the Secretary of the WPC asking the Authority to support and approve it.  The business case had been presented and approved by the WPC Management Committee on 25^th July, 2007.

 

The key thrust of the business case was to maximise the successful consortia and collaborative vehicle that existed whilst recognising that in order to develop and perform consistently, full time staff were needed to ensure the leadership, direction and management issues were dealt with appropriately.

 

The main recommendations contained in the business case were that:

 

·                    the option of a Central Management Team be adopted but contracts continue to be negotiated by each individual Authority;

·                    the costs are shared by each contributing Authority, though each Authority must commit to negotiating and managing at least one contract on behalf of the Consortium;

·                    a reciprocal payback to each Authority for each contract negotiated on behalf of the WPC be implemented.

 

It was currently proposed that the Central Management Team would consist of three posts and that the costs be shared equally between all participating Authorities (this would be subject to further discussions).  The projected cost would be £11,636 per annum, per Authority, assuming all 22 Authorities were participating and based upon equal contributions.

 

In addition, the business case recommended a reciprocal charge to cover contracts negotiated on our behalf.  Assuming that the Vale of Glamorgan only managed one contract, the cost would be an additional £11,000 per annum.  If the Vale did manage more than one contract, this reciprocal charge would be reduced.

 

These charges were based on all 22 Authorities participating, and should other Authorities decide not to buy into this arrangement a ceiling of £30,000 had been suggested which could be achieved by realigning the proposed management structure.

 

These proposals were to be complimentary to the Council’s own procurement work, to the contracts negotiated by Value Wales and also to the All Wales Sourcing Plan.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the proposal, in principle, to expand the Welsh Purchasing Consortium on an all-Wales basis be approved.

 

(2)       T H A T the Director of Finance, ICT and Property in consultation with the Director of Legal, Public Protection and Housing Services and Leader and Deputy Leader of the Council be granted delegated authority to negotiate suitable terms and conditions prior to entering into any formal agreement to participate in an extended Welsh Purchasing Consortium.

 

Reasons for decisions

 

(1)       To allow the continued development of the proposal to expand the WPC.

 

(2)       To ensure that the Council would benefit from the finalised proposals should the take up of the expanded WPC not be as expected and the model had to be refined.

 

 

C3338                        MAKING THE CONNECTIONS: SOUTH EAST WALES SHARED SERVICES PROJECT (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Cabinet was advised of the progress to date of a multi-authority project in South East Wales to evaluate the feasibility of sharing certain “back office” and professional support services as part of the “Making the Connections” agenda.

 

The Connecting South East Wales Board (CSEWB), comprising Leaders and Chief Executives of the ten Local Authorities in South East Wales, had agreed a project to investigate the potential for sharing various “back office” functions, with a view to releasing resources to invest in front line services.  A Steering Group, comprising senior managers from the ten Authorities and the Welsh Local Government Association was overseeing the project. 

 

Cabinet, on 9^th May, 2007, received an update report setting out the results of the Strategic Outline Case including recommendations of the CSEWB to:

 

·                    proceed to the Outline Business Case and Implementation Plan for transactional training, HR and payroll services using external support from PriceWaterhouse Coopers;

·                    proceed to the Outline Business Case for internal audit services, the project to be sponsored by a Chief Executive and supported by a member of the Steering Group but with no external support.

 

Whilst the Director of Resources at Bridgend County Borough Council was taking forward the Internal Audit project with the intention of reporting back to the CSEWB early in the near year, the Outline Business Case and Implementation Plan for the Training, HR and Payroll Services project was now complete.  The report of the Steering Group in the form of a Position Statement was attached at Appendix A to the report.

 

The main conclusions of the OBC were that there was a business case for moving towards a shared Training, HR and Payroll Service with the modelled options projecting savings of between £14.7m. and £44.9m. over a 10-year period, depending upon the numbers of Authorities participating.  There were also opportunities for Authorities that have made recent investments in HR and Payroll Services, to still derive significant benefits through the simplification and standardisation of working arrangements of the benchmarking of best practice.

 

A number of positive outcomes had already been identified to date, not least those of improved communication between Authorities and the opportunities for collaboration in other areas.  However, there must be tangible benefits for each Authority individually before any final decision to participate in a shared Training, HR and Payroll Service was made.

 

In order to achieve this, the Steering Group had recommended moving forward to the next stage of the shared services project, which was the completion of a detailed (final) business case.  This did not commit Authorities to enter into a shared services operation but instead would provide greater and more robust evidence to allow them to make an informed decision.

