Agenda, decisions and draft minutes

Due to the current restrictions on travel and requirement for social distancing as a result of the coronavirus pandemic the meeting was held remotely by video conference and was not open to the general public.  All members had been given the opportunity to attend as observers and the Local Democracy Reporter had also been invited to observe.

There were no apologies.

There were no apologies.

Councillors Bobby Feeley and Huw Hilditch-Roberts declared a personal interest in agenda item 7 – Extension of the Council’s UK Leisure Framework because they were Directors of Denbighshire Leisure Limited.

Councillors Bobby Feeley and Huw Hilditch-Roberts declared a personal interest in agenda item 7 – Extension of the Council’s UK Leisure Framework because they were Directors of Denbighshire Leisure Limited.

The Chief Executive provided an update following the Welsh Government announcement the previous day to introduce a circuit breaker across Wales to help regain control of coronavirus.

At the Leader’s request the Chief Executive provided an update following the Welsh Government (WG) announcement to introduce a circuit breaker across Wales to help regain control of coronavirus.  In discussions with WG specific measures to protect Denbighshire’s economy and citizens had been sought including support packages for businesses together with information and clear guidance, some of which had been addressed in the WG announcement.  Assurances were provided that officers were working hard to ensure a safe close down of services and to put in place mechanisms to support business and vulnerable clients, and also to make as much information available as possible through communication and social media channels.  Further updates would be provided in the coming days.

To receive the minutes of the Cabinet meeting held on 22 September 2020 (copy enclosed). 

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that, subject to a point of accuracy, the minutes of the meeting held on 22 September 2020 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 22 September 2020 were submitted.

Accuracy – Page 13 Item 9 Finance Report – Councillor Mark Young asked that his comments regarding the £500 gifted to care workers be included in the minutes.  He had congratulated the Welsh Government on gifting that payment to dedicated care staff and said it was a shame that the gift had been taxed by the UK Treasury.

RESOLVED that, subject to the above accuracy point, the minutes of the meeting held on 22 September 2020 be received and confirmed as a correct record.

RESOLVED that under Section 100A of the Local Government Act 1972, the Press be excluded from the meeting for the following item of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraph 14 and 16 of Part 4 of Schedule 12A of the Act.

To consider a confidential report by Councillor Brian Jones, Lead Member for Waste, Transport and the Environment (copy enclosed) seeking Cabinet approval to undertake the proposed tendering exercise to identify a main contractor to deliver Phase 1 / Enabling Works Contract for the expansion of the Colomendy Industrial Estate, Denbigh.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet –

(a)       grant approval to undertake the proposed tendering exercise, and

(b)       note that a further report will be brought back to Cabinet (via the Strategic Investment Group) for approval of the subsequent Contract Award following the tendering exercise, which will also confirm contract management arrangements, tendered costs and contract details.

Councillor Brian Jones presented the confidential report seeking Cabinet approval to undertake the proposed tendering exercise to identify a main contractor to deliver Phase 1 / Enabling Works Contract for the expansion of the Colomendy Industrial Estate in Denbigh, including Construction of a Waste Transfer Station (WTS).

Details of the proposed tender exercise had been set out within the report together with the outline timescales and anticipated contract value, including how it related to the proposed WTS (Plot 1) and enabling works to be delivered (Plots 2 – 5).  Reference was made to the ongoing collaborative working on expansion of the site and delivery of the contract going forward for development.  The opportunities for businesses and economic growth arising from the expansion were also acknowledged.  The council was leading on the tendering exercise due to the interdependencies between the plots across the overall site.  Assurances were provided that the project had regard to climate change and biodiversity elements including protection of habitats, reducing the number of vehicle journeys for waste collection and installation of EV charging points, and consideration had also been given to hydrogen technologies in the future.

Councillor Mark Young welcomed the collaborative working and benefits it would bring and he was also keen to ensure local companies had the opportunity to bid.  Assurances were provided in that regard and there was anticipated local interest in the tender with a clear preference to engage with local businesses where possible within the contract procedure rules.  The contract would also provide for community benefit and local investment to further support that aim.  In response to further questions officers confirmed that the cost associated with the tender would be solely officer time given that the tender was issued via Sell2Wales which was a web based tool.  In view of the potential works value OJEU timescales would apply and the contract award would be subject to a further report to Cabinet.

RESOLVED that Cabinet –

(a)       grant approval to undertake the proposed tendering exercise, and

(b)       note that a further report will be brought back to Cabinet (via the Strategic Investment Group) for approval of the subsequent Contract Award following the tendering exercise, which will also confirm contract management arrangements, tendered costs and contract details.

Upon completion of the above business the meeting resumed in open session.

To consider a report by Councillor Huw Williams, Chair of Communities Scrutiny Committee (copy enclosed) detailing the conclusions reached by the Scrutiny Committee following consideration of the call-in of the Cabinet decision taken on 22 September 2020 in respect of the disposal of land adjacent to Ysgol Pendref and recommending Cabinet revisit its decision to take into account the Scrutiny Committee’s conclusions and further recommendations.

Vote taken: 4 in favour, 4 against, 0 abstentions; Leader used his casting vote in favour to carry the resolution.

