COMHAIRLE NAN EILEAN SIAR

POLICY AND RESOURCES COMMITTEE

Minute of Meeting held in the Council Offices, Stornoway, on Thursday 9 October 2003 at 10.00 a.m.

PRESENT

Mr Angus Campbell (Chairman)

Mr Norman A Macdonald (Vice Chairman)

Mr Alexander A Macdonald

Mr Malcolm J Graham

Mr Angus Nicolson

Mr Norman M Macleod

Mr Archie K Campbell

Mr Donald Maclean

APOLOGIES

Mr Norman L Macdonald

Mr Donald Manford

Mrs Morag Munro

Tribute: Ms Alison McCorquodale

The Chairman referred to Ms Alison MacCorquodale, Finance Department, based in the Balivanich Office, and congratulated her on passing her final Institute of Revenues Rating and Valuation (IRRV) exams. He stated that Alison was the first person in the Comhairle to gain full Corporate Membership of IRRV and the Chairman, on behalf of the Comhairle, congratulated Alison on this achievement.

Tribute: Highlands and Islands Convention

The Chairman referred to the very successful Highlands and Islands Convention which had been hosted by the Comhairle on Monday 6 and Tuesday 7 October 2003. The Convention had been a very successful and well attended event and the Chairman paid tribute to all members of staff who were involved in the organisation and smooth running of the Convention.

MINUTES

Minute of Meeting of 4 September 2003

The Minute of Meeting of 4 September 2003 was approved.

Minute of Meeting of Local Government Employee Joint Consultative Committee

The Minute of Meeting of 5 September 2003 was noted, and the recommendations at items 4,5, 6 and 7 were approved.

Regarding the recommendation at item 3 concerning the Comhairle’s Decentralisation Policy, it was agreed to recommend that a Report concerning this matter be submitted to a future meeting of the Policy and Resources Committee.

Minute of Meeting of Human Resources Sub Committee of 2 October 2003.

The Minute of Meeting of 2 October 2003 was noted, and the recommendations at item 2 were approved.

FINANCE

General Fund Capital Programme 2004-2008

PR110.01

The Director of Finance submitted a Report updating Members on developments in the existing and proposed Capital Programme and recommending a revised timetable for setting the Capital Programme for 2004-08.

It was agreed to recommend that:

(1) the inclusion of additional expenditure of £0.757 million on the South Uist Care Development in the Capital Programme, bringing the total cost to £3.757 million, be approved;

(2) the Directors of Social Work and Finance be instructed to approach NHS Western Isles for a further contribution to the South Uist Care Development in light of the increased costs; and

(3) the revised timetable for setting the Capital Programme 2004-2008 detailed in the report be approved.

General Fund Capital Programme 2003/04. Additional Projects

PR110.01

The Director of Finance submitted a Report informing Members of the current position with regard to the addition of further capital projects to the 2003/04 Capital Programme. It was stated that there had been no further slippage in the Capital Programme and it was not therefore possible at this stage to accommodate projects with a latest decision date of October 2003 in the current Capital Programme.

It was agreed to recommend that no further projects be added to the Capital Programme for 2003/04 at this point in the year.

Budget Strategy 2004/07

PR100.021

The Director of Finance submitted a Report seeking Members’ views on the proposed approach to setting the Comhairle’s budget for 2004/07. The major elements of the budget for the next three years were shown in Appendix A to the Report. It was anticipated that the recommended draft budget would be presented to the Comhairle in February 2004.

It was agreed to recommend that:

(1) the budget timetable detailed in section 4 of the Report be approved;

(2) the budget strategy outlined in Appendix A to the Report be approved;

(3) the planning assumptions listed in section 6 of the Report be approved; and

(4) the Director of Finance be authorised to determine Cash Planning Limits for 2004/05 on a ‘standstill’ basis and that Heads of Service be required to draft budgets which do not exceed these figures.

Supplement to Budget Strategy 2004/07

PR100.021

The Director of Finance submitted a Report updating Members on the proposed Budget Strategy and seeking to inform the consideration of any motion to add to the Ward Priorities Fund resources.

It was agreed to recommend that:

(1) the Finance Working Party be instructed to consider the allocation of additional resources to the Ward Priorities Fund following the mid-year review and report back to the next meeting of the Committee; and

(2) the Report to be submitted in terms of item (1) above give consideration to putting a similar Ward Priorities scheme in place for 2004/05.

Ideal Level of Reserves and Balances

PR110.00

The Director of Finance submitted a Report relating to guidance issued by CiPFA entitled ‘Guidance on Reserves and Balances in a Local Authority’ and making recommendations based on this guidance.

