Agenda, decisions and minutes

At this point, Members are asked to declare any personal or prejudicial interest they may have in the business on this agenda.

Members were invited to declare at this point in the meeting any personal or prejudicial interests they might have in the business on the agenda.         

To consider the exclusion of the press and public from the meeting during consideration of the following:

Annex 2 to Agenda Item 7 (Accommodation Project – Update Report), on the grounds that it contains information relating to the financial or business affairs of particular persons and information in respect of which a claim for legal professional privilege could be maintained.  This information is classed as exempt under paragraphs 3 and 5 of Schedule 12A to Section 100A of the Local Government Act 1972 (as revised by The Local Government (Access to Information) (Variation) Order 2006).

RESOLVED: That the press and public be excluded from the meeting during consideration of Annex 2 to agenda item 7 (Accommodation Project – Update Report), on the grounds that it contains information relating to the financial or business affairs of particular persons and information in respect of which a claim for legal professional privilege could be maintained.  Such information is classed as exempt under paragraphs 3 and 5 of Schedule 12A to Section 100A of the Local Government Act 1972 (as revised by the Local Government (Access to Information) (Variation) Order 2006).

To approve and sign the minutes of the Executive meeting held on 6 July 2010.

RESOLVED: That the minutes of the Executive meeting held on 6 July 2010 be approved and signed by the Chair as a correct record.

At this point in the meeting, members of the public who have registered their wish to speak regarding an item on the agenda or a matter within the Executive’s remit can do so.  The deadline for registering is 5:00 pm on Monday 19 July 2010.

It was reported that there had been no registrations to speak at the meeting under the Council’s Public Participation Scheme.

The following Council Members addressed the meeting with the consent of the Chair:

• Cllr Wiseman spoke in support of the proposal contained in agenda item 15 (Capital Programme Out-turn 2009/10 and Revisions to the 2010/11-2014/15 Programme) to allocate £25k contingency to Strensall Parish Council for the provision of youth facilities.
• Cllr Merrett spoke in relation to agenda items 8 and 9 (Review of Winter Maintenance Policy), expressing concern that the reports had not fully recognised the need to ensure that pedestrian routes were properly gritted and asking that further consideration be given to this matter within the Policy.

To receive details of those items that are listed on the Forward Plan for the next two Executive meetings.

Members received and noted details of those items listed on the Forward Plan for the next two Executive meetings at the time the agenda was published.

This report provides an update on progress with the Council’s strategy to bring the Barbican Auditorium back into public use.

RESOLVED: That the report be noted.

REASON:      To enable future plans for the Barbican to be developed and progressed.

Members considered a report which provided an update on progress made since the last update report, on 22 September 2009, with the Council’s strategy to bring the Barbican Auditorium back into public use.

Progress on the procurement exercise to seek an operator for the Barbican was set out in paragraph 8 of the report.  Two of the four shortlisted bidders had withdrawn in March because they felt unable to meet the Council’s requirements.  Detailed solutions had been received from the two remaining bidders in June.  The next stages of the procurement, as outlined in paragraph 9, would culminate in a report to Executive on 21 September recommending a preferred bidder, followed by completion of the development agreement and lease by 31 October.

Having noted the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: That the report be noted.

REASON:      To enable future plans for the Barbican to be developed and progressed.

This report provides an update on the progress of the Accommodation Project, seeks endorsement of the property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011, and seeks approval for an increase in the use of the Venture Fund to fund the Early Years Deficit.

RESOLVED: (i)         That the report be noted.

                        (ii)        That the ongoing communication with the public, through the Council’s website, Your City and e-mail, be noted.

                        (iii)       That it be requested that the business case for the financial benefit of the project be included in future communication.

REASON:      To ensure that the benefits of the project, particularly in terms of long-term financial savings, can be clearly communicated to the public.

                        (iv)       That the property exit strategy, and the release of De Grey House and 1A & B Swinegate Court East on the first break clause dates of March and May 2011, with affected staff to be relocated to within the existing accommodation portfolio, be endorsed, and that an updated report be brought to Executive within three months detailing the break clause in leases, tendering process for dilapidation works and the minimisation of the period of time between departure from office and the end of the Council’s lease on the building.

REASON:      In order to vacate the premises and re-locate staff within the project’s financial model and with minimal disruption and risk to Council services.

