North Ayrshire Council

Transcription

1 Cunninghame House, Irvine. 11 December 2014 North Ayrshire Council You are requested to attend a Meeting of the above mentioned Committee of North Ayrshire Council to be held in the Council Chambers, Cunninghame House, Irvine on WEDNESDAY 17 DECEMBER 2014 at 2.00 p.m. to consider the undernoted business. Yours faithfully Elma Murray Chief Executive 1. Apologies The Provost will invite notification of any apologies for absence. 2. Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 3. Previous Minutes (Page 9) The accuracy of the Minutes of (i) the ordinary meeting of the Council held on 5 November 2014; and (ii) the special meeting of the Council held on 9 December 2014 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 (copies enclosed). North Ayrshire Council, Cunninghame House, Irvine KA12 8EE

2 4. Provost's Report The Provost will report 5. Leader's Report The Leader of the Council will report. 6. Minutes 6.1 Committee Minutes (20 October to 5 December 2014) Submit for noting and ratification, the minutes of meetings of committees of the Council held in the period 20 October to 5 December 2014 (issued under separate cover). 6.2 North Ayrshire Community Planning Partnership (CPP) Board: Minutes of Meeting held on 4 December 2014 (Page 25) Submit report by the Chief Executive on the Minutes of the meeting of the North Ayrshire Community Planning Partnership (CPP) Board held on 4 December 2014 (copy enclosed). 7. Questions In terms of Standing Order No. 12 submit (a) a question by Councillor Hunter to the Cabinet Member for Education Attainment and Achievement in the following terms:- "The decision to remove the 'cessation' of music tuition from the original budget proposals was very welcome. Can the Cabinet Member say which 'fully costed' alternative cut(s) replaced this cut in order to maintain a balanced budget?" (b) a question by Councillor Hunter to the Cabinet Member for Education Attainment and Achievement in the following terms:- "From April 2011 until March 2014, Council departments have spent 2.79m on consultants. Does the Cabinet Member think this is a justifiable expenditure, especially when viewed against the savage cuts in the Education budget?" North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 2

3 (c) a question by Councillor Easdale to the Cabinet Member for Environment and Infrastructure in the following terms:- "I would like the portfolio holder to provide details of all 106 Play Parks, including where they are and what facilities they have and the precise reasons for the closure of the 46 identified Play Parks in 2017/2018, which will save the Council 50,000. Play Parks are an important recreational place for children, these Parks enables children to exercise and play with other children, plus it gets them away from Television and Computer games, which ultimately helps them to be healthier children. Also, will the portfolio holder agree before ANY closure of a Play Park, there will be full consultation with residents in the area, local Community committees and relevant Councillors?" (d) a question by Councillor Reid to the Leader of the Council the following terms:- "Can the leader of the council confirm if he has had or intends to have any meetings with Scottish Government Ministers with regards investment in North Ayrshire? Can the leader share the outcome of any meetings with regards investment in North Ayrshire?" (e) a question by Councillor Reid to the Cabinet Member for Environment and Infrastructure in the following terms:- "(a) Can the portfolio holder for Place confirm the number of vehicles using the B714- Saltcoats to Dalry Road? 10 years ago? 5 years ago? And at the last available count for an average days usage? (b) Can the portfolio holder also confirm the accident statics for the road in the period of the past 10 years on an annual basis? (c) Can you confirm what accident reduction works were carried out on this road in that 10 year period and when?" (f) a question by Councillor Cullinane to the Cabinet Member for Finance and Corporate Support in the following terms:- "How many individuals does the Council currently employ on casual contracts?" North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 3

4 (g) a question by Councillor Cullinane to the Cabinet Member for Environment, Infrastructure and Housing in the following terms:- "Can the portfolio holder confirm that the current Housing Support to Women Experiencing or at Risk of Violence/Domestic Abuse tender is a 22% cut to existing North Ayrshire Women s Aid contracts for Refuge, Counselling Support and Outreach services and does not include 134,000 of previous contracts for Children s Services and Addiction Support?" (h) a question by Councillor Gallagher to the Cabinet Member for Economic Development and Regeneration in the following terms:- "There have been recent reports of the possibly illegal transportation of petrol and diesel to Cumbrae and of storage of the fuel on the island which may also be illegal. At my request the Council ran a consultation on the supply of fuel on the island. The portfolio holder will know that 100% capital grants are available to community and social enterprise groups for the provision of a fuel facility and in addition revenue support for up to five years to alleviate the running costs. Can I ask the Cabinet Member what was the outcome of the consultation, what is the Council s policy is on this matter and what action is being taken to ensure the adequate supply of fuel on Cumbrae?" (i) a question by Councillor Hunter to the Cabinet Member for Finance and Corporate Support in the following terms:- 8. Motions "Will the Portfolio Holder inform Elected Members of all consultants or interims, self employed or employed by a consulting group or agency, employed by the Council since May, 2011? In addition will the Portfolio Holder state which services contracted such consultants/interims and the equivalent daily rate applied to each individual or company and the total cost since May 2011 by service? This would be for all of the above not already covered on North Ayrshire Council web site." (a) a Motion by Councillor Barr, seconded by Councillor Marshall, in the following terms: "that North Ayrshire Council supports a vote of no confidence against Transerve who should maintain the A737 through Dalry. Also Transport Scotland be notified of the outcome". North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 4

5 9. Appointments to Outside Bodies (Page 37) Submit report by the Chief Executive to invite the Council to consider outstanding appointments to outside bodies (copy enclosed). 10. Treasury Management Strategy Report 2015/16 (Page 43) Submit report by the Executive Director (Finance & Corporate Support) on the proposed Strategy for Treasury Management activities within the Council for the financial year 2015/16 (copy enclosed). 11. Urgent Items Any other items which the Provost considers to be urgent. North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 5

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7 North Ayrshire Council Sederunt: Joan Sturgeon Robert Barr John Bell Matthew Brown John Bruce Marie Burns Ian Clarkson Joe Cullinane Anthea Dickson John Easdale John Ferguson Alex Gallagher Willie Gibson Tony Gurney Jean Highgate Alan Hill John Hunter Elizabeth McLardy Grace McLean Catherine McMillan Peter McNamara Ronnie McNicol Ruth Maguire Tom Marshall Jim Montgomerie Alan Munro David O'Neill Irene Oldfather Donald Reid Robert Steel (Provost) (Depute Provost) Attending: Apologies: Meeting Ended: North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 7

