Minutes : Executive on 05/02/2008

Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 05/02/2008
Minutes

Executive 149
05.02.08

WAVERLEY BOROUGH COUNCIL

MINUTES OF THE MEETING OF THE EXECUTIVE – 5TH FEBRUARY 2008

SUBMITTED TO THE COUNCIL MEETING – 19TH FEBRUARY 2008

(To be read in conjunction with the Agenda for the Meeting)

*	Cllr R J Gates (Chairman)	*	Cllr D J Munro
*	Cllr Mrs P M Frost (Vice-Chairman)	*	Cllr S N Reynolds
*	Cllr M H W Band	*	Cllr J R Sandy
*	Cllr B A Ellis	*	Cllr R J Steel
*	Cllr D C Inman	*	Cllr A E B Taylor-Smith

* Present

Cllr Mrs P Ellis, Cllrs P B Isherwood, B J Morgan and K T Reed
were present at the meeting
Cllrs Mrs P Ellis and B J Morgan spoke on Agenda Items 9 and 10
(Minute Nos 176 and 186 refer)
Cllr K T Reed spoke on Agenda Items 7, 13, 20 and 21 (Minute Nos. 175, 187, 191 and 192 refer)

171. MINUTES

The Minutes of the Meeting held on 8th January 2008 were confirmed and signed.

172. DISCLOSURE OF INTERESTS

The following interests were raised in advance and at the meeting:-

Personal and Prejudicial Interests

*Name*	*Item*	*Interest*
Cllr Mike Band	Agenda Item 21. Lease of Cricket Ground Shamley Green	As the Ward member & also resident in Shamley Green
Cllr Roger Steel	Agenda Item 26 (Exempt) Appendix S	As the subject of the report was known to him
Cllr David Munro	Agenda Item 9. Sponsored Organisations	As a Trustee of 40 Degreez
Cllr John Sandy	Agenda Item 9. Sponsored Organisations	Due to his involvement with the Milford and Villages Day Centre

With the exception of Cllr J Sandy because his organisation was not discussed, all councillors left the meeting during consideration of the respective items.

Personal Interests

*Name*	*Item*	*Interest*
Cllr Mike Band	Agenda Item 9. Sponsored Organisations	As a member of The Hurtwood Control Committee
Cllr Brian Ellis	Item 18 - Cranleigh Project Co-ordinator	As a member of the Cranleigh Initiative and of Cranleigh Parish Council
Cllr Pat Frost	Item 8 - Budget 2008-09 and Item 18 - Cranleigh and Haslemere Project Co-ordinators; Item 9 (SOS)	As a Surrey County Councillor; Item 9 as a Surrey CC representative on the Brightwells Gostrey Centre
Cllr Adam Taylor-Smith	Agenda Item 9. Sponsored Organisations	As a trustee of Godalming Museum
Cllr Richard Gates	Agenda Item 10 - WVGP	As the treasurer of an organisation receiving a grant from the WVGP
Cllr Roger Steel	Various Items on the Agenda	Member of Farnham Town Council; Director for the Surrey Hills Board, on behalf of Waverley; Member of the Maltings Management Committee, on behalf of Waverley; Member of the Bourne Players, Farnham; his wife is a trustee of 'Talk' - a Guildford and Waverley charity for stroke recoverers and is a volunteer organiser for Phyllis Tuckwell Hospice
Cllr Ken Reed	Agenda Item 18 - Cranleigh Project Co-ordinator	As a member of Cranleigh Initiative

173. QUESTIONS

In accordance with Procedure Rule 10, the following question was asked by Mr Sandars of Farnham:-

“In the Council’s 11 January 2008 Press Release, the portfolio holder for leisure lists a number of activities in which the Maltings is involved and for which the Arts Council is making an investment of Ł600,000 over three years.

If this, and past Arts Council funding has been given to the Maltings to “support performing arts companies and individual artists” would the Council please advise:-

[1] which local village halls and other similar venues throughout Waverley have participated with the Maltings over the past year in supporting performances by such companies or individuals and where there has been any such co-operation, what the audience attendances have been, measured against the capacity of the relevant venues, and how many have expressed interest in booking future productions?

[2] whether members of the Council know what profit or loss has accrued to the Maltings during the same period through the programme of support and promotion of performing arts companies and individual artists.”

The Portfolio Holder for Leisure and Culture replied as follows:-

“Good Evening Mr. Sandars – welcome back. Mr Sandars, your question regarding the justification of the Arts Council of England’s future funding of the Maltings should be directed to the Maltings Association, a wholly independent charitable body, and not to Waverley Borough Council. I am therefore quite unable to answer such detailed questions as ‘audience attendances in local village halls measured against the capacity of the relevant venues’.

Your question does give me the opportunity however, on behalf of all my colleagues on the Executive, to formally congratulate the Maltings on being awarded a grant of Ł600k over the next three years by the Arts Council of England. The Farnham Maltings is now acknowledged as one of the leading arts centres in the South East.

In awarding this grant the Arts Council is of course mainly recognising the regional work that the Maltings undertakes which is delivered outside of the borough in Surrey and Sussex but such funding enables the organisation to thrive and as a result it has successfully secured more additional local funding and delivered projects that do benefit Waverley specifically.

For example, working with the Maltings, Waverley Council’s Arts Services last year helped priority communities across the borough. The Waverley Youth Theatre project, which is entirely reliant on fundraising now supports 8 youth theatres, four of which are new groups set up in deprived areas - it has raised Ł80k of funding. In addition there are After-School Arts Clubs and art provision for young people in the school holidays. This could only have been achieved with the Maltings’ help.

The Maltings has successfully used its influence and reputation within the region to provide cultural leadership to collaborate with UCCA, the Craft Study Centre, New Ashgate Gallery, and the Farnham Pottery to present ‘Farnham Creates’ the first of many such endeavours in the town. The Arts Council awarded a Ł20k grant to this particular initiative.

Mr. Sandars. I know I have used this opportunity to repeat my list of just some of the contributions that the Maltings makes to Waverley and to Farnham but you must agree it is impressive. However let me emphasise that the Maltings has never claimed to be a theatre per se – it is an arts and cultural centre. It does however provide a live entertainment programme both regionally within Surrey and Sussex and locally within halls, schools, and even residential homes - all performed by professional actors. Its regional funding subsidises such local performances and thus Waverley benefits.

In 2007 there were 24 such out-reach programmes with 7 venues in Waverley. In 2008, 18 performances have been provisionally booked thus far in the spring alone, of which 10 venues are in Waverley. In addition of course, work is produced at the Maltings such as The Polish Play which is touring nationally to critical acclaim.

I will mention the Farnham street fayres, the annual festival with 4000 local people attending, the jazz club and youth bands which are all down to the Maltings. To most people Mr. Sandars, the Maltings ‘ticks the right boxes’.”

PART I - RECOMMENDATIONS TO THE COUNCIL

174. FINANCIAL STRATEGY 2008/2009 - 2011/2012 AND COUNCIL TAX SETTING

The reports from the Executive in respect of the 2008/2009 budget are set out at Appendix A incorporating:-

Appendix A.1	Car Parking Tariffs Review

Appendix A.2	General Fund Revenue Estimates 2008/2009

Appendix A.3	General Fund Capital Programme 2008/2009

Appendix A.4	Housing Revenue Account Revenue Estimates 2008/2009

Appendix A.5	Housing Revenue Account and Social Housing Grant Capital Programme 2008/2009

Appendix A.6	Council Tax Setting 2008/2009

These will be dealt with under Agenda Item 8 of the Council agenda.

175. CORPORATE PLAN 2008-2011 (Agenda Item 7; Appendix B)

175.1 It is recommended good practice for local authorities to produce a Corporate Plan, setting out their principal aims and ambitions for their area, and identifying priority outcomes for achievement. The Corporate Plan defines the vision of the Council, which is then used by the Council’s senior management team to guide the work of service departments, and the allocation of resources.
175.2 It is important that the Corporate Plan is a clear and accessible document, setting out clearly the main aims of the Council, and enabling residents, stakeholders and partners to understand the Council’s priorities and to evaluate the extent to which the Council is delivering against its objectives.

175.3 The draft Corporate Plan for 2008 – 2011 at Annexe 1 sets out the proposed five corporate priorities for the current term of office of this administration, and identifies measurable targets against each of these priority headings. In addition, the draft Plan lists the priority strategic issues and projects that will guide the work programmes of the Council’s Strategic Directors over the coming three years.

