BOROUGH OF POOLE - CABINET 5 APRIL 2011
BOROUGH OF POOLE
CABINET
5 APRIL 2011
The Meeting commenced at 7pm and concluded at 8:17pm
Present:
Councillor Ms Elaine Atkinson (Chairman)
Councillor Mike White (Vice-Chairman)
Councillors Peter Adams, Don Collier, Ron Parker, Neil Sorton and Mrs Janet Walton
Also in attendance: Councillors Gregory and Wilkins
Members of the public present: 2
CA137.11APOLOGIES FOR ABSENCE – AGENDA ITEM 1
There were no apologies for absence.
CA138.11DECISIONS OF THE PREVIOUS MEETING – AGENDA ITEM 2
DECISION TAKEN
That the decisions of the last Meeting of the Cabinet, held on 16 March 2011, be approved as a correct record and signed by the Chairman.
For:Unanimous
CA139.11DECLARATIONS OF INTEREST – AGENDA ITEM 3
There were no declarations of interest.
CA140.11PROVISION OF INSTALLATION OF PHOTOVOLTAIC CELLS ON COUNCIL HOUSING ROOFS: REPORT OF THE CHAIRMAN OF THE COMMUNITIES OVERVIEW AND SCRUTINY COMMITTEE – AGENDA ITEM 4
DECISIONS TAKEN
That Cabinet
(i)recommend to Council that it approves the Photovoltaic Capital Scheme to be undertaken mainly in 2011/12;
(ii)Approve the take-up of £10Million of Prudential Borrowing as a means of funding the Photovoltaic Scheme;
(iii)Note that the proposal will necessitate an adjustment to the Council’s 2011/12 Treasury Management Strategy and specifically, the Treasury Management Indicators for which Council approval is sought.
REASON FOR THE DECISION
To consider the proposal from the Communities Overview and Scrutiny Committee of Poole Housing Partnership (PHP) to install Photovoltaic Panels onto Council owned properties and to consider approving the means of funding the Scheme, which WOULD necessitate an adjustment to the Council’s 2011/12 Treasury Management Strategy previously agreed by Council at its Meeting on 1st March 2011.
PART OF THE PUBLISHED FORWARD PLANNo
KEY DECISIONYes
PORTFOLIO AREACommunities and Environment
DISCUSSIONS/OPTIONS
The Chairman invited Councillor Gregory, the Chairman of the Communities Overview and Scrutiny Committee and Audit Committee to address the Meeting.
Councillor Gregory introduced his Report, which outlined the recommendations from the Communities Overview and Scrutiny Committee and corrected the typographical error, deleting £30Million and inserting £10Million in the second recommendation to read “the take-up of £10Million of Prudential Borrowing .....”.
The Communities Overview and Scrutiny Committee, at its Meeting on 29th March 2011, had unanimously recommended the proposals to install Photovoltaic Panels on the roofs of around 1,000 Council owned housing properties, which would enable residents to benefit from lower energy costs, reduce the carbon emission for the Borough of Poole and raise revenue income to the Housing Revenue Account to be used for other forms of renewable energy.
Cabinet noted that financial modelling for the proposed Scheme, based on current Business Case assumption, which showed that the 25 year income to the Housing Revenue Account from 1,000 or more suitable roof spaces was in the region of £6.7Million to £13.3Million for capital expenditure of £10Million.
Cabinet noted that the proposal demonstrated a clear return on investment over the lifecycle of the Scheme based on Business Case assumptions and the current rate of tariffs offered for domestic properties. Positive financial returns on the Scheme would allow for future reinvestment by the Housing Revenue Account (HRA), affording it an income stream that it would not otherwise be able to realise. The deficit in the first years of the Scheme would be financed by reducing the revenue contributions to capital within the HRA made possible as a result of taking additional capital borrowing. The Scheme was to be funded from Prudential Borrowing and the financing solution proposed by the Chief Finance Officer would ensure that the full costs of borrowing would fall to the HRA after 1/4/12 and no short term impact made to the General Fundin 2011/12.
Councillor Gregory informed Cabinet that the Audit Committee had considered the extension to the Treasury Management Prudential Indicators and had recommended to Council the adjustment to the Council’s 2011/12 Treasury Management Strategy to accommodate the Scheme.