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9 North Ayrshire Council 5 November 2014 Agenda item 3(i) IRVINE, 5 November At a Meeting of North Ayrshire Council at 2.00 p.m. Present Joan Sturgeon, Robert Barr, John Bell, Matthew Brown, John Bruce, Ian Clarkson, Joe Cullinane, Anthea Dickson, John Easdale, John Ferguson, Alex Gallagher, Willie Gibson, Tony Gurney, Jean Highgate, Alan Hill, John Hunter, Ruth Maguire, Tom Marshall, Grace McLean, Catherine McMillan, Peter McNamara, Ronnie McNicol, Jim Montgomerie, David O'Neill, Irene Oldfather, Donald Reid and Robert Steel. In Attendance E. Murray, Chief Executive; L. Friel, Executive Director (Finance and Corporate Support); C. Hatton, Executive Director (Place); J. Butcher, Executive Director (Education and Youth Employment); K. Yeomans, Executive Director (Economy and Communities); I. Colvin, Director (Health and Social Care Partnership); A Fraser, Head of Democratic Services, C. Andrew, Senior Manager (Legal Services), L. McEwan, Corporate Communications Manager, A. Beveridge, Graduate (Corporate Communications) and M. Anderson, Acting Committee and Member Services Manager (Chief Executive's Service). Also In Attendance F. Mitchell-Knight and P. Craig, Audit Scotland. Chair Provost Sturgeon in the Chair. Apologies for Absence Marie Burns, Elizabeth McLardy and Alan Munro. 1. Apologies for Absence The Provost invited intimation of apologies for absence which were recorded. 2. Declarations of Interest There were no declarations of interest in terms of Standing Order 16 and Section 5 of the Councillors' Code of Conduct. 3. Previous Minutes The accuracy of the Minutes of the ordinary meeting of the Council held on 23 July 2014 and the special meeting of the Council held on 24 October 2014, were confirmed and the Minutes signed by the Provost in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act Page 0 9

10 4. Leader's Report The Leader of the Council reported on the following matters:- the passing of Bernard Devine, former Chief Executive of North Ayrshire Council; the success of North Ayrshire Schools Concert Band, which recently won the Platinum Award in the Youth Band category and will be participating in the national competition in April 2015; Hayocks Primary School's success in winning the BBC Children in Need 'Best Ever Assembly' competition; the Scottish Rugby team's visit to Largs Academy as part of a day of rugby events involving pupils from Brisbane, Kelburn and St. Mary's primary schools and Ardrossan, Arran, Largs and St. Matthew's secondary schools; the Council's success in winning the Association for Public Service Excellence (APSE) award for the Best Street Cleansing and Streetscene Service Team of the Year award, being short-listed for Best Housing and Regeneration Initiative, Best Public Partnership Working (for the Multi Agency Domestic Abuse Response Team), Best Service Team for Highways, Winter Maintenance and Street Lighting, and Best Service Team for Transport and Fleet, and being nominated as finalists for overall Council of the Year in Service Delivery; that the Council is now only the third out of nine local authorities to exceed the Scottish Government's recycling targets; the Council's Waste Services Team working which, together with Cunninghame Furniture Recycling Company, recently won the Best Partnership Initiative category at the prestigious Scottish Resources Awards; the National Educatering Excellence Awards 2014, which saw Facilities Manager, Ken Campbell, short-listed for Newcomer of the Year, the Council short-listed for the Corporate Social Responsibility Award, and the Facilities Management Team winning the Local Authority Caterer of the Year Award; the award by the Scottish Local Authorities Association for Facilities Managers of School Crosser of the Year to Mary Wales at St. Palladius Primary School; recognition for the Corporate Procurement Team, which was highly commended in the Team of the Year Award category at the Government Opportunities, Excellence in Public Procurement Awards; a ceremony, held as part of the First World War commemorations, to honour Private Ross Tollerton, a recipient of the Victoria Cross; this year's Ayrshire Hospice Ball, which raised a total of 65,000; the Provost's Fundraising scheme, which has raised over 31,000 already this year for good causes and nearly 65,000 in total; and the election of Councillor Grace McLean in the recent North Coast and Cumbraes By Election. Page 1 10

11 5. Minutes 5.1 Minutes of North Ayrshire Council (16 July to 24 October 2014) Submitted, for noting, the Minutes of meetings of committees of the Council held in the period 16 July to 24 October The Council agreed (a) to note that the Minutes of the Licensing Committee held on 20 October 2014, omitted from the current volume of Minutes, would be included in the next volume and submitted to the next ordinary meeting of the Council for noting; (b) to note Councillor Barr's request that, at the next meeting of the Staffing and Recruitment Committee, the Minute of the meeting held on 21 July 2014 be amended to reflect that his dissent related to the appointment process rather than the appointment; and (c) otherwise, to note the Minutes submitted. 5.2 North Ayrshire Community Planning Partnership (CPP) Board: Minutes of Meeting held on 4 September 2014 Submitted, for noting, the minutes of the meeting of the North Ayrshire Community Planning Partnership (CPP) Board held on 4 September Noted. 6. Questions In terms of Standing Order No. 12, there were submitted the following questions:- (a) a question by Councillor McNicol to the Cabinet Member for Finance, Corporate Support and Housing in the following terms:- "Will the leader of the Council provide itemised details of all consultancy firms used and monies paid to them by each service of North Ayrshire Council since this administration came into office?" Councillor Maguire responded in the following terms:- "Itemised detail of all consultancy spend is provided on the North Ayrshire Council website at and spending/expenditure-on-consultants, in accordance with the Public Services Reform (Scotland) Act Page 2 11

12 Information is provided on a quarterly basis detailing the: Name of service Nature of consultancy Name of company Date of invoice Amount paid Figures are available for the period April 2012 to 31 March Preparation of the information post March 2014 is in progress and will be published as soon as it is available." As a supplementary question, Councillor McNicol asked whether, in the current financial climate, all Services are conscious of the need to ensure best value and avoid the unnecessary use of consultants. Councillor Maguire responded in the affirmative. (b) a question by Councillor Marshall to the Cabinet Member for Economic Development and Regeneration in the following terms:- "Can you confirm that the existing Planning Permissions for Hunterston A, Hunterston B and the ILW store at Hunterston are restricted to the storage of intermediate level radioactive waste accumulated on these sites and that any future decision to allow EDF to transfer radioactive waste from other sites to Hunterston could not be effected till Planning Permission had been granted by this Authority?" In the absence of the Cabinet Member for Economic Development and Regeneration, the Leader of the Council responded in the following terms:- "I can confirm that the existing permissions for Hunterston A and Hunterston B were authorised under the Electricity Act and not the Planning Acts. Therefore, NAC neither has the record of any conditions to the Consents nor any control over the enforcement of any such conditions. However, Planning Permission was sought and granted on 29 September 1999 for the storage of intermediate radioactive waste. Condition 4 of the planning permission states "that the building shall be used only for the storage of Intermediate Level Waste accumulated through Hunterston A Station's operational lifetime and currently stored there and for no other purpose. The Planning Permission does not include intermediate radioactive waste storage from Hunterston B nor from any other sites. If NAC were approached to seek permission for that activity, regard would have to be given to the local development plan. Policy IND 2 of the LDP states that "development (at Hunterston) for the storage of intermediate waste will be restricted to storage of material accumulated through Hunterston A and Hunterston B Stations only." Page 3 12

13 Any future decision to allow EDF to transfer radioactive waste from other sites to Hunterston would, in principle, be contrary to Policy IND 2." As a supplementary question, Councillor Marshall asked the Leader if he would write to EDF to make clear the position in terms of the requirement for further consents. Councillor Gibson responded in the affirmative. (c) a question by Councillor Marshall to the Cabinet Member for Finance, Corporate Support and Housing in the following terms:- "Please list the amounts owed to NAC as at April 2014 for: (i) (ii) (iii) (iv) Community Charge Council Tax Council House Rents All other sums" Councillor Maguire responded in the following terms:- "I can confirm that the following amounts are recorded in the Council s audited accounts as at 31 March 2014: A. Community Charge 0.000m B. Council Tax m C. Council House Rents 1.342m D. All other sums 6.030m" As a supplementary question, Councillor Marshall asked whether the Cabinet Member could explain the discrepancy between the figure of 0 cited in relation to Community Charge owed and the figure of 12.4m quoted in the press. Councillor Maguire responded that there was no discrepancy. She advised that the Council periodically reviews whether outstanding bills can be collected and, where they are deemed to be irrecoverable for one of a variety of reasons, they are written off (albeit that some amounts which are written off may subsequently be paid). (d) a question by Councillor Marshall to the Cabinet Member for Finance, Corporate Support and Housing in the following terms:- "How many Council Housing Tenancies were subject to at least one drug search resulting in criminal charges during 2013 and of these how many resulted in convictions? How many resultant convictions lead to evictions?" Page 4 13

