Agenda and minutes

To receive as a correct record the minutes of Cabinet held on Tuesday, 7^th October, 2008 (previously circulated). 

The Minutes of the meeting held on 7^th October 2008 were signed by the Chairman as a correct record.

To consider any such items authorised by the Leader and to consider where in the agenda the item(s) are to be considered. 

The Chairman advised that there were no items of urgent business.

To consider any such declarations. 

Councillor Barry declared a personal and prejudicial interest, as an allotment holder, with regard to the report concerning Allotments. (Minute 82 refers).

Councillors Blamire and Burns declared personal and prejudicial interests with regard to the report concerning Williamson Park, in view of their membership of the Williamson Park Board of Directors. (Minute 87 refers).

Councillor Bryning declared a personal and prejudicial interest with regard to the report concerning the Sport and Physical Activity Alliance Project, in view of his role as a Governor at Morecambe High School. (Minute 83 refers).

The Corporate Director (Finance and Performance) declared an interest with regard to the report concerning Williamson Park in view of his role as Secretary to the Williamson Park Board of Directors. (Minute 87 refers).

To consider any such requests received in accordance with the approved procedure. 

Members were advised that there had been no requests to speak at the meeting in accordance with the Cabinet’s agreed procedure.

(Cabinet Member with Special Responsibility Councillor Roger Mace)

Report of the Head of Financial Services (to follow).

(Cabinet Member with Special Responsibility Councillor Mace)

The Head of Financial Services submitted a report providing updated financial projections for future years based on information currently available, to allow Cabinet to review the appropriateness of existing targets for Council Tax increases and make recommendations on to Council as appropriate.

The options, options analysis, including risk assessment on the key aspects, were set out in the report as follows:

Council Tax Targets:

(a)          Option 1 -retain the existing Council Tax target increases for future years

Current forecasts indicate that this would require net savings of £1,822K and £2,479K to be identified for 2009/10 and 2010/11 respectively.

(b)          Recommend an alternative Council Tax target increase for future years.

The level of any net savings requirement (and the associated risks) would depend on the tax level proposed.

The main risks attached to either option follow on from the assumptions and information underlying the revision of the financial projections and the ability of the Council to take decisions on matching service levels with the money available to fund them.  In addition, the reputation and public perception of the Council may be affected. The key risks can be summarised as follows:

-          Actual savings targets prove to be substantially different from shown above, due to changes in financial projections.

-          Required savings targets can’t be met, without having an unacceptable impact on service delivery – either from the Council’s own viewpoint or from public perception.

-          Government / the public perceive the increase to be too high, resulting in capping action being taken against the Council and/or a negative impact on public relations and the Council’s reputation

-          Council tax targets are too low, resulting in them being unsustainable in the longer term, without having adverse effects on future service delivery and/or the Council’s financial standing and reputation.

The report highlights that there is significant scope for the projections to change, as a result of both internal and external factors. To counter this, there will be further opportunities to review target increases during the forthcoming budget as more definite information becomes available on forecast spending.

With regard to capping, the report provides information on Government’s actions this year and its commitment to using its capping powers in future.  Should Cabinet wish to support spending levels that result in a Council Tax increase much higher that the current MTFS target, then there are strong indications that the Government is likely to challenge this course of action.  This may well result in the Council’s budget being capped – in such a situation it would be forced to cut spending / services in an unplanned way and it would incur rebilling costs.  Alternatively, if Cabinet wish to support a much lower increase, then future sustainability may become an issue.  At present the financial projections for 2009/10 appear much worse than previously reported but they could change significantly, though on balance it is felt they are likely to get worse, rather than better.

In terms of options, the impact  ...  view the full minutes text for item 81.

Report of Overview and Scrutiny.

(Cabinet Member with Special Responsibility Councillor Archer)

(It was noted that Councillor Barry had previously declared a personal and prejudicial interest in the following item as an allotment holder. Councillor Barry left the meeting prior to consideration of this item).

Overview and Scrutiny submitted a report seeking Cabinet’s support for the recommendations of the Allotments Task Group regarding future management arrangements for allotments.

The Task Group’s options, options analysis, including risk assessment were set out in the report as follows:

1.      Option 1- Status quo

2.      Option 2- Responsibility for management of allotments returns to the Council

Option 3a - Partnership with Council (Peppercorn rent)

Partnership

Council

·         Capital to improve basic infrastructure at allotment sites (initially 5 year programme is recommended).

