Welcome to the
Vale of Glamorgan Council

 

CABINET

 

Minutes of a meeting held on 25^th February, 2009.

 

Present:  Councillor G.C. Kemp (Chairman); Councillors Mrs. J.E. Charles, P. Church,  G.A. Cox, A.M. Ernest, A.D. Hampton, H.J.W. James, R.L. Traherne and Mrs. D.M. Turner.

 

Also present:  Councillors R.F. Curtis and Mrs. V.M. Hartrey.

 

 

C335              MINUTES -

 

RESOLVED - T H A T the minutes of the meeting held on 11^th February, 2009 be approved as a correct record.

 

 

C336              APOLOGY FOR ABSENCE -

 

This was received from Councillor T.H. Jarvie.

 

 

C337              DECLARATIONS OF INTEREST -

 

No declarations were received.

 

 

C338              LEISURE CENTRE CHARGES 2009/10 (REF) -

 

The Scrutiny Committee (Economy and Environment) had, on 10^th February 2009, considered a report in relation to the above and forwarded the following recommendation to Cabinet:

 

“That Cabinet be asked to approve the following:

 

·                    to fix Leisure prices at current levels until January 2010

·                    to confirm that all Leisure charges would be maximum prices with officers having the ability to reduce prices if appropriate for promotions etc. in consultation with the Cabinet Member for Leisure and Tourism

·                    to allow prices to be reviewed and adjusted if necessary as a result of future VAT changes by the Director of Environmental and Economic Regeneration in conjunction with the Director of Finance, ICT and Property Services

·                    to authorise the Director of Environmental and Economic Regeneration in consultation with the Cabinet Member for Leisure and Tourism to set charges or increase prices for sports, arts and play development courses, saleables, new leisure centre activities and food and beverage charges if market conditions were to change during the course of the year.”

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the recommendation of the Scrutiny Committee be accepted.

 

Reason for decision

 

To take account of current circumstances, to allow pricing to be used as a marketing tool, to enable the appropriate action to be taken and to enable charges to reflect market changes.

 

 

C339              FEES AND CHARGES, DYFFRYN GARDENS AND ARBORETUM AND COUNTRY PARKS (REF) -

 

The Scrutiny Committee (Economy and Environment) had, on 10^th February 2009, considered the report in respect of the above and had recommended the following to Cabinet:

 

“That Cabinet be asked

 

·                    to approve the charges detailed in Appendices A, B, C and D to the report for implementation in March 2009 for the Dyffryn main season and April 2009 for the other three sites

·                    to confirm that all charges set would be a maximum cost with officers having the ability to reduce prices if appropriate for promotions.”

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the recommendations of the Scrutiny Committee be accepted, subject to any reductions in prices being undertaken in consultation with  the appropriate Cabinet Member.

 

(2)       T H A T a marketing report on the Council's attractions be submitted to Cabinet.

 

Reasons for decision

 

(1)       To take account of specific market conditions, to reflect cost appropriately and to allow prices to be used as a marketing tool.

 

(2)       To evaluate the position.

 

 

 

C340              LEGAL ACTION TAKEN BY MR. M. ROBERTS AGAINST THE VALE OF GLAMORGAN COUNCIL - FORESHORE AT THE OLD HARBOUR AND THE BOUNDARY DISPUTE AT FRIARS POINT HOUSE, BARRY (REF) - 

 

The Scrutiny Committee (Corporate Resources) had, on 17^th February 2009, in response to a request for consideration been apprised of the current status involving the Council in relation to the above legal matters regarding disputes with the Trelleck Estate Ltd. and Mr. Roberts.  The Scrutiny Committee had subsequently recommended

 

“that Cabinet be advised of the following:

 

(1)       Officers be thanked for their efforts to date regarding actions detailed in the report.

 

(2)       The Council continue to robustly challenge existing and future actions regarding claims of ownership of the land identified in the report at the Old Harbour, Barry.

 

(3)       The Council does not enter into any further negotiations with Mr. Roberts or any other party until Mr. Roberts vacates the Council's land, the recovery of the Council's legal costs (subject to their assessment) and, no sooner than six months, on land matters regarding Friars Point House, Barry.

 

(4)       Once matters are resolved to the satisfaction of the Council, that Cabinet be invited to request a further report on outstanding issues relating to Friars Point House, Barry.

 

(5)       Cabinet be requested to ensure that, prior to advertising the disposal/ sale of land in the future, that the boundary of the land be 'pegged out' for avoidance of any doubt.”

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the recommendations of the Scrutiny Committee be accepted.

 

Reason for decision

 

To safeguard the Council's interests.

 

 

C341              CARDIFF BAY ADVISORY COMMITTEE -

 

The following minutes of a meeting held on 21^st January 2009 were submitted:

 

 

“Present:

 

Councillor P. Church (Chairman)	Vale of Glamorgan Council
Mrs. C. Dimond (Vice-Chairman)	Cardiff Flood Action Committee
Ms. S. Newbold	British Marine Federation
Mr. J.P. Barry	Cardiff Yacht Club
Councillor D. Morgan	Cardiff County Council
Councillor N. Howells	Cardiff County Council
Mr. A. Parker

 

Also present:

 

Mr. S. Howell	Cardiff Harbour Authority
Mr. B. Williams	Cardiff Harbour Authority
Mr. J. Harrison	Environment Agency Wales
Mr. C. Hope	Vale of Glamorgan Council

 

 

(a)       Apologies for absence -

 

These were received from Councillor A.M. Ernest (Vale of Glamorgan Council) and Mr. S. Jones, Quay Marinas.

 

 

(b)       Minutes -

 

AGREED - T H A T the minutes of the meeting held on 19^th November, 2008 be approved as an accurate record subject to Mr. J.P. Barry being added to the list of names of those present.

 

 

(c)        Update Report on Harbour Authority Strategic Issues -

 

Barrage

 

·                    The refurbishment of the Barrage sluices hydraulic blocks and replacement of the monitoring positioning system for the cylinders had been completed to schedule.

·                    Work had commenced on the annual maintenance of the Fishpass in accordance with the maintenance schedule agreed with the Environment Agency.  This work would be completed before the end of March, in time for anticipated migratory fish runs.

·                    A new fuelling facility was being constructed on the Harbour Authority wharf.  This would result in a more efficient and cost effective means of fuelling the fleet of Harbour Authority vessels.

 

Environment

 

·                    The Harbour Authority had met the statutory dissolved oxygen standard 100% of the time throughout November and January.

·                    The provision and installation of the first water quality information sign had been tendered and it was hoped that this would be erected near the Cardiff Bay Water Activity Centre slipway in the next few months.  It would provide casual users of the Bay with the predicted quality of the water in the Bay for that day.  This information was currently used by the water activity centre to guide the type of activities and courses that are held at the centre.

·                    The tonnage of debris that was collected from the Bay during November and December was significantly lower than the previous two months as the weather had been predominantly cold and dry.  During the recent very cold weather the River Ely surface froze, which was the first time this had been observed since the Harbour Authority was established.

·                    New working arrangements had been put in place for the cleaning of the bay edges.  This involved the use of some external contractors and in-house cleansing operatives to ensure that cleansing of the bay edges was undertaken as a high priority.

 

General Issues

 

·                    The tenders for the Pont Y Werin Bridge had been returned and were being assessed.  The lowest tenders were below the pre tender estimate and it was therefore hoped to progress the contract to enable a start on site this summer with completion in the summer of 2010.

·                    The construction of the Olympic standard Canoe Slalom Centre was progressing well.  The revised design for the building had been submitted to planning for detailed planning consent.  A live webcam was available to view the works and this could be found at http://www.cardiffcanoeslalom.com/.

·                    The Bay Users Guide and Adventure Cardiff Brochures had been printed for 2009.  These were used recently at the London Boat Show and were well received.  Numbers attending the London Show were significantly down on previous years and the benefits of attending the show next year would be considered.

·                    A new tractor had been purchased to help in the management of Flatholm Island.  This was grant funded and had been taken to the island on the Harbour Authority workboat.  Also recently taken to the island, were a new flock of Soay sheep that would help graze the land.

·                    A trial was being undertaken to install a non-slip surface on the timber footbridge over Roald Dahl Plasse.  This trial, if successful, could reduce the slips that do occur on timber decking surfaces which are present in several areas of the Bay.

 

(d)       Progress Reports - Environment Agency -

 

Mr. John Harrison informed the Committee that

 

·                    Work on the White Water Rafting Centre was progressing well, with regular consultation taking place with the contractors.  As far as the river works were concerned, the window of operation existed around the migration of fish and the Harbour Authority had commissioned consultants to measure vibration impacts with EA staff monitoring fish movements.