14 Councillor Maguire responded in the following terms:- "Notifications are provided by Police Scotland to the Antisocial Behaviour Investigation Team where there has been a charge under the Misuse of Drugs Act 1971, generally under one or more of the following three sections: Section 4(2)(b) Section 4(3)(b) Section 5(3) Concerned in unlawful production of controlled drug; Concerned in unlawful supply of controlled drug; Possession with intent to unlawfully supply. For the period 1 January December 2013, 21 such notifications were received by the Antisocial Behaviour Investigation Team where the alleged offender resided within a Council tenancy. This could be as the tenant, joint tenant, or other household member (e.g. child or grandchild). Of these 21: 5 of the cases had charges reduced to a lesser offence on conviction (Section 5 (2) unlawful possession of a controlled drug, therefore no further action could be taken in terms of progressing a successful eviction; in 4 of the cases, the tenancy was abandoned or relinquished by the alleged offender, therefore no further action could be taken; in 4 of the cases, either the Procurator Fiscal did not proceed or dealt with the matter by way of a fine, therefore there was insufficient evidence to take further action against the tenancy; and 1 case is still ongoing at the criminal court. In the remaining 7 cases, a conviction was reached. In these circumstances, the case is brought to a multi-agency case conference by the Antisocial Behaviour Investigation Team, involving other relevant or involved agencies such as Social Services, Police Scotland, Legal Services, Education Services, NHS and the Scottish Children's Reporter Administration. The specific circumstances of the case are carefully considered at this point, as the Council is legally obliged to demonstrate that any proposed action against a tenancy is reasonable. Consideration is given to family composition (such as whether there are children in the household), any vulnerability or capacity issues and the circumstances surrounding the conviction. Of these 7:- 5 cases were issued with a final written warning; 1 tenancy was reduced to a Short Scottish Secure Tenancy; and 1 case has not yet had action taken, due to the time taken to reach conviction. None of the cases reported within the above period resulted in eviction action. It is the experience of the Antisocial Behaviour Investigation Team that in cases most likely to result in eviction, the tenant absconds before the legal process of eviction can be fully completed." Page 5 14

15 As a supplementary question, Councillor Marshall asked if the Council could look at the approach being taken by Aberdeen City Council as this appears to be effective in reducing antisocial behaviour. Councillor Maguire responded by advising that the Council does have an Antisocial Behaviour Complaints Policy and procedures for dealing with matters and that it is important to look at this issue in the round, especially with regard to the family members of those engaged in drug misuse. (e) a question by Councillor Montgomerie to the Leader of the Council in the following terms-: "At the full Council on 11 June there was a motion put forward by Councillor Bruce and seconded by Councillor McMillan concerning the abduction of the Nigerian school girls by the Boko Haram. I put forward an amendment to this motion which was seconded by Councillor McNamara. In my amendment, I asked that the Leader of the Council write to The Secretary of State for Foreign and Commonwealth Affairs to lobby the UK Government to take action on this. My amendment was accepted. I would like to ask the leader if he has done so, and if so, has he had a reply?" The Leader of the Council responded in the following terms:- "The letter attached at Appendix 1 to Question (e) [in the summary of questions and responses circulated at the meeting for Members' information] was sent to the Rt. Hon. William Hague MP, Secretary of State for Foreign and Commonwealth Affairs, on 12 June A hard copy of this letter was circulated to all Elected Members and the Corporate Management Team at that time. The Chief Executive also forwarded a copy of the letter to all other Scottish Council Chief Executives for their information. The Leader s Office Co-ordinator has chased a response on several occasions. A response dated 16 October 2014 was received on Thursday 30 October A copy is attached at Appendix 2 to Question (e). It is worth noting that recent media reports were that the Nigerian Government were in negotiation with the Boko Haram regarding a cease fire and the release of the school girls, albeit the very latest reports indicate that these negotiations appear to have been unsuccessful." Page 6 15

16 7. Motions In terms of Standing Order 13, there was submitted:- (a) a Motion by Councillor Cullinane, seconded by Councillor McNamara, in the following terms:- "This Council notes with concern the recent End Child Poverty report which showed that, after housing costs, 27% of children in North Ayrshire live in Poverty. We believe that tackling poverty needs to be a greater priority for all levels of Government and we as a Council are committed to working towards the eradication of child poverty in North Ayrshire. With Council budgets ever decreasing there is a need for us to develop a poverty strategy that helps us prioritise our spending and allows us to lobby National Governments on key areas that can reduce child poverty in North Ayrshire. The Council therefore resolves to ask officers to bring forward a report to Cabinet on the establishment of a cross party Poverty Taskforce for North Ayrshire to develop that poverty strategy. We ask that officers take into consideration how the membership of this Taskforce can be inclusive to include local groups such as North Ayrshire Foodbank and 1st Alliance who help people in poverty whilst pulling on support from national organisations such as the Poverty Alliance." As an amendment, Councillor Gibson, seconded by Councillor Hill, moved that, given that there are already vehicles which seek to tackle this important issue on a multi-agency basis, overseen by the Community Planning Partnership Board and Shadow Integration Board, both of which include some Elected Members, the Chief Executive should instead arrange for a seminar to update all Elected Members on this issues and allow an opportunity to consider the strategy for tackling poverty and identify the key priorities. Councillor Cullinane accepted the terms of the amendment and, there being no further amendment, the amendment was declared carried. 8. Ward 8 (North Coast and Cumbraes) By Election Submitted report by the Chief Executive on the outcome of the recent By Election in the North Coast and Cumbraes (Ward 8). The Council agreed to note the outcome of the North Coast and Cumbraes By Election and the election of Grace McLean. Page 7 16