It was agreed to recommend that the Director of Corporate Services be authorised to amend Standing Order 37 to refer to ‘all reserves and balances’ in the interests of clarity and to reflect CiPFA guidance.

Housing Revenue Account Capital Programme 2003/04: Progress Report

PR110.08

The Director of Housing submitted a Report giving information with regard to expenditure on the Housing Revenue Account Capital Programme 2003/2004 and advising on progress on a number of individual projects. It was stated that the Housing Revenue Account Capital Programme for 2003/2004 was based on Year 1 of the current three-year Housing Financial Plan 2003/2004 – 2005/2006.

It was agreed to recommend that:

(1) the Housing Capital Programme 2003/2004 be revised as detailed at Appendix 1 of the Report to take account of project variations; and

(2) the Expenditure Profile shown at Appendix 2 of the Report be noted.

Public Private Partnership Bid: Current Position

PR110.00

The Director of Education submitted a Report informing Members of the current position regarding the Public Private Partnership for Schools bid for funding from the Scottish Executive. It was stated the Comhairle’s objective was to obtain finance to complete the remaining construction phases at Sir E Scott School, The Nicolson Institute and Bayble School and build a new primary school on the West Side of Lewis. The project, if successful, would benefit 30% of the pupils in the Western Isles.

The PPP bid submitted to the Scottish Executive, prior to the closing date of 31 December 2002, was appended to the Report.

It was agreed to recommend that the current position be reported to the Scottish Executive Private Finance Unit in order that they may determine the way forward.

It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraph 9 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, any terms proposed or to be proposed by or to the Comhairle in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods.

Fisheries Loan Scheme

PR81.01

The Director for Sustainable Communities submitted a Report updating members on the progress of the Fisheries Loan Scheme and seeking approval of an interim arrangement to provide guarantee cover to allow the scheme to continue. It was stated that the Fisheries Loan Scheme had had a significant impact on the Western Isles economy in terms of job creation and new investment. The high level of demand for the purchase of fishing vessels had resulted in the current budgetary provision being wholly utilised.

It was agreed to recommend that the Comhairle approve the transfer of guarantee provision from the Business Loan Scheme to the Fisheries Loan Scheme of up to £150k, as an interim measure, to allow the continued processing of applications for financial assistance, subject to the consent of Scheme Partners being obtained.

Recommendations for Write-Offs on Certain Sundry, NDR and Council Debts

PR100.07.01

The Director of Finance submitted a Report seeking approval to write off certain debts in excess of £1,000 in the current financial year. The details of the debts concerned were given in Appendix A to the Report.

It was agreed to recommend that the debts itemised in Appendix A to the Report be written off.

It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraph 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely Information relating to the financial or business affairs of any particular person, other than the Comhairle.

An Lanntair: Consideration of Revenue Bid

PR90.28

The Director of Corporate Services submitted a Report relating to a revenue funding bid from An Lanntair. It was stated that consideration of the revenue funding bid had previously been deferred to allow the Finance Working Party the opportunity to consider the business plan submitted by An Lanntair. The recommendations of the Finance Working Party were included in the Report.

It was agreed to recommend that:

(1) an additional £30,000 of revenue funding be allocated to An Lanntair in 2004/05, bringing the Comhairle commitment in that year to £44,500;

(2) an additional £55,000 in respect of revenue funding be allocated to An Lanntair in 2005/06 and 2006/07, bringing the Comhairle commitment in those years to £69,500; and

(3) Officers of the Comhairle work with representatives of An Lanntair on a strategy for reducing the ongoing amount of revenue funding to be incorporated into the Service Level Agreement and that progress reports on such discussions be brought before the Finance Working Party and thereafter to the Policy and Resources Committee.

It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraph 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to the financial or business affairs of any particular person, other than the Comhairle.

Mod Expenditure 2001

PR90.28

The Chief Executive and the Director of Finance submitted a Report advising members on the expenditure by the Comhairle on the Mod which took place in Stornoway in 2001 and confirming that all conditions placed on the expenditure had been met in full.

It was agreed to recommend that the Report be noted.

COMMERCIAL OPERATIONS UNIT

Section 19B Progress

PR90.01

The Director of Corporate Services submitted a Report notifying the Comhairle that the Section 19B Notice had been lifted from the Building and Roads Maintenance activities undertaken by the Commercial Operations Unit. It was stated that over the past two years, progress in financial terms had been substantially in excess of that anticipated by the Notice, and that the Commercial Operations Unit had changed dramatically in terms of its size, structure, contracts undertaken, methods and staffing levels.