175.4 The Overview and Scrutiny Committees all gave consideration to the draft Corporate Plan at their meetings in January and their comments are set out below:-

Community - 14th January 2008

175.5 With regard to the section on Strategic Projects and their allocation to the Strategic Directors, the Committee agreed that there was alot to be gained from working with Surrey County Council, its Health Scrutiny Committee and appropriate Parish Councils in order to help influence the Surrey PCT to improve access to local primary healthcare and hospital services. The Committee agreed to suggest to the Executive that the bullet point on page 34 of the Corporate Plan be re-worded to that effect.

175.6 The Committee was also invited to identify any service areas which could be identified as ‘non-priorities’ for the Council. It was agreed that the following suggestions be passed to the Executive, via the Environment and Leisure Overview and Scrutiny Committee for consideration since they fell more within the remit of that Committee:-

1. Countryside - Waverley currently manages large areas of countryside and it was suggested that there were other large organisations such as the National Trust that could perhaps take over some responsibility; and

2. Climate Change - the Committee agreed that the amount of resources to be applied to this area of work should be minimised [Cllrs Mrs P Ellis and Mrs C E Savage asked that their votes against this proposal be recorded].

Environment and Leisure - 15th January 2008

175.7 The Committee generally supported and endorsed the Plan, including the proposed set of Council priorities and targets. It also identified the following suggestion for a non-priority service area:-

“To support the proposals of the Community Overview and Scrutiny Committee that general work on climate change and countryside management might be areas suitable for a lower priority.”

Corporate - 21st January 2008

175.8 In considering the Corporate Plan and in particular the Environment priority, the Committee expressed concern about quantifying the proportion of planning appeals upheld against the Council. Generally, Members were unclear about how much of a stretch the targets would be without adequate evidence of Waverley's current position. The Committee agreed to ask the Executive to review whether a specific percentage target was appropriate for any particular measure given that the targets were not sufficiently detailed.

175.9 Having taken account of the comments from the Overview and Scrutiny Committees and discussed the draft Plan in detail, the Executive agreed to

1. add the words ‘for the year to 1st April 2007’ after the word England in the first sentence of the first bullet point relating to achievements in recycling performance, on page 3 of the Plan (Introduction section);

2. ask officers to

i. ensure that the Corporate Plan included some specific references to partnership working;

ii. look again at the targets for recycling by 2010 and 2015; and

iii. find a way to encourage reduced waste generation, and if possible, include a target to reflect this.

175.10 The Executive approved the proposed set of Council priorities and targets, and Strategic Projects for 2008 – 2011, identified any non-priorities for the Council and

RECOMMENDS that

67. the Corporate Plan for 2008/2011 be adopted.

Background Papers (DoCSP)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

176. SPONSORED ORGANISATION SCHEME - APPLICATIONS FOR REVENUE FUNDING 2008/2009 (Agenda Item 9; Appendix D)

[Cllr D J Munro left the meeting during consideration of this item].

176.1 The purpose of this item is to consider the applications from the Sponsored Organisations for revenue funding in 2008/09. The item details the assessment of applications against the approved Sponsored Organisation Scheme criteria and provides recommendations for funding.

176.2 The total value of the funding awarded to Sponsored Organisations in the current financial year (2007/08) is Ł603,344. In addition, a contribution of Ł52,410 has been made towards the Waverley Voluntary Grants Partnership (WVGP) for social welfare organisations, some of which were previously funded from the Sponsored Organisations Scheme. A table detailing the grants requested by each organisation for 2008/2009, together with the grants approved in the current year, is attached at Annexe 2.

176.3 At its meeting in September 2007, the Executive agreed to continue to contribute to the Waverley Voluntary Grants Partnership in 2008/09 on the same basis as in 2007/08. The 2007/2008 Budget also includes an annual revenue contribution of Ł4,000 to help facilitate the improved allocation of grants from the WVGP. The Executive also agreed that the overall funding for the SOS and the WVGP be increased in line with inflation, but that this increase be considered alongside other demands on the Council’s finances during the budget process. These pressures were presented to Members at the Finance Seminar in October and were considered further at meetings of the Overview and Scrutiny Committees in November, and the Executive in early December.

176.4 Officers in this report have shown the impact of a 3% inflation increase but have not identified any above-inflation increases in core grant for individual SOS organisations and have only proposed funding for two new organisations from the six that applied.

176.5`The total SOS officer recommendations for core grant in 2008/09 were Ł620,076, an increase of Ł16,732 over the 2007/08 budget. In addition, a further increase of Ł7,850 is recommended for Citizens Advice Waverley for staff car park use. This amount is currently elsewhere in Waverley’s budget and it is proposed that it is combined with the organisation’s SOS grant. More details are included later in the report. Members’ decision in October was to increase the grant to the WVGP by inflation in 2008/09, which would have been an increase of Ł1,590 to Ł54,000.

176.6 The principal aim of the Sponsored Organisation Scheme is to ‘provide financial support for the on-going revenue costs of voluntary and charitable organisations that are delivering high priority services for the benefit of Waverley residents in partnership with the Council’.

176.7 In October 2007, the Executive approved the grant eligibility, criteria and timetable for 2008/09, taking into account the comments of the Community Overview and Scrutiny Committee. Members gave particular consideration to the inclusion of Social/Welfare organisations, the treatment of general financial reserves and the degree to which organisations contribute towards Waverley’s Corporate Plan objectives.

176.8 At the October 2007 meeting, the Executive also agreed that:

o The Sponsored Organisation Scheme would be open to new organisations to apply for funding in 2008/09.

o The Council should continue to contribute to the Waverley Voluntary Grants Partnership in 2008/09 on the same basis as in 2007/08.

o A funding increase in-line with inflation is proposed, but that such an increase will be assessed alongside other demands on Council finances during the budget process.

176.9 A total of 31 applications for revenue funding in 2008/09 were received, 25 of which were from existing Sponsored Organisations and 6 from new applicants.

176.10 In total, the funding requested by the organisations for 2008/09 is Ł734,999. The summary table detailing all the Sponsored Organisation Scheme applications is attached at Annexe 2.

176.11 Each application has been assessed against the Sponsored Organisation Scheme grant eligibility and criteria by the relevant ‘link officer’ within each service area. In addition, Waverley’s accountants have undertaken a financial assessment of each organisation’s annual accounts. The link officers, as part of assessing the grant applications, have taken the results from these financial assessments, together with information about organisations reserves policy, into account.

176.12 The recommended grants are shown in the table at Annexe 2. Waverley’s service officers recognise the high level of community benefit that each organisation provides and this was reflected in the narrative considered by the appropriate Overview and Scrutiny Committee and the Executive. The recommendations include an inflationary increase for those existing organisations that have requested additional funding. This recognises that many of these organisations have a high proportion of staff and property costs which generally increase each year.

176.13 In addition to SOS funding, a number of the applicants have been offered other financial support from Waverley in recent years. Revenue support has been given in the form of mandatory and discretionary rate relief and financial contributions have also been made to capital projects throughout the Borough from Waverley’s Community Partnerships Fund.

176.14Waverley’s budget currently includes an amount of Ł7,850 for reimbursing Citizens Advice staff their car parking costs incurred in the course of their duties around the Borough. It is proposed that this budget is added to Citizens Advice Waverley’s core SOS grant and that they manage their staff parking arrangements in future rather than claiming money back from the Council on a pay-as-you-go basis. This will enable the CAB to review its procedure and potentially achieve a cost saving.

176.15 The Community and Environment and Leisure Overview and Scrutiny Committees have considered this report and their observations are detailed below. Applicants will be notified of the results of their applications after the Council meeting on 19th February 2008.

176.16 The Community Overview and Scrutiny Committee considered this report at its meeting on 14th January 2008 and agreed to make the following observation to the Executive, that the application for the Cranfold Job Seekers Club should be referred back to the officers with a strong recommendation that some funding should be made, and the officers be asked to identify suitable savings from within the sponsored organisation scheme budget for 2008/2009.

176.17 The Environment and Leisure Overview and Scrutiny Committee agreed to pass the following observations to the Executive, that:-

1. the Executive be asked to bring the whole process forward to allow for O & S to see recommendations for grants earlier so that the Committee can make meaningful observations to the Executive, and that the best structure for this would be for O&S to be able to set up small grants sub-committees.

2. The Committee would like, through this sub-committee, to receive more detailed monitoring information and to be able to compare organisations carrying a wide range of activities and be in a better position to prioritise these.

3. The Executive be asked to look at the proposed inflation-related increases in the light of the Council's very low grant settlement.