17 9. Appointments to Committees and Outside Bodies Submitted report by the Chief Executive on a number of outstanding appointments to committees and outside bodies. Councillor Gibson, seconded by Councillor Hill, moved that Councillor McLean be appointed to Hunterston Site Stakeholders Group. As an amendment, Councillor McNamara, seconded by Councillor Cullinane, moved that Councillor Gallagher be appointed to Hunterston Site Stakeholders Group. On a division, there voted for the amendment 13 and for the motion 10, and the amendment was declared carried. Accordingly, the Council agreed to appoint Councillor Gallagher to Hunterston Site Stakeholders Group. The Council unanimously agreed: (a) to note (i) Councillor Easdale's resignation from the Appeals Committee and Councillor Munro's appointment to that committee, (ii) Councillor Munro's resignation from the Licensing Committee and Councillor Easdale's appointment to that committee, (iii) Councillor Munro's resignation from the Licensing Board and (iv) Councillor McLean's appointment to the Local Development Plan Committee and the North Coast Area Committee; (b) to approve (i) the appointment of Councillor Easdale to the Licensing Board, (ii) the appointment of Councillor Dickson as the Council's main representative on the COSLA Community Justice Sub-Group, with Councillor McNamara appointed as her substitute, (iii) the appointment of Councillor McLean to the Audit Committee, Licensing Committee, Scotland Excel and the West of Scotland Loan Fund and (iv) the appointment of Councillor McMillan as Vice Chair of the Police and Fire and Rescue Committee; (c) to homologate the decision to appoint Councillor Gallagher to Cunninghame Housing Association; (d) in relation to the Spier's Trust Committee, to (i) appoint the local Elected Members of Wards 6 and 7, namely Councillors Barr, Bell, Dickson, Highgate, McLardy and McMillan, as members of the Spier's Trust Committee; (ii) delegate to the committee the power to co-opt such non-voting members as it deems necessary, up to a maximum of four; and (iii) set the quorum for meetings of the committee at three Elected Members; and Page 8 17

18 (e) to revise the Scheme of Administration to (i) amend the composition of the Staffing and Recruitment Committee to reduce the number of members of the committee to five, namely three from the Administration (the Leader, Depute Leader, and the appropriate Cabinet Member for any chief officer appointment being considered) and two from the main Opposition (the Group Leader and Depute), with the four fixed positions permitted to appoint Named Substitutes; and (ii) allow named deputies to be appointed for non-voting members of North Ayrshire Shadow Integration Board. 10. Standing Orders Relating to Meetings and Proceedings of the Council and Committees Submitted report by the Chief Executive on updated Standing Orders Relating to Meetings and Proceedings of the Council and Committees. The Head of Democratic Services referred to minor typographical errors at paragraph 15.7 and 25.3 and to a bullet point omitted from paragraph 2.4 of Appendix B to the revised Standing Orders, which were set out at Appendix 1 to the report. The Council agreed to approve the revised Standing Orders Relating to Meetings and Proceedings of the Council and Committees set out at Appendix 1 to the report, subject to the typographical corrections by the Head of Democratic Services, the revised document to be effective from the next ordinary meeting of the Council on 17 December Draft Integration Scheme for North Ayrshire Health & Social Care Partnership Submitted report by the Chief Executive which sought approval to consult on the draft Integration Scheme between NHS Ayrshire and Arran and North Ayrshire Council in accordance with the Public Bodies (Joint Working) (Scotland) Act The Councillor agreed to (a) consult with the prescribed groups on the draft Integration Scheme; (b) note that the Scheme will be revised to reflect the content of the draft Scottish Statutory Instruments laid before Parliament on 3 October 2014; and (c) note that, following consultation, the Integration Scheme will be brought both to the Council and the NHS Board for approval in January Councillor Reid left the meeting during consideration of this item of business. Page 9 18

19 12. Financial Regulations and Codes of Practice Submitted report by the Executive Director (Finance and Corporate Support) on the updated Financial Regulations and Codes of Financial Practice. The Council agreed to approve the Financial Regulations and Codes of Financial Practice set out at Appendices 1 and 2, respectively, to the report. 13. Audit Scotland: Annual Reports on the 2013/14 Audit Submitted report by the Executive Director (Finance and Corporate Support) on the annual audit report for 2013/14. The Council also received a verbal report by the External Auditor, Fiona Mitchell-Knight. She advised that this was a very positive report for the Council, and it was very unusual for a Council only to receive one action point. Councillors Gibson and McNamara commended the Executive Director (Finance and Corporate Support) and her team for their work in significantly improving the audit position of the Council over recent years. The Council agreed to (a) note the findings of the 2013/14 audit, as contained in the External Auditor's annual report, which was circulated as part of the Agenda; (b) note the agreed action plan as outlined in Appendix IV of the annual report; (c) note the verbal report by the External Auditor; (d) approve the establishment of a Social Business Development Fund, as outlined in Appendix B to the report; and (e) record its appreciation of the work of the Executive Director (Finance and Corporate Support) and her team in significantly improving the audit position of the Council over recent years. 14. Disasters Emergency Committee - Gaza Crisis Appeal Submitted report by the Chief Executive on the Gaza Crisis Appeal. The Council agreed, Councillor Marshall dissenting, to (a) support the Gaza Crisis Appeal; and (b) make a donation of 5,000 to the Disasters Emergency Committee to fund its members' UK-based activities, in recognition of the consideration strain which the effects of the conflict in Gaza has placed on the resources of a number of UK-based charities. 15. Committee Timetable 2015 Submitted report by the Chief Executive on a proposed committee timetable for The Council agreed to approve the committee timetable for 2015, as set out at Appendix 1 to the report. The meeting ended at 3.15 p.m. Page 10 19

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21 North Ayrshire Council 9 December 2014 Agenda item 3(ii) IRVINE, 9 December At a Special Meeting of North Ayrshire Council at 2.30 p.m. Present Joan Sturgeon, Robert Barr, John Bell, Matthew Brown, John Bruce, Marie Burns, Ian Clarkson, Joe Cullinane, Anthea Dickson, John Easdale, John Ferguson, Alex Gallagher, Willie Gibson, Tony Gurney, Jean Highgate, Alan Hill, John Hunter, Ruth Maguire, Tom Marshall, Grace McLean, Catherine McMillan, Peter McNamara, Jim Montgomerie, Alan Munro, David O'Neill, Irene Oldfather, Donald Reid and Robert Steel. In Attendance E. Murray, Chief Executive; L. Friel, Executive Director, L. Aird, Interim Head of Finance and M. Hogg, Senior Manager (Financial Management) (Finance and Corporate Support); C. Hatton, Executive Director (Place); J. Butcher, Executive Director and S. Quinn, Head of Service (Development) (Education and Youth Employment); K. Yeomans, Executive Director and A. Sutton, Head of Service (Connected Communities) (Economy and Communities); I. Colvin, Director (Health and Social Care Partnership); A Fraser, Head of Democratic Services, C. Andrew, Senior Manager (Legal Services), L. McEwan, Corporate Communications Manager and M. Gilmour, Senior Communications Officer (Media and Internal Communications)(Corporate Communications) and M. Anderson, Acting Committee and Member Services Manager (Chief Executive's Service). Chair Provost Sturgeon in the Chair. Apologies for Absence Elizabeth McLardy and Ronnie McNicol. 1. Apologies for Absence The Provost invited intimation of apologies for absence which were recorded. 2. Declarations of Interest/Party Whip There were no declarations of interest in terms of Standing Order 16 and Section 5 of the Councillors' Code of Conduct. There were no declarations of the Party Whip. The Executive Director (Finance and Corporate Support) confirmed that Members were up-to-date in relation to council tax and rent, where applicable. Page 0 21