 

The final business case would seek to provide a balance between cost efficiency savings set against the potential opportunity and service improvement benefits from increased quality scope and specialised service provision.

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the ongoing work with regard to the shared services project for Internal Audit and the development of a Final Business Case for the Training, HR and Payroll Services project be endorsed.

 

Reason for decision

 

To keep Cabinet, Scrutiny and Audit Committee Members abreast of progress on the Shared Services Initiation in South East Wales.

 

 

C3339                        BANKING SERVICES (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Cabinet were asked to consider and agree the future arrangements for the Council’s banking services.

 

The Co-Operative Bank Plc had been the Council’s main banker since 1996, when the tender was initially won and in 2002 when the service was re-tendered.

 

It was considered that the Co-Operative Bank provided an excellent service to the Council over the years and there was no reason to consider changing bank on grounds of quality of service.

 

When the last competitive tender was undertaken, there was an increase in the costs. 

 

Council was implementing a new financial system with a planned go live date of 1^st April, 2008.  To implement a change of bank would create significant additional work for the teams involved in the financial implementation and would add to the risks.

 

There had been significant changes in the volume and nature of transactions going through the Council’s bank accounts, volumes of electronic transactions were increasing and paper and cash transactions were reducing.  This was reflected in the Bank’s proposal.

 

The Bank had submitted a proposal to provide the service for 3 years until 31^st March, 2011, with the option to extend a further 2 years. 

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T a waiver under Contract Standing Order 2.3 be agreed and that the Director of Finance, ICT and Property be authorised to renew the contract with the Co-Operative Bank Plc in line with the terms outlined in the report.

 

(2)       T H A T the Director of Legal, Public Protection and Housing Services be authorised to sign the necessary contract.

 

Reasons for decisions

 

(1)       To continue service provision.

 

(2)       To formalise contract arrangements.

 

 

C3340                        CYLCH MEITHRIN Y BONT FAEN (DLD) (SCRUTINY - LIFELONG LEARNING) -

 

Cabinet approval was sought to make a contribution to the replacement facility for early years provision at Cylch Meithrin y Bont Faen, which was a privately run nursery unit and had a charitable status.

 

In addition to the requirements to ensure 100% part-time provision for all 3 and 4 year olds, it was a statutory responsibility for local authorities to promote Welsh Medium Education.  As a consequence, there was an expectation that the Vale of Glamorgan Council would contribute to the costs, especially as the Mudiad were funding a demountable unit exclusive of any installation costs.  The Mudiad had provided similar units in other areas, with the local authority making a contribution. 

 

For the past two years or so, the Cylch Meithrin had been seeking an appropriate location for their nursery unit.  Possible options had been narrowed down to a site adjacent to the Cowbridge Leisure Centre.  Relevant planning permission had been granted.

 

Property Services had estimated that the installation costs would be up to £95,000 including the implications of sustainable development.  The Cylch Meithrin only had the capacity to fund £20,000.  Therefore financial support of up to £75,000 was requested from the Council via Education reserves.  The most appropriate way for this to be done would be for the Council to provide a grant which would be embodied in a Deed of Grant drawn up by Legal Services.

 

The Council consider that early years provision between Ysgol Iolo Morganwg and the Cylch Meithrin Y Bont Faen is unique within the Authority.  The provision of financial support for the Cylch Meithrin would certainly not set a precedent in respect of further contributions for either provider.

 

Use of the site adjacent to the Cowbridge Leisure Centre would effectively constitute disposal of public open space which must be advertised under Section 123(2A) of the Local Government Act 1972.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T a grant of £75,000 be made towards the installation of the Cylch Meithrin Nursery Unit and that an index-linked rent of £100 per month be charged to the Cylch Meithrin.  The condition of the grant and rental to be contained within a Deed of Grant and Leasing Agreement prepared by Legal Services on terms and conditions agreed by the Director of Finance, ICT and Property and the Director of Legal, Public Protection and Housing Services be authorised to complete and execute the necessary legal documentation.

 

(2)       T H A T authority to advertise the disposal of public open space, as required by Section 123(2A) of the Local Government Act 1972, be given to the Director of Legal, Public Protection and Housing Services and that he be authorised to consider any representations received in consultation with the Deputy Leader.

 

Reasons for decisions

 

(1)       To enable the Council to fulfil its statutory obligation in respect of the provision of part time places for 3 and 4 year olds.

 

(2)       To ensure compliance with Section 123(2A) of the Local Government Act 1972.

 

 

C3341                        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 make a decision prior to the next Committee, be considered.