                        (v)        That the Director of City Strategy detail to the Leader any costs arising from the objection by the Victorian Society.

REASON:      To assess the financial effect on the project of this late intervention in the planning process by a statutory consultee.

[See also under Part B Minutes]

Members considered a report which provided an update on the progress of the Accommodation Project and sought endorsement of a property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011 and approval for an increase in the use of the Venture Fund to cover the Early Years Deficit.

On 24 June 2010, the Planning Committee had approved plans for the new Headquarters building.  Subject to listed building consent and the developer satisfying the terms of the Conditional Sale and Development Agreement, work was scheduled to start on site in early November.  An indicative timetable for completion of the project was set out in paragraph 33 of the report.  On 25 June 2010, the Accommodation Project Board had considered three options for a property exit strategy, as set out in paragraph 16.  The option approved, Option C, was to vacate De Grey House and Swinegate Court East, exercise lease break dates in March and May 2011 respectively, retain existing premises and where applicable renegotiate leases in line with the HQ completion date, and relocate displaced staff within the Council’s existing accommodation portfolio.  The exit strategy would remain under constant review in consultation with the ‘More for York’ efficiency programme.  Officers confirmed at the meeting that the owners of the buildings to be vacated were actively engaged with the Council with regard to the issues of planning and future use.

It was reported that the Early Years deficit figure of £1.93m reported in December 2009 had now risen to £2.25m.  This was due to a number of amendments and corrections to the project model, the inclusion of 2009/10 actual revenue costs and 2010/11 budget estimates and a further adjustment to reflect the fall in interest rates.  It was suggested that Members recommend to Council an increase in the use of the Venture Fund to cover this sum. 

RESOLVED: (i)         That the report be noted.

                        (ii)        That the ongoing communication with the public, through the Council’s website, Your City and e-mail, be noted.

                        (iii)       That it be requested that the business case for the financial benefit of the project be included in future communication.¹

REASON:      To ensure that the benefits of the project, particularly in terms of long-term financial savings, can be clearly communicated to the public.

                        (iv)       That the property exit strategy, and the release of De Grey House and 1A & B Swinegate Court East on the first break clause dates of March and May 2011, with affected staff to be relocated to within the existing accommodation portfolio, be endorsed, and that an updated report be brought to Executive within three months detailing the break clause in leases, tendering process for dilapidation works and the minimisation of the period of time between departure from office and the end of the Council’s lease on the building. ²

REASON:      In order to vacate the premises and re-locate staff within the project’s financial model and with minimal disruption and risk to  ...  view the full minutes text for item 35.

This report presents the final report of the Community Safety Overview & Scrutiny Committee, following their review of the Winter Maintenance Policy. 

RESOLVED: That the recommendations of the Scrutiny Committee be supported and that Officers be asked to ensure that they are incorporated into the Council’s Winter Maintenance Policy.

REASON:      To provide an appropriate response to the scrutiny recommendations, which will clarify the position regarding treatment of secondary routes, improve the availability of ‘self help’ salt in severe weather and ensure that information is readily available to the public.

Members considered a report which presented the findings of the Community Safety Overview & Scrutiny Committee following their review of the Council’s Winter Maintenance Policy. 

The recommendations made by the Scrutiny Committee in relation to the key objectives of the review - cycleways, salt bins, secondary routes and policy / raising awareness - were set out in paragraph 6 of the cover report and paragraph 52 of the final report at Annex 1. A total of twelve recommendations had been made.

Having noted the comments of the Labour Group Spokespersons on this item and the comments made by Cllr Merrett under Public Participation / Other Speakers, it was

RESOLVED: That the recommendations of the Scrutiny Committee be supported and that Officers be asked to ensure that they are incorporated into the Council’s Winter Maintenance Policy. ¹

REASON:      To provide an appropriate response to the scrutiny recommendations, which will clarify the position regarding treatment of secondary routes, improve the availability of ‘self help’ salt in severe weather and ensure that information is readily available to the public.

This report describes the work undertaken to review the Winter Maintenance policy in preparation for the next winter maintenance period from November 2010, outlines the changes recommended and seeks approval to amend the policy accordingly.

RESOLVED: (i)         That the work carried out so far be noted.