22 3. Minutes of Special Meeting of Cabinet Submitted report, being the Minutes of the Special Meeting of the Cabinet of North Ayrshire Council held on 9 December Noted. 4. Budgets The Cabinet Member for Finance and Corporate Support introduced the budgets by setting out the following:- the significant resources which will be invested in North Ayrshire and the key priorities contained within the budget proposals; the wider financial context in terms of the national economic position of continuing austerity, the need for sustainable economic growth in the UK and wider, and the continued roll out of Welfare Reform; North Ayrshire's financial settlement; additional resources to meet the needs of communities within North Ayrshire; the plans for non-recurring investment in 2015/16 to help tackle unemployment, improve the accommodation within Irvine Royal Academy and accelerate the improvement programme for school toilets; proposed changes and additions to the Capital Investment Programme; the commitment to providing high quality housing services, including 98% compliance with the Scottish Housing Quality Standard by March 2015, planned investment in Council housing and the continued implementation of the Council's Older People's Housing Strategy; and proposals in respect of housing rents and HRA reserves. Councillor McNamara then addressed the meeting as Leader of the Opposition, expressing his Group's commitment to supporting the setting of a balanced budget, as well as its desire to see greater powers devolved to local government and the introduction of a fairer system to replace Council Tax. Councillor McNamara indicated his support for the Council's priority in terms of economic regeneration and jobs, but also highlighted the importance of supporting attainment within schools. He requested that all Members be made aware of any early budget savings achieved and, in addition, asked that a meeting invitation be extended to the new First Minister to request more support for the good work being done by the Council. Councillor McNamara concluded his remarks by expressing a commitment to working with all Members to deliver positive change in North Ayrshire. Thereafter, Councillor Barr, as Leader of the Kilwinning and Dalry Independent Group, referred to the proposed loss of more than 100 teachers and expressed the view that the retention of teacher numbers was more important than capital investment in the refurbishment of Cunninghame House. Councillor Hunter, as Leader of the Three Towns Independent Group, in addressing the meeting, expressed his particular unhappiness at the savage cuts to the education budget. Page 1 22

23 Councillor Marshall, as Leader of the Conservative Group, indicated his support for the budget, but made reference to the additional financial pressures placed on Councils as a result of the reduction in Scottish Government funding and the continued Council Tax freeze. Councillor Marshall referred to the negative impact on attainment of a reduction in the number of teachers and to the need for well-qualified STEM teachers. Councillor Marshall concluded his remarks by comparing the performance of the Scottish Government with the policies and achievements of the Conservative-led UK Government. Thereafter, Councillors Highgate, Gallagher, Clarkson and Reid addressed the meeting in response to the Cabinet Member for Finance and Corporate Support and to comments by the Leaders of the main political groups. The Leader of the Council, in reference to Councillor McNamara's request, undertook to invite the new First Minister to come to North Ayrshire. 5. General Services Revenue Estimates 2015/16 to 2017/18 and Capital Investment Programme 2015/16 to 2022/23 Submitted report by the Executive Director (Finance and Corporate Support) on the Council's revenue spending requirements and anticipated funding for the years 2015/16 to 2017/18; (b) the level of reserves and fund balances held by the Council; (c) options to address the funding gap; and (d) the draft Capital Investment Programme to 2022/23. Councillor Maguire, seconded by Councillor Gibson, moved that the Council agree to the proposals set out in the report and approve the Administration's investment proposals. There being no amendment, the motion was carried. Accordingly the Council agreed, Councillor Barr dissenting, to (a) note the anticipated funding available to meet expenditure requirements, as set out in the report and in Appendix 1; (b) approve the Council's expenditure requirements for 2015/16 and note the indicative requirements for 2016/17 and 2017/18, as contained in the report and its appendices; (c) note the level of reserves and fund balances held by the Council, as set out at Section 2 of the report; (d) agree Members' priorities to be included in the budget for 2015/16; (e) agree the efficiencies and savings referred to within the report and summarised at Appendix 3, to ensure a balanced budget for 2015/16 ; (f) agree the increases to Council fees and charges set out at Appendices 4 and 5; (g) approve the proposed level of Council Tax for 2015/16 as set out at Section of the report; (h) approve efficiency options for 2016/17 and 2017/18, as referred to in Section 2.7 of the report and summarised at Appendix 3 ; (i) note the equality impact of proposed service changes, as summarised in Appendix 8; and (j) approve the capital programme to 2018/19 and note the indicative plan to 2022/23, as contained in Section 2.10 of the report. Page 2 23

24 6. Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget and Rent Levels for 2015/16 (Budget Paper 2, Pages 49-74) Submitted report by the Executive Director (Finance and Corporate Support) on the HRA capital investment programme and revenue budget for 2015/16 and the consequential rent levels. Councillor Maguire, seconded by Councillor Gibson, moved that the Council agree to the proposals set out in the report and approve the Administration's investment proposals. There being no amendment, the motion was carried. Accordingly the Council agreed to (a) approve the HRA capital investment programme for 2015/16, as detailed in Appendix 1 to the report; (b) approve the HRA revenue budget for 2015/16, set out at Appendix 2; (c) approve a rent increase of 2.1% in 2015/16 for council houses (including sheltered housing); (d) approve a rent increase of 2.1% in 2015/16 for the travelling people's site; (e) approve a garage site increase of 0.05 per week and a lock-up increase of 0.11 per week to 2.64 and 5.31 per week respectively, equivalent to 2.1%; (f) approve an increase of 2.1% in sheltered housing utility charges for existing tenants; (g) note the indicative rent increases of 2.5% for 2016/17 and 2.5% for 2017/18; and (h) note the new burdens to be addressed by the Housing Service in the forthcoming years, particularly in respect of Welfare Reform. 7. Treasury Management Strategy Report 2015/16 The Council noted that the report had been withdrawn and that this matter would be considered at the next Ordinary Meeting of the Council. The meeting ended at 3.15 p.m. Page 3 24

25 NORTH AYRSHIRE COUNCIL Agenda Item 6.2 North Ayrshire Council 17 December 2014 Subject: Purpose: North Ayrshire Community Planning Partnership (CPP) Board: Minutes of Meeting held on 4th December, To submit the Minute of the Meeting of the North Ayrshire Community Planning Partnership (CPP) held on 4th December, Recommendation: That the Council notes the Minutes contained in Appendix Introduction 1.1 It was previously agreed that the minutes of the Community Planning Partnership (CPP) Board be submitted to North Ayrshire Council for information. The key matters arising from the minutes have been highlighted for the attention of the Committee and are detailed in paragraph Current Position 2.1 The minutes of the meeting of the CPP Board held on 4th December 2014 are appended. Particular matters for the Council's attention include the following: Agenda Item 4 Mark Inglis, Senior Manager (Specialist Support), North Ayrshire Council provided a presentation on the Early and Effective Intervention approach used in Youth Justice. Report submitted by Marjorie Adams, Programme Manager on the Early Years Collaborative. This provided an update on the national sessions as well as local tests of change being undertaken. Agenda Item 5 The Board received a presentation on Universal Credit from Stephen Humphries (North Ayrshire Council) and Liz McCreadie (DWP). This provided an overview of Universal Credit with particular focus on the role of CP partners in delivery and support. 25

26 Agenda Item 6 Chief Inspector Tim Ross presented the Alcohol and Drugs Partnership Annual Report. This provides an overview of progress made over the past year using a template provided by the Scottish Government. Agenda Item 7 Damien Griffith, Partnership Analyst provided a report on Resource Mapping. An initial resource mapping exercise has been undertaken with further recent analysis on welfare benefit claimants across the neighbourhood areas. An update was also provided on the second series of stakeholder and community based workshops on the Neighbourhood Approach during Winter 2014/15. Agenda Item 8 Morna Rae, Community Planning Team Leader presented several reports on the governance of the Community Planning Partnership. 3. Proposals 3.1 That the Council notes the CPP Board Minutes and, in particular those matters highlighted at 2.1 above. 4. Implications Financial Implications 4.1 There are no financial implications arising from this Report. Human Resource Implications 4.2 There are no human resource implications arising from this Report. Legal Implications 4.3 There are no legal implications arising from this Report. Equality Implications 4.4 There are no equality implications arising from this Report. 26