 

The data would provide a valuable source of information for future developments.

 

·                    Reports had been received of sightings of pollution in Bute East Dock.  Investigations had not found any traces of pollution, but the area would be monitored regularly.

 

·                    The South East Wales Rivers Trust had successfully bid for the right to run the International Coarse Fishing Championships which, whilst taking place mainly between Upper Boat and Merthyr, would inevitably attract interest in the whole river. 

 

·                    It was hoped that the Advisory Committee would soon receive a report on the WAG feasibility study relating to tidal power in the Severn Estuary. 

 

(e)       Ground Water Monitoring System and Possible Changes to it -

 

The Advisory Committee received a presentation from Mr. Berni Williams on the Ground Water Monitoring System. 

 

The Barrage Act 1993 had provided protection to some 21, 000 properties against damage caused by altered ground water levels as a result of the construction of the Barrage, over a period of 20 years. 

 

The protection was in the form of remedial works and/or payment of compensation.  Complaints were managed by an Independent Administrator and disputes were determined by an Independent Expert.

 

To the end of 2008, 488 complaints had been received by Cardiff Harbour Authority of which 471 were found to have been caused by factors other than altered ground water, and the remaining 17 complainants had taken their dispute to the Independent Expert.

 

The Barrage Act included a requirement that the levels of ground water in the affected area be monitored, and this had commenced in 1995 through the use of 236 loggers covering an area of some 15 square kilometres.

 

All of the data was stored on a data base which was reviewed externally by an Independent Expert.  It was believed that this was the largest ground water monitoring system in the world.

 

For the future, it was proposed that the bore holes be retained where they:

 

·                    provided information on the operation of the ground water control system

·                    ensured adequate regional coverage of ground and made ground water levels

·                    provided an understanding of the condition of the surrounding area.

 

Consultants had determined that the Cardiff Harbour Authority may discontinue monitoring in the following instances:

 

·                    when instruments fail

·                    where duplication of data is recorded

·                    outlying bore holes

·                    estuarine alluvial bore holes where there is sufficient coverage in made gravel.

 

If monitoring were to be discontinued, Schedule 7 of the Barrage Act would require the approval of

 

·                    Vale of Glamorgan Council

·                    Cardiff Council

·                    Bodies where agreements had been entered into e.g. gas/electricity companies.

 

The benefits that would accrue should ground water monitoring be reduced in line with the Consultants recommendations would be:

 

·                    reduction in maintenance costs of 35%

·                    reduced operational costs.

 

In summary, the Advisory Committee were advised

 

·                    no damage to property had occurred as a result of the construction of the Barrage

·                    ground water monitoring had been undertaken since 1975

·                    approval to change any of the procedures currently in place would require the consent of other Councils and third parties.

 

 

(f)         Date of Next Meeting -

 

The date of the next meeting was confirmed as Wednesday, 25^th March, 2009 at 5.15 p.m. “

 

- - - - - - - - - -

 

RESOLVED - T H A T the minutes be noted, it being further noted that the Advisory Committee would be informed by its Chairman that the minutes of the meeting were factually incorrect in that Councillor A.M. Ernest attended the Committee as the representative of Penarth Town Council and not as recorded above.

 

Reason for decision

 

To take account of the views of the Committee.

 

 

C342              VALE OF GLAMORGAN LOCAL ACCESS FORUM -

 

The following minutes of meetings held on 28^th January, 2009 were submitted:

 

(i)         5.30 p.m.

 

Present:  Mr. F. Coleman, Mr. G.D. Cubbin, Councillor A.M. Ernest, Mrs. V.M. Hartrey, Mr. J.J. Herbert, Mrs. H. March, Mr. H.S. McMillan, Mr. M. Parry, Ms. A. Phillips, Mr. R. Simpson, Mrs. L. Stuart and Mrs. V. Warlow.

 

 

Mr. J. Wyatt (Chairman), Mr. C. Fray, Mr. B. Guy, Mr. C. Jones-Jenkins and Mrs. S. Thomas (VoGC).  Ms. S. Tindall (CCW). 

 

Action

(a)       Apologies for absence -   These were received from Mr. N. Moss, Mr. R. Pittard and Mr. R. Traherne.     (b)       Welcome -   Mr. Jeff Wyatt, as Secretary of the Vale of Glamorgan Local Access Forum and Chairman for the initial meeting, welcomed all members and officers present to the first meeting of what would be the third Forum to be appointed since the establishment of the same in 2002.  The current Forum comprised both new and returning members, several of whom had served on the Forum since its inception.  All applications received had in fact been accepted thereby ensuring the maximum mix of interests and expertise available.  Mr. Wyatt outlined the Regulations governing the membership of LAFs, explaining that the Appointing Authority could appoint just 1 representative (and had done so in appointing Councillor Ernest) but that there were in fact now a total of 3 Members of the Council sitting on the LAF.  Two of those Members had been appointed to the LAF, one in 2002 and the other in 2003.  Initial advice from CCW was that the interpretation of the Regulations was a matter for each LAF and, as such, the views of the LAF were sought.  Ms. Tindall, who was attending the meeting on behalf of CCW, confirmed that the interpretation of the Regulations was the prerogative of each LAF and that members of the LAF should be able to justify their decision.     Given the long experience and continuing commitment to the work of the LAF of the Members in question, it was unanimously   AGREED – THAT the status quo be maintained.     (c)        Minutes -   AGREED - T H A T the minutes of the meeting held on 24th September, 2008 be approved as a correct record.     (d)       Introduction by Members -   Each member present gave a brief outline of their particular fields of interest and expertise, most having submitted a brief synopsis for inclusion in the papers sent out prior to the meeting.  Sarah Tindall also briefly outlined her role which included the transmission of feedback from the LAF to CCW/WAG to help inform the decision-making process.      (e)       Presentation on Access Improvements in the Vale of Glamorgan delivered over the lifetime of the previous LAF -   Chris Jones-Jenkins outlined the main achievements for the period 2004-8. Details presented of projects undertaken in partnership with Valeways included improvement projects funded under either the CCW Partnership Programme or the Creative Rural Communities Rural regeneration Programme, and the production of a range of leaflets. He drew attention to the fact that the leaflets were available on the Valeways website and that negotiations were ongoing as to their publication on the Council’s website. He referred also to the fact that the Council’s Cabinet  had recently granted Valeways £30k. per annum for 3 years commencing 1st April, 2009 and that a Service Level Agreement would be entered into for that period.   Attention was drawn to the Council’s Rights of Way Improvement plan (ROWIP) which had been published in November 2007 and to some consequent changes in working practices. Particular reference was made to the development of the Assets Lifecycle Plan (derived from and now incorporated into the Highways Lifecycle Plan) which enabled more efficient estimates to be prepared in relation to infrastructure costs and value. The presentation contained slides showing Open Access land which, within the Vale, related purely to common land, the routine maintenance location map and performance indicator graphs relating to the ease of use and signposting of public rights of way (PROWs). Mr. Jones-Jenkins indicated that the initial results of the last PROW survey had recently been received and that the results were poor; members were shown the results obtained from the Ramblers’ part of the survey, and would be updated on the LAF results at the next meeting.   As regards the Definitive Map and the number of Diversion Orders made, a huge improvement in performance had been achieved (although there remained much to be done in the Barry area). The entire Welsh Assembly Government funding allocation for 2008 had been expended on the review of the Definitive Map, used in part to continue the employment of a dedicated officer.   The focus then turned to the Coastal Access Improvement Programme (CAIP), maps of the area in question together with photographs illustrating conditions prior to and after improvement works being included as part of the slide presentation. Details were also contained within the presentation of expenditure, with some £131k. having been spent in 2007 and a breakdown of the £161k. allocation for 2008 although it was accepted that the 2008 schedule now required revision.   Mr. Jones-Jenkins referred to the single largest maintenance issue for the Council being ploughing and cropping, indicating that this difficult matter had yet to be resolved. He concluded his presentation by referring to 2 successful funding applications under Axis 3 of the Rural Development Plan for Wales 2007-13, namely £50k. for the Llansannor equestrian route and £100k. for stone stile preservation.     (f)         Procedure for Claiming Expenses -   Regulation 11 of the Countryside Access (Local Access Forums) Wales Regulations 2001 required the Appointing Authority to defray reasonable expenses incurred by the LAF in discharging its functions.  Generally, such expenses would relate largely to travelling to and from meetings.  The previous Forum had proposed that a rate of 40p. per mile be paid to members; claim forms were available on application to the Secretary.   AGREED - T H A T the payment of a mileage rate of 40p. per mile be noted.     (g)       Procedure for Appointment of Chairman and Deputy Chairman -   In accordance with Regulation 12 of the Countryside Access (Local Access Forums) Wales Regulations 2001, the appointment of a Chairman and Deputy Chairman was conducted by secret ballot as the first item of business at the second meeting.  Rather than conclude the first meeting by seeking nominations (as suggested in the guidance), it was proposed to seek nominations, and conduct the election itself, at the beginning of the second meeting of the LAF which would be held later the same evening to allow  members more opportunity to familiarise themselves with the details submitted by their fellow members.    AGREED - T H A T nominations for, and the appointment of, a Chairman and Deputy Chairman of the LAF be dealt with as the first item of business at the next meeting.