It was agreed to recommend that the Comhairle note the lifting of the Section 19B Notice and Direction imposed by the Scottish Executive, with effect from 12 September 2003.

BUILDINGS

Programme and Progress

PR37.07

The Director of Technical Services submitted a Report informing Members on progress with the replacement of the boiler in the Council Offices, Stornoway.

It was agreed to recommend that the Report be noted.

Office Accommodation – Marybank Depot

PR31.01.04

The Director for Sustainable Communities and the Director of Corporate Services submitted a Report seeking approval for the replacement of the office block at Marybank Depot, subject to resources being identified in the Capital Programme. It was stated that the existing office facilities were of a portacabin nature with rotting timber, a leaking roof, little insulation and no disabled access.

It was agreed to recommend, insofar as the Committee’s interests were concerned, that the design works be completed for the replacement of the office block at Marybank Deport and building permissions sought to allow the project to proceed once funding has been identified.

INFORMATION TECHNOLOGY

Information and Communications Technology (ICT) Sub Committee

PR30.01

The Director of Corporate Services submitted a Report relating to the quorum, purpose, functions and membership of the Information and Communications Technology (ICT) Sub Committee which had been added to the Scheme of Establishment at the last stage of meetings.

It was agreed to:

(1) approve the membership, quorum, purpose and functions of the ICT Sub-Committee, as detailed in Appendix A to the Report, and

(2) appoint the following Members to the Sub Committee:

Chairman

Vice-Chairman

Mr George Lonie

Mr Norman L Macdonald

Mr Angus Nicolson

Western Isles Connected Communities Broadband Network

PR31.12

The Director for Sustainable Communities submitted a Report updating Members on progress with the Connected Communities Broadband Network project and seeking approval of additional capital expenditure which would allow the project to proceed. It was stated that the Connected Communities Broadband Network pilot project aimed to bring fast Internet access to business and individual users in rural communities and provide service to meet the connectivity requirements of public sector organisations.

It was agreed to recommend that the Comhairle:

(1) approve the Connected Communities Broadband Network project as a single procurement to achieve full implementation throughout the Western Isles; and

(2) approve a total contribution of £788k to the Connected Communities Broadband Network project, as detailed in Table 2 of the report, funded as follows:

(i) £468k in the main 2003/04 Capital Programme,

(ii) £200k from funds earmarked to Broadband in the Conditional Programme; and

(iii) £120k from funds allocated to Business Development Parks in the Conditional Programme.

