Policy and Strategy Committee

Thursday 26 September 2002 at 3.00 pm

Present:  Provost Roach, Councillors Blair, Calvert, Jackson, McCabe, Mitchell, Morrison (M), O'Rourke, Rebecchi and Robertson (A).

Chair:  Councillor Jackson presided.

In attendance:  Chief Executive, Depute Chief Executive, Director of Community & Protective Services, Mr A Henderson (for Director of Education Services), Director of Finance, Director of Legal & Support Services, Director of Social Work & Housing Services, Head of Personnel Services, Head of Property Services and Managing Solicitor (Committees/Contracts).

Apologies:  Councillors McGhee and Robertson (Y).

758

Review of Insurance Premium - Remit from Corporate Business Committee

758

There was submitted a report dated 10 September 2002 by the Director of Legal & Support Services on a request from the Corporate Business Committee at its meeting on 5 September 2002 that consideration be given to the budgetary implications in 2002/2003 resulting from a review of insurance premiums by the Council’s insurers Zurich Municipal which had the effect of increasing insurance costs for the period 1 October 2002 to 30 September 2003 by £260,000.

Decided:  that no provision be made within the appropriate budgets for the increase in insurance costs for the period 1 October 2002 to 30 September 2003, the increase to be contained within current budgets, and provision to be made for 2003/04 onwards.

759

Financial Support for Market in Port Glasgow - Remit from Economic Regeneration Committee

759

There was submitted a report dated 11 September 2002 by the Depute Chief Executive on a request from the Economic Regeneration Committee at its meeting on 10 September 2002 that £5,000 be provided from the Common Good Fund to meet the costs of promoting and supporting a pilot Farmers' Market in Port Glasgow.

Decided:  that £5,000 be provided from the Common Good Fund to meet the costs of promoting and supporting a Farmers' Market in Port Glasgow on a pilot basis.

760

The Way Forward - Greenock East Business Area Study - Remit from Economic Regeneration Committee

760

There was submitted a report dated 12 September 2002 by the Director of Legal & Support Services on a request from the Economic Regeneration Committee at its meeting on 10 September 2002 that £50,000 be made available from the Area Renewal Budget 2002/03 for the initial phase of works comprising signage, security and general maintenance of roads and landscaped areas arising from the report “Greenock East Business Area Study - The Way Forward”.‘

Decided:  that it be agreed to provide £50,000 from the Area Renewal Budget 2002/03 to fund the initial phase of works arising from the Greenock East Business Area Study.

761

A Voluntary Sector Policy Statement - Remit from Community Committee

761

There was submitted a report dated 13 September 2002 by the Director of Legal & Support Services on a request from the Community Committee at its meeting on 12 September 2002 that approval be given to a policy statement clarifying the relationship between Inverclyde Council and the voluntary sector in Inverclyde.

Decided:  that the policy statement dated August 2002 and appended to the report, clarifying the relationship between Inverclyde Council and the voluntary sector in Inverclyde be approved.

762

Fireworks Display - 2 November 2002 - Remit from Community Committee

762

There was submitted a report dated 13 September 2002 by the Director of Legal & Support Services on a request from the Community Committee at its meeting on 12 September 2002 that an allocation of £10,400 be made from the Common Good Fund towards the cost of the 2002 Fireworks Display.

Decided:  that £10,400 be provided from the Common Good Fund towards the cost of the 2002 Fireworks Display on 2 November 2002.

763

Revenue Budget 2002/03 - Period 5

763

There was submitted a report dated 4 September 2002 by the Director of Finance on the position of the Revenue Budget 2002/03 as at period 5 (21 August 2002).

Noted

764

General Fund Revenue Budget 2002/03

764

There was submitted a report dated 13 September 2002 by the Director of Finance (1) on the General Fund Revenue Budget 2002/03 as reported to Service Committees and (2) advising that the current position showed a deficit of £235,000.

Decided:

(1)      that the Committee note with concern the projected deficit of £235,000 and that any deficit would be met from balances; and

(2)      that the Committee note with concern the additional cost pressures which could have a further impact on the balances.