 

(ii)        6.30 p.m.

 

Present:  As above.

 

Action

(h)       Appointment of Chairman -   Two nominations for the position of Chairman having been moved and seconded and, in accordance with Regulation 12, a secret ballot conducted, it was   AGREED - T H A T Mr. Frank Coleman be appointed Chairman of the Vale of Glamorgan Local Access Forum to 27th January, 2012, or such lesser period as the Forum might subsequently determine.    At this juncture, Frank Coleman assumed the Chair.     (i)         Appointment of Deputy Chairman -   One nomination for the position of Deputy Chairman having been moved and seconded, it was   AGREED - T H A T Councillor Anthony M. Ernest be appointed Deputy Chairman for the Vale of Glamorgan Local Access Forum to 27th January, 2012, or such lesser period as the Forum might subsequently determine.      (j)         Terms of Reference -   Having considered the Terms of Reference as contained within the report, it was   AGREED - T H A T certain of the Terms of Reference be revised to reflect the situation as in 2009, that members of the Forum together with CCW be invited to submit suggestions for inclusion within those Terms of Reference and to the Secretary, and that a revised version be submitted for consideration at the next meeting of the Forum.      (k)        Declarations of Interest -   Local Authorities were required to adopt a Code of Conduct which applied to Members and co-opted members of the Authority.  Whilst members of the Forum would not fall within the definition of a 'Member', the Forum had agreed in March 2003 that an additional paragraph be included in the Terms of Reference as follows:   'Should a member of the Forum feel he / she might have a conflict of interest relating to a specific agenda item, such an interest should be declared'.    AGREED - T H A T the position as regards members of the Forum in declaring conflicts of interest be accepted.     (l)         Allocation of Coastal Access Improvement Programme (CAIP) and Rights of Way Improvement Plan (ROWIP) Monies for 2009/10 -   To accompany discussion on the allocation of funding under the CAIP, slides were displayed illustrating projected project costs (Part 1 of the CAIP), those relating to the practical improvements (Part 2) and a location map was circulated.  Whilst the schemes were listed in the Council’s priority order, Mr. Jones-Jenkins indicated that CCW had itself allocated a high priority to any schemes relating to the creation and improvement of new stretches of Coastal Path.  Within the Vale these would include permissive paths at Gileston to Summerhouse Point, Cwm Colhuw, Cwm Nash to Dunraven and Dunraven to Ogmore.  As stated above, the costs shown were estimates only and no timescale could yet be given for the submission of the bid.  The initial submission was required to be submitted to CCW by 31st January following which negotiations would take place with CCW as to the priority afforded to the schemes listed. Members expressed frustration at the lack of detail as to timescale, considering making representations direct to CCW on that point. Ms. Tindall explained, however, that CCW was required to wait until WAG had made the global funding available before being able to assess how to make best use of the allocation available – and have regard at the same time to WAG’s priorities at the time. As regards an idea of the potential allocation, Ms. Tindall stated that the position would be clearer by April and agreed to provide a report at the next meeting which would show how the Vale compared with other authorities in Wales, indicating also the types of schemes which would likely attract grant aid. WAG’s clear commitment, she stated, was to the coastal area and its immediate hinterland. The aforementioned report would also include details of the grant processes of application and approval. In response to a question, Ms. Tindall referred to a logo having now been selected to represent the Wales Coastal Path and drew attention to a launch event being held in Cardiff on 27th February; the Secretary would forward details to all members of the LAF.   As regards the ROWIP, Mr. Jones-Jenkins reminded members that the entire allocation for 2008/09 had been expended on staffing and production costs associated with the review of the Definitive Map. The current year’s funding would, however, be focussed on more practical works. Works anticipated included 3 boardwalks in the Cowbridge/Aberthin area and another in Llancadle (c. £25k.) and signposting (c. £10k.) to address the lack of signage evidenced in the last footpath survey. Should funding be available, additional works could include a contribution to fencing in the Dinas Powys area and further work on the Definitive Map.   AGREED – THAT a progress report on the allocation of funding under the CAIP and ROWIP be made at the next meeting, together with a position statement from CCW (as indicated above) in respect of the CAIP.     (m)      Forward Work Programme -   In respect of the above, the Chairman asked members to focus their attention on strategic rather than localised issues.  In response to Mr. Cubbin’s query in relation to an access issue from the Vale of Glamorgan across the River Ogmore into the area of Bridgend County Borough Council, Mr. Jones-Jenkins agreed to forward contact details of officers within that Council with whom Mr. Cubbin might pursue the matter.  Mr. McMillan enquired as to the continuing involvement of LAF members in undertaking footpath surveys, offering his own services.  Mr. Jones-Jenkins indicated that volunteers would be sought at the next meeting.         (n)       Meeting Dates 2009 -   AGREED - T H A T meetings of the Forum be held on the following Wednesdays at 6.00 p.m., it being noted that additional meetings / site visits would be held where necessary:   1st April; 8th July; 21st October, 2009.

 

- - - - - - - - - -

 

RESOLVED - T H A T the minutes be noted.

 

Reason for decision

 

To take account of the views of the Committee.

 

 

C343              SEVERN BARRAGE (DEER) (SCRUTINY - CORPORATE RESOURCES) -

 

The Severn Tidal Power Feasibility Study was being carried out by a cross-Government team led by the Department of Energy and Climate Change (DECC) and included representatives of the Welsh Assembly Government and the South West Regional Development Area.  Ten possible Severn Estuary Tidal Power schemes had been originally considered.  Having assessed those schemes, Ministers had recently decided to continue with the study and had launched a consultation on both the scope of the Strategic Environmental Appraisal (SEA) and a short listing of five potential tidal power schemes.  It was noted that should the scheme eventually go ahead, it could take three to five years to go through the planning phase and five to seven years for construction.  A number of work streams had been set up to organise the work, the progress of each of which was set out in the report under the following headings:

 

·                    environmental

·                    technical and engineering

·                    economic

·                    regional

·                    planning

·                    stakeholder engagement and communications.

 

Whilst no specific option or technology had so far been identified, general opinion indicated that the option most likely to be pursued in energy and engineering terms was a Barrage between Lavernock and Weston.  As outlined in the report, work recently undertaken showed that there were broad studies ongoing looking at the energy / environmental and economic impact of all the options but none were looking at the local impact on the landfall communities.  It was, however, understood that such work was now likely to be carried out in that preferred options had been shortlisted.  Since the Lavernock to Weston option was on the shortlist, it was clear that the implementation of that option would have significant implications for that part of the Vale of Glamorgan and, indeed, for the whole of the Authority’s area.  Such implications would include the following:

 

·                    Construction impact - the construction phase itself would last up to seven years and involve an estimated 2,000 workers.  Associated construction issues would include access and accommodation for construction workers and the impact that could have on the local employment and residential markets.  Materials access would also be a major issue.

·                    On completion, the area around Lavernock would become a major access and viewing point for the new Barrage. 

·                    The environmental impact on the area would be substantial.  Whilst those impacts were currently being assessed within and adjacent to the estuary, the impact on the landfall areas also needed to be examined.

·                    The construction of a Barrage would have a major impact on the ports in the area, particularly Barry. 

 

It was clear that there needed to be a mechanism in place which would fully engage both Members and officers in the progress of the project so that, should it go ahead, all the above impacts could be fully taken into account.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the work undertaken so far in relation to the project and the announcement on 26^th January 2009 of the three month consultation exercise on the options for Severn Tidal Power schemes be noted.

 

(2)       T H A T the Department of Energy and Climate Change / WAG be reminded of the important impacts of the project on this Council’s area.

