COMHAIRLE NAN EILEAN SIAR

POLICY AND RESOURCES COMMITTEE

 

 

 

 

Minute of Meeting held in the Council Offices, Stornoway, on Wednesday 30 August 2006 at 9.30 am

 

PRESENT

Mr Angus Campbell (Chairman)

 

 

Mr Norman A Macdonald (Vice-Chairman)

 

 

Mr Alexander A MacDonald

Mr Norman M Macleod

 

Mr Malcolm J Graham

Mrs Morag Munro

 

Mr Angus Nicolson

Mr Archie K Campbell

 

Mr Murdo Macleod

Mr Donald Maclean

 

Mr Norman L Macdonald

Mr Donald Manford

 

 

Minute of Meeting of 22 June 2006

 

 

1

The Minute of Meeting of 22 June 2006 was approved.

 

Declaration of Interest

 

 

2

The Chairman and declared an interest and left the meeting during consideration of item 53

 

The Vice Chairman declared an interest and left the meeting during consideration of items 16 and 53.

 

Mr Alex A Macdonald declared an interest and left the meeting during consideration of item 30

 

Mr Norman L Macdonald declared an interest and left the meeting during consideration of items 9 and 53.

 

Mr Norman M Macleod declared an interest and left the meeting during consideration of item 53.

 

Mr George Lonie declared an interest and left the meeting during consideration of item 3.

 

Mr Alex Mackintosh declared an interest and left the meeting during consideration of item 3.

 

Mr Neil Campbell declared an interest and left the meeting during consideration of item 3, and the third additional item.

 

Mr Archie K Campbell declared an interest and left the meeting during consideration of items 3, and 12

 

Mr Donald Manford declared an interest and left the meeting during consideration of item 3.

 

Mr Angus Nicolson declared an interest and left the meeting during consideration of items 16, 19, and 49 and the third additional item.

 

Mrs Annie Macsween declared an interest in item 38.

 

Mr John Mackay declared an interest and left the meeting during consideration of item 12

 

 

 

Mr Martin C Taylor declared an interest and left the meeting during consideration of item 12.

 

Mr Ronald J Mackinnon declared an interest and left the meeting during consideration of item 12.

 

 

Minute of Meeting of Housing Stock Transfer Sub-Committee of 16 August 2006

 

 

3

The Minute of Meeting of Housing Stock Transfer Sub-Committee of 16 August 2006 was approved.

 

 

Minute of Meeting of Human Resources Sub-Committee of 21 August 2006

 

 

4

The Minute of Meeting of Human Resources Sub-Committee of 21 August 2006 was noted and the recommendations on page 3 were approved.

 

 

 

 

FINANCE

 

General Fund Capital Monitoring

PR100.03

5

A Report was submitted by the Director of Finance to provide Members with an update on the progress of the 2006/07 Capital Programme at 30 June 2006. 

The Report stated that Forecast Capital Expenditure in 2006/07 was expected to be £31.6m. This compared with £30m achieved in 2005/06.  If this level of expenditure was achieved it would require the acceleration of resources from 2007/08, as it was £3.8m above available resources.               

At 30 June 2006 19.46% of the forecast expenditure for the year had been achieved. The summary of expenditure was shown in Appendix 2, to the Report and the Report stated that the detail per Committee is available in the August Information Bulletin and on the Comhairle’s intranet.

 

It was agreed to recommend that, in so far as the Committee’s interests were concerned the Comhairle approve the Forecast Out-turn as the Revised Approved Programme for 2006/07 and specifically approve:

 

(1)         in the Education Capital Programme, slippage of £837k, including:

£209k in the Boiler Plant Replacement Programme

£50k in the Schools Accessibility Programme

£100k in the Water Services Improvement Programme

£53k in the Window Replacement Programme

£83k in the Toilet Improvement Programme

£67k for Energy Improvements in Sir E Scott School

£100k for Structural Improvements to Schools

£50k for Traffic Management

£60k for HORSA Replacement

£65k for Safer School Playgrounds;

 

(2)         in the Environmental Services Capital Programme, acceleration of £22k in the ACE grant scheme;

 

(3)         in the Transportation Capital Programme, acceleration of £263k in the Spinal Route project and £3k for Amenity lighting; slippage of £529k for work on the North Ford Causeway and £110k on Alternative Energy Projects;

 

(4)         in the Arts and Leisure Capital Programme, slippage of £87k for work at Lews Castle and £60k for work to play areas;

 

(5)        in the Policy and Resources Capital Programme, slippage of £61k in work to the Comhairle Offices.

 

 

 

Arising out of consideration of this item it was agreed to recommend that Finance Working Party meet with Chairmen and Directors in relation to pressures on the Capital Programme and the viability of achieving all projects on the 2004-08 Capital Programme and that a Report on these matters would be submitted to the next series of meetings.