27 5. Consultations 5.1 No consultations were required. 6. Conclusion 6.1 The Minutes are submitted for information with the matters arising. Reference : For further information please contact Morna Rae on Background Papers None ELMA MURRAY Chief Executive 27

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29 North Ayrshire Community Planning Partnership CPP Board Minutes of Meeting held on 4th December 2014 Present Ayrshire College Jackie Galbraith, Vice Principal Irvine Bay Regeneration Company Patrick Wiggins NHS Ayrshire & Arran John Burns, Chief Executive Dr. John O Dowd, Consultant in Public Health Medicine Martin Cheyne, Chair North Ayrshire Council Councillor William Gibson (Chair) Councillor Alex Gallagher Councillor Robert Steel Councillor Anthea Dickson Councillor Ruth Maguire Elma Murray, Chief Executive Police Scotland Divisional Commander Gillian McDonald Chief Inspector Tim Ross Scottish Fire and Rescue Jim Scott, Area Manager Strathclyde Partnership for Transport Allan Comrie, Senior Transport Planner Third Sector Interface Jim Nichols, Manager 1 29

30 In Attendance Allan Stewart Head of Response and Resilience Scottish Fire and Rescue Services, Mark Inglis Senior Manager North Ayrshire Council, Marjorie Adams Programme Manager North Ayrshire Council, Stephen Humphries Senior Manager North Ayrshire Council, Liz McCreadie Jobcentre Plus, Damien Griffith Partnership Analyst North Ayrshire Council, Morna Rae Community Planning Team Leader North Ayrshire Council, Iona Colvin Director Health and Social Care Partnership, John Butcher Executive Director Education and Youth Employment. Apologies for absence Katie Hutton Skills Development Scotland, Jim Reid Skills Development Scotland, Etta Wright Jobcentre Plus, Stephen Gallagher Scottish Government Chair Councillor Gibson in the Chair. 1. Welcome and Apologies The Chair welcomed those present to the meeting and a special welcome was extended to Allan Stewart, Scottish Fire and Rescue Service, who has recently been appointed as Head of Response and Resilience for North Ayrshire 2. Minutes of Previous Meeting The minutes of meeting held on 4 th September were approved. 3. Matters Arising from Minutes Submitted note of action taken on matters arising from previous meeting on 4 th September. In relation to access to healthcare John Burns advised that meeting arrangements were being made in order to discuss a manager from Strathclyde Partnership for Transport joining the Strategic Board. 4. Early Intervention & Prevention (a) Early and Effective Intervention and Youth Justice Mark Inglis, Senior Manager (Specialist Support), North Ayrshire Council provided a presentation on the Early and Effective Intervention approach used in Youth Justice. Discussion followed on: Public perceptions of dealing with young people with a diversionary instead of punitive approach Benefits in later life of young people not having a criminal record A change in culture amongst police officers following the adoption of this approach 2 30

31 The Board recognised the Early and Effective Intervention approach as having a clear impact on outcomes for young people. (b) Early Years Collaborative Report submitted by Marjorie Adams on the Early Years Collaborative. This provided an update on the national sessions as well as local tests of change being undertaken. The Board discussed the aim of 90% of children meeting developmental milestones and that these targets exclude those who have additional support needs. There was also discussion on: The impact and benefits of using ipads within Early Years settings Changes in methodology in assessing children s development The need to target tests of change appropriately in order to close the inequality gap in outcomes for children John Burns commended the work of the Early Years Collaborative and advised that the power of this approach was to scale up successful tests of change. The Board approved the proposals for further testing, requested that future update reports be provided and that information be provided on how the tests of change can be replicated in order to achieve a greater impact. 5. Working North Ayrshire Universal Credit The Board received a presentation on Universal Credit from Stephen Humphries (North Ayrshire Council) and Liz McCreadie (DWP). This provided an overview of Universal Credit with particular focus on the role of CP partners in delivery and support. Discussion followed on: The amount of uncertainty about timings and detail of provisions The pressures of accelerating our partnership approach to meet changing timescales The resource required by CP partners to support claimants Undertaking a child poverty impact assessment Local work to develop a vulnerability matrix for council tenants was discussed, along with the role of the Money Matters team in supporting vulnerable people within the wider Health and Social Care Partnership. Elma Murray advised the Board of a recent planning meeting in relation to the roll-out of Universal Credit. Whilst timescales are very challenging officers are confident that we can manage the situation. 6. A Healthier North Ayrshire/ A Safe and Secure North Ayrshire 3 31

32 Chief Inspector Tim Ross presented the Alcohol and Drugs Partnership Annual Report. This provides an overview of progress made over the past year using a template provided by the Scottish Government. It was noted that many of the prescribed data sources only provide information from several years ago. There are therefore challenges in presenting a current picture. It was agreed that a recent session run by the Alcohol and Drugs Partnership for Elected Members was useful in providing an overview of activity and that future sessions could be widened to include CPP Board members. Tim Ross suggested that improved performance reporting could be developed by the Alcohol and Drugs Partnership and clearer illustrations of progress be presented to the Board in future. The Board discussed the role of licensing on the consumption of alcohol amongst our local population. The report was agreed by the Board. 7. Tackling Local Inequalities of Outcome (a) Resource Mapping Damien Griffith provided a report on Resource Mapping. An initial resource mapping exercise has been undertaken with further recent analysis on welfare benefit claimants across the neighbourhood areas. It was stated that further contextual information is required from CPP partners to assist in the interpretation of variance in gross expenditure across areas by their respective organisations. The Board agreed to (a) note the need for further information, (b) note the rationale for the overall resource mapping exercise and its contribution to the transparency of future Neighbourhood Plans and (c) note the ongoing analysis of DWP benefits data and its potential application across the Partnership. (b) Pre-Engagement and Consultation Programme An update was provided by Damien Griffith on the second series of stakeholder and community based workshops on the Neighbourhood Approach during Winter 2014/15. Workshops discussions with the three main stakeholders groups have taken place (Community Engagement Reference Group on 13/11/14, Community Planning Partnership Board on 18/11/14, and Elected Members on 20/11/14). Consultation with a wider group of stakeholders across the six neighbourhoods will take place in early A number of themes were identified from these early discussions including the need to increase opportunities for coproduction with the Third Sector, improved communication, simplified language, engendering trust and a level of ownership of the process among all stakeholders. A full report of key findings from these and other workshops will be submitted to the March 2015 Board. 4 32

