template for minutes

COMHAIRLE NAN EILEAN SIAR

POLICY AND RESOURCES COMMITTEE

Minute of Meeting held in the Council Offices, Stornoway, on Thursday 12 October 2006 at 9.30 am

PRESENT	Mr Angus Campbell (Chairman)
	Mr Norman A Macdonald (Vice Chairman)
	Mr Alexander A MacDonald
	Mr Malcolm J Graham	Mrs Morag Munro
	Mr Angus Nicolson	Mr Archie K Campbell
	Mr Murdo Macleod	Mr Donald Maclean
	Mr Norman M Macleod	Mr Norman L Macdonald

APOLOGIES	Mr Donald Manford

		MINUTES
Minute of Meeting of 30 August 2006	1	The Minute of Meeting of 30 August 2006 was approved
Declaration of Interest	2	The Chairman declared an interest and left the meeting during the consideration of item 34. The Vice Chairman declared an interest and left the meeting during consideration of item 30. Mr Norman M Macleod declared an interest and left the meeting during consideration of item 34.
Minute of Meeting of Gaelic Language and Culture Forum of 24 May 2006	3	The Minute of Meeting of 24 May 2006 was approved Arising out of consideration out of this item it was agreed to recommend that it be delegated to the Chief Executive, in consultation with the Gaelic Language Plan Member/Officer Working Group, to draft a funding application to Bòrd na Gàidhlig by mid November 2006.
Minute of Meeting of Human Resources Sub-Committee on 6 October 2006	4	The Minute of Meeting of 6 October 2006 was noted and the recommendations in relation to items 6, 8 and 9 were recommended for approval

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 of Schedule 7A to the Local Government (Scotland) Act 1973 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.

Specialist Mainland Placements

SW01

A Report was submitted by the Director of Social Work which brought the Committee’s attention to the detail of continuing pressures which were placed on the Social Work revenue budget by the cost of specialist mainland placements and advised the Committee of the current budgetary position that related to these specialist mainland placements for adults and children.

The Report stated that the Social Work Department had received additional funding of £749k from the Comhairle for specialist placements due to the continual budgetary pressures. The Appendix to the Report detailed current specialist placements.. There was a potential budget deficit of £107k in 2006/07 based on the current placement activity, bringing social work forecasted expenditure in this area to £985k this financial year. It was stated in the Report that this had reduced by £71K since reported at the first quarter monitoring

It was agreed to recommend that the Comhairle :

(1) notes the forecasted Social Work costs for specialist mainland placements, as detailed in Appendix 1 as follows:

(i) £618k for Adult Community Care; and

(ii) £367k for Child Care.

Social Work Revenue Budgets 2006/2007

PR100.01

A Report was submitted by the Director of Social Work advising Members of options that could be considered, with the objective of bringing the Social Work Revenue Budget for 2006-2007 back into balance

The Report stated that the first quarter monitoring report on Social Work Revenue estimated, considered by Social Work Committee on 23 August 2006 and by Policy and Resources Committee on 30 August 2006, had reported a projected overspend for the year of £375k. The Report further stated that it be required by the Director of Social Work Department was required to produce options for Members to have the budget brought to balance.

It was recommended in the Report that

(1) notes that scope for implementing savings in the Social Work Budget for 2006 / 07 is limited without serious service impact,

(2) agrees that the priority areas for influencing budget pressures are the meals service proposals to substitute for home care, contracted home care workforce and rationalisation of transport across all social work services,

(3) considers the options set out in the summary at the conclusion of this report to determine the priorities for service reduction and increased charges to reduce the projected budget deficit for 2006 / 07

(4) approves the charge increases for home care, community alarm and room hiring,

(5) notes that the Department will maintain vacancies within non-essential posts

(6) notes that proposals on the meals service will come before the Comhairle in December for the implementation of the pilot scheme, and

(7) notes that an overview of transport provision and budgets will require specific resource commitment to undertake this work to the necessary standard.

It was agreed to recommend that the Comhairle

(8) note that scope for implementing savings in the Social Work Budget for 2006 / 07 is limited without serious service impact,

(9) agree that the priority areas for influencing budget pressures are the meals service proposals to substitute for home care, contracted home care workforce and rationalisation of transport across all social work services,

(10) note that the Department would maintain vacancies within non-essential posts,

(11) note that proposals on the meals service would come before the Comhairle in December for the implementation of the pilot scheme,

(12) note that an overview of transport provision and budgets would require specific resource commitment to undertake this work to the necessary standard;

(13) agree that the Social Work Committee (following an informal seminar of Members to consider proposals from the Director of Social Work and the Director of Finance to balance 2006/07 budget) be requested to make proposals to bring the Committee’s budget into balance so far as possible to the Comhairle during the December 2006 series; and

(14) note that as part of budget setting process for 2007/08 the Director of Corporate Services would arrange a seminar for Members to enable Members to review their priorities and make recommendations to the December 2006 series regarding the allocation of funding between Committees.