RESOLVED that Cabinet –

(a)       acknowledges Communities Scrutiny Committee’s conclusions and recommendations following its review of the Cabinet decision of 22 September 2020, and

(b)       having reviewed their decision and taken into account the recommendations from Communities Scrutiny Committee, reaffirm the Cabinet decision made on 22 September 2020 to –

(i)    “approve the disposal of land adjacent to Ysgol Pendref, Denbigh outlined in red on the plan (Appendix A to the report) which is surplus to Council requirements on the open market for residential development and delegates authority to the Lead Member for Finance, Performance and Strategic Assets to approve the final sale, and

(ii)  confirms it has read, understood and taken account of the Well-being Impact Assessment (Appendix B to the report) as part of its consideration”

Councillor Huw Williams, Chair of Communities Scrutiny Committee presented the report detailing the conclusions reached by the Scrutiny Committee following consideration of the call-in of the Cabinet decision taken on 22 September 2020 to dispose of land adjacent to Ysgol Pendref, Denbigh which was surplus to council requirements on the open market for residential development.

Cabinet was advised of the detailed discussions which had taken place at the Communities Scrutiny Committee meeting in respect of the Cabinet decision.  The conclusions of the Scrutiny Committee had been set out in the report together with their recommendations.  In brief the Committee had recommended that Cabinet –

·         acknowledges the Scrutiny Committee’s conclusions and recommendations

·         revisits its decision having regard to the vision for future social and affordable housing as set out in the draft new national development framework ‘Future Wales – the National Plan 2040’

·         delays the decision in relation to this particular site for 12 months until the new national development framework was agreed

·         considers options to make the land more attractive to social landlords and smaller developers by breaking it up into smaller parcels/plots, and

·         does not create an oversupply of large unaffordable homes in Denbigh which did not meet local need.

As Lead Member, Councillor Julian Thompson-Hill reminded Cabinet that the land in question had been allocated for housing in the Local Development Plan (LDP) in 2013 following all the appropriate processes and consultation stages.  The land was held within the Housing Revenue Account (HRA) and therefore any capital receipt from the sale would be ring-fenced for the HRA and could not be used for other purposes.  He responded to the scrutiny recommendations as follows –

·         the WG’s draft national development framework was still in draft form with no indication that any new funding would be provided to support the affordable housing aspirations.  Whilst local authorities would be able to access the social housing grant from April 2021 the funding would be a finite amount top sliced from existing budgets for which councils would need to bid against each other and contribute financially.  The 58% intervention rate for registered social landlords would be protected and the amount to councils was not expected to be sizeable

·         delaying a decision on the off chance that something may happen in the future was not a sustainable way to make decisions.  The capital receipt from the sale of the site had already been assumed in the HRA business plan and any delay would impact on the delivery of that plan resulting in less new build housing or less maintenance on existing stock or a combination of both, and there would be no affordable housing provided on the site for a longer period

·         there were significant reasons why it would not be practical to break up the site into smaller development plots, namely the impact on the capital receipt and unit cost of the affordable housing proposed arising from the higher cost of the development and lower value of the land.  Smaller plots increased costs at all stages of development and a consortium of developers would need to agree an entire programme of works prior to purchase.  The council could provide the infrastructure at risk and cost with no guarantee monies could be recovered from future purchasers and it would also reduce or negate any capital receipt

·         in terms of creating an oversupply of unaffordable homes not meeting local need, the proposed sale would be on the open market with a condition of 20% affordable homes which provided double the number of affordable units required under the LDP.  There was an unmet demand for  ...  view the full minutes text for item 6.

To consider a joint report by Councillors Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets and Bobby Feeley, Lead member for Well-being and Independence (copy enclosed) seeking Cabinet approval to extend the Council’s UK Leisure Framework until January 2022.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet approve the extension of the UK Leisure Framework until January 2022 on the same terms as let, and in any event such extension period shall be limited to 50% of the value of the original framework agreement in accordance with Regulation 72 Public Contracts Regulations 2015.

Councillor Julian Thompson-Hill presented the joint report with Councillor Bobby Feeley seeking Cabinet approval to extend the Council’s UK Leisure Framework until January 2022.

Cabinet was advised that the four year term of the current UK Leisure Framework set up by the council was due to expire in January 2021.  The provisions and limitations within procurement legislation as it related to the framework had been set out together with the impact of operating within the restrictions imposed as a result of the coronavirus pandemic.  In the interests of the council and Denbighshire Leisure Limited (DLL), and also in fairness to all providers in the market, it was recommended that the launch of a new procurement process be delayed until next year when a planned new exercise would commence.  It was noted that DLL was contracted to manage the existing framework on the council’s behalf and were supportive of the extension and the current supplier, Alliance Leisure had confirmed that they would be willing to continue with the current framework.

The Leader acknowledged the benefits of the framework for both the council and DLL and in raising the prominence of leisure services beyond Denbighshire’s boundaries.  As Chair of DLL Councillor Bobby Feeley highlighted the difficulties faced by the new company since its inception in April and challenges to trade in difficult circumstances and she paid tribute to all the staff in that regard.  The latest lockdown announcement had come as a further blow and it was hoped to resume services once the restrictions were lifted.   Cabinet echoed those sentiments.