The Chairman explained that the Housing Revenue Account was ring-fenced and could only be used to fund repairs, improvements etc to the Council’s housing stock. She also explained that the Council’s Housing Revenue Account had no impact on the Council’s General Fund.
Councillor Collier congratulated Poole Housing Partnership Ltd (PHP) in bringing forward the proposal, another energy conservation initiative.
Cabinet unanimously supported the proposals for recommendation to Council.
CA141.11HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME: ADDITIONAL WORKS FUNDED FROM SUPPORTED BORROWING – AGENDA ITEM 5
DECISIONS TAKEN
That Cabinet recommend to Council:
i)Approval of the proposal to make £3.86Million of additional investment in the Housing Revenue Account (HRA) 2011/12 Capital Programme to enable the Sterte Capital Scheme to be progressed;
ii)Approval of the proposal to maximise the Council’s utilisation of supported borrowing available to the HRA Capital Programme in 2010/11 to provide the resources required to enable these additional works to be undertaken with minimum impact to the General Fund;
iii)Note the proposal and that it necessitates an adjustment to the Council’s 2011/12 Treasury Management Strategy and specifically, the Treasury Management Prudential Indicators for which Council approval is sought.
For:Unanimous
REASON FOR THE DECISION
To seek approval to undertake additional works within the HRA 2011/12 Capital Programme and advise Members on the issues associated with the utilisation of current Government HRA supported borrowings to be used to provide the resources required to enable these additional Capital works to be undertaken.
PART OF THE PUBLISHED FORWARD PLANNo
KEY DECISIONYes
PORTFOLIO AREAHousing and Resources
DISCUSSIONS/OPTIONS
The Chairman invited Councillor Gregory to address Cabinet to inform it of the Audit Committee’s consideration of these issues with a view to approving the adjustment to the Council’s 2011/12 Treasury Management Strategy and Treasury Management Prudential Indicators for recommendation to Council.
Councillor Gregory explained that the Audit Committee had approved the proposals for an adjustment to the Council’s 2011/12 Treasury Management Strategy and the Treasury Management Prudential Indicators for recommendation to Council. He referred to the previous Agenda item (Min CA140 refers), explaining that, should Council approve the proposal to advance the Photovoltaic Scheme in 2011/12, the Government would assume that the first £4Million of the £10Million of Prudential Borrowing needed to fund the Photovoltaic Scheme, would count against the currently unapplied amount of HRA Subsidy Debt. He explained that, following introduction of new Capital Financing Regulations in 2004/5 by the Government, the Council had chosen to limit the extent to which it had utilised the full amount of available supported borrowing approvals that could be applied in relation to the HRA. This unapplied amount was £3.86Million, which had not previously been considered for use by the Council as it would have impacted adversely on the General Fund. Cabinet noted that the introduction of the HRA Self Financing regime from 1st December 2012 provided an opportunity for the Council to review the approach taken in previous years as the new regime would result in the debt pool being “decoupled”, allowing the cost of money to be properly recharged to the HRA for borrowing that benefitted the HRA. The financing solution proposed by the Chief Finance Officer would also ensure that there would be no short term impact to the General Fund and the local taxpayer.
The Cabinet was referred to paragraph 4 of the Report, which explained that the Government was proposing to introduce a borrowing limit (cap) on HRA debt once the Self Financing Scheme for Council Housing had been introduced in April 2012. This cap would be determined by Government at 31st March 2012, and it was understood that it would not be revised. It was clearly important to the Council to seek to optimise the amount of borrowing headroom that would be afforded to its HRA in future years to mitigate any risk of its ability to raise finance to meet local needs. The issues for the Council’s debt cap etc and the alternative scenarios were set out in Exhibit 1 to the Report. The proposal set out in Section 5 of the Report enabled the Council to maximise future debt cap for the HRA and facilitated the Council to progress necessary works to Sterte Court with no adverse impact on the General Fund and at a preferential rate to the HRA.
Members’ attention was drawn to the risks as detailed in the Report.
Members were supportive of the proposals for recommendation to Council and grateful to the Officers for the innovative work undertaken.
CA142.11MERGER OF POOLE AND BOURNEMOUTH ADULT LEARNING SERVICES: REPORT OF THE PORTFOLIO HOLDER WITH RESPONSIBILITY FOR ADULT LEARNING – AGENDA ITEM 7
DECISION TAKEN
That Cabinet recommend to Council:
(i)agreement of the Merger of Poole and Bournemouth Adult Learning Services from the Academic Year 2011/12;
(ii)approval of a virement of £1Million in 2011/12 to reflect the additional grant fee income and associated expenditure, which would now pass through the Council of the Borough of Poole as the relevant accountable Body to the Merged Adult Learning Service.
