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COMHAIRLE
POLICY AND RESOURCES COMMITTEE |
Minute of Meeting held in the Council Offices, Stornoway, on Thursday 22 June 2006 at 9.30 am
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PRESENT |
Mr Angus Campbell (Chairman) |
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Mr Norman A Macdonald (Vice-Chairman) |
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Mr Alexander A MacDonald |
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Mr Malcolm J Graham |
Mr Archie K Campbell |
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Mr Norman L Macdonald |
Mr Donald Maclean |
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Mr Murdo Macleod |
Mr Donald Manford |
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APOLOGIES |
Mrs Morag Munro |
Mr Norman M Macleod |
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Mr Archie K Campbell and Mr Alex Mackintosh declared an interest in the following item and left the meeting during consideration of this item. |
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Minutes of Meetings of Housing Stock Transfer Sub-Committee of 11 May 2006 and 15 June 2006 |
4 |
The Minutes of Meetings of Housing Stock
Transfer Sub-Committee of 11 May 2006 and 15 June 2006 were recommended for approval. |
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Minutes of Meetings of Human Resources Sub-Committee of 2 May 2006 and 16 June 2006 |
5 |
The Minute of Meetings of Human Resources Sub-Committee of 2 May 2006 was noted and the recommendation at item 6 recommended for approval The Minute of Meeting of 16 June 2006 was noted and the recommendations at items 11, 13, 20 and 25 were recommended for approval. |
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BUSINESS PLANS |
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Business Plans 2006/07 – 2008/09 PR33.01.04 |
6 |
A Report was submitted by the Chief Executive seeking approval of the Business Plans for 2006/7 – 2008/9. The Report stated that the CIPFA/SOLACE Corporate Governance Framework advised that local authorities should maintain effective arrangements for explicit accountability to stakeholders for the authority’s performance and its effectiveness in the delivery of services and the sustainable use of resources. It was agreed to recommend, insofar as the interests
of the Committee were concerned, that the Comhairle: (1)
note the performance of departments in relation to their
Departmental Business Plans be noted and (2)
that, where tasks are uncompleted, further monitoring information
would be provided as part of the 2006/07 process. |
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FINANCE |
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Review of Benefits Section H05.09 |
7 |
A Report was submitted by the Director of
Finance to advise Members of the forthcoming review of the Benefits Section
which had transferred from the Housing Department to Ionmhas on 1 April 2006
as a consequence of the Housing Stock Transfer process. The Report stated that
a review of the structure of the Benefits Section, using the principles of
Best Value, would be undertaken during June and July 2006 to address issues
raised in the Report and to seek to create a structure where all staff were
on permanent contracts, and to ensure that the new structure reflected the
priorities in the Ionmhas Business Plan. It was agreed to recommend that the review
of the Benefits Section be approved and note that the Director of Finance
would Report back to the Human Resources Sub-Committee in due course. |
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Mr Norman A Macdonald declared an interest
in the following item and left the meeting during consideration of this item |
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Draft Abstract of Accounts for the Year to 31 March 2006 PR120.07 |
8 |
A Report was
submitted by the Director of Finance regarding the submission of accounts to
Audit It was agreed to recommend: (1)
that the Draft Abstract of Accounts be approved for submission to Audit (2)
that it be delegated to the Director of Finance to submit the
Group Accounts as soon as possible after the figures had been received from |
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General Fund Revenue Outturn 2005/06 PR110.08 |
9 |
A Report was submitted by the Director of Finance informing Members of the Comhairle’s revenue outturn for 2005/06 and seeking approval for departmental carry forwards. The Report indicated an overall unaudited deficit for 2005/06 of £811K and identified budgetary pressures and challenges for future years. It was agreed to recommend, insofar as the interests
of the Committee were concerned, that the Comhairle: (1)
note the Report; and (2)
approve the carry forward of budgets detailed in Appendix |
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General Fund Fourth Quarter Capital Monitoring PR110.01 |
10 |
A Report was submitted by the Director of Finance regarding a summary of the overall funding position for 2005/06 and the revised position for the subsequent two years are shown in Appendix 1. Appendices 2 and 3 summarise the income and expenditure by Committee for 2005/06 and the revised Programme incorporating slippage and acceleration for the subsequent 2 years. Appendix 4 detailed the status of the PERs and Appendix 5 showed the expenditure approved for funding by Prudential Borrowing and CFCR. A more detailed analysis of income and expenditure, including slippage and acceleration for each Committee, would be available in the June Information Bulletin. It was agreed to
recommend that the Comhairle approve the recommendations in the Report
insofar as Committee’s interests were concerned. |
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Mr Norman A Macdonald declared an interest
in the following item and left the meeting during consideration of this item. |
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Rural Rate Relief Scheme PR100.03.01 |
