APPENDIX 1 (continued)
Record of Decision
Annual Review of the Corporate Capital Strategy and Asset Management Plan
(Includes Corporate Capital Repair & Maintenance Programme)
Decision Taker
The Mayor at the Cabinet meeting held on 24 November 2009
Decision
(i)
that the concerns of the Priorities and Resources Review Panel about the
impact on the current economic climate on the Council’s ability to deliver the
Capital Plan be noted;
(ii)
that the concerns of the Priorities and Resources Review Panel about the
impact on the Council’s Asset Management Plan through not disposing of
assets or not realising as much for them should the current recession last
longer than anticipated be noted;
(iii)
that it be noted that a conscious decision has already been made for a planned
programme for the repair of assets where timely and appropriate;
(iv)
that, subject to any contractual arrangements that have been agreed through
the Direct Services and Waste Joint Venture Company process, the proposal for
the Asset Management Team having responsibility for managing all the Council
owned land and property assets (excluding IT equipment, plant, machinery,
bridges, vehicles and highways) to ensure that repairs and maintenance are
undertaken in a timely and efficient manner, be supported;
(v)
that, subject to any contractual arrangements that have been agreed through
the Direct Services and Waste Joint Venture Company process, all repairs and
maintenance over a relatively low de-minimus value be managed through the
centralised repairs and maintenance programme, this should free up resources
within service departments and improve efficiency and procurement;
(vi)
that the principle of moving fixed costs for repairs and maintenance to fully
variable costs be supported; and
(vii)
that Council be recommended to approve the Corporate Strategy and Asset
Management Plan as set out in Appendices 1 and 2 to Report 244/2009.
Reason for Decision
To take account of the impact of the current economic climate on our finances and assets
and to make best use of them.
To update practices and procedures in order to seek improved performance and value for
money and to ensure the most efficient use of the Council’s assets.
APPENDIX 1 (continued)
Implementation
The decisions in (i) to (vi) above will come into force and may be implemented on Monday, 7
December 2009 unless the call-in procedure is triggered (as set out in Standing Orders in
relation to Overview and Scrutiny).
The recommendation in (vii) above will be considered at the Council meeting on 10
December 2009.
Information
Report 244/2009 set out details of the Council’s Corporate Capital Strategy and Asset
Management Plan (including the Corporate Repair and Maintenance Programme).
The Corporate Capital Strategy (The Strategy) summarised the Council’s approach to capital
investment covering all services and expenditure plans for replacement and renewal of
assets. The Strategy together with the Corporate Asset Management Plan identified how the
Council prioritises its own resources together with external funding to improve its own
property assets and to support others to provide assets to help deliver Council services. The
overarching objective of the Repairs and Maintenance Programme was to ensure a planned
approach to the reduction of the maintenance backlog and to effectively target the limited
maintenance budget.
The Strategy and Asset Management Plan are reviewed annually to update practices and
procedures in order to seek to improve performance, value for money and align with the
latest best practice. The Asset Management Team constantly reviews its assets to ensure
that they are fit for purpose and whenever possible attempts to dispose of assets which are
either inefficient or a liability in terms of backlog or future maintenance.
The Priorities and Resources Panel had considered the draft Strategy and Asset
Management Plan and prepared Report OSB/10/2009 which outlined the Panel’s
recommendations for consideration by the Mayor.
Alternative options considered and rejected at the time of the decision
The alternative options were set out in Report 244/2009 and not discussed at the meeting.
Is this a Key Decision? (Give reference number if applicable)
Yes – Reference Number X36/2009
Does the call-in procedure apply? (If no, please give reason)
Yes in respect of the decisions in (i) to (vi) above.
No in respect of the recommendation in (vii) above as the Council will make the final
decision.
APPENDIX 1 (continued)
Declarations of interest (including details of any relevant dispensations issued by the
Standards Committee)
Councillor McPhail declared a personal and prejudicial interest and withdrew from the
meeting.