176.18 In view of the comments above, the Executive agreed to ask officers to look into the possibility of involving members in the SOS process in some way in the future and also agreed to increase the overall SOS budget by Ł1,000 in order to provide a grant of Ł1,000 to the Cranfold Job Seekers Club. These changes have been incorporated into Annexe 2.

176.19The Executive accordingly

RECOMMENDS that

68. the level of grant for each organisation be approved, as set out in Annexe 2; and

69. the level of Waverley’s contribution to the Waverley Voluntary Grants Panel in 2008/09 should be Ł54,000.

Background Papers (DoR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

177. LEISURE PROCUREMENT STRATEGY IMPLEMENTATION (Agenda Item 11; Appendix F)

[Note pursuant to Section 100B(5) of the Local Government Act 1972: this item contains exempt information by virtue of which the public is likely to be excluded. The information is as specified in paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).]

177.1 In July 2007, the Council reaffirmed its policy to continue operating the five existing leisure facilities across the Borough. It approved entering into a single 15 year management contract with DCL (for the five leisure centres) commencing 1 July 2008 subject to the satisfactory agreement of detailed contract terms by the (then) Director of Finance, Solicitor to the Council and Director of Environment and Leisure. It was agreed that the management contract should include responsibility for DCL to implement the basic refurbishment works that had been identified in the strategy.

177.2 Following the July meeting, officers were instructed to investigate further with DCL the capital improvement options that had been presented, focussing on those that could be delivered on a cost neutral basis (or better) and to report back to Council in due course.

177.3 The main purpose of this paper is to report back to members the outcome of this assessment and the further negotiations with DCL and to present the refined list of improvement schemes along with the financial implications associated with the proposals. In addition officers have included an update on progress made on securing the contractual terms required in the contract and to set out the timescales for the resolution of the remaining issues between now and July 2008.

177.4 As anticipated, the cost of the new contract for running the centres is higher than the current management fee and the Council approved that additional budget be provided in 2008/09 and future years to meet these costs.

177.5 As well as a new management contract the Council has also approved the capital costs of basic refurbishment of the Farnham and Godalming leisure centres. A full list of the agreed refurbishment works is set out in Annexe 3. A total cost of Ł4million for these works was reported in July, including estimated closure costs. Since then, officers have worked with DC Leisure to reduce this cost to an estimated Ł3.4million. Whilst these are significant capital projects, the main elements relate mainly to essential maintenance and replacement items and are not in themselves significant improvements to the existing facilities in terms of enhancements. Given the nature of these schemes they provide limited revenue generation and this is included within the management fees agreed by the Council in July.

177.6 A further set of capital proposals were also presented to members in July that reflected the facility improvement needs identified by the Leisure Special Interest Group during 2006 and set out in the Leisure Facilities Strategy adopted by the Council. Members did not wish to commit to these projects in July and decided that they should be considered alongside Waverley’s other capital proposals within the normal capital programme-setting timetable. Members did not consider that the improved revenue position arising from these further capital works, as presented by DCL, was adequate for the level of resource invested. Consequently, Members asked officers to undertake further work with DCL to identify any capital improvement options that generated sufficient revenue to at least pay for Waverley’s borrowing costs.

177.7 DCL has responded well to the Council’s request to prepare capital proposals that focus on elements with the most beneficial revenue implications. Officers and the Council’s property advisors have spent significant time reviewing and testing these figures in partnership with DCL in an effort to minimise costs and to identify those schemes, which deliver the Council’s priorities but also provide the greatest return for the capital investment. However, it is important to point out that whilst the schemes identified do have the capacity to generate income there are some elements of the schemes, which are deemed necessary but cannot generate sufficient income to cover the full revenue impact of the capital cost.

177.8 It is worth noting that all five centres are of differing age and quality. The centres were built in the following years; Godalming - 1972 (36 yrs); Farnham - 1981 (27 yrs); Cranleigh – 1975(33 yrs); Farnham – 1981(27 yrs); Herons – 1998 (10 yrs); Edge - 2000 (8 yrs). Annexe 4 sets out the list of improvement schemes for the facilities in Godalming, Farnham and Cranleigh. In determining the schemes, the assessment had to take into account the current age and condition of the centres, customer needs and expectations set against the greatest return for capital investment that the schemes would derive. Having done this assessment, capital schemes have been identified for the centres in Farnham, Godalming and Cranleigh.

177.9 It is important in the early stages of any major capital procurement that the Council does not compromise its financial position by making potential tenderers aware of capital estimates. The Council is also still in the process of negotiating contract terms. Therefore, whilst the details of what is included in the improvement options can be shown and are detailed in an open annexe, the financial proposals both revenue and capital are included in (Exempt) Annexe 5(a). The existing management fees are compared to the new contract in (Exempt) Annexe 5(b).

177.10 Improvement schemes for the Herons had been identified in the July report, however, given the relative age and condition of the centre it was felt that this was not a priority at the current time. Also, the estimated revenue savings arising from the proposed capital improvement works at the Herons fell significantly short of meeting the borrowing costs therefore, given the Council’s decision in July and the financial pressures on the budget, it is considered that any capital development works at the Herons should be reconsidered in future years and not at the current time.

177.11 For Godalming, the improvement schemes proposed focus on the identified need to improve the health and fitness facilities at the centre, which currently fall short in terms of size and quality in comparison to the other centres operated by the Council. The Leisure Strategy identified the need to provide affordable good quality health and fitness facilities in Godalming available throughout the day. Options for the development of a new teaching pool and spectator seating were presented in July. However the cost of undertaking these works was considerable and the revenue generated was minimal with a significant cost falling on the Council’s revenue budget, and is therefore not being recommended.

177.12 With regard to Farnham and Godalming given that the Council has already committed itself to undertaking major refurbishment works at these centres it would be more cost effective, should the Council decided to carry out any additional improvement works to do so at the same time so as to limit the disruption to users and minimise the cost of any required closures.

177.13 In approving the new 15-year contract with DCL in July 2007, the Council committed to a significant additional revenue cost (shown in (Exempt) Annexe 5(b)). Whilst this can be partly offset by the saving in business rates, the government could change its policy in the future, leaving the full cost to fall on the General Fund budget.

177.14 The Council can meet the costs of the basic refurbishment from its own capital resources, however it would need to prudentially borrow to fund any further capital improvement works. Before approving capital expenditure that requires borrowing, the Deputy Chief Executive must demonstrate to the Council that the borrowing is both prudent and sustainable. Any impact on the council taxpayer must also be clearly reported. In this case, a prudent borrowing period is deemed to be 15 years. Any external borrowing would need to be on the basis of the full repayment of interest and principal over the period, leaving no outstanding liability beyond the estimated life of the capital works.

177.15 At its October meeting, the Council revised its Discretionary Rate Relief policy to include the Council’s leisure centres provided that they are operated under a Community Trust model. DCL will be required to operate in this way and apply for NNDR relief under the new contract arrangements. It is estimated that a saving in management fees of up to Ł200,000 pa may be achieved in a full year. (Exempt) Annexe 5(a) shows that the proposed capital improvement works at Farnham, Cranleigh and Godalming will have an overall net annual impact on the general fund revenue budget of some Ł157,000, after borrowing costs. Whilst it may be possible to offset some savings negotiated in the base management fee, the revenue cost that Members will need to take account of when considering the extent of any capital works and consequential borrowing requirement is Ł157,000pa.

177.16 The precise timing of any of the capital works cannot be determined until the legal work is completed and DCL has appointed its preferred contractors. Waverley and DCL are both keen to complete the works early in the contract and it is hoped that all works can be delivered within the first 2 years of the contract. The timing of the closure costs, revenue savings and any borrowing costs will be determined by the construction timetable. As the procurement process is likely to take a number of months following the start of the management contract in July 2008, it is unlikely that there will be any additional revenue cost in 2008/2009. However, in agreeing to any capital works, the Council would be committing to a major revenue cost in future years. There will be closure/business disruption costs that are budgeted for in the capital estimates.

177.17 Officers would also aim to identify on an ongoing basis alternative sources of funding the capital costs of the improvement works including from the leisure element of the planning supplement and S106 agreements. This would reduce the level of borrowing required but would not avoid Waverley needing to raise significant debt to pay for the works.

177.18 There are potential financial and procurement advantages of committing to any additional capital works at the outset of the contract rather than negotiating part way through the contract. The costs of delivering capital improvement schemes are likely to increase over time and should the Council wish to carry out any improvement schemes in the case of Farnham and Godalming it would be preferable and less costly to undertake these works at the same time as the refurbishment works thus reducing disruption to customers and business.

