Agenda, decisions and draft minutes

There were no apologies.

There were no apologies.

As School Governors Councillors Joan Butterfield, Meirick Davies, Huw Hilditch-Roberts, Tony Thomas, Emrys Wynne and Mark Young declared a personal interest in agenda item 7 – Finance Report (2020/21 Financial Outturn) in so far as it related to school balances.

Councillor Gwyneth Kensler declared a personal item in agenda item 3 – Urgent Matters: UK Government Levelling Up Funding Clwyd South Constituency because she was Chair of Cadwyn Clwyd Local Action Group who had previously provided funding for the Four Highways project in Llangollen.

The following members declared a personal interest in agenda item 7 – Finance Report (2020/21 Financial Outturn) in so far as it related to school balances –

Councillor Joan Butterfield – School Governor Christ the Word Catholic School

Councillor Meirick Davies – School Governor Ysgol Cefn Meiriadog

Councillor Huw Hilditch-Roberts – School Governor Ysgol Pen Barras

Councillor Emrys Wynne – School Governor Ysgol Brynhyfryd & Ysgol Borthyn

Councillor Mark Young – School Governor Denbigh High School

Councillor Gwyneth Kensler declared a personal item in agenda item 3 – Urgent Matters: UK Government Levelling Up Funding Clwyd South Constituency because she was Chair of Cadwyn Clwyd Local Action Group who had previously provided funding for the Four Highways project in Llangollen.

UK GOVERNMENT LEVELLING UP FUNDING – CLWYD SOUTH CONSTITUENCY

RESOLVED that Cabinet delegate authority to the Corporate Director: Economy and Public Realm and Head of Planning, Public Protection and Countryside Services in consultation with the Section 151 Officer, Head of Legal, HR and Democratic Services and the Leader, to agree a bid to be submitted to the UK Government from Denbighshire County Council in partnership with Wrexham County Borough Council for the Constituency of Clwyd South.  This will be following discussions with local Dee Valley Members.

The Leader confirmed the following matter requiring urgent attention –

UK Government Levelling Up Funding – Clwyd South Constituency

The urgency of the report was due to the tight timescales for submission of the bid to enable the Dee Valley to benefit from the significant funding opportunity.

The Leader presented the report (previously circulated as a supplement to the agenda) seeking Cabinet approval to delegate authority for the purposes of agreeing a bid for Levelling Up funding to be submitted to UK Government from Denbighshire County Council in partnership with Wrexham County Borough Council for the Clwyd South Constituency (following discussions with Dee Valley Members).

The purpose of the regeneration funding, which would be delivered through local authorities, was to invest in infrastructure projects.  Bids were based on MP constituency areas of which Denbighshire had three: Vale of Clwyd, Clwyd West and Clwyd South.  There was an initial deadline of 18 June 2021 to submit a bid although other deadlines would be published in due course.  The current report related to Clwyd South with the largest part of the constituency in Wrexham County Borough Council (WCBC) and work had been ongoing to develop a joint bid, with WCBC keen to submit a bid by 18 June 2021. Due to the extremely challenging timescales delegated authority was sought to approve the final bid for submission.  Bids for the Clwyd West and Vale of Clwyd constituencies would be submitted at a later deadline and a Council Briefing would be arranged to consider how best to maximise the funding opportunity and how members could engage in that process.

The Leader elaborated on discussions with Simon Baynes MP and ongoing work to develop the joint bid with WCBC and identifying potentially eligible projects within the Llangollen and Corwen areas.  It was accepted that the process involved a new way of working with officers having to adapt their approach in order to maximise the benefits of the funding opportunity.  The Corporate Director Economy and Public Realm provided an overview of the Levelling Up Funding and implications for Denbighshire, particularly given the constituency based approach and need to work with WCBC on a joint bid for Clwyd South and Conwy County Borough Council for Clwyd West.  Each constituency area could bid up to a maximum of £20m capital funding and the amount of funding would be determined on a competitive basis against a scoring mechanism.  Part of the process involved demonstrating that the bid had both local support and the support of the MP.  £120k revenue funding had been allocated to each local authority to support the development of the bids.  In terms of Clwyd South, WCBC had a long running project for the Trevor Basin and surrounding area which formed part of the World Heritage Site (WHS) and Denbighshire was starting to develop their proposals for the Dee Valley area with confidence that the deadline of 18 June 2021 could be met.  The Public Protection, Regeneration and Economic Development Manager explained that the joint bid focused on the WHS and overarching project ‘Pontcysyllte Aqueduct and Canal WHS and Dee Valley Corridor Tourism Regeneration Scheme’ which included three projects (1) (entirely WCBC) Trevor Basin Masterplan, (2) (Llangollen) visitor movement element within the eleven mile WHS, and (3) (Corwen) visitor movement and providing new entry points to the Dee Valley and WHS.