33 The Board discussed the challenges of using small area statistics in a consistent and meaningful way. Dr John O Dowd, Consultant in Public Health Medicine advised of the development of a panayrshire intelligence network to support this work. The Board agreed the consultation programme. 8. Governance (a) Audit Improvement Plan Morna Rae presented a report on the CPP Audit Improvement Plan. Following the publication of the audit report in March 2013, an Improvement Plan was approved by the CPP Board in June There has been ongoing delivery and monitoring of the Improvement Plan. Audit Scotland undertook audit follow up in June/July 2014 and in their feedback letter they stated It is clear that the CPP is taking action to address all of the areas in its improvement agenda. They also gave examples of specific areas of improvement which had been completed. Updates were provided against each of the actions in the Improvement Plan. The Board agreed that good progress has been made across the themes. There are areas of work which will continue such as the delivery of the Neighbourhood Planning Approach but this does not require to continue to be monitored through the Improvement Plan as direct reports on progress are given to the CPP Board. It was therefore agreed that further Audit Improvement Plan progress reports are not required. A Development Plan for the CPP is being considered by the Strategic Management Team which will identify areas for development in (b) CP Self Assessment The Board considered a report by Morna Rae on CP Self Assessment. The Improvement Service have offered to support North Ayrshire CPP Board in a self assessment exercise. The aim of this would be to understand strengths and areas for improvement, to define challenges and to drive change forward. At its meeting on 14th November the Strategic Management Team (SMT) considered whether North Ayrshire CPP should undertake this self assessment exercise and, if so, what the timing of this should be. The SMT s position was that participation should be delayed. Following the previous self assessment, audit, and SOA quality assurance processes we know what our areas for development are. We have fulfilled much of our previous Audit Improvement Plan and are developing our Development Plan for There was discussion on the range of inspections and self assessment which has recently taken place across the partnership (e.g. Children s Services) and of the need to allow time for improvements to embed before further self assessment is undertaken. The Board agreed the SMT s recommendation that participation in self assessment should be delayed, and that the SMT should consider the position in 6 months time. (c) Benchmarking in CPPs 5 33

34 Morna Rae presented a report on a Scottish Government and Improvement Service benchmarking programme for Community Planning to support the ongoing reform of Community Planning and the delivery of improved outcomes. This will provide a framework which helps CPPs better assess their performance, evidence the impact of interventions, improve accountability/transparency, and share learning. The CPP Benchmarking Indicator set will include a small number of high-level can-opening outcome indicators to both inform CPPs understanding of need locally and provide a basis through which CPPs can understand and ask questions about the impact of partners interventions. The benchmarking framework will also highlight supplementary/drill down data in order to allow deeper exploration and better understanding of why areas differ. The CPP Board noted the development of a CPP benchmarking framework and agreed to update reports in due course. (d) SOA Action Plan Quarter 2 Performance Report The Board discussed a report by Morna Rae on the Quarter 2 performance of the SOA Action Plan and quarterly indicators. The Board considered the quarterly indicators which were not on target: claimant count aged 25-64, emergency inpatient bed day rate for over 75s, number of fire related casualties and number of dwelling fires. They noted the explanatory information provided. Two actions were noted as not being on target for Quarter 2. Contextual information was provided along with detail of remedial action. The Board approved the report. (e) Verbal Update on Best Practice Visit from Mid and East Antrim District Council Morna Rae gave a verbal update on the recent visit by officers and Elected Members from Mid and East Antrim District Council to North Ayrshire CPP. The presentations, group discussions and site visits were well received. Thanks were extended to CP partners who supported the event. 9. Chairs Reports (a) (b) (c) (d) Safer North Ayrshire Partnership Community Engagement Reference Group Health and Social Care Partnership Childrens Services Strategic Partnership Noted. 10 Urgent Items Community Justice Redesign 6 34

35 Morna Rae presented a report on proposals to implement a pan Ayrshire model for community justice services. The three chief executives of the Ayrshire local authorities and the Chief Executive of NHS Ayrshire and Arran agreed at the meeting of the Strategic Alliance of 7th November 2014 that one of the Ayrshire Community Planning Partnerships should take the lead for the strategic elements of Community Justice in Ayrshire. This would mean the re-branding the current SWSCJA as an Ayrshire Community Justice Strategy Group which is led by one of the Ayrshires and reports to all three Community Planning Partnerships. It is suggested some of the funding currently allocated to the South West Scotland CJA should continue to be made available by Scottish Government to allow a rebranded sub-group for Community Justice to continue. This new structure would also cover the remit of the Criminal Justice Joint Committee. There will be consultation on how criminal justice services should be delivered and three options have been put forward as follows: Option A The Criminal Justice service would be delivered within each of the three Ayrshire Council areas (Lead Authority/local delivery model). Option B - The Criminal Justice service would be managed by one of the Ayrshire Councils (Lead Authority/shared service model). Option C - The Criminal Justice service would be managed and delivered within partnership teams aligned to Children and Family services with pan Ayrshire matters addressed through the single partnership. The Board agreed the report. 11. Future Agenda Items No specific items noted. 12. Date of next meeting 19 th March 2015 at 10.30am 13. Marketplace Event Members of the Board attended a lunchtime marketplace event showcasing recent activity within Early Years Services to promote early intervention and prevention. 7 35

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37 NORTH AYRSHIRE COUNCIL Agenda Item 9 North Ayrshire Council 17 December 2014 Subject: Purpose: Appointments to Committees and Outside Bodies To invite the Council to note a change in terms of the membership of the Appeals, Audit and Scrutiny and Petitions Committees and consider nominations in terms of outside bodies vacancies, including the Licensing Board. Recommendation: That the Council agrees to (a) appoint Councillor McLean to serve on the Licensing Board; (b) note that (i) Councillor McLean will replace the Provost on the Appeals Committee and Scrutiny and Petitions Committee and (ii) the Provost will replace Councillor McLean on the Audit Committee; and (c) consider any nominations to fill the outside bodies vacancies set out in Appendix 1 to the report. 1. Introduction 1.1 This report brings the Council up to date with changes to committee and outside bodies appointments arising since the last ordinary meeting. 2. Current Position 2.1 The SNP Group has advised of a change in terms of its representation on the Appeals, Audit and Scrutiny and Petitions Committees and has nominated Councillor McLean to fill a current vacancy on the Licensing Board. In addition, there are outstanding vacancies on a number of outside bodies and nominations are sought. Licensing Board 2.2 At the last meeting of the Council held on 5 November 2014, Councillor McLean was nominated by the SNP Group to fill its vacancy on the Licensing Committee. It is proposed that Councillor McLean also be nominated to the Licensing Board. Appeals Committee 2.3 Councillor McLean will replace the Provost as an SNP Group representative on the Appeals Committee. 37

38 Audit Committee 2.4 The Provost will replace Councillor McLean as an SNP Group representative on the Audit Committee. Scrutiny and Petitions Committee 2.5 Councillor McLean will replace the Provost as an SNP Group representative on the Scrutiny and Petitions Committee. Outside Body Appointments 2.6 Appendix 1 to the report sets out the current position in terms of vacancies on a number of outside bodies. Nominations are invited to fill these vacancies. 3. Proposals 3.1 The Council in invited to (a) appoint Councillor McLean to serve on the Licensing Board; (b) note that (i) Councillor McLean will replace the Provost on the Appeals Committee and Scrutiny and Petitions Committee and (ii) the Provost will replace Councillor McLean on the Audit Committee; and (c) consider any nominations to fill the outside bodies vacancies set out in Appendix 1 to the report. 4. Implications Financial Implications 4.1 None arising from this report. Human Resource Implications 4.2 None arising from this report. Legal Implications 4.3 None arising from this report. Equality Implications 4.4 None arising from this report. Environmental and Sustainability Implications 4.5 None arising from this report. Implications for Key Priorities 4.6 None arising from this report. 38