177.19 Any major procurement, particularly one which involves a large construction project, has risks associated with it and officers need to present these to members when key decisions are being considered. Officers have identified and analysed these risks throughout the project and the key risks associated with the financial and contractual issues covered in this report are set out in (Exempt) Annexe 5 (d).

177.20 In addition to the major capital works, the Council will need to continue to operate a programme of repairs, maintenance and replacement at the five centres over the 15-year contract period. The report to Council in July 2007 alerted Members to the fact that the current annual capital budget of Ł105,000 is insufficient to meet Waverley’s landlord obligations for the leisure centres in the medium to long term. In July, the Council agreed not to set up a specific fund to finance these works in favour of meeting each years’ obligations as they arise. (Exempt) Annexe 5 (c) shows the Council’s estimated repairs, replacement and maintenance requirements over the 15-year contract period. The table shows that the average provision required over the 15-year period is Ł200,000pa, including estimated capitalised staff costs. The Annexe also shows that the peaks of expenditure fall in the latter years of the contract.

177.21 Local authorities have been able to undertake prudential borrowing since 1 April 2004. To date Waverley has not undertaken any borrowing, although it has agreed in principle to undertake prudential borrowing where there is a sufficient financial return to justify the initial investment.

177.22 Whilst achieving self-financing has been the objective in funding the leisure centre improvements, the fact that this is not possible does not preclude the Council from undertaking prudential borrowing. Prudential borrowing is allowed for schemes where it is:

· Affordable
· Prudent
· Sustainable, and
· Achievable

177.23In (Exempt) Annexe 5(a), the net additional costs (capital financing charges less management fee savings) result in a significant additional revenue cost of some Ł157,000 pa. In terms of scale, this represents an additional 2% increase on council tax. However, given the presence of capping, other pressures on the revenue budget and the Council’s desire to reduce the current use of balances, this additional cost cannot be added to Council spending without funding alternative sources of savings in future years. If Members agree to the capital improvement spending and acknowledge this extra pressure in the Financial Strategy, accepting that alternative savings will need to be identified, prudential borrowing can be appropriately undertaken.

177.24 Whilst borrowing of Ł5m is indicated in the report as the likely amount needed to find the capital improvement, officers will look to reduce this by using S106 and planning development supplements as appropriate. This, together with the negotiated reduction in the management fee already achieved (Exempt) Annexe 5(a)), should also reduce the impact on the General Fund, thereby reducing the amount of future savings to be identified.

177.25 There are two key elements to the proposed contract with DCL:

· the management of the facilities; and
· the refurbishment and capital improvement building works.

177.26 Members will be aware from previous reports to the Executive and SIG that the main principles of the management contract have been negotiated between the Council and DCL. These principles have now been agreed and the contract for the management of the facilities has been drafted and forwarded to DCL for approval. The capital works contract is the more specialist and resource-intensive element of the contract and the Council is currently procuring specialist legal assistance to manage it. The legal input will have been procured by the start of 2008 and the drafting of this contract element will begin promptly after that.

177.27 The Council has agreed that the major capital works will be procured and delivered through DCL as management contractor and it is essential that the appropriate safeguards are in place for Waverley and that the risk mitigation measures are balanced against the need to secure good value for money. With this in mind, officers have already prepared draft principles for procuring the capital works under the contract with DCL and these will be incorporated into the contract terms and agreed with DC Leisure, assisted by Waverley’s specialist construction legal advisors.

177.28 The contract will need robust terms around closure periods and will need to include arrangements for dealing with the financial consequences of any closure period or business disruption arising from any capital or maintenance work during the contract. Members should be aware that DCL’s business plan allows for the refurbishment works to be started and completed as soon as practically and financially possible after the contract start and that both the Council and DCL want any additional capital improvement works to take place at the same time as the refurbishment – thus ensuring only one closure period.

177.29 DC Leisure will be responsible for the procurement process and for letting and managing the works. The contract would set out the terms and conditions regarding, amongst other issues, the procurement route to be followed by DC Leisure. To award the contract for the letting and management of the capital works to DC Leisure is beyond the original approval to waive Contract Procedure Rules that was given when the decision to enter into single tender negotiations was taken.

177.30 It is central to the viability and success of the DC Leisure contract that the responsibility for the capital works is passed to that same company. Therefore an additional waiver of Contract Procedure Rules (CPRs), under CPR W101, is sought to allow this additional contract to be awarded without competition to DC Leisure.

177.31 The capital expenditure involved represents the single largest construction related project undertaken by Waverley for many years. It is absolutely vital that the Council takes steps to ensure value for money in the procurement of the works. If Waverley were letting the contract direct with the construction contractor, Contract Procedure Rules would be applied to govern and direct officers’ actions. In this instance, Contract Procedure Rules will not be directly applicable because the main contract has already been let to DC Leisure under the new waiver.

177.32 The contract terms and conditions will specify the requirements of Waverley. This will be to ensure that the spirit of Contract Procedure Rules is followed:

· At least three tenders to be sought through sealed bids
· Application of the “best value solution” option as prescribed in CPRs
· Involvement of Waverley’s officers or agents in the procurement process including the assessment of tenders.

177.33 The ultimate decision as to which construction contractor(s) are to be awarded the work will rest with DC Leisure. It is important that they are able to select a firm in which they have confidence and are able to work with successfully. Waverley will be appointing an agent to act on its behalf in monitoring the process, from inception through to completion of the construction works. Expressions of interest are currently being sought for this contract.
177.34 It is recommended that Contract Procedure Rules are waived in accordance with CPR W101 to allow a contract to be awarded to DC Leisure without seeking alternative tenders for the management and undertaking of the construction works to refurbish and improvement of the Council’s sport and leisure centres.

177.35 The Leisure SIG considered the report in detail at its meeting on 14th January 2008 and gave unanimous support for the proposals. The Environment and Leisure Overview and Scrutiny Committee, at its meeting on 15th January 2008:-

1. noted the progress made to date on the implementation of the leisure procurement strategy;

2. considered the additional capital improvement schemes detailed in the report and agreed to make the following observations to the Executive:-

a. Temporary alternative arrangements should be made during leisure centre closures, and every effort be made to minimise the duration of the closures;

b. Even with improvements proposed, the Godalming Centre will not reach the range of facilities of the other centres;

c. To express concern about the implications of moving away from being debt-free but to recognise the benefits of funding enhancement works to be carried out at the same time as refurbishment works and to explore other sources of funding e.g. funding for S106 agreements;

d. Recognise the benefit to the local community of improving the Godalming Centre and the benefits to the health of the whole community; and

e. With regard to Cranleigh, to

i. congratulate officers on negotiating the transfer to DC Leisure

ii. ask if the crčche will continue

iii. ask if the reduced rate for car parking can be reinstated.

177.36 At the Executive, officers undertook to clarify some of the questions raised, particularly with regard to Cranleigh. It noted the progress made to date on the implementation of the leisure procurement strategy and, having considered the improvement schemes identified in the report in the light of Waverley’s strategic leisure and financial objectives

RECOMMENDS that

70. the entire programme of additional capital works set out in Annexes 3 and 4 be committed to in the Capital Programme, noting in particular:

a. the additional revenue impact over the next 15 years

b. the requirement to undertake prudential borrowing of up to Ł5 million

c. the ongoing demand for future capital repairs and renewals that will be pressures on future capital programmes; and

d. the comments of the Environment and Leisure Overview and Scrutiny Committee;

71. officers be asked to report back to the Executive at appropriate stages in the capital procurement process, particularly to seek approval to proceed when the precise details of the schemes including capital costs are known;

72. any commitment to additional capital improvement works be subject to the satisfactory agreement of detailed contract terms, including appropriate safeguards, by the Deputy Chief Executive, Head of Legal and Estates Services and the Strategic Director (Leisure and Regulation); and

73. Contract Procedure Rules (CPRs) be waived under CPR W101 to

a. award the contract for the management of the capital works at Waverley’s Leisure Centres to DC Leisure without seeking competitive tenders; and

b. to authorise officers to identify relevant parts of the tendering process for building works that may, at their discretion, be undertaken by DC Leisure and at their premises, whilst ensuring compliance in all other respects with CPRs.