 

(3)       T H A T the Leader’s letter to the relevant Ministers as appended to the report concerning the inaccurate naming of the “Cardiff to Weston Barrage” option be endorsed.

 

(4)       T H A T the Senior Government Official leading the project be invited to address Members on the project.

 

(5)       T H A T a further detailed report be presented to Cabinet to allow further and full consideration of the issues arising out of the consultation exercise.

 

(6)       T H A T the Cabinet Member for Planning and Transportation be the lead Member on issues relating to the Severn Tidal Power scheme.

 

 

Reasons for decisions

 

(1)       To note progress.

 

(2)       To ensure that local impacts are taken into account.

 

(3)       To ensure accuracy.

 

(4)       To ensure that local impacts are taken into account.

 

(5)       To enable the Authority to respond to the consultation exercise by the deadline of 29^th April 2009.

 

(6)       To clarify the role of the Cabinet Member for Planning and Transportation on this important infrastructure project.

 

 

C344              UPDATE ON THE CORPORATE TRAVEL PLAN (DEER) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

Authority was sought to implement a proposed salary-sacrifice cycle purchase scheme which would be available to all permanent employees (with the exception of those receiving essential car user allowance) and to inform Cabinet of the work in progress to produce a guidance document on Travel Planning for Developers to incorporate a checklist of what infrastructure and travel initiatives the Council would expect from new developments within the Vale.  Cabinet had agreed in principle to the introduction of a salary-sacrifice scheme to enable staff to purchase cycles back in March 2007 (Minute No. C2933).   Following the above Cabinet decision, companies had been invited to a meeting of the Travel Plan Working Group to present their schemes.  Two companies had taken up the offer and a preferred contractor, namely Cycle Solutions, was put forward to Cabinet for consideration. 

 

It was noted that there was no direct financial cost to the Council as the scheme would be funded by employees through salary-sacrifice and the initial cost of cycles borne by a finance/lease house.  There would in fact be a saving in respect of Employers National Insurance on the amount of salary - which could in turn be used should additional resources be required, although the scheme had been designed to minimise the amount of administration required by the Council.

 

Following various Travel Plan requirements arising from recent (and anticipated) applications for planning applications, it had become clear that specific guidance was required.  As such work had commenced on a guidance document for developers in relation to travel plan.

 

This was a matter for Executive decision.

 

 

RESOLVED -

 

(1)       T H A T the implementation of a salary-sacrifice cycle purchase scheme to be introduced in April 2009 with Cycle Solutions be approved.

 

(2)       T H A T a report be submitted to Cabinet after the first twelve months of operation of the scheme detailing take-up etc.

 

(3)       T H A T the development of guidance on Travel Planning for Developers be agreed in principle and a progress report submitted to Cabinet.

 

Reasons for decisions

 

(1)       To encourage the use of cycles by staff and to assist the Council with meeting its corporate objectives in respect of health and wellbeing and the environment.

 

(2)       To evaluate the scheme.

 

(3)       To have a robust policy for Travel Planning in place.

 

 

C345              VALE ENTERPRISE CENTRE (VEC), HAYES ROAD SULLY - FUTURE OPTIONS (DEER) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

This Council had inherited from the former South Glamorgan County Council and continued to hold sub-leases of the Vale Enterprise Centre site from Hexion Chemicals.  The buildings, now known as Phase I, II and III had been adapted for letting to Small and Medium Sized Enterprises (SMEs).  The VEC formed part of the Council’s Barry business property portfolio and currently offered 65 units of which 43 were currently let.  The Council had been unable to let vacant units at Phases I and II as a result of protracted negotiations with Hexion which had led to a substantial drop in income.  The current lease on Phase III would expire on 3^rd December, 2012, however, Phases I and II were due to expire on 31^st April, 2009.  The current options were considered to be either the negotiation of a long term lease to 2046 for all three Phases or the Council withdrawing its interests. 

 

In considering the way forward, it was important to note that Barry did not have an abundance of accommodation similar to the type offered at the VEC necessarily suitable for the businesses which would be displaced as a result of the Council withdrawing its interest.  An independent liability / conditions survey had recently been commissioned by the Council in order to consider the financial liability of the Council for the duration of the proposed single lease.  Details were contained within the report of the anticipated resource implications and also the potential impact on the businesses currently housed within the VEC of the Council withdrawing its interest. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the Director of Legal, Public Protection and Housing Services be authorised to agree the terms and enter into a lease for the site in consultation with the Director of Finance, ICT and Property Services, the Leader and the Cabinet Member for Economic Development and Regeneration. 

 

Reason for decision

 

To maintain the Council’s commitment to economic development activities and support to local enterprise through its property portfolio at the VEC.

 

 

C346              FFORDD Y MILENIWM, BARRY WATERFRONT - PEDESTRIAN CROSSING FACILITIES (DEER) (SCRUTINY - ECONOMY AND ENVIRONMENT) -

 

RESOLVED - T H A T consideration of the report be deferred.

 

Reason for decision

 

To allow consideration at a further date.

 

 

C347              LOCAL AVERAGE INTEREST RATE (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Statute required that the local average rate declared should be the average annual rate of interest payable on the amount outstanding by way of money borrowed by the Authority, other than short term borrowing, plus 0.25%.  The current rate of interest charged on Council mortgages was 5.91%.  The local average interest rate had been calculated at 5.91%. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the Authority declare an unchanged rate of interest on all new and existing variable housing loans including the sale of Council dwellings of 5.91% with effect from 1^st February 2009.

 

Reason for decision

 

Interest rate recalculated in accordance with statutory requirements.

 

 

C348              THOMPSON STREET COMMUNITIES FIRST PARTNERSHIP - FURTHER REPORT (DFICTP) (SCRUTINY - LIFELONG LEARNING) -

 

Following on from the decision of Cabinet in January 2009 when Cabinet resolved that WAG be urged to complete the review of the Thompson Street Communities First Partnership, written confirmation of the acceptability of the terms of reference for the review by the Council was provided to WAG officials on 23^rd January 2009.  The review had been undertaken by John Duff of Community Development Cymru, formerly an officer of the Communities First Support Network.  As part of his review, Mr. Duff interviewed members of the Partnership Board, including the Director of Learning and Development as the Council’s representative and Councillor Elmore as a community member of the Board.  He also met with the Head of Lifelong Learning and Communities First Co-ordinator as well as officers from the Internal Audit Section.

 

A draft report on the outcome of the review had already been forwarded to WAG, and sent to us as a consultee for comment.

 

This was a matter for Executive decision.

 

RESOLVED -

 

(1)       T H A T the progress of the independent review of the Thompson Street Communities First Partnership be noted.

 

(2)       T H A T a further report be submitted to Cabinet for consideration upon receipt of the review report referred to above.

 

Reasons for decisions

 

(1)       To keep Cabinet informed of progress on this matter.

 

(2)       To allow further consideration and enable a decision to be made as to the Council's continued involvement.

 

 

C349              SICKNESS ABSENCE REPORT - YEAR TO DATE 1^ST APRIL - 31^ST DECEMBER 2008 (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Members were updated on the progress of the Sickness Absence Management Action Plan and provided with sickness information for the above period across the Directorates of the Council.  It was considered that progress against the Action Plan had been good, it being noted that an ongoing communication strategy and a campaign logo had been agreed.  All employees had received further information in the January edition of the Core Brief and the Chief Executive was to write to all staff in the near future.  The majority of training sessions for existing Line Managers had now been held and a comprehensive four day course for new Line Managers was being developed.  Further guidance had now been issued as a result of training sessions, including frequently asked questions and process flow charts.  The Absence Management Action Plan had been revised due to the completion of many of the initial tasks, with a draft of the revised Plan being appended to the report.  It was reported also that the Absence Management Steering Group had considered information regarding the pilot of an Absence Management Call Centre to target worst performing areas and it had been agreed that work currently in progress in-house would cover the main benefits of that call centre without the additional cost.  Absence management figures for the Authority were shown as

 

 

 

Detailed information in respect of Directorates / Service / Teams was appended to the report, the corporate figures being well within service plan targets and indicating reductions quarter on quarter. 

 

This was a matter for Executive decision.

 

RESOLVED - T H A T the report be noted.

 

Reason for decision

 

To bring matters to the attention of Members in line with corporate aims and objectives.