·         Strategic oversight of allotments

·         Agreement with allotment associations as to priorities for officer time allocated to allotments

·         Allotment sites provided at peppercorn rent to allotment associations

·         Provides support in practical ways (e.g., insurance, access to compost, grass cutting, waste management etc)

·         Review infrastructure needs on an annual basis and feed into capital programme

Allotment associations

·         Self manage allotment sites on a day to day basis

·         Seek external funding opportunities for their allotment sites

·         Continue to contribute to Council priorities

Association of Lancaster and Morecambe Allotments Association (ALMA)

·         Represent allotment associations when dealing with Council

·         Seek external funding for allotment development

3.      Option 3b - Partnership with Council (market rent)

Partnership

Council

·         Capital to improve basic infrastructure at  ...  view the full minutes text for item 82.

(Cabinet Member with Special Responsibility Councillor Fletcher)

Report of Corporate Director (Regeneration).

(Cabinet Member with Special Responsibility Councillor Fletcher)

(It was noted that Councillor Bryning had previously declared a personal and prejudicial interest in the following item as a Governor of Morecambe High School. Councillor Bryning left the meeting prior to consideration of this item).

The Corporate Director (Regeneration) submitted a report seeking Cabinet’s approval for two further projects being jointly developed following the adoption of the Sports and Physical Activity Strategy.

The options, options analysis, including risk assessment, were set out in the report as follows:

Options regarding the Cardiac Rehabilitation Project:

Options regarding the Morecambe High School Community Use Agreement:

Options 1 and 3 is the Officer preferred option.

This would allow the Council to access additional funding £60,000 from the PCT to deliver a new scheme aimed at a hard to reach group (patients involved  ...  view the full minutes text for item 83.

(Cabinet Member with Special Responsibility Councillor Mace)

Report of Corporate Director (Finance and Performance).

(Cabinet Member with Special Responsibility Councillor Mace)

The Corporate Director (Finance and Performance) submitted a report updating the Cabinet on the Star Chamber meetings held since the last report to Cabinet of 2^nd September 2008.

It was moved by Councillor Mace and seconded by Councillor Charles:-

“That the recommendation, as set out in the report, be approved.”

Members then voted as follows:-

Resolved unanimously:

(1)     That the report be noted.

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Head of Financial Services

Reasons for making the decision:

The decision is in line with the requirement for Cabinet to receive regular updates on Star Chamber meetings.

(Cabinet Member with Special Responsibility Councillor Roger Mace)

Report of Corporate Director (Finance and Performance).

Appendix to follow.

(Cabinet Member with Special Responsibility Councillor Mace)

The Corporate Director (Finance and Performance) submitted a report requesting Cabinet to note progress made since the last Cabinet meeting in bringing forward options to refresh the 2009/10 Corporate Plan. The report also provided information on progress made in delivering the current Corporate Plan and asked Cabinet to determine any actions that might be required.

The options, options analysis, including risk assessment, were set out in the report as follows:

Options Analysis

Refresh of Corporate Plan

Corporate Plan Monitoring

The officer preferred option in both cases is option 1.

Councillor Mace presented his latest considerations for the 2009/10 Corporate Plan.

It was moved by Councillor Mace and seconded by Councillor Charles:-

“(1)      That Cabinet notes the latest position on delivering the 2008/9 Corporate Plan targets

(2)        That Cabinet notes the latest position in refreshing the 2009/10 Corporate Plan and that the further development of the Plan be undertaken within the context of the Council’s financial position as reported in the latest Medium Term Financial Strategy report and that a further report be given to the next Cabinet meeting including the comments of the 3 Statutory Officers of the City Council, identifying the implications.”

Members then voted as follows:-

Resolved:

(7 Members (Councillors Barry, Blamire, Bryning, Charles, Fletcher, Gilbert and Mace) voted in favour, 1 Member (Councillor Burns) voted against and 2 members (Councillors Archer and Kerr) abstained.

(1)        That Cabinet notes the latest position on delivering the 2008/9 Corporate Plan targets

(2)        That Cabinet notes the latest position in refreshing the 2009/10 Corporate Plan and that the further development of the Plan be undertaken within the context of the Council’s financial position as reported in the latest Medium Term Financial Strategy report and that a further report be given to the next Cabinet meeting including the comments of the 3 Statutory Officers of the City Council, identifying the implications.

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Reasons for making the decision:

The decision will allow Cabinet to take account of developments with the 2009/10 Corporate Plan at its next meeting within the context of the Council’s financial position, with comments on implications provided by the Council’s Statutory Officers.

(Cabinet Member with Special Responsibility Councillor Archer)

Report of the Head of Property Services.

(Cabinet Member with Special Responsibility Councillor Archer)

The Head of Property Services submitted a report asking Cabinet to consider the procurement of a new Gas contract for a four year period up to and including 31^st May 2013.