11 |
A Report was submitted by the Director of Finance outlining that a
request had been received from Highlands & Islands Fire & Rescue
Service for discretionary relief to be granted on their premises and a copy
of their letter was attached at Appendix A. to the Report. The Report stated that granting this relief
would cost £2,900 and would save the Service £11,600. The Highlands & Islands Fire &
Rescue Service was funded by the constituent local authorities. The It was agreed to recommend that the Discretionary
Rural Rate Relief Scheme be extended to grant 100% relief in respect of eligible
properties occupied by Highlands & Islands Fire & Rescue Service. |
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The Vice Chairman took the Chair while the Chairman and Mr Norman L Macdonald declared an interest in the following item and left the meeting during consideration of this item. |
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Fuel at Fishery Piers – Trading Classification CB014 |
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A Report was submitted by the
Director of Finance reviewing the classification of Fuel at Fishery
Piers. The Report stated that it was
agreed at the last meeting that the issue of whether Fuel at Fishery Piers would
continue to be classified as an STO (Significant Trading Operation) be
referred to the Member Officer Working Group.
A more detailed consideration had since been given to whether the Fuel
at Fishery Piers operation satisfied the tests for determining significance
as laid down in the CIPFA guidance note “A Best Value Approach to Trading
Accounts”. The Report further stated that the tests indicate that it was no
longer necessary to classify Fuel at Fishery Piers as an STO. The reasons for this change in treatment were
included at Appendix A to the Report. Following
discussions with the Comhairle’s external auditors, it was suggested that
Fuel at Fishery Piers did not meet the criteria for significance and therefore
had not required to be classified as an STO.
Fuel at Fishery Piers would continue to be subject to the same
rigorous scrutiny internally as an STO and would continue to report to the
Commercial Operations Board. It was agreed to recommend that the Comhairle agree that from 1 April 2006 the Fuel at Fishery Piers operation cease to be
classified as a Significant Trading Operation. |
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Mr Alex Mackintosh and Mr Archie K Campbell declared an interest in the following item and left the meeting during consideration of this item. |
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Hebridean Housing Partnership-Internal Audit H01.17 |
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A Report was submitted by the Director of Finance
regarding the Hebridean Housing Partnership (HHP) which
would soon become a separate entity from the Comhairle as a result of a
tenants’ ballot. The Report stated that HHP had produced an audit brief,
outlining an over-view of what internal audit services were required over a
five-year period and had advertised for those wishing to submit a bid. It was further stated that due to the short
deadline in tender submission dates, it had not been possible to bring a
Report before Committee. Following
discussion with the Chairman, a tender bid for providing internal audit
services had been submitted to HHP for a period of five years. The submission had indicated that
undertaking the work would be dependant on the approval of the Comhairle at
its meeting on 22 June 2006. Any
additional costs incurred in providing this service would be met by the
tender bid. If successful, further reports would be presented to the Comhairle
on staffing arrangements that would require to be put in place to meet the
needs of both the Comhairle and HHP audits. It
was agreed to recommend that the Comhairle homologate the decision of the
Director of Finance to submit a bid to Hebridean Housing Partnership for the
provision of Internal Audit Services for a five-year period. |
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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 2 & 5 namely Information relating to any particular occupier or former occupier of, or applicant for, accommodation provided by or at the expense of the Comhairle and relating to the adoption, care, fostering or education of any particular child or relating to the supervision or residence of any particular child in accordance with a supervision requirement made in respect of that child under the Social Work (Scotland) Act 1968. |
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Mainland Placements SW01.16 |
14* |
The Director of Social Work submitted a Report advising Members of the current position relating to Social Work Revenue Expenditure on specialist mainland placements for adults and children. In 2006/07 the Social Work department had received additional funding of £749k for specialist placements due to the continual budgetary pressures as detailed in Appendix 1. The Report stated that there was a potential overspend of £210.5k in 2006/07 based on the current placement activity. It was agreed to recommend that: (1) the forecasted costs of
2006/07 of £607.5k for adult and £483.5k for child care placements as
detailed in Appendix 1 to the Report be noted; and (2) that progress Reports on the current and forecasted costs of specialist mainland placements will be submitted to each scheduled Committee meeting. |
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It was agreed that the public, including the press, be excluded from the meeting during consideration of item 15 below 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. |
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Funding of Partnerships Loan Guarantees DS40.33.242 |
15* |
A Report was submitted by the Director of Finance regarding the
future of the Global Guarantee to the Fisheries and Business Loans Schemes.