 

 

C350              REVIEW OF PRIVATE SECTOR HOUSING RENEWAL POLICY (DLPPHS) (SCRUTINY - HOUSING AND PUBLIC PROTECTION) -

 

The Council’s current Private Sector Housing Renewal Policy would run out in March 2009 but, in order that the Council could continue to provide grants and assistance, a Policy had to be in place.  Members were notified that there were two studies currently underway which would greatly inform the Council’s Housing Renewal Policy.  Since it was anticipated that the findings of those studies would be known within approximately 6 months, it was proposed that the life of the current Policy be extended to March 2010.  Cabinet was also asked to set a new fee scale for Grant Agents, including the Council’s own Grants Agency Service since the current scale of fees had not been reviewed since 2005.  Details of the new scale of fees were appended to the report. 

 

This was a matter for Executive decision.

RESOLVED -

 

(1)       T H A T the Council’s current Housing Renewal Policy be extended from March 2009 to March 2010.

 

(2)       T H A T the new scale of fees for Grant Agents, as appended to the report, be approved.

 

Reasons for decisions

 

(1)       To enable the findings of the House Condition Survey and the Barry Town Centre Living Study and Neighbourhood Renewal Assessment to be used during the review of the Housing Renewal Policy.

 

(2)       To bring the Grant Agency fees up to date.

 

 

C351              TREASURY MANAGEMENT (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

The report provided information on the Council’s investment strategy, an interim report on the Council’s treasury management operations for the period 1^st April 2008 to 31^st December 2008 and the proposed 2009/10 Treasury Management and Investment Strategy. 

 

In light of recent events concerning the liquidity of banks and the recent uncertainty with money markets, a review of the Council’s investments had been undertaken with the aim of paying particular attention to the risks of a potential capital loss and whether the Council’s exposure should be further reduced.  In conducting the review and evaluation of options, advice had been obtained from the Council’s treasury management advisors “Sterling Consultancy Services”.  It was explained that the Council used credit ratings provided by the Fitch and Moody credit rating agencies when placing investments.  It was explained that deposits were referred to as being either investment or speculative grades, definitions of which were appended to the report.  It was further explained that the Council would incur a capital loss should any of the institutions to which it had lent money experience financial difficulties such that they were unable to repay the investment to the Council.  The five basic options for reducing risk of a capital loss were described as:

 

·                    placing more money in a UK Government account

·                    increasing the minimum criteria for institutions

·                    reducing the amount that could be invested in any particular institution

·                    reducing the period of investment

·                    reducing the total amount of money invested.

 

Details pertaining to each of the above were contained within the report. 

 

As regards the proposed strategy for 2009/10, whilst the measures proposed were likely to reduce significantly the Council’s return, it was considered that, in the current circumstances, those measures represented the best way forward since they would provide more security to capital in uncertain times.  It was not proposed to change the minimum credit rating criteria for investments as it was considered to be already set at a reasonable level.  As indicated above, the Council used Fitch and Moody agencies to provide credit rating information; those which currently complied with the Council’s minimum credit rating criteria and with whom there was a possibility of investment were included in a list appended to the report.  It was noted that organisations would be added or deleted by the Treasury Management Section where necessary.  As a new measure, it was proposed to have regard to the credit rating of the country of a financial institution when placing investments.  The proposed Treasury Management and Investment Strategy for 2009/10 was appended to the report.  The Strategy itself covered a rolling period of three years and was intended to link to the Medium Term Financial Planning process.  The Investment Strategy covered the next financial year.  As far as the Council's Treasury Management operations for the period 1^st April to 31^st December, 2008, Members noted that all activities had been in accordance with the Council's approved strategy on Treasury Management.  Details pertaining to the monies borrowed during the period were contained within the report. 

 

Approval of the proposed Treasury Management and Annual Investment Strategy 2009/10 was a matter for decision by the Council.

 

RESOLVED -

             

(1)       T H A T the information provided on the investment strategy and the Treasury Management interim report for the period 1st April to 31st December 2008 be noted.

(2)       T H A T the proposed 2009/10 Treasury Management and Investment Strategy be referred to Council for approval including the following specific resolutions as set out in the Strategy Action Plan:

              

·                    The Authorised Limit for External Debt be set at £151,026,000 for 2008/09, £155,000,000 for 2009/10, £161,000,000 for 2010/11 and £167,000,000 for 2011/12.

·                    The Operational Boundary for External Debt be set at £132,026,000 for 2008/09, £140,000,000 for 2009/10 £145,000,000 for 2010/11 and £151,000,000 for 2011/12.

·                    The Director of Finance ICT and Property be given delegated authority within the total Authorised Limit and Operational Boundary as estimated for individual years to effect movement between the separately agreed limits for borrowing and other long term liabilities.

·                    An upper limit be set on its fixed interest rate exposures for 2008/09 of £113,000,000, for 2009/10 of £130,000,000, for 2010/11 of £134,000,000 and for 2011/12 of £139,000,000 of its net outstanding principal sum on its borrowings / investments.

·                    An upper limit be set on its variable interest rate exposures as an absolute value for 2008/09 of +/-£124,000,000, for 2009/10 of +/- £134,000,000, for 2010/11 of +/- £129,000,000 and for 2011/12 of +/- £129,000,000 of its net outstanding principal sums on its borrowings / investments.

·                    An upper limit of £30,000,000 be set for total principal sums invested for over 364 days for 2008/09, 2009/10, 2010/11 and 2011/12.

·                    The amount of projected borrowing that is fixed rate maturing in each period as a percentage of total projected borrowing that is fixed rate for 2009/10 be set as below:

 

 

 

	Upper Limit	Lower Limit
Under 12 months	20%	0%
12 months and within 24 months	20%	0%
24 months and within 5 years	30%	0%
5 years and within 10 years	30%	0%
10 years and above	100%	0%

 

·                    The Prudential Indicators set out in paragraph 4.1 and 4.2 in this Strategy be approved.

 

Reasons for the decisions

 

(1)       To update Cabinet on investments and investment strategy and to present the Treasury Management Interim Report as required by the Council’s Treasury Management Policy Statement.

(2)       The Treasury  Management and Annual Investment Strategy is prepared as required by the Local Government Act 2003.

 

 

C352              FINAL HOUSING REVENUE ACCOUNT BUDGET PROPOSALS 2009/10 (DLPPHS AND DFICTP) (SCRUTINY - HOUSING AND PUBLIC PROTECTION) -

 

Proposals to set the budget for the financial year 2009/10 together with a progress report on the latest financial monitoring position for the current financial year had been put forward for consideration.  The Scrutiny Committee (Housing and Public Protection) had recommended that the new Rent Setting and Service Charge Policy be approved and implemented in 2009/10, that any changes in rent due to harmonisation be subject to transitional arrangements and limited to a maximum increase or decrease of £3 per week, and that the tenant grass cutting service be discontinued and the Head of Housing Services authorised to develop a preferred grass cutting contractor list.  Cabinet had subsequently approved the above recommendations on 1^st October, 2008 (Min. No. C165).  Rent increases were based on the Subsidy Determination issued by the WAG.  As regards Rent Levels, the increase recommended by WAG for subsidy purposes equated to an increase of 5.3% on guideline rent and, by taking that increase and applying the new rent harmonisation model, the average rent increase per property type would be as follows:

 

Type	Present Average Rent (50 Week Basis)	Proposed Increase (50 Week Basis)	Proposed Average Rent (50 Week Basis)
Bungalow	£64.02 per week	£3.82 per week	£67.84 per week
Flat	£62.65 per week	£1.56 per week	£64.21 per week
House	£69.59 per week	£4.90 per week	£74.49 per week
Maisonette	£67.02 per week	£2.06 per week	£69.08 per week

 

As regards Garage Rents, it was proposed that the rent for all garages be increased by 5.3% to £5.61 per week.  It was proposed that the weekly rent charge in respect of persons accommodated at Hafan Treharne be increased to £126.27, it being noted that if the final subsidy determinations gave a guideline rent increase of less than 5%, the increase at the hostel would have to be limited as such.  The proposal in respect of 28 Evans Street, Barry was that the charge be increased by a maximum of 5%, the weekly charge therefore equating to £401.73 per week.  Proposals in respect of Sheltered Housing Guest Suites were that the charges increase by 5.3% to £9.41 per person per night for double occupancy and £13.46 for single occupancy.  In summary, the change in budget could be itemised as follows:

 

 

 

As regards the current budget position, the Housing Revenue Account (HRA) currently showed a favourable variance of £32k. although it was expected that the HRA would outturn on target.  Budget monitoring for 1^st April, 2008 to 31^st December, 2008 showed:

 

Profile Budget	Actual Expenditure to date		Amended Original Budget	Probable Outturn	Variance at Outturn
£000	£000		£000	£000	£000
(913)	(945)	Housing Revenue Account	(489)	(489)	0

 

As regards the base budget for 2009/10, the initial budget proposals submitted to Cabinet in November, 2008 included a sum of £5.146m. revenue contributions to capital outlay to fund £9.380m. of expenditure on improving Council Housing.  In view of the current work on the Stock Options Appraisal, the current programme proposed £3.280m. (funded in the main by the MRA of £2.7m.)  The proposed 2009/10 budget was appended to the report. 