 

 

C3342                        SAND BAGS (DEER) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

Cabinet considered the issues relating to the provision of sand bags to the public in relation to potential flooding incidents. 

 

The Council currently had a policy, introduced in 1996, of not providing sand bags to the public.  Whilst sand bags were used for operational purposes e.g. during highway flooding events, these were not provided for general use. 

 

There were many reasons why it was not considered appropriate for the Council to issue sand bags, including:

 

·                    Sand bags were not very efficient in preventing flooding.

·                    There were very limited resources available to enable such a policy to be implemented throughout the Vale in both financial and personnel terms.

·                    Sand bags need to be stored under dry conditions and deteriorate with time.   The Hessian bags rot and the plastic bags become brittle and break.

·                    It would be not practical to be able to guarantee to deliver and place sand bags in required locations particularly in the Western community.  Flooding, regrettably, occurred in all areas of the Vale and was not restricted to any single area.

·                    There would be potential insurance issues relating to the possible failure to deliver sand bags in a timely manner when flooding events occurred.  There were even concerns at claims being received from residents for damage to carpets from workmen passing through a property placing bags at a rear garden door or potentially damaging household goods on the way through a property.

·                    During flooding events, all available personnel and plant was mobilised to address the event itself with no spare resources to deliver such bags. 

·                    Sand bags were available from builders merchants and bags or loose sand could be used in their place.  Information for residents in this respect was provided on the Council’s website. 

 

However, the Council wished to assist residents where possible.  This being the case, it was proposed to introduce a new policy of making sand bags available to residents from a central location on a “self service” basis. 

 

It was therefore proposed that on a “without prejudice and liability” basis, 1,000 sand bags per year be provided at the Council’s Court Road Depot in Barry.  A strict regulated system of 15 bags per resident per year would be implemented with a formal disclaimer signed and proof of residency in the Vale of Glamorgan required.  The disclaimer would include confirmation that the ownership of the sand bags would be with the resident and no claim would be entertained by the Council for any act arising from its use.  The bags could be collected from residents after any potential use as part of the bulky refuse collection service provided that they were stored off the public highway on private land until collection.

 

Bags would be provided for the protection of residential premises only, on a first come first serve basis and via personal collection at Court Road Depot, Barry during “normal” office hours only. 

 

It was proposed that this new provision be advertised via the Council’s website and the local press.  This method of communication was suggested as any form of selected letter drop could miss certain individuals who may be subject to flooding in the future, even though they may not have been flooded previously.

 

Cabinet were advised that in extreme weather conditions, the Council is able to obtain stocks of sand bags from the Environment Agency and this provision would still be available to supplement any local scheme of sand bag provision. 

 

It was reiterated that sand bags were not an efficient method of preventing property flooding.  There were other more effective individual property measures such as flood doors, changes in garden design, etc.  It was proposed therefore that as part of the flood risk management work that was currently ongoing, a “Flood Information  Event” be organised during 2008 where residents would be advised of more appropriate measures to protect their properties from flooding. 

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T 1,000 sand bags be provided per year at the Court Road Depot, Barry, and be made available on a 15 per resident basis - subject to a formal disclaimer, the costs to be met from the Visible Services provisions.

 

(2)       T H A T the formal disclaimer be signed as proof of residency with the Vale of Glamorgan, that this include confirmation that the ownership of the sand bags will be with the resident and that no claim will be entertained by the Council for any act arising from its use.  The bags can be collected from residents after any potential use as part of the bulky refuse collection service provided they are stored off the public highway on private land until collection.

 

(3)       T H A T the sand bags be provided for the protection of residential premises only, on a first come fist serve basis and via personal collection at Court Road Depot, Barry during “normal” office hours only.

 

(4)       T H A T the policy be brought into operational use as soon as possible, but not later than 1^st February, 2008.

 

(5)       T H A T authority be granted to the Director of Legal, Public Protection and Housing Services, in consultation with the Cabinet Member for Visible and Building Services to finalise the precise form of the disclaimer to be signed.

 

Reason for decision

 

(1-5)    In order to provide an improved service to the public of the Vale of Glamorgan.

 

 

C3343                        OAKFIELD SCHOOL -

 

Prior to the conclusion of formal business, the Cabinet Member for Education and Lifelong Learning announced that Oakfield School had opened that day following restoration works as a result of the flood in July 2007, and that this meant that all of the schools affected by the flooding incident were now operational.

 

RESOLVED - T H A T the Director of Learning and Development and his staff be congratulated for their efforts following the flooding incident.