Corporate Services 2006/07 Budget Update

PR100.01

A Report was submitted by the Director of Corporate Services to allow Members to consider options that would bring the Corporate Services budget into balance during 2006/07.

The Report stated that at its meeting on 30 August 2006 the Comhairle had agreed that the Directors of Social Work and Corporate Services would be required to report to the Committee on options which would bring their budgets back into balance during the financial year. In relation to Corporate Services, the most significant element of the projected overspend was £57K relating to recruitment costs (advertising and relocation). The Report stated that previous overspends in this area had been met from central budgets at the end of the financial year however it was recognised that this was not a sustainable approach. The Report further stated that a concurrent Report to the Committee in relation to recruitment policy outlined measures that could generate savings of at least £8K in 2006/07 and £21K annually through advertising policy. Charging departments the actual recruitment costs for posts that are externally funded would also reduce the overspend and though this was harder to quantify it was estimated that it would recover a further £10K in 2006/07.

It was further stated that these changes could reduce the overspend to £47K. To fall within the overall 1% tolerance that is permitted by the Comhairle further savings of £10K were required. In the first instance, savings would be sought from the corporate postage budget, but bearing in mind the general national postage price increases, further significant savings would not be feasible. It was proposed that the balance of the £10k not achieved by postage saving be achieved by opportunistic savings during the course of the year, drawn proportionately from all budget areas.

It was agreed to recommend that the Comhairle

(1) agree to the Director of Corporate Services’ proposals to achieve a balanced budget in 2006/07, subject to the approval of the Report on recruitment; and

(2) note that the requirement to find any carry forward overspend would be considered during the budget setting for 2007/08.

Use of 2005/06 Year End Surplus – Technical Services Department

PR110.05

A Report was submitted by the Director of Technical Services informing the Comhairle of the planned use of revenue funds carried forward from 2005/06.

The Report stated that the total surplus carried forward from 2005/06 within the Technical Services Department totalled £94,723 which equated to 1.1% of the controllable budget of £8,885,007.

It was agreed to recommend that the Comhairle approve the allocation of revenue funds carried forward by the Technical Services Department from the financial year 2005/06.

Capital Grants

PR110

A Report was submitted by the Director of Finance updating Members on Audit Scotland’s view on Capital Grants and stating that the repeal of Section 94 Consent on the introduction of the Local Government in Scotland Act 2003 had introduced a narrower definition of capital expenditure, which was in accordance with best accounting practice, that had no longer included in capital expenditure which did not result in an asset for the Comhairle. Grants of such nature formed a major element of the Comhairle’s capital programme because they could be used to bring in other funds and extend the range of services available in the Islands. In 2004 the then Acting Director had raised this as a significant issue for the Comhairle. However at that time Audit Scotland considered that it would be acceptable for the Comhairle to continue to borrow to finance capital grants to third parties.

It was further stated that despite assurances provided earlier this year Audit Scotland had changed their view on this issue and had concluded that the correct interpretation was that these grants could not be capitalised. Whilst this approach had been applied across all Scottish authorities it was understood that all other affected authorities had been able to find ways to comply with Audit Scotland’s interpretation. As this expenditure represented £1.8m of expenditure for the Comhairle such an approach was not viable for the Comhairle and the Comhairle’s accounts for 2005/06 would therefore be qualified in this respect.

It was agreed to recommend that

(1) the Comhairle note that the Chairman had made representations to the Minister for Finance and Public Service Reform seeking the necessary secondary legislation to permit the Comhairle to give Capital Grants to third parties and authorise the Chief Executive, in consultation with Director of Finance, to take any appropriate steps to achieve this; and

(2) it be delegated to the Director of Finance to review all such grants which have been approved but not yet paid out; and where possible amend the conditions of grant to enable the grant in question to be treated as capital.

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 & 9 of Schedule 7A to the Local Government (Scotland) Act 1973 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 and relating to 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 or services.

Acquisition of Vehicles and Plant

CB012

The Director of Corporate Services submitted a Report seeking approval for the acquisition of vehicles and plant. The Report indicated that since 2002/2003 vehicles and plant had been replaced on a gradual basis.

It was stated in the Report that it was proposed to procure replacement vehicles and plant through the framework contract managed by the Authorities Buying Consortium (ABC), on the basis that there would be no increase in the number of vehicles or plant.

The Report commented on the financial implications associated with the purchase of the vehicles and plant referred to in the Report.

It was agreed, insofar as the Committee’s interests were concerned, to

(1) recommend that the following vehicles be funded through the Prudential Scheme and the Director of Corporate Services be authorised to procure the vehicles through the Authorities Buying Consortium Framework Contract:

(a) 14 replacement Ford Transit MWB Roof Vans;

(b) 4 Ford 3.5 Tonne LCV Transit Tippers;

(c) 1 Iveco van and Gardner Denver Platform;

(d) 4 Wheelchair Access Minibuses;

(e) 1 Community Skip Trailer; and

(2) further recommend that the Director of Corporate Services be authorised to purchase, through the Prudential Scheme, on the basis of Clause 7(f) of the Contract Regulations by reasons of special circumstances, as detailed in the paragraph 4.16 of the Report, a replacement bus for the “J Reg” as detailed in the Report.