For:Unanimous
REASON FOR THE DECISION
To seek Council approval to complete the implementation of a fully merged Adult Learning Service.
PART OF THE PUBLISHED FORWARD PLANNo
KEY DECISIONYes
PORTFOLIO AREAAdult Learning/Communities
DISCUSSIONS/OPTIONS
With the consent of the Cabinet, the Chairman varied the order of the Agenda.
Councillor Gregory, Chairman of the Communities Overview and Scrutiny Committee, informed Cabinet that his Committee had unanimously supported approval of the proposals for recommendation to Cabinet.
The Portfolio Holder, Councillor Adams, explained that the full implementation of a merged Adult Learning Service between Bournemouth and Poole would build on the current joint management arrangements, which had been in effect from June 2010. The primary driver for the merger was a reduction in funding from the Skills Funding Agency and the merger would eliminate duplication, achieve economies of scale and protect the delivery of Services.
The new joint Service was to be based in Poole and the Borough of Poole was to be the employing and managing Council with a joint Governing Board. Cabinet was supportive of the proposals, feeling that it would provide more choice for residents at less cost.
Cabinet supported the proposals for recommendation to Council.
CA143.11COUNCIL BUDGET MONITORING (1ST APRIL 2010 TO 28TH FEBRUARY 2011) – AGENDA ITEM 6
DECISION TAKEN
That Cabinet:
i)Note the contents of the Report and the intention of the Chief Finance Officer to allocate any additional year end surplus achieved over and above that assumed in setting the 2011/12 Budget to support an additional revenue contributions to Capital and for use in mitigating emergency inflationary pressures;
ii)Approve the Budget transfers (virements) as set out in Section 6.4 of the Report.
iii)That the actions being taken in respect of the in year over expenditure of the Social Care Budget detailed at Appendix A10 be noted and approved.
For:Unanimous
REASON FOR THE DECISION
To consider the Council’s performance against Budget for the period 1st April 2010 to 28th February 2011 and the forecast financial outturn for the year.
PART OF THE PUBLISHED FORWARD PLANYes
KEY DECISIONYes
PORTFOLIO AREASAll
DISCUSSIONS/OPTIONS
The Chairman introduced this Report, explaining that, through careful planning and hard work of the Officers, much had been achieved to mitigate significant budget pressures. The pressures within Adult Social Services were not due to poor budgetary management or planning but both due to the demographics of the Borough and difficulties around the responsibilities for Service provision between health and social care, resulting in claims by other Local Authorities that Poole should bear the care costs of specific individuals, and the potential that the NHS Bournemouth and Poole’s reassessment of individuals with Continuing Health Care (CHC could lead to the Council being required to meet the care costs of these individuals.
The Chairman also referred to the awaited outcome of negotiations within NHS Bournemouth and Poole in relation to the resources made available to help Councils deal with winter pressures in Social Care in 2010/11 and the extent to which any resources could be carried forward to enable investment in re-enablement services, which would benefit the Health and Social Care system in 2011/12.
The Chairman invited Portfolio Holders to address the Cabinet on any areas of concern.
Attention was drawn to the fact that bus operator claims in respect of the reimbursement rate may also still fall to the Council during the remainder of 2010/11.
Councillor White drew Cabinet’s attention to the virements detailed at paragraph 6.4, which were due to the reprofiling of works, either back from 2011/12 or into 2011/12.
CA144.11LEISURE SERVICES STRATEGY: REPORT OF THE CHAIRMAN OF THE ENVIRONMENT OVERVIEW AND SCRUTINY COMMITTEE – AGENDA ITEM 8
DECISION TAKEN
That Cabinet approve the promotion and distribution for public consultation the Leisure Services Strategy.
For:Unanimous
REASON FOR THE DECISION
To consider the recommendation from the Environment Overview and Scrutiny Committee with regard to the Leisure Strategy.