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1 (Fixed Rate) – This option would result in no change, with the Council continuing to acquire gas under the same sort of contract as now. The YPO will buy the Council’s total Gas requirement on one day, when the market conditions are favourable for the period 1^st June 2009 to 31^st May 2010. Each year thereafter, the same process would be followed to the end of the contract in 2013. The Council will shortly receive from the YPO a cost schedule showing the fixed charges for both options in both pence per kWh and per therm.

Within the recent tender for fixed cost elements it emerged that British Gas and Corona Energy impose certain restrictions. Both will impose additional costs for late payment of invoices and will adjust the contract prices in the event of a shortfall in gas usage. Corona did not quote for all Authorities.

E.ON Energy offer fixed costs with no penalties for late payment and do not require an estimate of usage for the term of the contract. Full details can be found on Page 8 of the main Confidential Report to Members Appendix 1.

Due to the volatility of the market and strong bullish trends there are risks associated with option 1. For example the Council are currently fixed until 31^st May 2009 at 78 pence per therm. The wholesale market at 15^th October gas was trading at 70.4 pence per unit. Conversely should North Sea production reduce further and if winter weather conditions are colder than usual the market may rise again.

Option 2 (Flexible Rate) - Move to a flexible purchasing option. The YPO will buy the Council’s Gas requirements over several transactions. Within this option the Council will still know the Gas price for the full 12 months.

This option will allow the Council to purchase flexibly within the contract period in 5,000 therm clips. The Council can trade live market prices; settlement prices, day ahead and month-ahead index prices, with all purchases made before the 24th of Month i.e. before the month of delivery. For example for August, purchases must be made on or before the 24^th of July.

E.ON Energy submitted their General Terms and Conditions of Supply and agreed to give the YPO the ability to do everything outlined in the original tender guidance documents, which were forwarded to all prospective bidders prior to the Tender, these included,

·                      The ability to fix all non-energy costs prior to contract start up.

·                      The ability to fix all volume prior to the start of this contract year.

·                      The ability to purchase in multiple quantities to fulfil the total volume

requirement as  ...  view the full minutes text for item 86.

(Cabinet Member with Special Responsibility Councillor Jane Fletcher)

Report of the Corporate Director (Regeneration).

(It was noted that Councillors Blamire and Burns had previously declared personal and prejudicial interests in the following item in view of their role as members of the Williamson Park Board of Directors. Councillors Blamire and Burns left the meeting prior to consideration of this item. It was further noted that the Corporate Director (Finance and Performance) had also declared an interest as Secretary to the Williamson Park Board of Directors. He also left the meeting prior to consideration of this item.)

The Corporate Director (Regeneration) submitted a report updating members about Williamson Park, as requested at the last Cabinet meeting.

It was moved by Councillor Fletcher and seconded by Councillor Archer:-

“(1)   That Cabinet notes the update and that a further report be presented at the next Cabinet meeting to include, if possible, the long term future viability of the Company for consideration as part of the 2009/10 budget process, pending the outcome of the reviews approved by Cabinet on the 7^th October 2008 (Minute 76 refers).

(2)     That the Williamson Park Board be requested to support proactive action being taken to minimise the Company’s spending during this interim period, pending its long term future viability being determined.

(3)     That Cabinet notes that the involvement of various City Council Services, as outlined in the report, who are supporting the Williamson Park Board will have an impact on their abilities to deliver against each of their respective Business Plans and Performance targets.”

Members then voted as follows:-

Resolved unanimously:

(1)     That Cabinet notes the update and that a further report be presented at the next Cabinet meeting to include, if possible, the long term future viability of the Company for consideration as part of the 2009/10 budget process, pending the outcome of the reviews  approved by Cabinet on the 7^th October 2008 (Minute 76 refers).

(2)     That the Williamson Park Board be requested to support proactive action being taken to minimise the Company’s spending during this interim period, pending its long term future viability being determined.

(3)     That Cabinet notes that the involvement of various City Council Services, as outlined in the report, who are supporting the Williamson Park Board will have an impact on their abilities to deliver against each of their respective Business Plans and Performance targets.

Officers responsible for effecting the decision:

Corporate Director (Regeneration)

Head of Cultural Services

Reasons for making the decision:

The decision will ensure that Cabinet Members remain informed about the position with Williamson Park, pending a further report on the long term future viability of the Williamson Park Company.

(Councillors Blamire and Burns and the Corporate Director (Finance and Performance) all returned to the meeting).

(Cabinet Member with Special Responsibility Councillor Archer)

Report of the Head of Planning Services.