Background Papers (DoR/DoLR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

178. PRUDENTIAL CODE FOR CAPITAL FINANCE (Agenda Item 12; Appendix G)

178.1 To fulfil the requirements of the Code, the Council must produce and maintain the following set of specified ‘Prudential Indicators’. In setting and revising these indicators, and more importantly in any decision on borrowing, the Council must take into account affordability, e.g. implications for Council Tax and housing rents and; prudence and sustainability, e.g. implications for external borrowing. An explanation of the indicators is included at Annexe 6. Additional indicators are included in the Treasury Management Policy item (Minute No. 179 refers).

178.2 The prudential indicators are there to support decision-making and are not designed to be comparative performance indicators. The indicators which require future forecasts are rolling scenarios, not fixed for the 3 year period. They can be reviewed at any time by the Section 151 Officer (S151), subject to Council approval. The S151 Officer must monitor performance against each indicator during the year.

178.3 Also on this agenda is an item on options for delivering capital improvement schemes at the Council’s leisure facilities. Potentially, this will require Waverley to borrow up to Ł5million. Where appropriate, the impact of this decision on the prudential indicators, assuming borrowing of Ł5million, is shown in this report. The Housing SIG is also considering options for providing affordable housing in the Borough and in future years may result in a request to consider borrowing for capital investment. However, a comprehensive business model will be required before this can be considered. Other financial options to be considered first would include sales of land and S106 contributions. The prudential indicators and the Medium Term Financial Strategy will be reviewed as this work develops.

Indicator 1 - Estimates of capital expenditure

	2006-07 Ł000 Actual	2007-08 Ł000 Estimate	2008-09 Ł000 Estimate	2009-10 Ł000 Estimate	2010-11 Ł000 Estimate
General Fund	3,167	3,809	4,598	4,806	1,595
HRA	5,360	7,317	8,859	5,769	4,619
Total	8,527	11,126	13,457	10,575	6,214
Total with additional Ł5m leisure capital spend	-	11,126	15,957	13,075	6,214

Indicator 2 - Estimates of the ratio of financing costs to net revenue stream

	2006-07 Ł000 Actual	2007-08 Ł000 Estimate	2008-09 Ł000 Estimate	2009-10 Ł000 Estimate	2010-11 Ł000 Estimate
General Fund	-6.2%	-6.0%	-5.1%	-3.6%	-2.9%
GF total with additional Ł5m leisure capital spend			-5.1%	-0.3%	-0.3%
HRA	0.5%	0.4%	0.3%	0.3%	0.2%

178.4 The estimates of financing costs include current commitments and the proposals in the budget report. At 1 April 2007, investments totalling Ł32million were held, some of which represent balances and reserves, with the balance being held for cash flow purposes. The projected reduction in the General Fund ratio reflects estimates of the overall draw on capital receipts to fund the capital programme. However, the ratios show a prudent position with Waverley’s net investment position contributing towards the General Fund revenue budget. The HRA figures are determined by Regulations.

Indicator 3 -Capital financing requirement

	2006-07 Ł000 Actual	2007-08 Ł000 Estimate	2008-09 Ł000 Estimate	2009-10 Ł000 Estimate	2010-11 Ł000 Estimate
General Fund	-4,423	-4,423	-4,423	-3,973	-3,973
HRA	3,444	3,374	3,374	3,374	3,374
Total	-979	-1,049	-1,049	-599	-599
Total with additional Ł5m leisure capital spend	-979	-1,049	-1,049	-1,473	1,027

178.5 This indicator is a measure of the underlying need to borrow for capital purpose, it is not the level of actual borrowing held or required. Waverley is currently debt-free and intends to finance most of its routine capital programme from existing resources in the medium term, so this indicator is showing a prudent position. Other than the potential to borrow to deliver the leisure strategy, it is the intention to review the programme as part of each year’s general Fund budget setting process to match planned expenditure to the level of resources available.

Indicator 4 - Authorised limit for external debt

	2007-08 Estimate	2008-09 Estimate	2009-10 Estimate	2010-11 Estimate
General Fund	Ł5million	Ł5million	Ł5million	Ł5million
HRA	nil	nil	nil	nil
Total	Ł5million	Ł5million	Ł5million	Ł5million
Total with additional Ł5m leisure capital spend	Ł5million	Ł10million	Ł10million	Ł5million

178.6 Whilst cash flows are currently managed using the investment portfolio, it is possible that short-term borrowing may be necessary. As the indicators in this report show, other than potential borrowing for leisure improvements, a significant amount of borrowing for capital purposes is not currently expected to be necessary in the short term. However, it is sensible to have in place an authorised borrowing limit at the current prudent level to enable treasury activity if necessary. Actual external debt at the 31st March 2007 was zero. In approving this limit, the Council is approving the limit as required under section 3(1) of the Local Government Act 2003.

Indicator 5 - Operational boundary for external debt

	2007-08 Estimate	2008-09 Estimate	2009-10 Estimate	2010-11 Estimate
General Fund	Ł5million	Ł5million	Ł5million	Ł5million
HRA	nil	nil	nil	nil
Total	Ł5million	Ł5million	Ł5million	Ł5million
Total with additional Ł5m leisure capital spend	Ł5million	Ł10million	Ł10million	Ł5million

178.7 As the authorised limit for external debt is currently intended to cover mainly cash flow movements and only a limited amount of capital expenditure, it is not necessary to set the operational boundary at a lower level. If a greater degree of borrowing for capital purposes is required in the future, both indicators will be reviewed.

Indicator 6 - Incremental impact of current capital investment decisions

	2008-09 Estimate	2009-10 Estimate	2010-11 Estimate
For Band D Council Tax	Nil	Nil	Nil
For average weekly housing rents	Nil	Nil	Nil
Total Band D Council Tax with additional Ł5m leisure capital spend	Nil	Ł1.45	Ł2.91

178.8 If the Council decides to borrow Ł5million to finance leisure improvements, it is assumed at this stage that Ł2.5m will be borrowed in 2009/10 with a further Ł2.5million early in 2010/11. The full repayment cost of this borrowing is partly offset by savings in the management fees that the Council pays to run its leisure facilities. It is the net cost that is used to calculate the above indicators. The precise timing of the capital expenditure and revenue savings will be known as the contract develops during 2008. It is important for Members to note that this calculation is purely an indicator based on a mathematical calculation of the estimated impact of the borrowing decision on Waverley’s council taxpayer. In reality, it would not be the intention to increase council tax to pay for the net costs of the leisure capital spend and this cost would be met from savings in other budgets.

178.9 The draft Capital Programme also includes the development of the car park at Weyhill, Haslemere. If this scheme goes ahead, it is intended that it would be financed from borrowing and the ongoing revenue costs will be offset by additional income, therefore, the impact on the council tax of this decision will be nil or negative.

178.10 The capital funding position may change each year during the annual budget-setting process and factors such as government funding, changes to regulations, availability of capital receipts and political priorities will have an impact. The Financial Strategy and the prudential indicators will be reviewed accordingly. As a guide, borrowing Ł1million over 15 years will currently cost approximately Ł100,000 per year to repay the principal and interest. This is an incremental indicator so it will aggregate year-on-year the impact on rents or council tax of further decisions to borrow for capital.

178.11 In terms of the capital programme, there is a risk of increased capital costs or capital receipts falling short of estimate. The Financial Regulations and regular budget monitoring should reduce the risk of unknown variations and enable early action to be taken if necessary.

178.12 The forward-looking prudential indicators shown above are best estimates taking into account the Financial Strategy, current budget projections and the current level of reserves, balances and capital receipts. The budget considerations for 2008-09 currently identify a potential need for limited external borrowing for capital purposes with all of the revenue costs being offset by additional income.

178.13 There are other major decisions for the Council in the next few years that may have a significant impact on capital financing decisions, such as the East Street development and further appraisal of options for affordable housing in the borough. As these details become available, the indicators will be reviewed and, if necessary, reconsidered by Members.

178.14 The Executive

RECOMMENDS that

74. the Prudential Indicators 1 to 6 be approved.

Background Papers (DoR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

179. TREASURY MANAGEMENT POLICY 2008/2009 (Agenda Item 14; Appendix I)

179.1 Waverley has adopted the Chartered Institute of Public Finance and Accounting‘s (CIPFA’s) Code of Practice on Treasury Management in the Public Services. Included within the Policy is that an annual review should be undertaken and reported to the Executive. Waverley had Ł31 million invested at 1st April 2007.

179.2 The Prudential Code for Capital Finance in Local Authorities requires that the annual investment strategy includes a set of specific prudential indicators.

179.3 The Policy continues to be robust and comply with the latest good practice guidance. The Treasury Management Policy continues to give priority to security and liquidity of investment, rather than yield, although officers will always seek the highest yield provided that the necessary safeguards are in place as required under the Annual Investment Strategy.