765

Capital Programme 2002/03 to 2003/04 - Progress

765

There was submitted a report dated 4 September 2002 by the Director of Finance on the progress of the Capital Programme 2002/03 to 2003/04.

Noted

766

Non-HRA Capital Programme 2002/04

766

There was submitted a report dated 12 September 2002 by the Director of Finance (1) on the current position of the Non-HRA Capital Programme 2002/04 and (2) comparing projected expenditure against capital consent limits.  The report advised that there had been some slippage from the budget and that based on the projected gross allocation of £10,525,000 for 2002/03, projects with expenditure in 2002/03 could be released from the secondary project list detailed in Appendix 3 to the report.

Decided:

(1)      that the current position of the Non-HRA Capital Programme 2002/04 be noted; and

(2)      that the Committee note the release of projects designated as “priority 1” from the secondary projects list detailed in Appendix 3 to the report.

767

Revenue and Capital Budget 2003/04 - 2005/06

767

There was submitted a report dated 24 September 2002 by the Director of Finance (1) on the budget setting procedure and requirements for 2003/04 to 2005/06 for capital and revenue purposes and (2) requesting the Committee to agree a budget setting timetable.

Decided:

(1) that the report be noted; and

(2) that the budget timetable detailed in Appendix 5 to the report which would require the holding of  special meetings of the Policy and Strategy Committee on 11 February 2003 and of Inverclyde Council on 13 February 2003 (budget setting date) be approved.

768

Reserves and Balances

768

There was submitted a report dated 13 September 2002 by the Director of Finance outlining the guidance concerning the level of reserves and balances which were appropriate for the Council.

Decided:

(1) that the new reporting framework outlined in paragraphs 5.1 to 5.3 of the report be adopted by the Council to ensure that there is an adequate level of reserves and balances; and

(2) that it be noted that the report would be remitted to the Council for consideration as part of the 3 year Revenue Budget for General Services and the Housing Revenue Account.

769

Implications of the ASB Consultation on FRS17 on the Council’s Decision Regarding the Ex-IDC Scheme

769

There were submitted (1) report dated 13 September 2002 by the Director of Finance clarifying the implications of the Accounting Standards Board (ASB) consultation on FRS17 and recommending confirmation of the termination of the enhancement entitlement under the Ex-IDC Early Retirement Scheme on 30 September 2002 and (2) report dated 22 August 2002 by the Director of Legal & Support Services on a request from Councillors Rebecchi and White that the Council reconsider its decision to terminate the enhancement entitlement on 30 September 2002.

The Committee agreed to resume consideration of this item at a later part of the meeting following the exclusion of the public and press as the discussion would involve the likely disclosure of exempt information as defined in paragraphs 1 and 12 of Part I of Schedule 7(A) of the Local Government (Scotland) Act 1973.

770

Grants to Voluntary Organisations 2002/03

770

There was submitted a report dated 13 September 2002 by the Director of Community & Protective Services advising of the recommendations made for the third round of grants to voluntary organisations for 2002/03.

Decided:  that the list of awards amounting to £5,145 as recommended by the Sounding Board and detailed in Appendix 1 to the report be approved.

771

Consultation on the National Lottery

771

There was submitted a report by the Director of Community & Protective Services advising of a consultation paper from the Scottish Executive entitled “Review of Lottery Funding: A Consultation Paper on Lottery Distribution Policy” which examined the successes to date and explained how the National Lottery could be enhanced and developed in the future.

Decided:

(1)      that agreement be given to participate in the review of the National Lottery; and

(2)      that it be remitted to the Director of Community & Protective Services to complete the review process in consultation with Councillors Jackson, Mitchell and Calvert.

772

Consultation on the Physical Activity Task Force

772

There was submitted a report dated 11 September 2002 by the Director of Community & Protective Services (1) on a consultation paper received from the National Physical Activity Task Force entitled “Let's Make Scotland More Active - A Strategy for Physical Activity” and (2) advising of the response of the Council’s Public Health Strategy Group to the consultation which required to be submitted by 13 September 2002.

Decided:

(1)      that the action taken in response to the National Physical Activity Task Force consultation paper be noted; and

(2)      that the submission made by the Public Health Strategy Group be homologated.