(Cabinet Member with Special Responsibility Councillor Archer)

The Head of Planning Services submitted a report informing members of the conclusions of the scoping study commissioned by the Morecambe Bay Partnership and to obtain approval to support the creation of the designation and take part in its implementation. 

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1To support the concept of a Regional Park and to allocate Officer and Member time to working with adjoining local authorities and other partners to develop it to designation.  This option has the benefit of identifying a clear spatial network of local authority areas with shared interests and challenges, and to demonstrate to Government and funding agencies a joined up approach to regeneration.  It would also demonstrate to Government that the local authorities in the North Lancashire and Cumbria sub region know how to work together to achieve the greatest benefits for their communities and the economy of their area.  

Option 2   Not to support the concept and to take no further part in discussions with the Morecambe Bay Partnership.  Whilst this option would not directly harm the existing levels of progress that the City Council is achieving with its LDF and other regeneration strategies, it would lose the opportunity for the City Council to take a leading role in improving cross boundary cooperation in the sub region, and could reduce the potential for external funding for schemes and projects in the future.  It would also remove the potential for a realistic Multi Area Agreement based on recognisable geographical links, and leave Lancaster District appearing as a lone District operating beyond other emerging partnerships in an insular manner.  

Officer Preferred Option (and comments)

The Officer preferred option is Option 1.  Lancaster City Council has an opportunity to take a leading role in the development of the Morecambe Bay Regional Park and to use its experience and reputation with various Government Agencies to strengthen the level of external investment in the economy around the Bay.  The Park would also help to strengthen the hierarchical status of the District in the Sub Region and create opportunities to share workload and resources in tackling shared challenges such as Affordable Housing, regenerating low demand settlements, and managing sensitive conservation assets. 

It was moved by Councillor Archer and seconded by Councillor Burns:-

“That the recommendations, as set out in the report, be approved.”

By way of amendment to recommendation 2, which was accepted as a friendly amendment by the mover and seconder of the original proposition, it was moved by  Councillor Kerr and seconded by Councillor Mace:-

“That Cabinet recommends to Council that Councillor Archer be the lead Cabinet Member appointed to sit on developmental working groups or Committees in the event that adjoining authorities agree to pursue designation”. 

Members then voted as follows:-

Resolved:

(9 Members (Councillors Archer, Blamire, Bryning, Burns, Charles, Fletcher, Gilbert, Kerr and Mace) voted in favour, 1 Member (Councillor Barry) voted against)

(1)        That  ...  view the full minutes text for item 88.

(Cabinet Members with Special Responsibility Councillors Evelyn Archer and David Kerr)

Report of Corporate Director (Regeneration) to follow.

(Cabinet Members with Special Responsibility Councillors Archer and Kerr)

The Corporate Director (Regeneration) submitted a report updating members about the delivery of the Chatsworth Gardens West End Housing Exemplar Project. 

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1

The City Council has already started a process of acquisition in line with the 2005 funding agreement and the 2005 funds have now been fully drawn down by the City Council.  In accordance with the (Plan A) proposals of the original scheme, the City Council could seek to work with English Partnerships to identify how a partial demolition/refurbishment scheme could progress, and identify future funding needs to deliver such a project.  At this stage, it is impossible to assess whether such a scheme would be financially viable and whether funds could be made available.  Further work will be required to draw up a (Plan A) option and it is recommended that officers are instructed to start early negotiations with funders to seek an “acceptable” funding package for further consideration by Members.

(Cabinet Member with Special Responsibility Councillor Kerr)

Report of the Chief Executive.

(Cabinet Member with Special Responsibility Councillor Kerr)

The Chief Executive submitted a report advising Cabinet of progress with the development of a pay and grading structure since its last meeting on 7^th October 2008. The Chief Executive updated Cabinet on the decision taken by Personnel Committee held on the previous day.

It was moved by Councillor Kerr and seconded by Councillor Archer:-

“That the recommendation, as set out in the report, be approved.”

Members then voted as follows:-

Resolved unanimously:

(1)     That progress be noted.

Officers responsible for effecting the decision:

Chief Executive

Head of Legal and Human Resources

Reasons for making the decision:

Regular update reports on the development of a pay and grading structure are noted by Cabinet to ensure that Cabinet is kept informed of progress.

(Cabinet Member with Special Responsibility Councillor Roger Mace)

Report of the Chief Executive.

(Cabinet Member with Special Responsibility Councillor Mace)

The Chief Executive submitted a report updating Members on how community cohesion is being taken forward within Lancaster District in the context of the Area Based Grant (ABG) allocation.

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1To make allocations from the ABG for community cohesion based on the current information available to it

Option 2 To defer making any allocationsfrom the ABG for community cohesion at this time pending a further progress report back to Cabinet later in the year

There is no officer preferred Option.