 

RESOLVED -

 

(1)       T H A T the current monitoring position for the Housing Revenue Account as outlined in paragraph 8 of the report be noted.

 

(2)       T H A T Council be recommended to approve the final budget proposals for 2009/10 as outlined below:

 

 

	Proposed Budget 2009/10
	£'000
HRA General	(8,372)
General Management	909
Special Services	784
Housing Repairs Contribution	3,000
Central Support & Operational Buildings	1,457
Revenue Contributions to Capital Outlay	-
Capital Financing	480
Net Expenditure / Income	(1,742)
Working Balance Brought Forward	(5,584)
Working Balance Carried Forward	(7,326)

 

(3)       T H A T the increase suggested for rent and other services be approved and recommended to Council, as set out in paragraphs 14 - 18 of the report.  Should the final HRA Subsidy Determination differ then the Director of Finance ICT and Property, in consultation with the Leader be given delegated authority to amend the rent charges and HRA budget accordingly and report back.

 

(4)       T H A T the following charges for 2009/10 financial year be recommended to Council:

             

50 Week Basis	Current Charges	Proposed Charges
Heating	£8.52 to £12.34 per week	£7.77 per week
Heating (Communal Areas only)	n/a	£0.21 per week
Warden Support Charge	£6.81 per week	£6.26 per week
Warden Management charge	n/a	£2.93 per week
VCAS	£3.32 to £3.79 per week	£3.44 to £3.91  per week
Grounds Maintenance	n/a	£1.15 per week
Cleaning of communal areas	n/a	£2.60 per week
Lighting of communal areas	n/a	£0.73 per week
Laundry Facilities	n/a	£0.08 per week
Window Cleaning	n/a	£0.62 per week
CCTV	n/a	£0.12 per week
Lift Maintenance	n/a	£0.57 per week
Door Entry	n/a	£0.37 per week
Intercom	n/a	£0.27 per week
Sewerage Treatment Plants	£246.17 per annum	£267.24 per annum

                

(5)       T H A T all changes to rents and service charges be implemented from 6th April 2009 and that increase notices be sent to tenants 28 days in advance of the new charges coming into effect. 

                

Reasons for the Recommendations

              

(1)       To remind cabinet of the current budget position            

(2)       As required by statute.             

(3)       In order that new rent levels are set within the specified Welsh Assembly Government guidelines, and that the budget accurately reflects any changes necessary.

(4)       In order that new charges are approved in time for any administration changes to be carried out.          

(5)       In order to meet the deadline to notify tenants of the new charges as required by Statute.

 

 

C353              FINAL CAPITAL PROGRAMME PROPOSALS 2009/10 (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Members were informed of the progress of the 2008/09 Capital Programme for the period 1^st April, 2008 to 31^st January, 2009 and, where necessary, requested to approve changes to the Programme and to approve the final Capital Programme proposals for 2009/10.

 

As regards the 2008/09 Capital Programme, details in respect of variances/carry forwards of budgets under the headings of Director of Education, Director of Environmental and Economic Regeneration, Director of Social Services and Policy were contained within the report.  It was noted that both appendices A and B as appended to the report had been amended to take account of proposed budget slippage. 

 

Consideration then focussed on the 2009/10 Capital Programme, details of which were appended to the report.  The initial Capital Budget proposals had been referred to each Scrutiny Committee during December 2008 with all comments being passed to the Scrutiny Committee (Corporate Resources) as the lead Scrutiny Committee on the budget. 

 

·                    The Scrutiny Committee (Corporate Resources) had, whilst not supporting the recommendation of the Scrutiny Committee (Economy and Environment) in respect of the reprioritisation of bids for Penarth Town Centre Public Realm Improvement and Esplanade refurbishment, stated that funding should be considered under the Asset Renewal Budget; the Budget Working Group had endorsed that comment and a specific recommendation to that effect was contained within the report. 

·                    The Scrutiny Committee (Corporate Resources) had endorsed the recommendation of the Scrutiny Committee (Lifelong Learning) in that, should further funding become available, bids for Ventilock ventilation systems in school kitchens and replacement of roof covering at Penarth Library be included in the Capital Programme; the Budget Working Group had endorsed that comment and a specific recommendation to that effect was contained within the report.

·                    The Scrutiny Committee (Corporate Resources) had, in response to a query from the Scrutiny Committee (Social Care and Health) in respect of the provision of an extra care facility within the Vale, urged Cabinet to identify suitable land for the provision of an extra care facility within the Vale of Glamorgan as a matter of priority; the Budget Working Group had responded that officers were already considering the matter.

 

On 10^th December, 2008, the Welsh Assembly Government had announced the final 2009/10 General Capital Funding, increasing the allocation since 2008/09 by just £4,000 to £8,202,000.  It was noted that funding for the whole life of the Cowbridge Comprehensive School remodelling scheme included in the School Investment Strategy had now been included in Appendix B to the report.  Remaining funds already earmarked for the future School Investment Strategy were also reflected in that Appendix.  In November 2008 Cabinet had noted that the transfer from the General Capital Funding supported borrowing allocation to the Housing Revenue Account for 2009/10 had been reduced from £450,000 to £280,000 to reflect better the actual amount required for Council Disabled Facilities Grants (DFGs).  The Budget Working Group had subsequently agreed to that transfer, as outlined in Appendix B.  Included in the initial Capital Programme Proposals submitted to Cabinet in November 2008 was a match-funding budget of £500,000 for the Penarth Renewal Area.  WAG had now confirmed that a grant of £1,400,000 had been approved in 2009/10 and therefore the total budget available for 2009/10 of £1,900,000 had now been included in Appendix B.  The future indicative budget for the Housing Investment Programme was shown at Appendix B although the final grant figure had not yet been announced by WAG.  An assumption had been made in Appendix B that grant would continue at the current allocation of £2.7m. until 2013/14.  The initial capital proposals submitted to Cabinet in November 2008 included the sum of £9.380m. for expenditure on improving Council Housing.  It was noted that, in view of the current work on the Stock Options Appraisal, the current programme proposed £3.280m. (funded in the main by the MRA of £2.7m.).

 

In addition to funding from WAG, the Council would finance part of the Capital Programme from its own resources.  The table below detailed the General Capital Funding and internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2009/10 Capital Programme	£'000	£'000
General Fund Resources from Welsh Assembly Government
Supported Borrowing	5,942
General Capital Grant	1,980
		7,922
Council Resources
Capital Receipts	5,865
Reserves/Leasing	3,926
		9,791
Net Capital Resources		17,713

 

The table below detailed the Housing Capital Funding and internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2009/10 Housing Capital Programme	£'000	£'000
General Fund Resources from Welsh Assembly Government
Supported Borrowing	280
		280
Council Resources
Housing Capital Receipts	557
Housing Reserves	0
		557
Net Capital Resources		837

 

Reference was then made to the Annual Minimum Revenue Provision Statement 2009/10, it being explained that there were two elements of cost where capital expenditure was financed by long-term borrowing.  Interest on borrowing and principal (or capital) element was charged as 'minimum revenue provision' (MRP).  The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2008 replaced the previous detailed statutory rules for calculating MRP with 'a local authority must calculate for the current financial year an amount of minimum revenue provision which it considers to be prudent'.  Details were contained in the report of the MRP charge on expenditure incurred for April 2008 and during 2008/09.  Capital expenditure incurred during 2009/10 would not be subject to an MRP charge until 2010/11. 