Published
Friday, 27 November 2009
APPENDIX 1 (continued)
Record of Decision
Review of Reserves 2010/11
Decision Taker
The Mayor at the Cabinet meeting held on 24 November 2009
Decision
(i)
that the monies identified as surplus in a number of reserves totalling £193,000
be allocated to a new Financial Climate Reserve. This reserve is to recognise
the overall increased risk to the Council of the economic climate and the
number of major projects including capital projects currently being progressed;
(ii)
that the Chief Finance Officer in consultation with the Mayor reassess in
January 2010 the provision and reserves held for pay modernisation and
transfer any surplus monies to the Change Management and Financial Strategy
Reserve;
(iii)
that a pension reserve be established to help meet future employer
contributions to reduce the current liability of the pension fund; and
(iv)
that the Chief Finance Officer be requested to provide appropriate guidance to
ensure that Service Managers take a consistent approach to the level of risk
which is assessed as part of the annual review of reserves.
Reason for Decision
To take account of the impact of the current economic climate on our reserves and make
best use of them and to help reduce the current liability of the pension fund.
A review of the reserves is a key part of the Councils’ budget setting process and it is
important that we take a consistent approach to assessing the level of risk of reserves.
Implementation
This decision will come into force and may be implemented on Monday, 7 December 2009
unless the call-in procedure is triggered (as set out in Standing Orders in relation to
Overview and Scrutiny).
Information
The Local Government Act 2003 introduced the responsibility for a Council’s Chief Finance
Officer to report on the adequacy of reserves as part of the budget setting process. This was
in addition to the requirements of the Local Government Finance Act 1992, which placed an
obligation on Councils to have regard to the levels of reserves needed for meeting estimated
future expenditure when calculating the budget requirement.
Report 245/2009 set out the details of the review of the Council’s reserves which had been
undertaken as part of the 2010/2011 budget setting process.
APPENDIX 1 (continued)
The Priorities and Resources Panel had considered the review of the Council’s reserves and
prepared Report OSB/10/2009 which outlined the Panel’s recommendations for
consideration by the Mayor.
Alternative options considered and rejected at the time of the decision
The alternative options were set out in Report 245/2009 and not discussed at the meeting.
Is this a Key Decision? (Give reference number if applicable)
No
Does the call-in procedure apply? (If no, please give reason)
Yes
Declarations of interest (including details of any relevant dispensations issued by the
Standards Committee)
None
Published
Friday, 27 November 2009
APPENDIX 1 (continued)
Record of Decision
Medium Term Financial Plan and Financial Strategy
Decision Taker
The Mayor at the Cabinet meeting held on 24 November 2009
Decision
(i)
that the key issues raised in the Medium Term Financial Plan, set out in
Appendix 1 to Report 246/2009 and the impact this will have upon the Council’s
financial planning in 2010/11 and beyond, be noted; and
(ii)
that the views of the Priorities and Resources Review Panel, set out in Report
OSB/10/09 be noted.
Reason for Decision
The Council will have a structured approach against which it can then deliver when
undertaking its financial planning.
Implementation
This decision will come into force and may be implemented on Monday, 7 December 2009
unless the call-in procedure is triggered (as set out in Standing Orders in relation to
Overview and Scrutiny).
Information
The Council considers the Medium Term Financial Plan annually as part of its budget
processes. Report 246/2009 set out details of the Medium Term Financial Plan which had
been updated in light of the latest information and now covered up to the year 2013. The
Plan would be refined through the budget cycle and consolidated as one document with the
Council’s Corporate Plan in 2010.
The Priorities and Resources Panel had considered the latest revision of the draft Plan and
prepared report OSB/10/2009 which outlined the Panel’s recommendations for consideration
by the Mayor.
Whilst the Mayor and Cabinet Members recognised the importance and value of the Third
Sector, which was highlighted in Report OSB/10/09, they supported the proposal identified in
the Medium Term Financial Plan to continually review all grants and to freeze the amount of
grant in 2010/11 to the same level as 2009/10 (apart from where services are commissioned
by the Council) to take account of the 4% cashable efficiency target set by the Government.
The Council was already working with our partners through the Strategic Commissioning
Partnerships to look at ways to support the Third Sector.
APPENDIX 1 (continued)
The Mayor also considered the interim summary of budget 2010/11 consultation undertaken
with the community as set out in Report 247/2009. The Mayor thanked the people who had
taken part in the consultation and advised that these comments would be taken into account
when he sets the target budgets on 8 December 2009.
Alternative options considered and rejected at the time of the decision
The alternative options were set out in Report 246/2009 and not discussed at the meeting.
Is this a Key Decision? (Give reference number if applicable)
No
Does the call-in procedure apply? (If no, please give reason)
Yes
Declarations of interest (including details of any relevant dispensations issued by the
Standards Committee)
None
Published
Friday, 27 November 2009