                        (ii)        That the approach to amending the Winter Maintenance Policy be approved, in particular:

a)                 the minor changes to the primary routes;

b)                 the proposals for secondary routes in times of severe weather;

c)                  consultation with ward committees on the location and provision of ‘self help’ bins;

d)                 the revised approach to out of hours contact with the York Contact Centre and improvements in communication with Members and residents.

(iii) That the situation with salt supplies nationally be noted.

(iv) That the open day which is to take place in October, following the review of the policy, be noted.

REASON:      To ensure that the issues raised during the prolonged period of bad weather last winter are addressed and to improve the Council’s response to severe winter weather.

Members considered a report which described the work undertaken by Officers to review the Council’s Winter Maintenance Policy in preparation for the next winter maintenance period (from November 2010) and sought approval to amend the Policy in line with the recommended changes arising from the review.

The review had included meetings of the Winter Maintenance Group, chaired by the Director of Communities & Neighbourhoods, as well as feedback from a ‘talkabout’ survey of 1,000 residents and from ward committee meetings.  The main changes proposed were:

• A modest increase in the precautionary gritting network
• A modest increase in the precautionary gritting of footways
• Establishment of a list of secondary routes in extreme weather
• 24/7 coverage by York Contact Centre in long spells of bad weather
• Formation of a Winter Maintenance Group to control resources and communications in prolonged periods of bad weather
• Improvement of information on the Council web site
• Establishment of priority cycle routes.

These changes could be funded from available budgets during a normal winter, although a further severe winter requiring secondary action would result in financial pressures.

With regard to the legal position of residents clearing ice from the pavement in front of their house, Officers confirmed that they were happy with the advice provided to the public on this issue, as indicated in paragraph 63 of the report.  With reference to the comments made by Cllr Merrett under Public Participation / Other Speakers, it was noted that the proposals for secondary routes contained in the policy included provision for the treatment of footpaths as and when resources were available.

RESOLVED: (i)         That the work carried out so far be noted.

                        (ii)        That the approach to amending the Winter Maintenance Policy be approved, in particular:

a)                 the minor changes to the primary routes;

b)                 the proposals for secondary routes in times of severe weather;

c)                  consultation with ward committees on the location and provision of ‘self help’ bins;

d)                 the revised approach to out of hours contact with the York Contact Centre and improvements in communication with Members and residents. ¹

(iii) That the situation with salt supplies nationally be noted.

(iv) That the open day which is to take place in October, following the review of the policy, be noted.

REASON:      To ensure that the issues raised during the prolonged period of bad weather last winter are addressed and to improve the Council’s response to severe winter weather.

This report presents the revised final report of the Traffic Congestion Ad Hoc Scrutiny Committee following the completion of their review of Traffic Congestion in York. 

RESOLVED: (i)         That the contents of the revised final report and its annexes be noted, against the background of likely reductions in national public expenditure profiles over the next few years.

                        (ii)        That the views expressed by residents in response to the limited strategic choices offered in the Scrutiny Committee’s survey of public opinion, and the rather wider options being considered through the LTP3 consultation process, be noted.

                        (iii)       That Officers be requested, when preparing the next Local Transport Plan and when responding to the information detailed in pages 190 to 230 of the Executive papers (Annex E to the scrutiny report), to evaluate, cost and further develop those techniques and initiatives listed within Option C of the scrutiny report, together with an extension of the Council’s current LTP policies, including, where appropriate, refinements to the highway network.

                        (iv)       That further engagement and consultation with York residents and businesses take place during the LTP3 build process prior to its submission for government funding, and that an ongoing dialogue on transport issues be maintained with local and regional stakeholders.

                        (v)        That other innovative and creative ways in which to deliver strategic transport improvements, should an application for government funding fall short or fail, be examined.

REASON:      To provide an appropriate response to the recommendations of the Scrutiny Committee, whilst taking proper account of government restrictions on public expenditure and the broader requirements of the LTP3 process.

Members considered a report which presented the revised final report of the Traffic Congestion Ad Hoc Scrutiny Committee following the completion of their review of Traffic Congestion in York.  Cllr Merrett was in attendance, as Chair of the Scrutiny Committee, to support the Committee’s recommendations.