 

 

Annual Treasury Management

PR120.06

 

6

A Report was submitted by the Director of Finance providing Members with a report on the Comhairle’s treasury activities for 2005/06.

 

The Report stated that CIPFA’s Code of Practice for Treasury Management required a report on the activities of the preceding year’s treasury operation, that included annual measurements of performance.  Borrowing operations of local authorities were governed by the Local Government in Scotland Act 2003. 

 

The actual results for 2005/06 showed a total saving in Loan Charges of £512,105 compared to budget.  The savings resulted from:

 

(a)                  the effect of converting £10.65m of variable rate loan debt to fixed rate;

(b)                 the receipt in December 2005 of a BCCI dividend of £1.595m;

 

(c)                  slippage in the 2004/05 Capital Programme; and

 

(d)                 the judicious investment of surplus cash balances.

 

It was further stated that Treasury Management in local government was regulated by the 2001 revision of the CIPFA Code of Practice on Treasury Management in Local Authorities (the Code).  The Comhairle had adopted the Code and fully complied with the requirements.  The Code required that the Director of Finance report annually on the loans fund results of the previous year.

 

It was agreed to recommend that the Comhairle note the report

 

 

Prudential Indicators

PR43.06

 

7

A Report was submitted by the Director of Finance advising Members of the actual Prudential Indicators for 2005/06 and the estimated Indicators for 2006-2009.

 

The Report stated that CIPFA had prepared the Prudential Code in order to underpin the new system of capital finance for local authorities.  The framework in the Code included a set of Prudential Indicators which had to be set at the beginning of the financial year for the forthcoming financial year and subsequent two years. 

It was further stated that Prudential Indicators for 2006-2009 had been approved by the Comhairle on 9 February 2006.  The actual Indicators for 2005/06 based on the unaudited accounts to 31 March 2006 had been calculated and were detailed in paragraphs 4.1 – 12.6 of the Report.  Based on the actual results for 2005/06, the estimated indicators for 2006-2009 had been revised.

 

It was agreed to recommend that the Comhairle that the actual Prudential Indicators for 2005-07 be noted and the revised Prudential Indicators detailed in the Report be approved.

 

 

General Fund Quarter Revenue Monitoring

PR110.05

 

8

A Report was submitted by the Director of Finance informing Members of the Comhairle's forecast revenue out-turn for 2006/07

 

The Report stated that at the end of 2005/06 the Comhairle was showing uncommitted balances of £4,067K, whixh were detailed in Appendix B to the Report.  However, with budgeted deficits in the current and next financial years, forecast free balances at the end of 2007/08 would be reduced to £920K, which was significantly below the Comhairle’s target of £1,800k. It was recommended that the Directors of Social Work and Corporate Services reported back to the next series of meetings on options to bring their budgets back into balance within this financial year. Failure to achieve this would further reduce balances to £529K.  A seminar, to consider the efficiency savings the Comhairle needed to make to address its budget deficit, had taken place on 29 August.

 

 

 

It was agreed to recommend that the Comhairle

 

(1)          note the report; and

 

(2)          require the Directors of Social Work and Corporate Services, in consultation with the Director of Finance, to report to the October series of meetings on options to bring their budgets back into balance during this financial year.

 

 

 

 

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 3 & 5 namely Information relating to any particular applicant for, or recipient or former recipient of, any service provided by 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.

 

Social Work – Specialist Mainland Placements 2006/07

SW01

 

9*

A Report was submitted by the Director of Social Work outlining details of the continuing pressures placed on the Social Work revenue budget by the cost of specialist mainland placements and advising of the current budgetary position relating to the specialist mainland placements for adults and children.

 

The Report stated that in 2006/07 the Social Work Department received additional funding of £749k from the Comhairle for specialist placements due to the continual budgetary pressures.  The Appendix to the Report detailed the current specialist placements within the Social Work Department.  There was a potential overspend of £178,1k in 2006/07 based on current placement activity, bringing social work forecasted expenditure in this area to £1,056.3k this financial year. 

 

It was agreed to recommend that the Comhairle note the forecasted Social Work costs for specialist mainland placements, as detailed in Appendix 1 as follows:

 

(i)            £623.3k for Adult Community Care; and

(ii)           £433k for Child Care.

 

 

Write-Off of Non Domestic Rates

PR100.03.01

 

10

A Report was submitted by the Director of Finance recommending that an irrecoverable Non‑Domestic Rates debt be written off.

 

The Report suggested that a debt of £3,053.14 in respect of Non-Domestic Rates for 2004/05 be written off.  The Report stated the debtor had gone into liquidation and the Director of Finance had been advised that there would be no dividend to ordinary unsecured creditors.