39 5. Consultations 5.1 Group Leaders have been made aware of the vacancies. 6. Conclusion 6.1 The Council is asked to note the information provided above and make appointments as required. ELMA MURRAY Chief Executive Reference : For further information please contact Melanie Anderson, Acting Committee and Member Services Manager on telephone number Background Papers Correspondence on appointments 39

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41 Summary of Outside Body Vacancies Outside Body Vacancies Current Appointees Ayrshire Criminal Justice Joint Committee 1 Cllr Dickson Cllr McNamara Ayrshire Educational Trust 1 Cllr Dickson Cllr McMillan Cllr Bell Cllr Ferguson CPP Community Engagement 1 Cllr Hill Reference Group Glasgow Prestwick Airport Consultative 1 Cllr Oldfather Committee National Association of Councillors 2 None North Ayrshire Fairtrade Zone Steering 1 Cllr Reid Group North Ayrshire Leisure Limited 2 Cllr Munro Cllr Marshall North Ayrshire Municipal Bank 3 Cllr Reid Cllr Oldfather Cllr Sturgeon Cllr Hunter Cllr McNicol North Ayrshire Violence Against Women 1 Cllr Maguire Forum Scottish Councils Committee on 1 None Radioactive Substances West of Scotland Road Safety Forum 1 Cllr Steel 41

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43 NORTH AYRSHIRE COUNCIL Agenda Item 10 North Ayrshire Council 17 December 2014 Subject: Treasury Management Strategy Report 2015/16 Purpose: To seek approval for the proposed Strategy for Treasury Management activities within the Council for the financial year 2015/16. Recommendation: That the Council agrees to approve the Treasury Management Strategy for 2015/16 as attached at Appendix Introduction 1.1 The Local Government in Scotland Act 2003 and supporting regulations require the Council to 'have regard to' the CIPFA Prudential Code and the CIPFA Treasury Management Code of Practice on Treasury Management (as revised 2011) and to set Prudential and Treasury Indicators for the next three years. 1.2 The key objectives of the Prudential Code are to ensure, within a clear framework, that capital investment programmes are affordable, prudent and sustainable. These requirements need to be recognised in preparing the capital programme in any year i.e. the capital programme should be set at a level that both delivers the Council s strategic priorities and is affordable in terms of the impact of the resultant debt repayments on revenue budgets. The Council has an approved capital programme for the period to 2022/23 for General Services and a 1 year programme for the Housing Revenue Account, with investment requirements for future years outlined within the HRA 30 year Business Plan. 1.3 The Act requires the Council to establish its treasury strategy for borrowing and to prepare an Annual Investment Strategy to set out the Council's policies for managing its investments and for giving priority to the security and liquidity of those investments. 43

44 1.4 CIPFA defines treasury management as: The management of the local authority s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks. 2. Current Position 2.1 The Council approves its Treasury Management Strategy at the start of each financial year with a mid year report provided to Cabinet and a Treasury Outturn report to Council after the end of the financial year. 2.2 The treasury strategy for 2015/16 will reflect decisions to be taken in the light of interest rate forecasts and the Council s borrowing requirements and investment opportunities. The two key elements are cash flow and financing of the capital investment plans. 2.3 The overall objectives for the strategy are as follows:- Borrowing to minimise the revenue cost of borrowings; to manage the Council s cash flow; to manage the borrowing repayment profile; to assess interest rates movements and borrow/invest accordingly; to monitor and review the level of variable rate loans held in order to take advantage of interest rate movements; and to identify and evaluate opportunities for debt rescheduling. Investments to protect capital security of the invested funds; to obtain the best market return whilst recognising that security and liquidity as key priorities; to specify criteria for identifying creditworthy counterparties; and to specify the types of investments permitted and appropriate limits for each. 44

45 2.4 The strategy also includes prudential indicators which are critical in assessing the affordability of the capital investment plans and their impact on the Council's overall finances. The two indicators which are used to demonstrate this are:- The ratio of financing costs to the net revenue stream (for both General Fund and Housing Revenue Account) The incremental impact of capital investment decisions on council tax and rent levels 2.5 There are a number of other key indicators which also ensure that the Council operates within well-defined limits. The strategy, therefore, specifies a) limits we do not expect external debt to exceed; b) appropriate levels of fixed rate borrowing versus variable rate borrowing; and c) lower and upper limits on the maturity structure which reduces the Council's exposure to large sums falling due for refinancing at one time. 2.6 Section 3.3 of the strategy gives information on prospects for interest rates over the short to medium term which are aligned to the economic situation both in the United Kingdom and globally. The current economic outlook and structure of market interest rates have several key treasury management implications. 2.7 The main rating agencies (Fitch, Moody s and Standard & Poor s) have, through much of the financial crisis, provided some institutions with a ratings uplift due to implied levels of sovereign support. More recently, in response to the evolving regulatory regime, the agencies have indicated they may remove these uplifts. The actual timing of the changes is still subject to discussion but is likely to take place during 2015/16. It is important to stress that the rating agency changes do not reflect any changes in the underlying status of the institution or credit environment, merely the implied level of sovereign support that has been built into ratings through the financial crisis. This will result in the "standalone" credit ratings used by Fitch and Moody's from becoming obsolete. As a result the credit element of our future methodology will focus solely on the Short and Long Term ratings of an institution from Fitch, Moody's and Standard and Poor. 2.8 A review of counterparty limits has also been undertaken and reduced for banks which are fully or semi nationalised from 35m to 15m which is more representative of current practices and also limits investments placed with one institution. 45

46 2.9 The Investment Strategy has been expanded to include new investment types within pages This provides authority for the Council to enter into a wider range of investment arrangements which will require Members approval prior to entering into individual agreements The Council is currently maintaining an 'under-borrowed' position. This means that the capital borrowing need (the Capital Financing Requirement) has not been fully funded with loan debt due to the level of the Council's earmarked reserves. The use of internal funds instead of borrowing is recommended at this time due to the low level of investment rates as a result of market conditions and the saving which can be made in borrowing costs. This under-borrowed position will decline through time as earmarked reserves reduce with borrowing requiring to be undertaken to replace the internal funds. 3. Proposals 3.1 It is proposed that the Council agrees to approve the appended Treasury Management Strategy Statement for 2015/ Implications Financial Implications 4.1 The financial implications are as contained in the Appendix to the report. Human Resource Implications 4.2 There are no human resource implications. Legal Implications 4.3 The Local Government in Scotland Act 2003 and supporting regulations require the Council to set out its Treasury Strategy for borrowing and to prepare an Annual Investment Strategy. Equality Implications 4.4 There are no equality implications. Environmental Implications 4.5 There are no environmental issues. 46

47 Implications for Key Priorities 4.6 Approval and implementation of the treasury management strategy will support outcome 15b "Public services are more efficient and effective". 5. Consultations 5.1 No consultation is required in preparation of the strategy. 6. Conclusion 6.1 The Council will continue to carry out its treasury management activities in accordance with best practice, policy and procedures. This strategy sets out the parameters within which these activities will be managed. LAURA FRIEL Executive Director (Finance and Corporate Support) Reference : For further information please contact Margaret Hogg, Senior Manager (Financial Management) on Background Papers 0 47

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49 Treasury Management and Annual Investment Strategy 2015/16 1 P a g e 49