PART OF THE PUBLISHED FORWARD PLANNo
KEY DECISIONYes
PORTFOLIO AREALeisure
DISCUSSIONS/OPTIONS
Councillor Wilkins, the Chairman of the Environment Overview and Scrutiny Committee, introduced his Report, explaining that the Environment Overview and Scrutiny Committee, at its Meeting on 24th March 2011, had considered the draft Leisure Services Strategy and, recommended the deletion of comments attributed to the Leader as it was felt that the document was to be published for public consultation during the election period and this was not appropriate.
Cabinet was supportive of the Strategy, Councillor Mrs Walton being particularly pleased that there was inclusion of the needs of children within the Strategy.
The purpose, scope and timescale of the Strategy were noted.
Cabinet was informed that the Strategy would set the future direction approach and priorities for the Council’s Leisure provision from 2011-2015.
CA145.11REVIEW OF BEACH HUT RENTAL TERMS AND CONDITIONS: REPORT OF THE CHAIRMAN OF THE ENVIRONMENT OVERVIEW AND SCRUTINY COMMITTEE - AGENDA ITEM 9
DECISIONS TAKEN
That Cabinet approve the Review of Beach Hut Rental Terms and Conditions as part of the Beach Masterplan Project according to the Strategy aims, topics and timescales as detailed below:
- Strategy
In order to guide the review is proposed that the Borough of Poole’s Strategy for Beach Hut Letting be as follows:
- To provide well designed and maintained beach huts at a variety of beach locations with a variety of letting and price options To take careful account when planning provision and policy of the Council’s Fairness for All Equality Scheme (with particular reference to access for people with disabilities and to ability to pay).
- To increase accessibility and availability of huts.
- To increase income and return on investment.
- To continue to prioritise long-term lets to residents of the Borough of Poole.
- Aims
It is proposed that the aims of the review include:
- Making beach huts more readily available and accessible with a shorter waiting list
- Improving the customer experience for people applying for, waiting for and taking on a beach hut licence
- Improving the quality, range, number of and types of beach huts available
- Generating more income from beach huts overall whilst continuing to ensure affordable access as much as possible
iii.Review Topics
It is proposed to consider the following topics in the review:
- Ways to reduce the waiting list and ensure more people have access to beach huts
- New additional beach huts
- Limiting annual lets to a set number of years (and/or other options e.g. increasing pricing after a set period)
- Proportion of long-term annual lets to short-term lets
- Joint letting
- Reducing the many different prices for similar huts
- Accessibility for people with disabilities
- Waiting list policy
- Bookings procedures
- Possible alternative letting and leasing options
iv. Timing
The intention would be to work on the rental conditions through the Beach Master Plan project over the next year.
That Cabinet note that it is the intention of the Environment Overview and Scrutiny Committee to establish a Working Party to review the Beach Hut Rental Terms and Conditions and Cabinet suggested, in view of the spread and interest, this Working Party should comprise at least five Members.
For:Unanimous
REASON FOR THE DECISION
To Review Beach Hut Rental Conditions to make Beach Huts more widely available and to seek to shorten the waiting list.
PART OF THE PUBLISHED FORWARD PLANNo
KEY DECISIONYes
PORTFOLIO AREASLeisure/Communities
DISCUSSIONS/OPTIONS
Councillor Wilkins, the Chairman of the Environment Overview and Scrutiny Committee, introduced this Report, explaining that his Committee had addressed the Overview and Scrutiny Topic Suggestion Form, seeking a review of Beach Hut Rental Conditions and accessibility, with a view to shortening the waiting list. He outlined the strategy, scope and aims of the Review and as the Beach Masterplan Project included Beach Huts as a Review, it was agreed this would form part of that Project. Members were supportive of the proposals, noting that those Beach Huts available under the Council’s Access to Leisure Scheme were well used and the Council Taxpayer benefitted from the rental income.
CA146.11NEW FLOOD AND WATER MANAGEMENT REGULATIONS: REPORT OF THE CHAIRMAN OF THE ENVIRONMENT OVERVIEW AND SCRUTINY COMMITTEE – AGENDA ITEM 10
DECISIONS TAKEN
That Cabinet
(i)note new Flood and Water Management duties placed on the Council;
(ii)approve the proposals for how the Borough of Poole will meet its new responsibilities;
(iii)approve the allocation of new specific funding.
For:Unanimous
REASON FOR THE DECISION
To advise Members of the new statutory Flood and Water Management Regulations, which had been assigned to the Council following recent legislation and to seek approval to the allocation of new specific funding.