		CONTRACTS
Application for Inclusion in Standing Lists of Approved Contractors PR31.07	20	The Director of Technical Services submitted a Report relating to a number of applications for inclusion in the Comhairle’s Standing Lists of Approved Contractors. It was agreed to recommend that the Contractors, detailed in Appendix 1 of the Report, be included in the various Standing Lists of Approved Contractors.
		CORPORATE GOVERNANCE
		Mr Iain Morrison, a non-Member of the Committee, declared an interest in the following item and left the meeting during consideration of the matter.
Integrated Bus Services Sub Committee PR30.01	21	The Director of Corporate Services submitted a Report relating to the establishment of a Sub-Committee to award the contracts in respect of Integrated Bus Services. It was stated that all bus contracts currently operating in the Western Isles terminate at the end of March 2004 and that the tender process is currently under way. It was further indicated that a Sub-Committee was required to consider the outcome of the tendering process and award the contracts. It was agreed to recommend that: (1) the Chairman, Mr Norman A Macdonald, the Chairman and Vice-Chairman of the Education and Children’s Services Committee and Mr Peter Carlin be appointed to serve on the Integrated Bus Services Sub-Committee; and (2) the remit of the Sub-Committee, as detailed in the report, be approved.
Outcomes of Policy and Resources Committee Seminar PR30.01	22	The Chief Executive submitted a Report detailing the outcomes of the Policy and Resources Committee Seminar held on 2 October 2003. Suggested strategic objectives for the Policy and Resources Committee were appended to the report. It was agreed to recommend that: (1) the Strategic Objectives, contained in Appendix 1 to the Minute, be approved for inclusion in the Comhairle’s Corporate Strategy; and (2) the Chief Executive be authorised to integrate the outcomes of the Committee Seminars into the development of the Corporate Strategy, based on consistency with extant policy and being directly achievable by the Comhairle.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraphs 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely Information relating to the financial or business affairs of any particular person, other than the Comhairle.
		Mr Angus Nicolson declared an interest in the following item and left the meeting during consideration of the matter.
Legal Advice to Co-Chomunn na Pairc PR43.01	23	The Director of Corporate Services submitted a Report seeking Members’ views on the provision of legal advice to Co-Chomunn na Pairc. It was agreed to recommend that legal support to Co-Chomunn na Pairc for the purposes of drawing up the lease agreements should not be approved.
Community Buyouts: Request for Officer Support during Election Process	24	The Director of Corporate Services submitted a Report seeking approval to provide Officer support to communities holding an election process to establish Trusts/Steering Groups in respect of a Community buy out. It was indicated in the report that two areas in the Western Isles, seeking to examine the feasibility of a Community buy-out, have informally sought Comhairle assistance in the administration of the election process associated with the buy-out. It was agreed to recommend that appropriate Officer support be offered to community organisations requesting assistance with undertaking an election during a Community buy-out process, on the basis that all costs will be borne by the community organisation.
Local Governance (Scotland) Bill – Response to Consultation PR30.01	25	The Director of Corporate Services submitted a Report relating to the consultation response submitted to the Scottish Executive resulting from the views expressed by Members at the seminar that took place on 29 September 2003 to consider the matter. It was agreed to recommend that: (1) the submitted response, appended to the Report on the draft Local Governance (Scotland) Bill, be noted; and (2) the Director of Corporate Services be authorised to submit a supplementary response to the Scottish Executive incorporating any further views expressed by the Comhairle.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraphs 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely Information relating to the financial or business affairs of any particular person, other than the Comhairle.
		Mr Angus Nicolson declared an interest in the following item and left the meeting during consideration of the matter.
Local Newspaper Advertising	26	The Director of Corporate Services submitted a Report concerning local advertising and where advertising should be placed, following the Comhairle’s three month trial period of advertising with the new Western Isles newspaper, the Hebridean. It was agreed to recommend that the previously agreed arrangements of advertising in the Stornoway Gazette, West Highland Free Press and the Hebridean be continued for a further three month trial period.
		CHRISTMAS LIGHTS
		It was agreed that the public, including the press, be excluded from the meeting during consideration of the following item on the grounds that exempt information as defined in Paragraph 8 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to the amount of any expenditure proposed to be incurred by the Comhairle under any particular contract for the acquisition of property or the supply of goods or services.
Christmas Lights PR31.07	27	The Director of Technical Services and the Head of Legal and Democratic Services submitted a Report relating to a proposal for the provision of Christmas Lights under Best Value in terms of the Contract Regulations. It was agreed to recommend that the Comhairle agree, in terms of Contract Regulation 7c, not to seek tenders in respect of Christmas Lighting in 2003 under Best Value arrangements and for the reasons detailed in the Report subject to: (1) the approval of the Stornoway Amenity Trust to the arrangement being obtained; and (2) completion of satisfactory negotiations between the Director of Technical Services and the Director of Corporate Services.
		ADDITIONAL ITEM
		The Chairman ruled that in accordance with the provisions of Section 50(B)(4)(b) of the Local Government (Scotland) Act 1973, as detailed in terms of Standing Order 8, the following matter be considered as a matter of urgency in order that the matter be considered before the next meeting of the Committee.
		Mr Angus Nicolson and Mr Norman A Macdonald declared an interest in the following item and left the meeting during consideration of the matter.
54 Seaforth Road, Stornoway, Isle of Lewis	28	The Director of Corporate Services and the Director for Sustainable Communities submitted a Report relating to 54 Seaforth Road, Stornoway to Studio Alba. It was agreed to recommend that: (1) the Comhairle agree to seek to amend the leasing arrangements at 54 Seaforth Road, Stornoway, Isle of Lewis so that Studio Alba becomes mid landlord and all other occupants of the site tenants or sub-tenants of Studio Alba; and (2) the Director for Sustainable Communities be authorised, in consultation with the Director of Corporate Services and Director of Finance, to enter into negotiations with all interested parties in relation to the whole terms and conditions of any such leasing arrangement and to conclude any such leasing arrangement, subject to there being no adverse financial or legal implications for the Comhairle.

FINANCE

The Director of Finance submitted a Report updating Members on developments in the existing and proposed Capital Programme and recommending a revised timetable for setting the Capital Programme for 2004-08.

It was agreed to recommend that:

It was agreed to recommend that no further projects be added to the Capital Programme for 2003/04 at this point in the year.

It was agreed to recommend that:

The Director of Finance submitted a Report updating Members on the proposed Budget Strategy and seeking to inform the consideration of any motion to add to the Ward Priorities Fund resources.