The Executive had already approved, in April 2010, a number of recommendations arising from the review.  Since then, the Scrutiny Committee had met again to consider the findings of a city-wide consultation survey on options to tackle congestion.  As a result, they had agreed an additional recommendation (recommendation xxvi), as detailed in paragraph 13 of the cover report and paragraph 30 of the final report at Annex 1.  This supported the progression of Option C as a long term strategy, as detailed in Annex D to the scrutiny report.

Having noted Cllr Merrett’s comments and the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: (i)         That the contents of the revised final report and its annexes be noted, against the background of likely reductions in national public expenditure profiles over the next few years.

                        (ii)        That the views expressed by residents in response to the limited strategic choices offered in the Scrutiny Committee’s survey of public opinion, and the rather wider options being considered through the LTP3 consultation process, be noted.

                        (iii)       That Officers be requested, when preparing the next Local Transport Plan and when responding to the information detailed in pages 190 to 230 of the Executive papers (Annex E to the scrutiny report), to evaluate, cost and further develop those techniques and initiatives listed within Option C of the scrutiny report, together with an extension of the Council’s current LTP policies, including, where appropriate, refinements to the highway network. ¹

                        (iv)       That further engagement and consultation with York residents and businesses take place during the LTP3 build process prior to its submission for government funding, and that an ongoing dialogue on transport issues be maintained with local and regional stakeholders. ²

                        (v)        That other innovative and creative ways in which to deliver strategic transport improvements, should an application for government funding fall short or fail, be examined. ³

REASON:      To provide an appropriate response to the recommendations of the Scrutiny Committee, whilst taking proper account of government restrictions on public expenditure and the broader requirements of the LTP3 process.

This report presents the final report of the Effective Organisation Overview & Scrutiny Committee, following the review of City of York Council Apprenticeships and other work-based learning opportunities. 

RESOLVED: (i)         That the contents of the final report and its annexes be noted.

                        (ii)        That the recommendations set out in paragraph 6 of the cover report be agreed.

REASON:      To provide an appropriate response to the scrutiny recommendations, which will improve the Council’s approach to apprenticeships and other work-based training.

Members considered a report which presented the final report of the Effective Organisation Overview & Scrutiny Committee following their review of City of York Council apprenticeships and other work-based learning opportunities. Cllr Healey was in attendance, as the current Chair of the Committee, to support the scrutiny recommendations.

The Committee had endorsed the adoption of the Draft Workforce Plan considered by the Executive on 6 July 2010 and had agreed three additional recommendations, as set out in paragraph 6 of the cover report and paragraph 43 of the final report at Annex 1.

Having noted the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: (i)         That the contents of the final report and its annexes be noted.

                        (ii)        That the recommendations set out in paragraph 6 of the cover report be agreed. ¹

REASON:      To provide an appropriate response to the scrutiny recommendations, which will improve the Council’s approach to apprenticeships and other work-based training.

This report describes the Closed Circuit Television (CCTV) system operating in the City, outlines protocols and opportunities for expanding the system and seeks approval to formalise the funding arrangements for new camera installations and adopt a revised Code of Practice for System Operation.

RESOLVED: That consideration of this item be deferred to the next meeting of the Executive.

REASON:      To allow time to understand more fully the implications of the information contained in the report.

Members received a report which outlined opportunities for expanding the Closed Circuit Television (CCTV) system operating in the City and sought approval to finalise funding arrangements for new camera installations and to adopt a revised Code of Practice (CoP) for System Operation.  The revised CoP was annexed to the report.

RESOLVED: That consideration of this item be deferred to the next meeting of the Executive.

REASON:      To allow time to understand more fully the implications of the information contained in the report.

This report presents options for recycling and residual waste collections in the Leeman Road, Poppleton Road and Acomb areas, and for other properties in the City that do not currently have full recycling and fortnightly collection of residual waste.

RESOLVED: (i)         That the recently revised kerbside recycling and alternate weekly collection arrangements in the Leeman Road, Poppleton Road and Acomb areas be continued, whilst working with residents to improve refuse arrangements, in accordance with Option 2 in paragraph 22 of the report.

REASON:      To ensure that the Council can provide a service within the available budget that meets the needs of residents and the requirements of the collection service.

                        (ii)        That residents of streets off Holgate Road and Poppleton Road be consulted, as per action point (a) in paragraph 22.

REASON:      To help identify and resolve any problems in these streets.