179.4 Current Council policy allows for the employment of treasury advisors on a self-financing basis. However, Waverley continues to have a relatively consistent and predictable cash flow year-on-year and officers regularly monitor this and other factors including the credit ratings of investment organisations and the return on investments. Officers are satisfied that managing Waverley’s short-term investments in-house is still appropriate but will keep the option of treasury advice open and review the position periodically.

179.5 The Regulations require the Council to determine a number of limits and guidelines for its investment activity including ‘specified’ and ‘non-specified’ investments. Specified investments are held in sterling with a maturity of no more than a year and must be with the UK Government, UK local authorities or “high” credit rated institutions. Non-specified investments are any investments that do not meet the above criteria.

179.6 To meet the requirements of the Regulations, it is proposed that the following policy and limits, which have not been changed from 2007-08, apply to all of Waverley’s investment activity in 2008-09:

· UK Local Authorities and the UK Government
· “High” credit rated means AAA rating for sterling money market funds or A and above rating for any banks and building societies
· The only non-specified investments that Waverley will invest in are non-rated top 30 building societies.
· Ł3million is the maximum investment in any single non-specified organisation at any one time and, Ł5million for any single specified organisation at any one time.
· Credit ratings should be monitored continuously using either Moody’s, Standard and Poor’s or Fitch ratings
· All new investment institutions should be ratings checked at the outset and a list of potential investors prepared and approved by the S151 Officer before 1st April each year and monitored throughout the year
· The maximum total investment at any one time in non-specified investments is Ł22 million.
· The maximum total investment at any one time that can prudently be committed for more than one year is Ł10 million.
· The minimum total investment at any one time that can be held in short term (less than 365 days) investments is Ł10 million.

179.7 These policies and limits update those stated in the approved Treasury Management Policy. They are intended primarily to maximise the security and liquidity of Waverley’s investments but they must also enable flexibility in investment options and allow for the practicalities of day-to-day investment dealing. Whilst maximising the interest earned on investments is of secondary importance behind security, it is nevertheless a high priority and the limits set must enable both security and high yield to be achieved.

179.8 This section of the report is referred to in Minute No. 178. The following prudential indicators are required under the Prudential Code for Capital Finance in Local Authorities.

· The upper limit on fixed rate investments for 2008/09, 2009/10 and 2010/11 to be 100% of net outstanding principal sums
· The upper limit on variable rate investments for 2008/09, 2009/10 and 2010/11 to be 40% of net outstanding principal sums
· The maturity structure of borrowing (as % of overall projected fixed rate borrowing) in 2008-09 is:
- under 12months - upper limit 100%, lower limit, 0%
- between 1 and 25 years – upper limit 100%, lower limit 0%
· The upper limit of principal sums invested for periods of more than 365 days is Ł10 million.

179.9 The Executive noted the review of the current policy and

RECOMMENDS that

75. the annual Investment Strategy be approved, as set out in paragraph 179.6; and

76. the prudential indicators in paragraph 179.8 be approved.

Background Papers (DoR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

180. PROPOSALS FOR THE FUTURE DELIVERY OF WAVERLEY’S SHELTERED HOUSING SERVICE (Agenda Item 15; Appendix J)

[Note pursuant to Section 100B(5) of the Local Government Act 1972: this item contains exempt information by virtue of which the public is likely to be excluded. The information is as specified in paragraphs 1, 2 and 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

1. Information relating to any individual

2. Information which is likely to reveal the identity of an individual

3. Information relating to the financial or business affairs of any particular person (including the authority holding that information).]

180.1 In the 1960’s, Councils developed the first Sheltered Housing Schemes and in Waverley, Blunden Court, Bramley, was one of the first such schemes in the Country. Waverley had 11 fully Sheltered Housing Schemes across the Borough providing shelter and support for older residents to maintain their independence.

180.2 The schemes had varying degrees of shared facilities such as bathrooms and w.c’s and over the years had been improved to the then current standards. All schemes have alarm systems linked to the Guildford Care Centre who provide a 24/7 response for our sheltered schemes, as well as other customers.

180.3 Improvements in health and social care have meant that increasingly older people have been supported to remain in their homes and two of Waverley’s Sheltered Schemes have been de-commissioned due to these demographic changes – Dorlcote, Witley and Rowland House, Cranleigh. The current schemes are:-

Blunden Court, Bramley

Bowring House, Farncombe

Dower House, Milford

Falkner Court, Farnham

Moat Lodge, Cranleigh

Riverside Court, Farnham

Rolston House, Haslemere

Shepherds Court, Farnham

Wey Court, Farncombe

180.4 As a result of a court judgement in the early 2000’s, the Government changed the funding of support which was no longer eligible to be considered as part of the rent and therefore housing benefit would only cover the housing management and maintenance costs ‘ the bricks and mortar’. As detailed below this new regime, which also includes other types of supported housing, was introduced in 2003.

180.5 Transitional funding arrangements were introduced for local authorities to protect existing tenants affected by this new regime for their lifetime. New tenants being subject to the new regime of separate rent and supporting people charges. Tenants of sheltered housing now receive three strands of service, Supporting People, Tenancy and Estate Management charged as Supported People charge, rent and service charges.

180.6. The Sheltered Housing and Community Supporting People services provided by Waverley, as a landlord, are funded by the government Supporting People funding regime. In 2003, the Government introduced new arrangements whereby support services – such as sheltered housing, and supported accommodation for people with special needs for older/vulnerable/disabled people were to be funded from a central funding pool operated by the local unitary or social services authority – in Waverley’s case, Surrey County Council. One of the obligations placed on all Supporting People authorities was a requirement to undertake reviews of all services in receipt of Supporting People grant funding.

180.7 In 2005, the Review by Surrey Supporting people team of the sheltered housing service provided by the Council as a landlord concluded that these were of a high quality, with well-trained and motivated staff, well-maintained accommodation and appreciative clients. However, the Review questioned the strategic relevance and value for money of the services. The Council now provides 280 units of accommodation in 9 schemes throughout the Borough.

180.8 Waverley’s sheltered housing schemes are relatively costly to provide, in comparison with other sheltered housing providers, and the Supporting People Team resolved to reduce its grant to Waverley by 25% over three years. Thus, the grant to Waverley was reduced from Ł770,000 in 2005/06 to Ł693,000 in 2006/07; to Ł616,000 in 2007/08 and will be further reduced to Ł577,500 in 2008/09.

180.9 In 2007, Surrey SP team carried out a Strategic Review of Supporting People services for Older People in Surrey. This review has concluded that Waverley has Supporting People funding on services for older people disproportionate to the population of older people.

180.10Surrey Supporting People Team propose to achieve more equity of provision across Surrey by capping costs. For the type of provision proposed in the sheltered schemes they are proposing a cap of Ł18 - Ł 24 a week. The present charge for the sheltered schemes is Ł29 a week. Thus the Council has to anticipate further reductions in funding from Surrey Supporting People team for the sheltered housing service.

180.11 The Manager and Deputy Manager of each sheltered scheme are required to live onsite and deliver the support service in office hours on the schemes and the out of hours emergency call out service from their homes. The managers work 37 hours per week within a 4 x 24 hour shifts and the deputies work 27.75 hours per week within a 3 X 24 hour shifts. Assistant wardens work part time during the week.

180.12Amongst other things, the Working Time Regulations (made in response to the European Working Time Directive) in 1998 limit the extent to which people should be expected to work. Whilst individuals can voluntarily agree to work longer hours, the standard weekly hours limit will be 48 hours. The Council has a collective agreement with the Sheltered Housing staff that waives certain rights under the regulations.

180.13Recent judgements on the Working Time Regulations have raised issues around what is ‘working time’ in the way that the staff provide the 24/7 onsite service. This taken together with the reductions in funding are the drivers for this change to service.

180.14 In October 2006, in consultation with the tenants, 3 schemes were switched over to the 24/7 Care Centre from 6.00pm to 8.00am, although the onsite staff stayed on call. From early 2006, Riverside and Falkner Court in Farnham have been switched over from 8pm until 8am and the calls handled by Guildford because of the enhanced care service where carers rather than sheltered housing staff needed to be called. In consultation with the tenants these hours changed to 6.00pm to 8.00am.

180.15 A survey of the tenants involved in the initial pilots identified that those tenants who had used the out of hours service had become confident about the response they received.

180.16 At the beginning of June 2007, after consultation with the tenants, the other 4 schemes were brought into the pilot. All the out-of-hours calls have been monitored and analysed over this time.