It was agreed to recommend that:

(1) the Finance Working Party be instructed to consider the allocation of additional resources to the Ward Priorities Fund following the mid-year review and report back to the next meeting of the Committee; and

The Director of Finance submitted a Report relating to guidance issued by CiPFA entitled ‘Guidance on Reserves and Balances in a Local Authority’ and making recommendations based on this guidance.

It was agreed to recommend that the Director of Corporate Services be authorised to amend Standing Order 37 to refer to ‘all reserves and balances’ in the interests of clarity and to reflect CiPFA guidance.

It was agreed to recommend that the current position be reported to the Scottish Executive Private Finance Unit in order that they may determine the way forward.

The Director of Finance submitted a Report seeking approval to write off certain debts in excess of £1,000 in the current financial year. The details of the debts concerned were given in Appendix A to the Report.

It was agreed to recommend that the debts itemised in Appendix A to the Report be written off.

It was agreed to recommend that:

The Chief Executive and the Director of Finance submitted a Report advising members on the expenditure by the Comhairle on the Mod which took place in Stornoway in 2001 and confirming that all conditions placed on the expenditure had been met in full.

It was agreed to recommend that the Report be noted.

COMMERCIAL OPERATIONS UNIT

It was agreed to recommend that the Comhairle note the lifting of the Section 19B Notice and Direction imposed by the Scottish Executive, with effect from 12 September 2003.

BUILDINGS

The Director of Technical Services submitted a Report informing Members on progress with the replacement of the boiler in the Council Offices, Stornoway.

It was agreed to recommend that the Report be noted.

It was agreed to recommend, insofar as the Committee’s interests were concerned, that the design works be completed for the replacement of the office block at Marybank Deport and building permissions sought to allow the project to proceed once funding has been identified.

INFORMATION TECHNOLOGY

The Director of Corporate Services submitted a Report relating to the quorum, purpose, functions and membership of the Information and Communications Technology (ICT) Sub Committee which had been added to the Scheme of Establishment at the last stage of meetings.

It was agreed to:

It was agreed to recommend that the Comhairle:

The Director of Technical Services submitted a Report relating to a number of applications for inclusion in the Comhairle’s Standing Lists of Approved Contractors.

It was agreed to recommend that the Contractors, detailed in Appendix 1 of the Report, be included in the various Standing Lists of Approved Contractors.

CORPORATE GOVERNANCE

Mr Iain Morrison, a non-Member of the Committee, declared an interest in the following item and left the meeting during consideration of the matter.

It was agreed to recommend that:

(1) the Chairman, Mr Norman A Macdonald, the Chairman and Vice-Chairman of the Education and Children’s Services Committee and Mr Peter Carlin be appointed to serve on the Integrated Bus Services Sub-Committee; and

Mr Angus Nicolson declared an interest in the following item and left the meeting during consideration of the matter.

The Director of Corporate Services submitted a Report seeking Members’ views on the provision of legal advice to Co-Chomunn na Pairc.

It was agreed to recommend that legal support to Co-Chomunn na Pairc for the purposes of drawing up the lease agreements should not be approved.

It was agreed to recommend that appropriate Officer support be offered to community organisations requesting assistance with undertaking an election during a Community buy-out process, on the basis that all costs will be borne by the community organisation.

The Director of Corporate Services submitted a Report relating to the consultation response submitted to the Scottish Executive resulting from the views expressed by Members at the seminar that took place on 29 September 2003 to consider the matter.

Mr Angus Nicolson declared an interest in the following item and left the meeting during consideration of the matter.

The Director of Corporate Services submitted a Report concerning local advertising and where advertising should be placed, following the Comhairle’s three month trial period of advertising with the new Western Isles newspaper, the Hebridean.

It was agreed to recommend that the previously agreed arrangements of advertising in the Stornoway Gazette, West Highland Free Press and the Hebridean be continued for a further three month trial period.

CHRISTMAS LIGHTS

The Director of Technical Services and the Head of Legal and Democratic Services submitted a Report relating to a proposal for the provision of Christmas Lights under Best Value in terms of the Contract Regulations.

It was agreed to recommend that the Comhairle agree, in terms of Contract Regulation 7c, not to seek tenders in respect of Christmas Lighting in 2003 under Best Value arrangements and for the reasons detailed in the Report subject to:

Mr Angus Nicolson and Mr Norman A Macdonald declared an interest in the following item and left the meeting during consideration of the matter.

The Director of Corporate Services and the Director for Sustainable Communities submitted a Report relating to 54 Seaforth Road, Stornoway to Studio Alba.