                        (iii)       That the work which will be done for the Communication Plan, as set out in paragraph 29 be noted and that the Communication Plan at Annex C be agreed.

REASON:      To ensure that the Council is communicating clearly with residents and that they are supportive of the efforts to increase recycling.

                        (iv)       That the remaining 16,601 households be provided with full recycling and that the move be made to fortnightly residual waste collection, but that no change be made to collection points except where thee are clear safety concerns, as outlined in Option 1 at paragraph 25 of the report, and that the collection points be reviewed at some time in the future to ensure that services are delivered cost effectively.

REASON:      So that the Council can meet the requirements of the Household Waste Recycling Act 2003 to provide all households with kerbside collections for at least two recyclable materials by 31 December 2010.

Members considered a report which presented options for recycling and residual waste collections in the Leeman Road, Poppleton Road and Acomb areas, and for other properties in the City that did not currently have full recycling and fortnightly collection of residual waste.

Service changes in these areas has been implemented as previously agreed, in line with the outcomes of the Groves trial project.  However further consultation, prompted by residents’ concerns, had highlighted the need to review why the new arrangements were working less well in some streets than others.  The need to engage with the local community on this had been discussed with the Neighbourhood Management Team, who were looking to create a ‘partner task group’ to develop Central Collection Points in some streets. In certain streets, as listed in Annex B to the report, front of property collection would be necessary for reasons of safety. Options to resolve residents’ concerns in streets where safety was not an issue, and where gates were not installed, were outlined in paragraph 22, as follows:

Option 1 – revert to previous arrangements, but with fortnightly collection of residual waste.

Option 2 (recommended) – continue with revised arrangements but work with residents to improve refuse arrangements.

The Council remained committed to the provision of the Household Waste Recycling Act 2003, the previous roll-out of which had been delayed.  Options to get the roll-out programme back on schedule were:

Option 1 (recommended) – provide households with full recycling and move to fortnightly residual waste collection, but make no changes to grey waste collection points.  A proposed timetable for implementation of this option by December 2010 was set out in paragraph 26.

Option 2 – provide households with full recycling and move to fortnightly residual waste collection and changes to front of property collection.

Having noted the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: (i)         That the recently revised kerbside recycling and alternate weekly collection arrangements in the Leeman Road, Poppleton Road and Acomb areas be continued, whilst working with residents to improve refuse arrangements, in accordance with Option 2 in paragraph 22 of the report. ¹

REASON:      To ensure that the Council can provide a service within the available budget that meets the needs of residents and the requirements of the collection service.

                        (ii)        That residents of streets off Holgate Road and Poppleton Road be consulted, as per action point (a) in paragraph 22. ²

REASON:      To help identify and resolve any problems in these streets.

                        (iii)       That the work which will be done for the Communication Plan, as set out in paragraph 29 be noted and that the Communication Plan at Annex C be agreed. ³

REASON:      To ensure that the Council is communicating clearly with residents and that they are supportive of the efforts to increase recycling.

                        (iv)       That the remaining 16,601 households be provided with full recycling and that the move be made to fortnightly residual waste collection, but that no change be made to collection points  ...  view the full minutes text for item 41.

This report seeks approval to run an area based working model as a pilot for a minimum of 6 months, introducing enhanced neighbourhood management support arrangements designed to develop wider partnership working and more integrated service delivery.

RESOLVED: That the implementation of the area working pilot, comprising the wards identified at paragraph 19 of the report be approved from September 2010 for a minimum of 12 months and that an evaluation report be brought back to the Executive in September 2011 in order for Members to determine whether to continue the model and widen the scheme to the rest of the City.

REASON:      To provide the scope for delivering improved services at a neighbourhood level by introducing enhanced neighbourhood support arrangements and working closely with a wider range of partners and the voluntary sector.

Members considered a report which sought approval to run as a pilot scheme an area-based working model introducing enhanced neighbourhood management support arrangements, designed to develop wider partnership working and more integrated service delivery.

At their meeting on 7 July 2009, the Executive had agreed to support the principle of area-based working and to receive a further detailed report in due course.  Since then, the organisational review had merged the Council’s Neighbourhood Services directorate with Leisure, Culture & Housing Services.  It was therefore proposed that a new model of area working be adopted, based around an enhanced strategic co-ordination role at local level, led by a dedicated neighbourhood management team.  Details were set out in paragraphs 7 to 10 of the report, with process examples in Annex 1.

