Agenda and minutes

To sign the minutes of the meeting held on 16 June 2010.

The minutes of the meeting held on 16 June 2010 were taken as read and signed by the Chair as correct.

Councillors are reminded of the need to declare personal and prejudicial interests, including the nature and extent of such interests, in relation to business on the agenda, before any discussion takes place on the item.  Councillors requiring clarification should seek the advice of the Monitoring Officer prior to the day of the meeting.

Members made no declarations of interest.

The Council’s External Auditor, Grant Thornton, will present the report to Members – report circulated

Mr Morris and Ms Masci of Grant Thornton, the Council’s External Auditor, presented the Use of Resources Auditor Judgement Report.

Mr Morris updated Members on the current changes resulting from Government Guidance in May 2010 which included ceasing work on the Use of Resources and outlined the overall conclusions regarding financial management, commissioning and governance and management of natural resources, assets and people.

In answer to a Member’s question, Mr Morris stated that the Audit Commission would be abolished in 2012 and as yet there was no Government Guidance as to what audit procedures would be put in place. He informed the Committee that he would update them as soon as information became available.

The Chair thanked Mr Morris and Ms Masci for their presentation.

The Scrutiny Committee – Resources noted the report.

(Report circulated)

To consider the joint report of the Head of Contracts and Direct Services, Head of Housing Services, Head of Treasury Services and the Acting Head of Estates Services – report circulated (Monitoring Schedule available on request and on the Internet). 

The joint report of the Head of Contracts and Direct Services, Head of Housing Services, Head of Treasury Services and the Acting Head of Estates was submitted.

Scrutiny Committee – Resources noted the first quarter financial position of the £7.6m programme of reactive and planned property maintenance and refurbishment for 2010/11, as detailed in the report.

(Report circulated)

To consider the report of the Head of Treasury Services - report circulated

The Head of Treasury Services was submitted.

Scrutiny Committee – Resources noted the report.

(Report circulated)

To consider the report of the Head of Treasury Services - report circulated

The Head of Treasury Services presented the report on the current position in respect of the Council’s revised annual capital programme and advised Members of the anticipated level of deferred expenditure into future years.

The Head of Treasury Services advised Members that alongside the first quarter’s monitoring exercise, Officers had also instigated a review of the capital programme, to identify the extent to which schemes were not yet committed, to consider whether some of the uncommitted schemes could be either deferred, reduced or removed from the programme and to identify any potential savings.

He advised that the revised capital programme for the current financial year was £30.087 million and that during the first three months of the year the Council spent £3.305 million on the programme, which equated to 10.99% of the revised programme.  This compared with £3.190 million (12.7%) being spent in the first three months of 2009/10.  The forecast spend for 2010/11 was £28.388 million with £4.148 million of the programme potentially deferred to 2011/12. 

In answer to a Member’s question, the Head of Treasury Services stated that the Council would continue to deliver the capital programme where it related to the key priorities.

Scrutiny Committee - Resources supported the report and recommended the Executive approve an increase in the disabled facilities grants budget of £198,330, of which, £119,000 will be financed by government subsidy and noted that Officers will present a report to a future meeting on the capital programme review. 

(Report circulated)

To consider the report of the Head of Treasury Services - report circulated

The Head of Treasury Services presented a report on the overall projected financial position of the General Fund Revenue Budget after three months, for the 2010/11 financial year.

The Head of Treasury Services advised Members that the Service Committee budgets showed a forecast over spend of £49,800 (0.29%) against a revised Service Committee Net Expenditure budget of £17,356,360 and an overall over spend of £41,432 against the General Fund Expenditure. The budgets for 2010/11 included a provision of 0.7% for the pay award.  The current position was that Local Government Employers had not offered a pay award for the current year.

The Director Corporate Services stated that no pay award had been offered to the employees therefore there was no offer for the Unions to accept or reject.

Members were informed that it was anticipated that there would be an increase in the housing benefit costs and that the car park fees were slightly above the budgeted income figures.

In response to a Member, the Head of Treasury Services stated that once a debt was over one year old a bad debt provision for the full amount was made. However, the Council still made every effort to recover the monies.

The Director Corporate Services advised that it was intended that the all party budget working group from this Committee that had met in previous years to review the budget proposals would be reformed and meet again in due course.

The Scrutiny Committee - Resources supported the report and recommended approval by Council of the:-

(1)     General Fund forecast financial position for the 2010/11 financial year;

(2)     HRA forecast financial position for 2010/11 financial year;

(3)     outstanding Sundry Debt position as at June 2010;

(4)     Statutory Performance Indicator BVPI8 for creditor’s payments; and

(5)     the proposal that the Scrutiny Committee  - Resources Budget Working Group meet in due course to review budget proposals for the coming financial year.

(Report circulated)

RESOLVED that, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of items 11, 12, 13, and 14 on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 1,3 and 4 of Part I, Schedule 12A of the Act.

RESOLVED that, under Section 100A (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the consideration of the following items on the grounds that they involved the likely disclosure of exempt information as defined in Paragraphs 1, 3 and 4 of Part I, Schedule 12A of the Act.

To consider the report of the Head of Corporate Customer Services seeking approval to staffing changes in the Civic Centre Facilities Management Team– report circulated to members

The Head of Corporate Customer Services presented the report to request approval for changes to the Civic Centre Facilities Management Team.