 

It was agreed to recommend that the Comhairle write off the Non-Domestic Rate debt, reference 30159245.

 

 

Fire Board:  Update on Cost Allocation

PR41.01

 

 

11

The Clerk sought and obtained the Chairman’s permission to withdraw this item.

 

 

 

 

 

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 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

 

 

Financial Performance of Bus Operation STO

CB010

 

12*

A Report was submitted by the Director of Finance outlining the failure of the Bus Operation to meet its statutory target and to recommend how this could be managed.

 

The Report stated that discussions with the Scottish Executive had indicated that their main concern was that the Comhairle could demonstrate Best Value in any solution that had been adopted in respect of the future operation of the service and that it was for the Comhairle to manage.  Section 7 of the Report considered the potential options available to the Comhairle in relation to the delivery of the routes PB1, PB2 and Hushinish.

 

The Report further stated that it would be more cost effective that the Comhairle’s COU retain the bus contract until the conclusion of the contract period, provided that it continued to break even.  Following the award of the previous contract, Audit Scotland had recommended that a Best Value review be undertaken. It was considered appropriate to commence the review in the year ahead.

 

 

 

It was agreed to recommend that the Comhairle agree that

 

(1)                in light of the analysis provided in the report, it was not necessary to take any steps to retender Bus Contracts PB1 and PB2 and Hushinish at this time and note that the Director of Finance will submit a further report to Committee in the event that he has any concerns in relation to the financial performance of this STO; and

 

(2)                 the Best Value review of the Bus Operation be commenced as quickly as possible.

 

 

 

 

CAPITAL PROGRAMME

 

Accessibility – Museum nan Eilean, Stornoway

AL09.01

 

13

A Report was submitted by the Director for Sustainable Communities seeking approval for the release of £104k currently included on the provisional capital programme, to the capital programme to enable necessary adjustments to be made to the Francis Street Museum in order to comply with the requirements of the Disability Discrimination Act which had come into force on 1 October 2004.

The Report stated that detailed works required to be carried out on the Stornoway Museum to ensure compliance with the requirements of the Disability Discrimination Act 1995, which had come into force on October 1 2004.  These measures follow from audits carried out by Technical Services and the Adapt Trust and consultations with the Lewis Access Panel. 

 

It was agreed to recommend that the Comhairle approve the release of £104k from the provisional capital programme to the capital programme for the purposes of the works detailed in this report to enable the Museum to meet the requirements of the Disability Discrimination Act 1995.

 

 

Dun Berisay:  Project Evaluation Report on Dementia Unit

SW08

 

 

14

A Report was submitted by the Director of Social Work seeking the approval of the Project Evaluation Reports, recommending that work proceed to redevelop a section within Dun Berisay, with a view to that area becoming operational as a specialist dementia unit at a later stage.

 

The Report stated that the redesignation of the planned phase 1 of the redevelopment of Dun Berisay to a dementia unit had been approved in September 2005. The Report recommended proceeding to tender, since the development would represent part of a general improvement required to meet national care standards, although the designation of the redeveloped section as a dementia unit would require to be deferred until the necessary revenue resources would be  available.

 

It was agreed to recommend that the Comhairle

 

(1)                approve the Project for the development of a new dementia unit within Dun Berisay should proceed to tendering, on the basis set out in the Project Evaluation Report appended to the Report; and

 

(2)                note that the development would present an enhancement of care facilities, helping to secure building standards that meet Care Commission registration requirements, but that the staffing addition required to bring it into operation as a dementia unit would be dependent on resources being identified in the future to meet the costs, matched by revenue from NHS Western Isles.

 

 

 

 

MODERNISING GOVERNMENT AND BEST VALUE

 

Comhairle Procurement

PR10

 

15

A Report was submitted by the Director of Corporate Services providied an update on the work which had been undertaken to develop the Comhairle’s Procurement Strategy, specifically the work that had been undertaken to implement e-Procurement within the Comhairle.

 

 

 

The Report detailed the output of a Scope and Readiness Assessment (SRA) carried out by eProcurement Scotl@nd for the Comhairle between mid June and the end of July 2006. Through a structured process of interviews, workshops, analysis of financial data and a technology assessment, the readiness and suitability of the Comhairle for the eProcurement Scotl@nd service had been tested.  The assessment stated that from the work undertaken during the assessment there were no apparent constraints which would prevent the Comhairle from implementing the system in a phased manner. Funding for the purchase of the system, which was promoted as the ‘number one’ eGovernment initiative in Scotland was being provided by the Scottish Executive. It was also hoped that the first year’s funding for the rental charge would be provided by them. In the event that this was not the case, it was proposed that the initial first year costs would be funded from the Internal Efficiency Fund.