 

If the schemes shown in Appendix B to the report were approved, the effect on usable capital receipts would be as shown below:

 

Capital Receipts	General Fund	Housing
	£’000	£’000
Balance as at 1st April 2008	12,112	3,228
Anticipated Requirements – 2008/09	(2,521)	(1,931)
Anticipated Receipts – 2008/09	521	46
Balance as at 31st March 2009	10,112	1,343
Anticipated Requirements – 2009/10	(5,865)	(557)
Anticipated Receipts – 2009/10	0	46
Balance as at 31st March 2010	4,247	832
Anticipated Requirements – 2010/11	(4,052)	(948)
Anticipated Receipts – 2010/11	0	116
Balance as at 31st March 2011	195	0
Anticipated Requirements – 2011/12	(125)	0
Anticipated Receipts – 2011/12	0	0
Balance as at 31st March 2012	70	0

 

The following table showed the projected position of the Project Fund which existed to finance capital and revenue projects.  Commitments from this Fund included £300,000 transferred to the Carbon Management Fund in 2009/10 and £600,000 for the Dyffryn Renovation Scheme in 2010/11:

 

Project Fund Balance	£'000
Balance as at 1st April 2008	3,364
Anticipated Requirements – 2008/09	(498)
Anticipated Receipts – 2008/09	299
Balance as at 31st March 2009	3,165
Anticipated Requirements – 2009/10	(390)
Anticipated Receipts – 2009/10	211
Balance as at 31st March 2010	2,986
Anticipated Requirements – 2010/11	(600)
Anticipated Receipts – 2010/11	108
Balance as at 31st March 2011	2,494
Anticipated Requirements – 2011/12	0
Anticipated Receipts – 2011/12	104
Balance as at 31st March 2012	2,598

 

The final 2009/10 budget would require the approval of Council.

RESOLVED -          

(1)       T H A T the following changes be approved:  

·                    Pupil Referral Unit at Amelia Farm Trust - reduce the 2008/09 budget to nil.

·                    Public Open Space Ystradowen - increase the 2008/09 budget by £11,000, funded from the Visible Services Maintenance Fund.

·                    Five Mile Lane - reduce the 2008/09 budget to £50,000.

·                    Pump house Enveloping - transfer the budget of £40,000 from Barry Regeneration Partnership to Pump house Enveloping in 2008/09.

·                    IT Equipment - transfer the sum of £55,000 from the 2007/08 IT Equipment budget to the 2008/09 IT Equipment budget.

·                    Penarth town centre public realm improvements and Penarth esplanade refurbishment - consider funding under the Visible Services Asset Renewal budget.

·                    Ventilock ventilation systems in school kitchens and replacement of roof covering at Penarth Library - consider funding under the Miscellaneous Buildings Asset Renewal budget.

 

(2)       T H A T the following changes be approved and referred to Council:

·                    Rhoose Primary Additional Accommodation - reduce the 2008/09 Capital Programme to £630,000 (carry forward £294,000 to 2009/10 and transfer it to the School Investment Strategy budget)

·                    School Investment Strategy (Cowbridge Comprehensive) - reduce the 2008/09 Capital Programme to nil (carry forward £280,000 to 2009/10)

·                    Additional School Investment Strategy (Cowbridge Comprehensive) - reduce the 2008/09 Capital Programme to nil (carry forward £1.5million to 2009/10)

·                    Transfer of Woodlands Day Centre - reduce the 2008/09 Capital Programme to £10,000 (carry forward £158,000 to 2009/10)

·                    Waste Resource Park reduce the 2008/09 Capital Programme to £15,000 (carry forward £940,000 to 2009/10)

·                    Penarth Marina Escarpment - reduce the 2008/09 Capital Programme to £50,000 (carry forward £359,000 to 2009/10)

·                    Penarth Pier Pavilion - reduce the 2008/09 Capital Programme to nil (carry forward £10,000 to 2009/10)

·                    Barry Island Replacement Footbridge - reduce the 2008/09 Capital Programme to £40,000 (carry forward £339,000 to 2009/10)

·                    Rural Local Regeneration Plan - reduce the 2008/09 Capital Programme to £40,000 (carry forward £415,000 to 2009/10)

·                    Pump House Enveloping - reduce the 2008/09 Capital Programme to £40,000 (carry forward £200,000 to 2009/10)

·                    Disabled Access Audit and Improvements - reduce the 2008/09 Capital Programme to £70,000 (carry forward £318,000 to 2009/10)

·                    Dyffryn House Enveloping - reduce the 2008/09 Capital Programme to £139,000 (carry forward £90,000 to 2009/10).

 

(3)       T H A T the final budget proposals for the 2009/10 Capital Programme as set out in Appendix B be approved.

 

(4)       T H A T where budgets in future years, shown in Appendix B, were highlighted in bold, the Council formally approve those budgets now, while the remainder remain indicative only.

        

(5)       T H A T the Director of Environmental and Economic Regeneration produce a report for a future Cabinet’s approval detailing the works to be undertaken from the 2009/10 Visible Services Asset Renewal allocation of £800,000.

        

(6)       T H A T the Director of Finance, ICT and Property produce a report for a future Cabinet’s approval detailing the works to be undertaken from the 2009/10 Miscellaneous Buildings Asset Renewal Programme.

     

(7)       T H A T the Director of Finance, ICT and Property, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to make additions, deletions or transfers to or from the 2009/10 Asset Renewal budgets as appropriate.

      

(8)       T H A T the Director of Finance, ICT and Property, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to make additions, deletions or transfers to or from the 2009/10 Housing Capital Programme as appropriate.

 

(9)       T H A T the policy for making minimum revenue provision in 2009/10 be approved and referred to Council.

              

Reasons for the Recommendations

         

(1)       To allow schemes to proceed as soon as possible.

 

(2)       To allow schemes to be undertaken / completed in a future financial year.

 

(3)       To set and approve future Capital Programmes.    

(4)       To allow schemes that span more than one year to be fully approved.

(5)       For Cabinet to approve the schemes to be funded from the Visible Services Asset Renewal allocation.

(6)       For Cabinet to approve the schemes to be funded from the General Asset Renewal allocation.

(7)       To enable the Asset Renewal budgets to be managed efficiently.

(8)       To enable the Housing Capital budget to be managed efficiently.

(9)       For Council to agree the basis of the MRP calculation for 2009/10.

 

 

C354              FINAL PROPOSALS FOR REVENUE BUDGET 2009/10 & PROPOSED BUDGET STRATEGY FOR PERIOD TO 2012 (DFICTP) (SCRUTINY - CORPORATE RESOURCES) -

 

Prior to Cabinet formulating its final recommendation to Council, Members were asked to consider

 

·                    the latest financial monitoring information for the current financial year

·                    the findings of the budget review

·                    the budget for the financial year 2009/10.

 

As regards Revenue Monitoring, whilst pressures existed within services, in particular Social Services, Leisure and Housing (homelessness), it was anticipated that services would be within budget.  Since previously reporting, expenditure within Policy had been reviewed and it was now projected that there would be an underspend due to increased interest received (£800k.), reduction in the levies paid to outside bodies (£50k.) and debt charges (£150k.).  The above together with an estimated surplus on Council Tax collection of £700k. would reduce the amount required to be met from the General Reserve for 2008/09 from the budgeted £2m. to £300k.  It was reported that General Reserves as of 1^st April, 2008 amounted to £3.7m. 

 

Consideration then focussed on the Budget Review.  The purpose of the Review was to ensure

 

·                    a sustainable budget was achieved within predicted funding levels

·                    the budget was aligned to the Council's priorities as set out in the Corporate Plan

·                    obtaining best value for money, i.e. identifying efficiency savings, opportunities for income generation and better use of external grants. 

 

The outcome of the Review would be to put in place a three-year financial strategy for the period to March 2012.  The Budget Working Group (BWG) comprising the Leader, Deputy Leader, Chief Executive and Director of Finance, ICT and Property, was responsible for conducting the Review.  The following methodology was followed for the Review:

 

·                    future resource requirements were assessed having regard to likely future revenue settlements, cost pressure information previously provided as part of the Medium Term Financial Planning process and known developments

·                    Directors formulated options for savings, additional income, etc. over the next three years and, if appropriate, beyond

·                    budgets within the Cost Centre Analyses (CCAs) were reviewed to assess risk and relative corporate priority in order to assist with the above

·                    the BWG prepared proposals for initial consideration by Cabinet following which they were submitted to the Scrutiny Committee (Corporate Resources).