The Report stated that the Comhairle’s current Global Guarantee limit of
£1.2m had been fully-utilised for quite some time - and a solution had now
sought to enable these successful business development schemes to continue in
the long run. Negotiations were continuing between the
Comhairle, the Royal Bank of Scotland (RBS) and the Bank of Scotland (BoS) -
which would result in new agreements being in place for the operation of the
loan schemes. In the case of the BoS,
this would mark their entry to the schemes as a full participant. In order to
work towards a self-sustaining level of Global Guarantee provision in the
longer term, it would be necessary to secure a further £1m of Global Guarantee
provision - equating to a total revenue commitment of approximately £300k. Since the schemes began in 1999, a total of
only £31,143 had been claimed by the RBS in calls under the Comhairle’s
guarantee. This, together with a very
low average cost-per-job created / safeguarded, represented sound value for
money and an excellent return on the Comhairle’s investment in the economy of
the It was agreed to recommend that the Comhairle
continue the Partnership Loan Guarantee Schemes as at present, utilising the
portion of the Comhairle's guarantee as it becomes available. |
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CAPITAL PROGRAMME |
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It was agreed that the public, including the press, be excluded from the meeting during consideration of item 16 below 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. |
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The Provision of a Swimming Pool in Daliburgh AL06.06.01 |
16* |
A Report was submitted by the Director for Sustainable Communities giving an update on the options being considered for the provision of a swimming pool in Daliburgh. The Report stated that, following the Comhairle decision to explore a private sector partnership Borrodale Hotel (South Uist) Ltd had expressed an interest and the company were currently assessing detailed construction and running costs. A letter from Borrodale Hotel (South Uist) Ltd was appended to the Report. It was agreed to recommend that: (1)
the Director for Sustainable Communities, in conjunction with the
Director of Corporate Services and the Director of Finance continue
discussion with Borrodale Hotel (South Uist) Ltd and prepare a detailed
Report on the full implications of working with the private sector to provide
a swimming pool facility in the Daliburgh area by August 2006; and (2)
discussions with the Borrodale Hotel be concluded by 31 July 2006. |
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AL06.01.61 |
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A Report was submitted by the Director for Sustainable Communities seeking approval of the Project Evaluation Report for the upgrade of the Smith Avenue Synthetic Pitch. It was agreed to recommend that the Comhairle
approve the Project Evaluation Report for the |
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Dun Berisay Boiler Replacement SW07 |
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The Director of Social Work submitted a Report seeking approval of a Project Evaluation Report recommending that work proceed to replace the current boiler plant at Dun Berisay. The Project Evaluation Report was appended to the Report, which indicated that the boiler plant had reached the end of its useful life. It was agreed to recommend that the Comhairle: (1)
approve the Project Evaluation Report appended to the Report for
Dun Berisay Boiler Plant replacement; and (2)
approve the replacement of the boiler plant within the Dun Berisay
proceeding to tender, on the basis set out in the said Project Evaluation
Report. |
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HOUSING |
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Housing Revenue Account Interim Capital Programme 2005/06 Final Out Turn PR100.03 |
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The Head of Housing Services submitted a Report giving information concerning the expenditure incurred on the Housing Revenue Account Capital Programme 2005/2006. It was intimated that the Housing Revenue Account Capital Programme for 2005/06 had been set within the new prudential framework for borrowing and that the Comhairle had also agreed to include in the programme items from the capital funded from current revenue programme and other projects in the Comhairle's approved financial plan which would be completed and paid for during the 2005/06 financial year. It was further suggested in the Report that in order to achieve a level of flexibility which would allow the Comhairle to meet any liability arising following stock transfer and in particular to meet the cost of premia on debt redemption it was proposed that the outturn programme be funded as detailed below: |