Dee Valley MAG had discussed the matter and the Leader sought the views of local members.  All local members welcomed the huge opportunity for the area and were fully supportive of the recommendations.  Councillor Graham Timms highlighted a number of potential  ...  view the full minutes text for item 3.

To receive the minutes of the Cabinet meeting held on 27 April 2021 (copy enclosed). 

RESOLVED that the minutes of the meeting held on 27 April 2021 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 27 April 2021 were submitted.

Matters Arising – Page 7, Item 6 Finance Report – Councillor Julian Thompson-Hill confirmed that he had responded directly to Councillor Meirick Davies regarding the issue he had raised relating to Ysgol Llanfair as referenced in the minutes.

RESOLVED that the minutes of the meeting held on 27 April 2021 be received and confirmed as a correct record.

To consider a report by Councillor Tony Thomas, Lead Member for Housing and Communities (copy enclosed) seeking Cabinet approval to tender the next housing improvement framework to procure services required to deliver major external repairs to the Council’s housing stock.

RESOLVED that Cabinet approves the use of the External Enveloping and Energy Efficiency Framework for Council Housing to deliver the required improvements in line with the housing stock business plan.

Councillor Tony Thomas presented the report seeking Cabinet approval to tender the next housing improvement framework to procure services required to deliver major external repairs to the Council’s housing stock and maintain the condition of the housing stock in line with the Welsh Housing Quality Standard.

Some background had been provided regarding the management of council housing stock and significant major repairs completed to achieve the Welsh Housing Quality Standard.  The current programme of improvements ended in May 2021 and it was intended to proceed with the next planned capital programme during autumn 2021.  Work would also include increased energy efficiency measures to ensure both corporate and Welsh Government targets were achieved where financially viable, and new ways of working had been trialled to deliver energy efficiency improvements and track improvements.  A four year framework was proposed to deliver the improvements which allowed for standard external enveloping works together with retrofit energy measures should future grants allow.  The cost of the framework was circa £10m dependent on the level of works required for each applicable lot.  The planned expenditure was included within the Housing Stock Business Plan and current and future spending plans.

Cabinet welcomed the improvement works undertaken to the housing stock over recent years together with the impact of the Welsh Government (WG) Retrofit Grant funding to deliver energy efficiency improvements, and paid tribute to all those involved in that regard.  Cabinet also welcomed the planned improvement works going forward and expectation for further retrofit funding from WG in order to deliver further energy efficiency schemes.  Main areas of debate focused on the following –

·        in response to questions from Councillor Mark Young officers confirmed that in terms of solar PV the main benefit was to the tenant.  Once the longer term funding position was known work would be carried out to identify mechanisms to enable the council to receive a return on that energy provision; the setting up of an energy company via a cooperative was a future option to consider

·        Councillor Brian Jones sought assurances that the housing team were keeping up with the latest energy efficiency developments, including the onset of hydrogen technology, in order for the council to be best placed to benefit from any future opportunities.  The Lead Member and officers provided assurances in that regard confirming regular dialogue with the Welsh Government and a watching briefing on various schemes although there was some conflicting advice regarding new technologies, and the matter would be kept under close review.  In terms of hydrogen ready boilers, they would likely be available some time before the infrastructure to support them and much work would be required nationally before hydrogen boilers became mainstream in the housing stock.  Councillor Jones was keen for the council to be proactive in forging links with those areas of industry at the forefront of such developments in the North West and North East Wales and to be involved at the earliest possible opportunity

·        with regard to the risk of legal challenge identified in the report, officers confirmed that it was a standard risk with any procurement exercise and not specific to the housing improvement framework in particular.

RESOLVED that Cabinet approves the use of the External Enveloping and Energy Efficiency Framework for Council Housing to deliver the required improvements in line with the housing stock business plan.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval to re-tender the Council’s reactive maintenance framework for schools and non-schools properties.

RESOLVED that Cabinet approves the re-tendering of the Reactive Maintenance Framework for Schools and Non-Schools Properties to ensure the Council received best value from its maintenance contractors.

Councillor Julian Thompson-Hill presented the report seeking Cabinet approval to re-tender the Council’s reactive maintenance framework for schools and non-schools properties.  The previous framework had been tendered on a four year timescale and had reached the end of that term and needed to be re-tendered.

The Council’s Property Maintenance Team provided a day to day reactive property repair service to both schools and non-schools.  Contractors were chosen following a tendering exercise based on cost and quality and their area of expertise.  Works were allocated to contractors by the property maintenance helpdesk who acted as the primary point of contact between building users and contractors.  The current framework was due for re-tendering and was expected to be awarded on a two year contract with the option to extend on a 1 plus 1 basis, totalling a potential four year contract.  The annual spend on repairs and maintenance was circa £2m per annum totalling £8m over the life of the framework.  Works were broken down into six lots with the intention to allocate contractors to each lot in the framework with a suite of key performance indicators to ensure quality of work and value for money.