180.17 At Riverside, both the Manager and Deputy retired earlier in the year. In consultation with residents the staff worked 9.00am to 5.00pm Monday to Friday and 9.00am to 12.30pm Saturday and Sunday and were not required to stay onsite. The scheme was switched over out of these hours to the Guildford Care Centre.

180.18 Staff on site and on call responded to out of hours calls because they were resident and our tenants expect them to do so because they always have. The emergency calls have been dealt with well by Guildford Care Centre – more quickly in fact because the emergency services are called immediately instead of staff attending and then acting.

180.19 A significant proportion of the calls are maintenance and caretaking issues which can be dealt with by our repairs and maintenance contractors. We have specialist maintenance contractors for heating, emergency alarm and fire detector systems and a general out-of-hours service. Arrangements have been put in place to manage out of hours maintenance issues at all Schemes.

180.20 Staff can and have already changed working practices to manage a service that does not really rely on staff on site to respond on an out of hours basis.

For example:

· Access arrangements with a key and document safe at Riverside.
· Key safes for individual flats or external bungalow linked to schemes.
· Building security walk rounds between 5 & 6pm instead of 9 & 10.00pm

180.21 The onsite staff have been dealing with and managing a higher level of repairs and maintenance issues than was previously reported. This has identified that the proportions charged to supporting people versus caretaking and therefore service charges will need to be adjusted.

180.22 Tenants who have called out of hours have had an excellent service from the Guildford Care Centre. The pilots have helped to reassure residents and staff that the Guildford Care centre can dealt effectively with out of hours calls.

180.23 Waverley has prided itself in delivering a service in its sheltered schemes which enables frail older people to remain in these homes for the rest of their lives. This aim has been maintained through the proposed reorganisation of the service. The three key duties of the role of staff in the sheltered schemes are – Supporting People, tenancy management and estate (buildings grounds communal areas, heating lighting lifts and emergency systems) services and the carrying out of these duties will be during office hours Monday to Friday.

180.24 It is proposed that each scheme has a Manager working 37 hours a week over a 5-day week instead of 4 x 24hour shifts. Because of the need to maintain a high level of service with this frail elderly resident group a second role is proposed of an Assistant Manager whose job description falls between that of the present deputy manager and assistant warden roles. The Assistant Manager will work Monday to Friday 9.00am to 1.00pm and work additional hours to cover the Managers annual leave.

180.25 The purpose of these staffing levels is to provide a high level of support to residents which also ensure good quality out of hours arrangements are in place for each individual resident. Cover will be provided during staff sickness. It will also ensure the higher level of supporting people funding of Ł24 per week is received from Surrey Supporting People Team. Service tenancies will be available on all sheltered schemes and we anticipate in the short term that the majority of schemes will retain staff living onsite.

180.26 Out-of-hours and at weekends the schemes will be switched over to Guildford Care Centre. The Centre will manage emergencies through the emergency services and maintenance calls through an enhanced service provided by Contractors for sheltered schemes.

180.27 To ensure that the out of hours arrangements are robust, in January all schemes will be switched over to the Guildford Care Centre from 5.00pm to 9.00am Monday to Friday and 12.30pm to 9.00am Saturday and Sunday through to Monday. The staff will remain onsite under their present conditions of service and will only be called if the 24/7 Care Centre is unable to deal with the problem. This will help us to identify any gaps in the out of hours arrangements before the full implementation of these proposals.

180.28 In Riverside the present pilot arrangements of staffing the scheme Monday to Friday, 9.00am to 5.00pm Monday to Friday and 9.00am to 12.30pm Saturday and Sunday will continue. These arrangements have been working well. Officers will continue to ensure that residents are confident with the proposals and monitor each scheme to make sure all arrangements in place before the full implementation of the new service in April 2008 in all schemes.

180.29 The review has been carried out in consultation with staff and staffside. The new staffing arrangements are shown at (Exempt) Annexe 7. Since the review started permanent staff have not been recruited to vacant posts (relief staff have covered the service) which means that whilst the actual posts will reduce overall from 30 to 18 staff, this will affect 23 current staff members. Staff have been offered the option of requesting voluntary redundancy as shown at (Exempt) Annexe 7.

180.30 The new staffing structure for sheltered accommodation is expected to deliver savings of the order of Ł311,000 in 2008-09. The support account will benefit from a reduction of Ł163,000 helping the sheltered accommodation service to break even. The balance of the saving achieved will reduce the charge to the housing management account. The time of staff working at sheltered accommodation is divided between housing management duties, providing support to tenants and providing services that are the subject of a service charge. The allocation of time across these different areas is kept under review and following these latest significant changes, service charges will be reviewed to ensure that they are at an appropriate level.

180.31 With the expected capping of the SP grant payable for the sheltered service in 2008-09 and referred to above, the support account in respect of the sheltered service is estimated as follows:

	Sheltered Accommodation SP Service
	2008-09
	Ł
Employee Costs	308,550
Careline Charge	65,000
Telephones	11,490
Estimated Total Cost	385,040
Supporting People Grant	290,800
Transitional Support	70,000
Tenant Contributions	30,000
Estimated Balance	5,760

180.32 The recharge from central communications for the careline service is currently under review and it may be possible to effect further savings in the charge to the support accounts as a whole.

180.33 In conclusion, the Council has provided an excellent high quality service for frail older people. However as a result of the introduction of the Supporting People regime in 2003 funding from Supporting People has dramatically reduced and is likely to reduce further over time. The Council’s HRA as Landlord and Provider also is required to make a payment of some 44% of its rent to the Government as negative HRA subsidy of Ł9.5m for 2007/8 and projected at Ł10.5m for 2008/9.

180.34 Accordingly, the Council has to respond to stark financial realities. Residents at all Sheltered Housing Schemes have been working with our Resident Staff and Officers to ensure that we can maintain the high levels of service at lower costs. The proposed new service will be introduced in a phased manner with staff continuing to monitor all out of hours calls, responses and checking that the arrangements put in place will provide the appropriate responses.

180.35 The Community Overview and Scrutiny Committee considered the details of this report at its meeting on 14th January and recognised that changes to the Sheltered Housing service were required because of reduced funding from the Supporting People Regime and judgements relating to Working Time Regulations. Some councillors who had recently visited Sheltered Housing Schemes in different parts of the Borough reported that any concerns they previously had were overcome by talking to the residents who were confident and reassured about the effectiveness of the new arrangements.

180.36 The Committee fully endorsed the recommendations set out below.

180.37 The Executive accordingly

RECOMMENDS that

77. the proposals for the future delivery of Waverley’s Sheltered Housing Service and new staffing structure be approved; and

78. approval be given to:

i. the redundancy of the posts as detailed in (Exempt) Annexe 7 to these minutes; and

ii. the application of the Local Government Pension Scheme - Early

Retirement, Compensation and Severance Policy approved by the Executive in March 2007 with costs as detailed in (Exempt) Annexe 7 to these minutes.

Background Papers (DoHC)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

181. AMENDMENTS TO SCHEME OF DELEGATION, CONTRACT PROCEDURE RULES AND FINANCIAL REGULATIONS (Agenda Item 19; Appendix N)

181.1 This item proposes changes to the Council’s Scheme of Delegation, Contract Procedure Rules and Financial Regulations following a review which incorporates the implications of the Senior Management Restructuring agreed by the Council in December 2007.

181.2 The changes to the three decision-making frameworks of the Council are consequential changes to enable the newly-restructured departments to function effectively, and the opportunity has been taken to review the scheme of delegation and put forward some minor proposals for additional delegations to streamline decision-making. There is a proposal to make a minor title change to one post, from Head of Legal and Property Services to Head of Legal and Estates Services

181.3 The proposal is that the changes, if agreed by the Council, should come into effect from Wednesday, 20th February 2008.

181.4 The proposed Scheme of Delegation is attached at Annexe 8.

181.5 The basic principle followed has been to delegate decision-making to the lowest level necessary for operational effectiveness, but to retain senior oversight of decision-making. Generally this has meant that most decisions will be made by the new Service Head posts, rather than under the previous structure where most were allocated to the previous Director posts. The document was annotated when considered by the Executive to show the changes, and copies of the detail are available on request.

181.6 For Contract Procedure Rules, similar principles have been followed in re-allocating decision-making levels or authorities to posts within the new structure, and the proposed draft is attached at Annexe 9.

181.7 The proposed draft for Financial Regulations is attached at Annexe 10 and, again, this has been changed largely to reflect changes in post designations or departmental structural changes as the core detail is considered to still be robust and appropriate.