It was proposed to implement the area working model as a pilot for a minimum of six months, from September 2010, in the Acomb, Dringhouses & Woodthorpe, Holgate, Micklegate, Rural West and Westfield wards.  Officers from the Neighbourhood Management Unit would hold a series of briefing sessions for ward members in the pilot area prior to the launch, to ensure a full consultation on and understanding of the operation of the model.  Further evaluation would take place throughout the trial period.  Three options were available for Members’ consideration:

Option A – to approve an area based pilot model to run for 6 months in the wards identified, as recommended.

Option B – as above, but in a different cluster of wards.

Option C – not to approve the operation of an area based pilot.

Having noted the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: That the implementation of the area working pilot, comprising the wards identified at paragraph 19 of the report be approved from September 2010 for a minimum of 12 months¹ and that an evaluation report be brought back to the Executive in September 2011 ² in order for Members to determine whether to continue the model and widen the scheme to the rest of the City.

REASON:      To provide the scope for delivering improved services at a neighbourhood level by introducing enhanced neighbourhood support arrangements and working closely with a wider range of partners and the voluntary sector.

This report highlights significant achievements from the Council’s capital programme for 2009/10, along with the final out-turn position, and seeks approval for any slippage and / or changes to the programme.

RESOLVED:(i)         That the 2009/10 capital out-turn position be noted and that the requests for slippage to and from the 2010/11 capital programme be approved.

                        (ii)        That the re-stated 2010/11 to 2014/15 programme, as summarised in Table 4 at paragraph 54 of the report and detailed in Annex 1, be approved.

                        (iii)       That the use of £25k contingency to support Strensall Parish Council in seeking to provide youth facilities in Strensall be approved, subject too the receipt by Officers of the business plan showing the scheme and partners.

REASON:      To allow the continued effective financial management of the capital programme from 2010/11 to 2014/15.

[See also under Part B Minutes]

Members considered a report which highlighted significant achievements from the Council’s capital programme for 2009/10, along with the final out-turn position, and sought approval for slippage and changes to the programme.

The current approved programme amounted to £62.956m, financed by £35.095m external funding and £27.861m internal funding. Capital expenditure during 2009/10 had totalled £58.480m, representing an underspend of £4.399m.  Effective management had meant there had been only minimal variations on specific schemes, resulting in an increase of £107k in Council resources required.  Successfully completed schemes had included the award-winning Joseph Rowntree Secondary school, the new Energise facility and the Fulford Road multi-modal scheme, providing bus priorities and cycle lanes. 

Requests had been received to carry forward to future years budgets totalling £4.905m.  Details were provided in Table 2, paragraph 9 of the report, and under the individual departmental headings in paragraphs 10 to 46.  In addition, Members were asked to approve the use of £25k contingency to support Strensall Parish Council in the provision of youth facilities, following the sale of the former Youth Club premises (paragraph 53), and to recommend to Council the use of Prudential Borrowing to fund the Equal Pay Capitalisation costs of £400k (paragraph 47).

Having noted the comments of the Labour Group Spokespersons on this item, and the comments made by Cllr Wiseman under Public Participation / Other Speakers, it was

RESOLVED: (i)         That the 2009/10 capital out-turn position be noted and that the requests for slippage to and from the 2010/11 capital programme be approved.¹

                        (ii)        That the re-stated 2010/11 to 2014/15 programme, as summarised in Table 4 at paragraph 54 of the report and detailed in Annex 1, be approved.

                        (iii)       That the use of £25k contingency to support Strensall Parish Council in seeking to provide youth facilities in Strensall be approved, subject to the receipt by Officers of the business plan showing the scheme and partners. ²

REASON:      To allow the continued effective financial management of the capital programme from 2010/11 to 2014/15.

This reports provides an update on treasury management performance for 2009/10, compared against the budget and treasury management strategy taken to Budget Council in February 2009, summarises the economic environment over the 2009/10 financial year and reviews treasury management performance in specific areas.

RESOLVED: (i)         That the 2009/10 performance of the Treasury Management activity, movements on the Venture Fund and the Treasury Management out-turn be noted.

                        (ii)        That the movements in the Prudential Indicators be noted.