RESOLVED that Cabinet approve the extension of the UK Leisure Framework until January 2022 on the same terms as let, and in any event such extension period shall be limited to 50% of the value of the original framework agreement in accordance with Regulation 72 Public Contracts Regulations 2015.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval to commence a procurement for a works contract with a licensed Asbestos Removal Contractor.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet –

(a)       agree to commence the procurement process for this works contract with a licensed Asbestos Removal Contractor to be advertised;

(b)       agree that the decision above be implemented immediately  in order to prevent any delay in awarding the contract, and

(c)        confirm that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 1 to the report) as part of its consideration.

Councillor Julian Thompson-Hill presented a report seeking approval to commence a procurement for a works contract with a licensed Asbestos Removal Contractor.

The current arrangements to facilitate asbestos removal in council properties via a collaborative framework was due to expire in December 2020.  To facilitate a more flexible and streamlined approach a works contract was recommended involving an agreement with one contractor and fixed rates ensuring better value for money and a more tailored service.  The works contract would be set up for an initial 12 months with the opportunity to extend annually to a maximum of 10 years and renewal would only occur if satisfied with the contractor’s performance.  Details of the contact value had been set out in the report with a total contract value up to £4m.  To prevent any delay in awarding the contract it was recommended the decision to commence the procurement be implemented immediately.

Cabinet was satisfied that the recommended procurement process supported the business needs of the council and delivered value for money.  It was noted that permission to award the contract to the successful tenderer would be subject to a further report to Cabinet in December.

RESOLVED that Cabinet –

(a)       agree to commence the procurement process for this works contract with a licensed Asbestos Removal Contractor to be advertised;

(b)       agree that the decision above be implemented immediately  in order to prevent any delay in awarding the contract, and

(c)        confirm that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 1 to the report) as part of its consideration.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet note the budgets set for 2020/21 and progress against the agreed budget strategy.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy as outlined below –

·        the net revenue budget for 2020/21 was £208.302m (£198.538m in 2019/20)

·        an overspend of £5.107m was forecast for service and corporate budgets (the overspend did not assume receipt of further ‘income loss’ grants or claims)

·        highlighted current risks and assumptions relating to individual service areas together with the financial impact of coronavirus and Leisure ADM budgets

·        detailed required savings and efficiencies of £4.448m agreed including corporate savings relating to triennial actuarial review of Clwyd Pension Fund (£2m); 1% schools savings (£0.692m); service savings (£1.756m)

·        provided a general update on the Capital Plan, Housing Revenue Account and Housing Capital Plan.

Councillor Thompson-Hill elaborated upon the latest financial position in detail, particularly with regard to the financial impact of Covid-19, including grant funding secured to date and the position on claims for the council.

The following issues were raised during the ensuing debate –

·        it was clarified that following a better than expected settlement from WG the reduction in school savings from 2% to 1% had been approved by Council in February 2020 in recognition of schools net deficit balances

·        the draft budget settlement would be issued in December with the final settlement to be announced in March 2021 but there had been no indication as to what it would entail.  Due to the late announcement few changes were expected from the draft settlement and it was likely that the council would need to set the budget before the final settlement was issued

·        no announcement had been made in terms of additional funding for local government with specific regard to the forthcoming lockdown period and it was assumed that claims for loss of income and additional costs incurred as a result would be claimed from the £264m fund previously announced by WG

·         Councillor Bobby Feeley felt that WG should provide specific funding for the leisure sector given that was a vital service in terms of health and wellbeing and continued to face an uncertain and difficult trading position.  It was noted that the claim for loss of income relating to Leisure for Quarter 1 had been paid and the claim for Quarter 2 was currently being prepared but uncertainty remained over Quarters 3 and 4.  The Leader reported upon regular meetings and positive discussion with WG who were aware of the pressures facing local government including leisure services.  However the growing financial pressures on WG may well pose a risk to local government, particularly in terms of future settlements

·         Councillor Mark Young queried how the financial deficit would be addressed if WG funding was not forthcoming and sought assurances that the council continued to work with businesses and residents in terms of business rates and council tax given the current financial challenges.  The Head of Finance reported that the council had been prudent with its reserves with earmarked reserves and a budget mitigation reserve which could be used if necessary and any recommendations in that regard would be brought before Cabinet.  He was confident the council would remain solvent for the current financial year but there were concerns regarding the next financial year onwards; the main uncertainty related to council tax and WG’s ability to fund local government at a level they would like given the financial impact of Covid-19. In terms of recovering council tax and business rates Councillor Thompson-Hill gave assurances that individuals were dealt with as sensitively as possible

·         Councillor Huw Hilditch-Roberts thanked the Leader for his statement to WG calling for urgent information ahead of the  ...  view the full minutes text for item 9.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet’s forward work programme be noted.

The Cabinet forward work programme was presented for consideration.

RESOLVED that Cabinet’s forward work programme be noted.

The meeting concluded at 13.05 hrs.