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Expenditure to 31 March 2005 £2,823,094 funded by: Prudential borrowing £2,598,833 Receipts from sale of council houses £ 200,000 Loan repayments receipts £ 24,261 Total £2,823,094 on the basis that of the total receipts £992,026 from house sales £792,026 had been held as unapplied to off-set the premia on debt redemption. It was agreed to recommend, insofar as the
Committee’s interests were concerned, that the Comhairle approve the final
out-turn on Housing Revenue Account Capital for 2005/06 as detailed in the
Report. |
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Housing Revenue Account Interim Capital Programme 2005/06 PR100.03 |
20 |
The Head of Housing Services submitted a Report concerning proposals for a Housing Revenue Account interim Capital Programme for the period 1 April 2006 – 1 September 2006. It was intimated in the Report that the Programme had been prepared on the basis that the projects included in the Programme could be completed by 4 September 2006 after which the housing stock would be transferred to the Hebridean Housing Partnership. The Report emphasised that the projects contained within the programme were broadly in line with previously approved capital programmes and reflected the priorities of investment established in the Comhairle's Local Housing Strategy and took into account the Hebridean Housing Partnership’s three year financial plan. It was agreed to recommend, insofar as the
Committee’s interests were concerned, that: (1) the Housing Revenue Account Interim
Capital Programme for the period 1 April 2006 to 1 September 2006 as set out
in Appendix 1 to this Report be approved in order to ensure that the
Comhairle's financial interests are protected and value for money is
achieved. (2)
the procurement methods detailed at Appendix 1 to this Report be
approved and that the Home Energy Scheme work be procured through Taigh Blath
in terms of Contract Regulation 7(f), due to their previous experience and
expertise; and (3)
should the transfer for the housing stock be delayed beyond 4
September 2006 a further Report be submitted to the Comhairle. Arising out of consideration of this matter it was
agreed to recommend that a letter be prepared by the Chief Executive, in
consultation with the Head Of Housing Services for the Chairman for onward
transmission to the Chief Executive of the Western Isles Health Board seeking
an urgent meeting to make further representations relating to the Health
Board’s previous commitment to contribute to the Aids and Adaptations Budget.
It was further agreed that if no response was received from the Chief
Executive of the Western Isles Health Board, within a reasonable timescale,
further representations be made on this matter to individuals and
organisations as may be determined by the Chief Executive. |
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Rent Arrears 2005/2006: Progress Report H05.02 |
21 |
The Head of Housing Services submitted a Report giving information in relation to the performance associated with the control and recovery of current and former tenant rent arrears during the 2005/2006 financial year. The Report gave statistical data in connection with: (1) current tenant rent arrears; (2) geographical distribution of current tenant rent arrears; (3) a ’banded’ analysis of current tenant rent arrears. It was intimated in the Report that the cumulative balance of current tenant rent arrears as at 31 March 2006 was £166,582 with the comparative corresponding figure as at 31 march 2005 being £192,805 and that current tenant rent arrears as a percentage of net rent were now 7.78% as against the performance threshold of 7% as determined by Audit Scotland. It was agreed to recommend that: (1)
the Report be noted; (2)
the total Housing Revenue Account Bad Debt Provisions for 2006/07
detailed at paragraph 10.5 be approved; and (3)
the course of action detailed at paragraph 11.1 in respect of
serious rent arrears be approved. |
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It was agreed that the public, including the press, be excluded from the meeting during consideration of item 22 below 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. |
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Mr Alex MacDonald, Mr Norman L Macdonald and Mr Donald Maclean declared an interest in the following Item and left the Meeting during consideration of the matter. |
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Finalised Proposals for Housing Projects Assisted by the Additional Council Tax From Second Homes (ACTISH) H02 |
22* |
A Report was submitted by the Head of Housing Services seeking approval for the revised distribution of ACTISH (Additional Council Tax Income from Second Homes) funding to the 6 housing projects previously agreed by the Comhairle at its meeting on 30 March 2006. It was stated in the Report that in light of the significant increase generated by Council Tax income from second homes it was proposed to allocate the sum of £46,425 to the Bunavoneadar, North Harris Scheme. It was agreed to recommend, insofar as the Committee’s interests were concerned, that the revised allocation of ACTISH funding for the period 2005/06 detailed at Appendix 2 to thi |