REASON:      For information, and in accordance with the requirement in the Prudential Code to review the Prudential Indicators.

Members considered a report which provided an update on treasury management performance for 2009/10, summarised the economic environment over the 2009/10 financial year and reviewed treasury management performance in specific areas.

The report summarised the economic environment over the 2009/10 financial year, highlighting the effects of economic conditions on the budget set in February 2009.  It reviewed treasury management performance in respect of long term borrowing, debt restructure, short term investments, investment credit criteria policy, the post Icelandic Bank collapse, the Venture Fund, the Treasury Management out-turn and the Prudential Indicators.

Under the Prudential Code, the Prudential Indicators set by Council in February 2009 must be reviewed.  Details of the indicators, their estimated and actual out-turns, were provided in Annex A to the report.

RESOLVED: (i)         That the 2009/10 performance of the Treasury Management activity, movements on the Venture Fund and the Treasury Management out-turn be noted.

                        (ii)        That the movements in the Prudential Indicators be noted.

REASON:      For information, and in accordance with the requirement in the Prudential Code to review the Prudential Indicators.

This report highlights emerging issues related to the Council’s medium term financial planning and seeks agreement in principle to an outline timetable for the 2011/12 budget process, together with plans to commence the budget consultation in September.

RESOLVED: (i)         That the emerging issues highlighted in the report be noted and that the outline timetable, and plans to commence the budget consultation in September, be agreed in principle.

                        (ii)        That it be noted that any communication direct to households will be through Your City , which will need to be timetabled to assist with the process.

                        (iii)       That Officers be requested to develop a process for group public engagement with the business community and residents in the autumn, with detailed information on the 2010/11 budget lines, for recommendations to be included for the 2011/12 budget.

                        (iv)       That Officers be requested to ensure that the communications plan complies with the equalities requirements of the Council.

                        (v)        That the Chief Executive be requested to provide an update report on the work that is being done to relieve York of the burdens of unnecessary red tape, and that these savings be quantified.

REASON:      So that the 2011/12 can be prepared in a timely manner, whilst ensuring that the impacts of the More for York programme and government spending cuts are communicated to York residents and businesses as part of the consultation.

Members considered a report which highlighted emerging issues relating to the Council’s medium term financial planning and sought agreement in principle to an outline timetable for the 2011/12 budget process, together with plans to commence the budget consultation in September.

The main challenge in terms of budget planning related to the new government’s approach to local authority funding, in particular the cuts to Area Based Grants announced on 10 June 2010 and the further public spending cuts contained in the Emergency Budget of 22 June 2010.  The latest projections indicated that the Council would need to identify savings of at least £12m in 2011/12, instead of the £10m estimated in February.  Options for dealing with potential shortfalls, and how these could be mitigated via the More for York programme, would be assessed over the summer.

Annex 1 to the report set out a plan for the 2011/12 budget process which aimed to address the requirements identified by consultation; namely, a clearer timeline, earlier planning, stronger communication with stakeholders and better education on what the process entailed.  The plan was designed to show inter-relationships between milestones and key pieces of work on a month by month basis across four key work areas – the democratic process, reports, key tasks / milestones and the More for York programme.  A budget manual would be produced for stakeholders and public consultation would take place from September to December 2010.

RESOLVED: (i)         That the emerging issues highlighted in the report be noted and that the outline timetable, and plans to commence the budget consultation in September, be agreed in principle. ¹

                        (ii)        That it be noted that any communication direct to households will be through Your City , which will need to be timetabled to assist with the process.

                        (iii)       That Officers be requested to develop a process for group public engagement with the business community and residents in the autumn, with detailed information on the 2010/11 budget lines, for recommendations to be included for the 2011/12 budget. ²

                        (iv)       That Officers be requested to ensure that the communications plan complies with the equalities requirements of the Council. ³

                        (v)        That the Chief Executive be requested to provide an update report on the work that is being done to relieve York of the burdens of unnecessary red tape, and that these savings be quantified. ⁴

REASON:      So that the 2011/12 can be prepared in a timely manner, whilst ensuring that the impacts of the More for York programme and government spending cuts are communicated to York residents and businesses as part of the consultation.