773

New Opportunities for PE and Sport Initiative

773

There was submitted a report dated 11 September 2002 by the Director of Community of Protective Services on a submission made to the New Opportunities Fund in response to the launch of the New Opportunities for PE and Sport Initiative.

Decided: 

(1)      that the action taken by the Director of Community & Protective Services with regard to the New Opportunities for PE and Sport Initiative be noted; and

(2)      that the submission made by the Working Group led by the Director of Community & Protective Services to the New Opportunities Fund be homologated.

774

Donald Dewar Memorial Appeal

774

There was submitted a report dated 13 August 2002 by the Director of Legal & Support Services on a request received from the University of Glasgow that the Council consider giving financial support to the Donald Dewar Memorial Appeal.

Decided:  that no action be taken.

775

Development/Feasibility Studies

775

There was submitted a report dated 3 September 2002 by the Depute Chief Executive seeking authority to commence site investigations and a feasibility study in connection with the proposed refurbishment of the Old Police Building in Wallace Place/Rue End Street, Greenock.

Decided:

(1)      that approval be given to the commencement of the initial works to the Old Police Building and that funding of £30,000 be allocated for these works from the provision for development/feasibility studies within the Policy & Strategy Capital Programme 2002/2003;

(2)      that approval be given to seek competitive quotations from specialist consultants for the various site investigation works required at the Old Police Building and that delegated authority be granted to the Head of Property Services to accept these quotations provided that the cumulative cost does not exceed £10,000; and

(3)      that approval be given for Property Services to carry out a feasibility study in respect of the Old Police Building for a fee not exceeding £20,000.

The Convener being of the opinion that the undernoted report by the Depute Chief Executive was relevant, competent and urgent moved its consideration to allow the Committee to consider a number of issues regarding the regeneration and redevelopment of the Council owned shops in central Port Glasgow at the earliest opportunity.  This was unanimously agreed in terms of the relevant Standing Order.

776

John Wood Street, Port Glasgow:  Regeneration of Shop Premises - Application for Essential Repairs Funding

776

There was submitted a report dated September 2002 by the Depute Chief Executive on progress of the regeneration and redevelopment issues relative to the Council shops in central Port Glasgow.

The Depute Chief Executive advised the Committee that the £68,000 funding required from the Common Good Fund would result in a current year revenue overspend which would be contained within the Revenue Reserve of the Common Good.  The expenditure would also count against the Council’s Capital Consent and it was therefore necessary to remit it to the Corporate Management Team to identify similar savings in the Non-HRA Capital Programme in order to maintain a financially balanced programme.

Decided:

(1)      that the allocation of £22,000 from the Area Regeneration Budget to meet the cost of both the ongoing investigative studies by the Economic Development Service and the proposed interim work to the appearance of the shop premises on the south east side of John Wood Street be approved;

(2)      that it be agreed to allocate £68,000 from the Common Good Fund to facilitate the essential structural works detailed in the report and to remit it to the Corporate Management Team to identify similar savings in the Non-HRA Capital Programme in order to maintain a financially balanced programme; and

(3)      that it be noted that the Head of Housing Services would submit a report to the Health Improvement Committee with a view to securing the sum of £25,000 to meet Housing Services's share of the common repairs to the premises.

The Convener being of the opinion that the undernoted report by the Director of Finance was relevant, competent and urgent moved its consideration to allow the Committee to consider and, if in agreement, recommend to the Council adoption of the revised Financial Regulations at the earliest opportunity.  This was unanimously agreed in terms of the relevant Standing Order.

777

Financial Regulations

777

There was submitted a report dated 17 September 2002 by the Director of Finance appending the revised Financial Regulations which had been considered by the Standing Orders Working Group at its meeting on 24 September 2002.

Decided:  that the revised Financial Regulations be remitted to The Inverclyde Council for formal adoption.