Programme and Progress

PR33.01.12

A Report was submitted by the Director of Technical Services informing Members of the situation in respect of expenditure upon the Repairs and Maintenance of properties held on the Policy and Resources Account, to 30 June 2006.

It was agreed to recommend that the Comhairle note the Report

Public Private Partnership – Update

E01.02.15

A Report was submitted by Director of Education updating Members in relation to the progress of the PPP Project.

The Report stated that in terms of the outline programme attached as Appendix 2 to the Report it was intended that the Competitive Dialogue process would commence in September and conclude in November. It was hoped to tease out innovative approaches to procurement as part of the process which would assist in risk transfer. The outline programme also indicated further key dates in relation to the delivery of the schools.

It was further stated that the project website was now available on the Comhairle’s website. It was anticipated that regular project updates would be published on the site to provide stakeholders with easy access to relevant information. Investigations and discussions were ongoing in relation to cashflow modelling of the hybrid model and an update would be provided to the next meeting of the Committee

It was agreed to recommend that progress in relation to the project be noted and that the Chief Executive be authorised to seek to streamline the tendering process, if he should deem it appropriate.

St Columba’s Chapel and Cemetery, Uidh – Proposed Transfer to Urras Eaglais na H’Aoidhe

LB03.03

A Report was submitted by the Director of Corporate Services seeking authority to transfer the site of St Columba’s Church Uidh to Urras Eaglais na h’Aoidhe to enable it to progress proposals to preserve and develop the site.

The Report stated that the Comhairle owned the site of Uidh Church by default in terms of the Church of Scotland (Property and Endowments) Act 1925. Urras Eaglais na h’Aoidhe, (UEA) was a company limited by guarantee with full charitable status which had been established in 2000 by Point Community Council to progress proposals for the underpinning and re-roofing of Eaglais na h-Aoidhe. The objective of the Trust was to bring the building back into community use by providing a centre for ecclesiastical heritage that would benefit the whole of the Outer Hebrides.

The Report further stated that UEA had requested that the site be transferred in order to assist its funding applications for external funding - in particular the Heritage Lottery Fund on the basis that the site would be returned to the Comhairle if the company were unable to implement the project. The Trust intended to establish interpretation facilities on the site and would assume maintenance obligations on transfer.

It was agreed to recommend that the Director of Corporate Services be authorised to transfer the site of Eaglais na h’Aoidhe (indicatively shown hatched on the appendix to the Report) to Urras Eaglais na h’Aoidhe on such terms and conditions as the Director of Corporate Services, in consultation with the Chief Executive, should deem appropriate including, without prejudice to the foregoing generality that the site would revert to the Comhairle in the event that the project did not proceed before 31 December 2011 and that the transfer would be for a nominal value subject to the consent of the Scottish Ministers being obtained to a disposal at less than market value.

Building and Engineering Contract Monitoring

LB20.01

A Report was submitted by the Director of Technical Services seeking approval of a formal contract compliance monitoring system for contracts with a tender value in excess of £100k

The Report stated that a recommendation to the effect that more formal contract administrative arrangements be introduced within the Technical Services Department had been approved by the Comhairle on 22 June 2006. The Report set out proposals for formally monitoring, recording and, where necessary, reporting contractor performance at a number of key stages. The Report proposed a procedure for formally recording the performance of contractors at a number of key stages in the delivery of a project. The performance would be recorded on an incremental basis and where consistent poor performance was found to be an issue, the matter would be reported to the Committee for consideration.

The Report further stated that it was proposed initially that the formal monitoring process was applied only to contracts with a tender value in excess of £100k as it was most likely that the lower value contracts would fall outwith the scope of the Construction (Design and Management) Regulations .

It was agreed to recommend that the Comhairle approve

(1) the implementation of formal contract compliance monitoring for projects with a tender value in excess of £100K with effect from 1 January 2007; and

(2) the evaluation and scoring criteria as detailed in Appendix 1 to the Report.

Liquidated and Ascertained Damages on Building Contracts

LB20.01

A Report was submitted by the Director of Technical Services advising Members of the current procedures in relation to liquidated and ascertained damages and considering the alternatives.

The Report stated that a recommendation to the effect that the basis for calculating the level of Liquidated and Ascertained Damages on building contracts with an estimated value of up to £300K be reviewed was approved by the Comhairle on 22 June 2006. The Report set out the basis on which they were presently calculated and reviewed whether the system should be changed The Report concluded that the Comhairle’s current practice and procedures represented national best practice and recommended that no change be made.

It was agreed to recommend that the Comhairle agree that the method of ascertaining liquidated and ascertained damages remain in line with the current procedures.

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 & 9 of Schedule 7A to the Local Government (Scotland) Act 1973 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 and relating to any terms proposed or