181.8 The Executive noted that a further review of the Scheme of Delegation would be undertaken in September 2008 and

RECOMMENDS that

79. the change of job title to Head of Legal and Estates Services and the new Scheme of Delegation attached at Annexe 8 be approved;

80. the new Contract Procedure Rules attached at Annexe 9 be approved; and

81. the new Financial Regulations attached at Annexe 10 be adopted.

Background Papers (CSP)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

182. EXCLUSION OF PRESS AND PUBLIC (Agenda Item 25)

At 9.23 p.m. it was

RESOLVED that, pursuant to Procedure Rule 20 and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following items on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present, there would be disclosure to them of exempt information (as defined by Section 100I of the Act) of the description specified in the following paragraphs of Part I of Schedule 12A to the Local Government Act 1972, namely:-

Minute 183

Information which is likely to reveal the identity of an individual (paragraph 2);

Information relating to the financial or business affairs of any particular person (including the authority holding that information) (paragraph 3);

Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime (paragraph 7).

Minute 184

Information relating to any individual (paragraph 1).

[Having moved into (Exempt) session, the Chairman re-ordered the agenda to take (Exempt) Appendices T and U before S to enable Cllr Steel to declare his interest in (Exempt) Appendix S and leave the meeting. This took place at 9.25 p.m.]

183. DIRECT PERFORMANCE OF REQUIREMENTS OF ENFORCEMENT NOTICE (Agenda Item 26; (Exempt) Appendix S)

The Executive has considered a report on this matter. The report is attached as (Exempt) Annexe 11.

The Executive accordingly

RECOMMENDS that

82. the recommendation contained in (Exempt) Annexe 11 to these minutes be approved.

184. STAFFING MATTER (Agenda Item 27; (Exempt) Appendix U)

The Executive has considered a report on this matter. The report is attached as (Exempt) Annexe 12.

The Executive accordingly

RECOMMENDS that

83. the recommendations contained in (Exempt) Annexe 12 to these minutes be approved.

PARTS II AND III - MATTERS OF REPORT

Background Papers

The background papers relating to the following items in Parts II and III are as specified in the agenda for the meeting of the Executive.

Part II – Matters Reported in Detail for the Information of the Council

There were no matters falling within this category.

Part III – Brief Summaries of Other Matters Dealt With

185. EXECUTIVE FOUR-MONTH ROLLING PROGRAMME (Agenda Item 6; Appendix A)

The Portfolio Holder for Partnerships and Community informed the Executive that Post Offices in Tilford and on Station Hill in Farnham had been identified for closure in the recent consultation document. He reminded members that a public meeting was being held on Friday 8th February with the MP for the area.

The Leader updated the Executive that the planning application for East Street had now been received and he set out the target dates leading up to the decision-making meeting that would determine the application.

RESOLVED that the four-month rolling programme of key decisions be adopted, subject to

i. the addition of Surrey Strategic Partnership - Community Strategy and Local Area Agreements to the Corporate Strategy portfolio with the date of March 2008;

ii. the addition of the Development Control Service Restructuring to the Human Resources portfolio with the date of March 2008; and

iii. to the deletion of Empty Homes Strategy from the Housing portfolio.

186. WAVERLEY VOLUNTARY GRANTS PARTNERSHIP (Agenda Item 10; Appendix E)

RESOLVED that the principle of the Waverley Voluntary Grant Partnership be endorsed and the Waverley contribution of Ł54,000 be supported.

187. DEVELOPING WAVERLEY’S VALUE FOR MONEY STRATEGY (Agenda Item 13; Appendix H)

The Executive amended the final bullet point under paragraph 17 of the report to now read ‘actively pursue any opportunities to work in partnership with other local authorities’ to reaffirm the administration’s view of the way forward.

RESOLVED that

1. the progress achieved against the current efficiency target be noted;

2. the requirements of the CSR07 Efficiency Review be noted;

3. officers be requested to establish a value for money working group to work up a strategy for achieving value for money and efficiency gains and to report progress against the target to the Executive as appropriate; and

4. the Finance Portfolio Holder be appointed as Member ‘value for money champion’ to provide liaison with the Value For Money officer group.

188. PROPOSED PARTNERING CONTRACT FOR THE INSTALLATION OF SHOWERS FOR HOUSING TENANTS WITH DISABILITIES (Agenda Item 16; Appendix K)

RESOLVED that

1. Contract Procedure Rule A112 be waived to enable negotiations to be undertaken with DSL, without a formal competitive tendering process, to become the Partnering Contractor for adaptations and installation of flush and wet floor showers;

2. the Strategic Director (Housing and Community), in consultation with the Deputy Chief Executive, be given delegated authority to agree and conclude these negotiations; and

3. if successful, to award a new contract to Disabled Supplies Ltd with a 5 year term and an option to extend by agreement for a further period of 2 years.

189. CONCESSIONARY FARES (Agenda Item 17; Appendix L)

RESOLVED that

1. the action taken to implement the new national concessionary fares scheme be noted; and

2. it be emphasised that Waverley would be participating in the national scheme operating between 9.30 a.m. and 11p.m. on weekdays and all day at weekends, along with all other Surrey authorities, with the additional concession that a carer, where appropriate, may accompany a disabled person on their journey within the Surrey boundary (*).

(*) for clarification purposes, it may be that such permit holders will enjoy the additional concession outside Surrey if the Transport Concession Area in which they are travelling also has a similar local arrangement. This will be dependent on the bus driver either, in the case of there not being a smart reader on the bus, simply allowing the concession holder on for free or, if the ticket reader is smart enabled, the card registering it as eligible. However, there is no official entitlement for a Waverley 'plus one' card holder to gain the additional concession outside of Surrey.

190. CRANLEIGH AND HASLEMERE PROJECT CO-ORDINATORS (Agenda Item 18; Appendix M)

RESOLVED that

1. the Executive commend the Town Initiatives and their project Coordinators for the achievements in recent years; and

2. Waverley provide funding of Ł10,000 for each initiative Project Co-ordinator in 2008/2009, reducing to Ł7,500 in 2009/2010, with funding met from the balance of the Partnership Funding Scheme and existing budgets, including Section 106 contributions.

191. WIRELESS GODALMING (Agenda Item 20; Appendix O)

RESOLVED that the Wireless Godalming pilot be supported, as set out in the report and

1. Contract Procedure Rules be waived to enable Waverley to work with 802UK, a division of Nouveau Solutions Ltd, to provide the pilot wireless project in Godalming;

2. Officers be instructed to prepare detailed legal and technical arrangements with 802UK/Nouveau Solutions Ltd;

3. a transmitter be placed on Council property at The Burys; and

4. a review of the pilot be undertaken by Spring 2009, with a view to rolling out the scheme, to be funded by private sector and Town and Parish Council support.

192. LEASE OF CRICKET GROUND, SHAMLEY GREEN (Agenda Item 21; Appendix P)

[Note pursuant to Section 100B(5) of the Local Government Act 1972: this item contains exempt information by virtue of which the public is likely to be excluded. The information is as specified in paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).]

[Cllr M H W Band left the meeting during consideration of this item].

RESOLVED that Shamley Green Cricket Club be granted a ten-year lease of the land outlined on the plan, on the terms and conditions set out in the (Exempt) Annexe to the report, other terms and conditions to be negotiated by the Head of Legal and Estates Services.

[At the meeting, it was requested that details of the lease be released from exempt. It was agreed that officers would contact the Cricket Club to seek their approval before any action was taken].

193. REPORT FROM THE HOUSING SPECIAL INTEREST GROUP (Agenda Item 22; Appendix Q)

The Executive received the report from the Housing Special Interest Group which met on 10th January and

RESOLVED that the SIG be renamed the

‘New Subsidised Affordable Housing SIG’

194. DRAFT CALENDAR OF MEETINGS 2008/2009 AND 2009/2010 (Agenda Item 23; Appendix R)

RESOLVED that the Calendar of Meetings for 2008/2009 and 2009/2010 be agreed (attached as

Annexe 13

for information).

195. STAFFING MATTER (Agenda Item 27; (Exempt) Appendix T)

[Note pursuant to Section 100B(5) of the Local Government Act 1972: this item contains exempt information by virtue of which the public is likely to be excluded. The information is as specified in paragraph 1 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to any individual].

RESOLVED that the recommendation set out in (Exempt) Appendix T be approved.

The meeting commenced at 6.45 p.m. and concluded at 9.29 p.m.

Chairman

Comms/exec/2007-08/251