Councillor Mace tabled his recommendations, as follows:

(1)        That Cabinet notes how community cohesion is being taken forward within the Lancaster District in the context of Area Based Grant

(2)               That Cabinet defers making any allocations from the Area Based Grant for community cohesion at this time pending a further progress report to Cabinet later in the financial year

(3)        That Cabinet notes the priority outcome to “work to maintain a cohesive community where respect for all is valued and celebrated” and agrees to ringfence the 2008/9 Area Based Grant awarded for community cohesion for supporting specific actions within Corporate Plan Priority 16.

It was then moved by Councillor Mace and seconded by Councillor Fletcher:-

“(1)      That Cabinet notes how community cohesion is being taken forward within the Lancaster District in the context of the Area Based Grant

(3)               That Cabinet defers making any allocations from the Area Based Grant for community cohesion at this time pending a further progress report to Cabinet later in the financial year

(3)        That Cabinet notes the priority outcome to “work to maintain a cohesive community where respect for all is valued and celebrated” and agrees to ringfence the 2008/9 Area Based Grant awarded for community cohesion for supporting specific actions within Corporate Plan Priority 16.”

Members then voted as follows:-

Resolved unanimously:

(1)        That Cabinet notes how community cohesion is being taken forward within the Lancaster District in the context of Area Based Grant

(4)               That Cabinet defers making any allocations from the Area Based Grant for community cohesion at this time pending a further progress report to Cabinet later in the financial year

(3)        That Cabinet notes the priority outcome to “work to maintain a cohesive community where respect for all is valued and celebrated” and agrees to ringfence the 2008/9 Area Based Grant awarded for community cohesion for supporting specific actions within Corporate Plan Priority 16.

Officers responsible for effecting the decision:

Chief Executive

Head of Corporate Strategy

Reasons for making the decision:

The decision will allow Cabinet to consider a further progress report later in the financial year before taking a decision of making any allocations for the Area Based Grant for Community Cohesion.

(Cabinet Member with Special Responsibility Councillor Roger Mace)

Report of the Chief Executive.

(Cabinet Member with Special Responsibility Councillor Mace)

The Chief Executive submitted a report asking Cabinet to consider the funding of the employee establishment.

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1 - That the status quo is maintained (as set out in paragraph 1.2 above)

Option 2 - That Cabinet identifies which Service areas are considered to be a lower priority for the filling of vacancies.  In doing so, Cabinet should consider the Council’s statutory responsibilities, Corporate Plan and Service Business Plan priorities and to what extent particular posts are externally funded. Having identified which Service areas are considered to be a lower priority, there is an expectation that only Cabinet could approve the funding required to fill any vacancies which occur within these Service areas during the remainder of this financial year.  Cabinet would need to determine whether this is a decision to be taken at a Cabinet meeting or delegated to Portfolio Holders.

Option 3 - That all vacancies which occur in those Service areas which are discretionary rather than statutory are referred to Cabinet to consider whether the funding should be provided for those posts to be filled within these Service areas during the remainder of the financial year.  A high level summary of statutory and non-statutory service activities for each Service is attached at Appendix A.  As above, Cabinet would need to determine whether this would be a decision of full Cabinet or delegated to Portfolio Holders.

Option 4 - Combined with options 4.2 or 4.3 above, Cabinet could decide that all vacancies go through an internal only recruitment exercise prior to a decision on external recruitment.

Option 5 - Combined with any of the options above, Cabinet could require any consideration of funding agency, contractor or consultants as an alternative to direct employment to be formally considered either by individual Cabinet portfolio holders or full Cabinet.

Officer Preferred Option (and comments)

The preferred Officer option is Option 2.

Councillor Mace tabled his recommendations, including the comments of the Head of the Paid Service and Section 151 Officer Comments, as follows:

That Cabinet

(1)                           Notes the recent agreement of the Leaders of the Conservative, Green, Independent, Labour and Liberal Democrat Groups that in present circumstances of the credit crunch and impending recession the City Council should be giving reassurances to local people that:-

·          Everything possible will be done to maintain essential services

·          There is a recognition that local taxpayers are unlikely to be in a  position to fund extra services from additions to Council Tax

                  …and resolves to introduce a presumption that staffing vacancies are not filled, in place of the current presumption that vacancies are filled.

(2)                           Notes the responsibility of Cabinet for the funding of the employee establishment and until further notice, determines to withdraw funding in respect of all posts becoming vacant below the level of Service Head, subject to the outcome of 3 below.

(3)                           Requests that the Chief Executive, upon any post  ...  view the full minutes text for item 92.