The Director Corporate Services commented on the financial and operational benefits of the early implementation of these proposals.

The Scrutiny Committee - Resources supported the report and recommended that the Executive approve:-

(1)        the restructuring of the Civic Centre Facilities Management service as detailed in this report; and

(2)               the payment of compensation to the holder of post CSO7143 in accordance with the discretion exercised by the Council under the provisions of the Local Government (Early Termination) (Discretionary Compensation) (England and Wales) Regulations 2006.

(Report circulated to Members)

To consider the report of the Head of Contract Services seeking approval to a revised structure for the provision and operation of internal building and electrical services – report circulated to members

The Head of Contracts and Direct Services presented the report seeking approval to a revised structure for the provision and operation of internal building and electrical services.

He outlined to Members that the changes were as a consequence of the agreed procurement strategy for the Housing Maintenance Contract which resulted in the appointment of a single contractor to carry out the work previously performed in part by the council’s Building and Electrical Service Team (BEST).

The Scrutiny Committee - Resources supported the report and recommended that the Executive approve:-

(1)           the re-designation of the posts of Support Officer (CE11123) and Building Support Officer (CE11136) to Contracts Support Officers with the posts subject to review for JE purposes;

(2)           the deletion of the post of Building Services and Projects Supervisor (CE11127) the post holder having been granted ill health retirement;

(3)           the deletion of the post of Electrical and Mechanical Support Officer (CE11128), Building Support Officer (CE11139) and the Part Time Building Support Officer (CE11143) as a result of the work transferring;

(4)           the employment of the post holder of the post of Maintenance Foreman/ Supervisor (CE11138), the part time post holder of the post of Multi-Skilled Craftworker (CE111003) and the temporary contract of the post holder covering CE11136) be terminated on the grounds of redundancy upon expiry of the contractual notice period in accordance with the provisions of Regulation 19 of the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007; a one-off pension strain cost payment of £1,428.33 and £129.73 respectively; redundancy costs of £31,853.17, £12,381.00 and £1,891.76 respectively;

(5)           the deletion of the post of Building Maintenance Foreman/Supervisor (R.R.& P)      (CE11141), Multi-Skilled Craftworker (CE111005) and Apprentice Electricians (CE111108), (CE111112)  as a result of the work transferring;

(6)           the retention of the posts of Working Building Supervisor (CE111000), part time Multi-Skilled Craftworker (CE111003) and Multi-Skilled Craftworkers (CE111007) and (CE111011) to the establishment as part of the revised structure;

(7)           the retention of the posts of Working Electrical Supervisor (CE111101) and Electricians (CE111100), (CE111103), (CE111105), (CE111106), (CE111107) to the establishment as part of the revised structure; and

(8)           an ongoing review of the operation of the revised structure is performed by the Head of Contracts and Direct Services in consultation with the Head of Treasury Services to ensure the service is functioning as envisaged and changes made where appropriate.

(Report circulated to Members)

To consider the report of the Director Community and Environment seeking approval to a restructure of the Administration and Project Services Unit – report circulated to members

The Director Community and Environment presented the report seeking approval to a restructure of the Administration and Project Services Unit. This restructure was as a result the proposed changes to the service in BEST which had the effect of reducing the workload on the Unit.

The Scrutiny Committee - Resources supported the report and recommended that the Executive approve:-

(1)        the employment of the holder of the post of CE02106 be terminated on the grounds of redundancy on 1 October 2010 in accordance with the provisions of Regulation 19 of the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007;

(2)        the payment of compensation to the holder of post CE02106 in accordance with the discretion exercised by the Council under the provisions of the Local Government (Early Termination) (Discretionary Compensation) (England and Wales) Regulations 2006; and

(3)               the new structure of the Administration Unit in Appendix II of this report with the posts of Senior Finance Administration Officer CE012106; Project Officer CE02125 and Finance Administration Assistant CE02124; deleted from the establishment of the Council; the post of Administration Manager CE02100 to be subject to revaluation in December 2010.

(Report circulated to Members)

To consider the report of the Head of Leisure and Museums providing an update on the position in relation to the various contracts let for the Royal Albert Memorial Museum Development Project – report circulated to members

The Head of Leisure and Museums presented the report updating Members on the current situation with respect to the various contracts now let for the RAMM Development Project.

Richard Aston, Director of Focus, gave a presentation to Members analysing the reasons for, and the financial effects of, the various problems experienced by the project over the last two years.

In answer to Members’ questions, the Head of Leisure and Museums clarified that regular meetings took place with the Architects and the contractors and that monthly meetings were held with the Senior Members’ Group to update Members on the progress with the project.

Members were of the opinion that it would be beneficial if the Chair of this Committee could sit on the Senior Members Group.

The Head of Leisure and Museums invited Committee Members to visit RAMM. He would contact Members in due course.  He intended to include the present membership and the new committee Members when appointed.

The Chair thanked Richard Aston for his presentation.

The Scrutiny Committee - Resources supported the report and recommended Council to approve:-

(1)        that officers continue to maintain strenuous efforts to control costs and delays; and

(2)        that in the light of the latest information on the risks which the project continues to face, contained in the Focus Strategic Cost Review of August 2010, the budget for the project be increased to £24.263m, noting the reasons for the increase in the forecast expenditure as reported in paragraph 10.3. of the report.

(Report circulated to Members)