It was agreed in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 as amended, that the public and press be excluded from the meeting for the following items on the grounds that the business involved the likely disclosure of exempt information as defined in the respective paragraphs of Part I of Schedule 7(A) of the Act as are set opposite each item:-

Item                                                                                                                      Paragraph(s)

Implications of the ASB Consultation on FRS17 on

the Council’s Decision Regarding the Ex-IDC Scheme                            1 & 12

Inverclyde Leisure - Six Month Review of Operations                             6

East India Harbour - Procedure for Awarding Contracts                          6 & 9

Special Waterfront Working Group: Minute of Meeting

of 2 September 2002                                                                                    6 & 12

Comet Festival Accounts                                                                             6 & 14

778

Implications of the ASB Consultation on FRS17 on the Council’s Decision Regarding the Ex-IDC Scheme

778

On resumption of consideration of the report by the Director of Finance and the request from Councillors Rebecchi and White, Councillor Jackson moved that it be noted that the accounting framework concerning accounting for pension costs was the subject of consultation by the Joint CIPFA/LASAAC Committee but that irrespective of the accounting framework agreed upon, the financial implications of the Ex-Inverclyde District Council Scheme remained unchanged from previous reports to the Committee.  As an amendment, Councillor Mitchell moved:

(1) that the Ex-Inverclyde District Council Early Retiral Scheme cease as at 31 March 2005;

(2) that the scheme now end for employees aged under 50 on 30 September 2002; and

(3) that any affected employees who had made application for early retiral after 1 July 2002 be given the opportunity to change that decision if they so wished.

On a vote, 2 Members voted for the amendment and 7 for the motion which was declared carried.

Decided:  that it be noted that the accounting framework concerning accounting for pension costs was the subject of consultation by the Joint CIPFA/LASAAC Committee but that irrespective of the accounting framework agreed upon, the financial implications of the Ex-Inverclyde District Council Scheme remained unchanged from previous reports to the Committee.

Councillors Morrison (M) and O’Rourke left the meeting at this juncture.

779

Inverclyde Leisure - Six Month Review of Operations

779

There was submitted a report dated 2 September 2002 by the Director of Community & Protective Services reviewing the performance of Inverclyde Leisure during its first six months of operation (1 October 2001 - 31 March 2002).  (Councillor O’Rourke returned to the meeting during consideration of this item of business).

Decided:

(1)      that further reports on the performance of Inverclyde Leisure be submitted to the Committee on an annual basis;

(2)      that specific reports on aspects of Inverclyde Leisure’s business be reported to the Committee as appropriate;p

(3)      that Inverclyde Council continue to be represented at Board meetings of the company by the Director of Community & Protective Services and Director of Finance in line with the funding agreement and additional requirements placed upon the company by the Council; and

(4)      that the funding agreement between Inverclyde Leisure and Inverclyde Council continue as the basis for all financial arrangements between both parties.

780

East India Harbour - Procedure for Awarding Contracts

780

There was submitted a report dated 5 September 2002 by the Depute Chief Executive (1) advising that draft Heads of Terms with Clydeport plc for development of the East India and Victoria Harbours had been agreed subject to agreement on the tender procedures and (2) seeking delegated authority to allow the Depute Chief Executive to accept tenders for work required to procure the development at East India Harbour, Greenock.  (Councillor Morrison (M) returned to the meeting and Councillor Mitchell left the meeting during consideration of this item of business).  The Committee agreed to a tendering procedure, all as detailed in the Appendix.

781

Special Waterfront Working Group: Minute of Meeting of 2 September 2002

781

There was submitted minute of meeting of the Special Waterfront Working Group of 2 September 2002.

Approved

The Convener being of the opinion that the undernoted report by the Director of Finance was relevant, competent and urgent moved its consideration to allow the Committee to consider the request for deficit funding at the earliest possible date.  This was unanimously agreed in terms of the relevant Standing Order.

782

Comet Festival Accounts

782

There was submitted a report by the Director of Finance on a request received from the Comet Festival Organiser for funding from the Common Good Fund to cover the deficit in the Festival accounts.

Decided:

(1)      that it be agreed to award grant of no more than £5,000 from the Common Good Fund to cover the deficit in the Comet Festival accounts; and

(2)      that it be agreed that in future, the Comet Festival be organised by the Head of Leisure & Community Support Services in consultation with the Festival Group and that the Director of Finance assist in the preparation of the accounts.