In response to questions the Lead Member and officers advised that –

·        works up to £10k would be subject to a direct award to one of the contractors in the relevant lot who had already been through the screening process and had demonstrated quality and value for money through the monitoring process.  Given the high volume of low value works a direct award provided an efficient means of ensuring those works were carried out in a timely manner, similarly with any urgent works required.  However for those higher value works closer to £10k it was usual practice to undertake a mini competition within the framework

·        Councillor Emrys Wynne raised concerns regarding the wording in the tender document (paragraph 2.1, and subsequent paragraph 8.1.1) as he considered it related to inequality between the Welsh and English languages and he asked that the reference be removed.  The Head of Legal, HR and Democratic Services explained that the reference had been included to safeguard the council against any inaccuracies by the external translators but understood the point made.  He agreed to seek a review of the wording and take advice from the solicitors thereon.

RESOLVED that Cabinet approves the re-tendering of the Reactive Maintenance Framework for Schools and Non-Schools Properties to ensure the Council received best value from its maintenance contractors.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the final revenue position for 2020/21 and proposed treatment of reserves and balances.

RESOLVED that Cabinet –

(a)       notes the final revenue outturn position for 2020/21;

(b)       approves the proposed treatment of reserves and balances as described in the report and detailed in Appendices 1, 2 and 3, and

(c)        notes the details of transfers to and from Earmarked Reserves as set out in Appendix 4.

Councillor Julian Thompson-Hill presented the report on the final revenue outturn position for 2020/21 and proposed treatment of reserves and balances.

Members were guided through the detail of the report and appendices.  In brief the final outturn position on service and corporate budgets (including schools underspend of £7.058m) was an underspend of £9.457m.  Details of the 2020/21 budget service savings and efficiencies required had been provided (£4.448m).  The impact of coronavirus was highlighted and the significant grant funding received from Welsh Government – £19m had been received by the end of the financial year with the assumption that the final grant claims (£2.7m) would be paid in full.  Other areas to note included an overall school balance to be carried forward of £5.670m (an increase of £7.058m on deficit balances brought forward into 2020/21 of £1.388m) with much of that funding to be used in 2021/22 to recover from the impact of Covid-19.  Key elements of the underspend in corporate budgets (£1.874m) were highlighted which allowed services with commitments going into 2021/22 to put forward proposals to carry forward their underspend to cover those costs and also to increase the Budget Mitigation Reserve.  Given the overall position within services and the availability of corporate funds, it was proposed that services carry forward the net underspends listed as committed service balances to help deliver the 2021/22 budget strategy and meet existing commitments.  Reference was also made to the transfers to and from Earmarked Reserves.

The Head of Finance added that the report had been brought forward earlier to achieve the 31 May close down date and for Cabinet to approve the treatment of reserves and balances prior to consideration of the Annual Performance Report at Governance and Audit Committee.  He highlighted that, whilst the figures looked high, the two big movements related to school balances and capital schemes.

The following issues were raised during the ensuing debate –

·         reference was made to the impact on school balances over the last year with most schools showing positive balances.  Councillor Huw Hilditch-Roberts responded to questions regarding Christ the Word Catholic School and explained the reasoning behind the deficit balance, which was as expected given the new school had started with a zero balance and payments were made in arrears, and the subsequent impact of increased pupil numbers.  Consequently there was no cause for concern with projections that the school would show a positive balance of £584k by year 3.  The system in place for assisting schools in financial difficulty was further explained including the production of financial recovery plans which had proved extremely effective.  Further assurances were provided regarding the excellent communication with schools which enabled early identification of issues or potential issues of concern and for the council to work with schools to resolve them

·         in response to a question from Councillor Bobby Feeley regarding future funding availability for businesses continuing to struggle financially, the Head of Finance confirmed that Welsh Government were in the process of finalising a new scheme targeted at businesses which would be administered via Planning and Public Protection Services and supported by the Revenues and Benefits Team.

Cabinet paid tribute to the work of finance officers in responding to the challenges faced during an extremely difficult year and in the general financial management which also gave members confidence that the council’s finances were secure and effectively managed.  The Leader also referred to the positive collaborative working between the Welsh Government and WLGA and regular meetings with the Minister for Local Government where there was recognition for the work carried out by local authorities and the challenges faced.  ...  view the full minutes text for item 7.

RESOLVED that Cabinet’s forward work programme be noted.

The Cabinet forward work programme was presented for consideration and members noted the following additions/amendments –

·         Supporting Mental Health in the Workplace – June

·         Act to Reduce Domestic Violence – June

·         Replacement LDP Revised Delivery Agreement and Covid Impact Assessment – moved from June to July

·         Replacement LDP – Report back on Preferred Strategy consultation – moved from June to July

RESOLVED that Cabinet’s forward work programme be noted.

The meeting concluded at 12.30 hrs.