 

Further details in respect of the above were contained within the report.  As regards future resource requirements, WAG had given an indication of funding for 2010/11 of £200.949m. for Standard Spending Assessment (SSA) and £152.214m. for Aggregate External Finance (AEF).  This represented an increase of approximately 2.7% over 2009/10 but once again, Cabinet was asked to note the figures were indicative only and subject to change.  No figures were available for 2011/12 but a sharp decrease was anticipated.  The table shown below listed the revenue cost pressures facing the Council for 2010/11 and 2011/12 which the BWG considered the most significant, further details relating to which were contained throughout the report:

 

Significant Cost Pressures	2010/11	2011/12
	£’000	£’000
Inflation (including schools)	3,130	3,180
Social Services
Demographic growth	870	600
Visible Services
Increased waste disposal costs/landfill fines, tax	420	910
Council Wide (Policy)
Capital Programme financing costs	300	300
Increases to Fire Authority and other precepts	300	300
Single Status costs	2,100
Provision for impact of recession, reduction in income levels, increased homelessness	600	250
Increase in pension contribution		1,000
No further use of General Fund Reserve	1,000
Total	8,720	6,540

 

Attention was drawn to the inflation factors used in setting the 2009/10 budget having been revised to 2% for pay (with the exception of teachers) and 2.2% for general price inflation.  For 2010/11 and 2011/12 an inflationary increase of 1.5% had been assumed for both pay and price.  Based on the projected income levels and most significant cost pressures a short fall of resources was predicted of £3.51m. for 2010/11 and £3.53m. for 2011/12.  Taking into account risk and relative priority, Directors had reviewed their current operations to identify strategic areas for potential savings over the next two to three years.  Examples of those savings included reviewing staff structures, reconfiguring services and maximising income opportunities; details of each were set out in the report. 

 

Since the Council's SSA was the best objective measure for relative need to spend across services and other Councils that was easily available, a comparison of the 2008/09 budget set by this Council and the average set by all authorities in Wales was included within the report.  Overall it showed that this Council spent slightly below its total SSA (- 0.5%) whilst the Welsh average was for budgets to be slightly above SSA (+ 0.5%).  Comparative all-Wales figures of the proposed 2009/10 budget for this Council against SSA were not available. 

 

Savings for efficiencies would remain a major expectation of future budgets.  After the efficiency savings were taken into account there remained a shortfall on projected budgets for 2010/11 and 2011/12 of £1.3m. and £1.36m respectively.  Consequently, the BWG had developed targets for savings for each area of operation in order to meet the predicted shortfall, details of which were contained within the report.  The following table set out the total target savings for each area and the average annual percentage those represented of the 2009/10 base budget:

 

Total Saving Targets	2010/11	2011/12	Total
	£’000	£’000	£’000	%
Learning & Development	1,150	1,020	2,170	1.2
Social Services	1,390	610	2,000	2.2
Environmental & Economic Regeneration	370	1,300	1,670	3.0
Public Protection & Private Housing	90	90	180	1.4
Youth Offending Service	10	10	20	1.6
Sub-Total	3,010	3,030	6,040	1.8
Corporate Services	500	500	1,000	4.2
TOTAL	3,510	3,530	7,040

 

The BWG had set savings targets at the minimum considered necessary in order to avoid premature service reductions.  Reference was made to the fact that, for example, the Corporate Plan would need to be reviewed in the light of diminished resources.  In view of the current economic climate and the future impact of various government measures taken, it was generally anticipated that for several years ahead settlements for local and public authorities would be extremely low and that consequently the necessity to find significant savings would continue.  It was noted that the financial situation as set out in the budget review would be constantly monitored by the Director of Finance, ICT and Property and that the above strategy would be incorporated into the next Medium Term Financial Plan prepared in July 2009 which would be amended as necessary in the light of changing circumstances. 

 

Consideration then focussed on the proposed budget for 2009/10.  The Initial Revenue Budget proposals had been considered by Cabinet in November 2008 and by each Scrutiny Committee in November/December.  The comments made by each Scrutiny Committee had then been referred to the Scrutiny Committee (Corporate Resources) as the lead Scrutiny Committee on the budget.  Cabinet had subsequently referred the recommendations of Scrutiny for consideration by the Budget Working Group.  The BWG had noted all the Scrutiny recommendations and taken responses into account in drafting the final budget proposals for Cabinet's consideration.  In respect of the recommendations endorsed by Scrutiny Committee (Corporate Resources) as forwarded by Lifelong Learning, the BWG responses to those recommendations where appropriate was summarised as

 

·                    the budget proposals as put forward by the BWG treated Education as a high priority and consequently increased the base budget by the same level as the Education SSA/IBA increase

·                    the 2009/10 Education and Schools budget increase matched the increase in IBA

·                    agreement to develop a joint strategy, the Budget Forum and the Council, targeted at the National Assembly to address the chronic underfunding of Vale Schools

 

and had commented that the Director of Learning and Development was currently in the process of developing a shared vision for the Education Services in consultation with the schools.

 

In arriving at the above final proposals, the views of the Schools Budget Forum had been very carefully considered.  Education was a high priority for the Council and, within the resources available, the budget did its utmost to protect schools by giving an uplift in the Education and Schools budget equal to the uplift in the Education SSA/IBA (3.42%).  The proposed budget for 2009/10 had been set broadly in line with the findings of the Budget Review and a summary of the overall position was appended to the report whilst fuller details were contained within the body of the report.  Details pertaining specifically to each of the Council's service areas were also contained within the report.  Reference was made in addition to such matters as the impact of falling interest rates, energy costs and the provisional costs of Equal Pay, Single Status and Job Evaluation.  Also included within the Policy Budget was income from WAG for the Improvement Agreement Grant and Deprivation Grant although it was noted that payment of the Improvement Agreement Grant was dependent on the achievements of targets contained within the Improvement Agreement with WAG. 

 

The estimated level of General Reserve as at 1^st April, 2009 was £3.413m.  The proposed budget for 2009/10 assumed the use of £1m. General Reserve to fund revenue expenditure and it was noted that it might, in order to maintain the Reserve at a desirable level, be necessary to 'un-earmark' some specific reserves at a later date.  Further details relating to the Reserves and the anticipated balances as at 31^st March, 2009, 2010, 2011 and 2012 were appended to the report. 

 

Having regard to the above and related matters it was

 RESOLVED -

 

(1)       T H A T Council be recommended to approve the following:

 

(a)       T H A T the budget for 2009/10 be fixed at £195.020m. including a provision of £150,000 for discretionary rate relief to rural shops and post offices and charitable organisations.

(b)       T H A T the budgets for 2009/10 be approved as set out in Appendix D to the report, the totals as follows:

    

	£’000
Education and Schools	88,024
Libraries	2,657
Lifelong Learning	1,888
Catering	1,074
Human Resources	-13
Children’s Services	13,304
Community Care	31,000
Service Strategy	270
Planning and Transportation	3,225
Economic Development and Leisure	5,689
Visible Services	20,262
Building Services	-24
Legal, Democratic & Registrars	150
Public Protection	2,785
Private Housing/Community Safety	3,449
Finance, ICT & Property	-76
General Policy	21,850
Chief Executive	-128
Youth Offending Services	634
General Fund Reserve	-1,000

              

(c)        T H A T the recommendations regarding Net Growth set out in Appendix E to the report be approved.

        

(d)       T H A T the Council Tax for 2009/10 for its own purposes (excluding police and town and community council precepts) be set at the following levels:

            

Band	Council Tax £
A	573.84
B	669.48
C	765.12
D	860.76
E	1052.04
F	1243.32
G	1434.60
H	1721.52
I	2008.44

 

(e)       T H A T the proposed draft report on Education Budget and IBA at Appendix A to the report be endorsed and the Director of Learning and Development make arrangements for it to be forwarded to the School Budget Forum and WAG.

 

(f)         T H A T the Director of Finance, ICT and Property consider the details of the Specific Reserves to be repaid into the General Reserve when preparing Final Accounts for 2009/10 and report at that time.

 

(2)       T H A T the Director of Social Services take appropriate action to ensure any potential over commitment of the 2008/09 budget was curtailed.

 

(3)       T H AT the budget review strategy as set out in part 2 be forwarded to the Scrutiny Committee (Corporate Resources) for comment.

 

(4)       T H A T the Director of Learning and Development develop a joint strategy, for the Council with the Schools Budget Forum, targeted at the National Assembly, to address the under funding of Vale schools.

         

(5)       T H A T the Director of Learning and Development be given delegated powers to determine the amount of money to be allocated to the schools’ delegated budgets after consultation with the Schools Budget Forum.

             

Reasons for the Recommendations

(a)       Set 2009/10 budget in line with statutory requirements.

         

(b&c)   Allocation of budget to services.

   

(d)       Set Council Tax levels for 2009/10.

           

(e)       So that the report can be presented to the Schools Budget Forum and WAG.

              

(f)         To ensure the General Fund is at a reasonable level.

 

(2)       To keep expenditure within the approved budget.

 

(3)       To put in place a financial strategy for future years.

 

(4)       To address the under-funding.

 

(5)       Set out delegated authority in relation to allocation of Education and Schools budget.