RECOMMENDED:That Council approve an increase in the Venture Fund of £435k (from £1,692k to £2,127k) to fund the Early Years deficit, as set out in paragraph 41 of the report, with the Executive wishing to see substantial efforts made to reduce this figure before the Full Council meeting in October.

REASON:      To enable the project to proceed, and in view of the fact that the Venture Fund balance is sufficient to cover the deficit, which can be repaid in future years from the estimated NPV savings of the Accommodations Project.

[See also under Part A Minutes]

Members considered a report which provided an update on the progress of the Accommodation Project and sought endorsement of a property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011 and approval for an increase in the use of the Venture Fund to cover the Early Years Deficit.

On 24 June 2010, the Planning Committee had approved plans for the new Headquarters building.  Subject to listed building consent and the developer satisfying the terms of the Conditional Sale and Development Agreement, work was scheduled to start on site in early November.  An indicative timetable for completion of the project was set out in paragraph 33 of the report.  On 25 June 2010, the Accommodation Project Board had considered three options for a property exit strategy, as set out in paragraph 16.  The option approved, Option C, was to vacate De Grey House and Swinegate Court East, exercise lease break dates in March and May 2011 respectively, retain existing premises and where applicable renegotiate leases in line with the HQ completion date, and relocate displaced staff within the Council’s existing accommodation portfolio.  The exit strategy would remain under constant review in consultation with the ‘More for York’ efficiency programme.

It was reported that the Early Years deficit figure of £1.93m reported in December 2009 had now risen to £2.25m.  This was due to a number of amendments and corrections to the project model, the inclusion of 2009/10 actual revenue costs and 2010/11 budget estimates and a further adjustment to reflect the fall in interest rates.  It was suggested that Members recommend to Council an increase in the use of the Venture Fund to cover this sum.

RECOMMENDED:That Council approve an increase in the Venture Fund of £435k (from £1,692k to £2,127k) to fund the Early Years deficit, as set out in paragraph 41 of the report, with the Executive wishing to see substantial efforts made to reduce this figure before the Full Council meeting in October.

REASON:      To enable the project to proceed, and in view of the fact that the Venture Fund balance is sufficient to cover the deficit, which can be repaid in future years from the estimated NPV savings of the Accommodations Project.

RECOMMENDED:That Council approve the use of Prudential Borrowing to fund the Equal Pay Capitalisation costs of £400k.

REASON:                  To enable these costs to be covered, in line with the Council’s successful bid to capitalise costs which would otherwise have to be met from revenue funds.

[See also under Part A Minutes]

Members considered a report which highlighted significant achievements from the Council’s capital programme for 2009/10, along with the final out-turn position, and sought approval for slippage and changes to the programme.

The current approved programme amounted to £62.956m, financed by £35.095m external funding and £27.861m internal funding. Capital expenditure during 2009/10 had totalled £58.480m, representing an underspend of £4.399m.  Effective management had meant there had been only minimal variations on specific schemes, resulting in an increase of £107k in Council resources required.  Successfully completed schemes had included the award-winning Joseph Rowntree Secondary school, the new Energise facility and the Fulford Road multi-modal scheme, providing bus priorities and cycle lanes. 

Requests had been received to carry forward to future years budgets totalling £4.905m.  Details were provided in Table 2, paragraph 9 of the report, and under the individual departmental headings in paragraphs 10 to 46.  In addition, Members were asked to approve the use of £25k contingency to support Strensall Parish Council in the provision of youth facilities, following the sale of the former Youth Club premises (paragraph 53), and to recommend to Council the use of Prudential Borrowing to fund the Equal Pay Capitalisation costs of £400k (paragraph 47).

RECOMMENDED:That Council approve the use of Prudential Borrowing to fund the Equal Pay Capitalisation costs of £400k.

REASON:                  To enable these costs to be covered, in line with the Council’s successful bid to capitalise costs which would otherwise have to be met from revenue funds.

RECOMMENDED:That Council approve an increase in the Venture Fund of £435k (from £1,692k to £2,127k) to fund the Early Years deficit, as set out in paragraph 41 of the report, with the Executive wishing to see substantial efforts made to reduce this figure before the Full Council meeting in October.

REASON:      To enable the project to proceed, and in view of the fact that the Venture Fund balance is sufficient to cover the deficit, which can be repaid in future years from the estimated NPV savings of the Accommodations Project.