Agenda, decisions and draft minutes

Councillor Peter Scott had submitted apologies as he had intended to attend.

Councillor Peter Scott had submitted apologies as he had intended to attend.

No declarations of interest had been raised.

No declarations of interest had been raised.

No urgent matters had been raised.

No urgent matters had been raised.

To receive the minutes of the Cabinet meeting held on 26 March 2019 (copy enclosed). 

RESOLVED that the minutes of the meeting held on 26 March 2019 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 26 March 2019 were submitted.

RESOLVED that the minutes of the meeting held on 26 March 2019 be received and confirmed as a correct record.

To consider a report by Councillor Brian Jones, Lead Member for Highways, Planning and Sustainable Travel (copy enclosed) presenting the recommendations from the Strategic Investment Group regarding the Replacement LDP Draft Preferred Strategy.

RESOLVED that Cabinet recommend to Council the Strategic Planning Group recommendations regarding the Draft Replacement LDP Preferred Strategy as follows –

(a)       Draft Proposed Levels of Growth:

68ha of employment land to accommodate a forecasted land requirement of 47.6ha

Land for 3,775 new homes to meet a housing requirement of 3,275 homes

(b)       Draft Proposed Spatial Approach:

Based on Option 3 – focus development in Bodelwyddan Strategic Site and serviced settlements: the top three tiers in the settlement hierarchy (main centres, local centres and villages) with more limited growth in other unserviced settlements (infill & small sites within development boundaries), primarily focused on meeting local needs

(c)        to recommend the Draft Preferred Strategy (Appendix 2 to the report) in its entirety to Council, and

(d)       confirms that it has read, understood and taken account of the Well-being Impact Assessments (Appendix 3 to the report) as part of its consideration.

Councillor Brian Jones presented the report detailing the work undertaken to date on Denbighshire’s Replacement Local Development Plan (LDP) and recommendations from the Strategic Planning Group regarding the Draft Preferred Strategy for the LDP.  The Replacement LDP would provide up to date planning policies and site allocations for development to address issues and needs in the county for the period 2018 – 2033.  In brief, the Draft Preferred Strategy set out –

Draft Proposed Levels of Growth –

·         68ha of employment land to accommodate a forecasted land requirement of 47.6ha

·         Land for 3,775 new homes to meet a housing requirement of 3,275 homes

Draft Proposed Spatial Approach –

·         Focus development in Bodelwyddan Strategic Site and serviced settlements: the top three tiers in the settlement hierarchy (main centres, local centres and villages) with more limited growth in other unserviced settlements (infill & small sites within development boundaries), primarily focused on meeting local needs.

The report provided some background regarding the establishment and membership of the Strategic Planning Group (SPG) together with the development of the Draft Preferred Strategy in terms of developing growth and spatial options and setting out the context for identifying how much development land was required for housing and employment and where that development should be located. The majority of the SPG had agreed to recommend preferred growth levels, the proposed spatial approach and the complete Draft Preferred Strategy document to Cabinet and Council.  The Chair and Elwy MAG representative supported the housing growth figure but not the employment land figure so by implication also did not support the spatial approach.

Cabinet considered the report and recommendations put forward by the SPG and debated focused on the following areas –

·         officers acknowledged the need to make provision for a Gypsy and Traveller transit site through the LDP process which involved a number of steps and would be included in the Deposit LDP stage along with all other site allocations

·         Councillor Tony Thomas referred to issues raised by some Member Area Groups (MAGs) and felt it would be prudent to defer consideration of the item to allow those issues to be addressed and also to better reflect the needs of small businesses which were vital to Denbighshire’s economy.  At the Chair’s invitation Councillor Emrys Wynne, Ruthin MAG representative on the SPG summarised Ruthin MAG’s concerns regarding the potential reduction in the amount of employment land available in Ruthin and subsequent detrimental impact on the locality which was further elaborated upon by Councillor Huw Hilditch-Roberts.  Officers clarified that the employment land figures in the Draft Preferred Strategy provided a broad indication of proposed growth levels which had been based on the BE Group report who had considered the sites in some detail and the reasoning behind the recommendations was explained in terms of the Ruthin sites at Glasdir and Lon Parcwr.  Assurances were provided that no site allocations were being proposed at this stage and if the Draft Preferred Strategy was approved for consultation there would be an opportunity to feedback and inform that work going forward and requests from MAGs to revisit the allocation of employment sites would be accommodated.  Prestatyn MAG had recently put forward a potential employment site for inclusion in the LDP and Councillor Julian Thompson-Hill took assurance that there was no bar to bringing additional sites forward at a later date for consideration as part of the site allocation process and therefore supported the SPG recommendations

·         Councillor Huw Hilditch-Roberts challenged the proposed employment growth figure and basis of the calculations made by the BE Group, particularly with regard to the use of past completion rates  ...  view the full minutes text for item 5.

To consider a joint report (which includes a confidential appendix) by Councillor Bobby Feeley, Lead Member for Well-being and Independence and Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet’s recommendation to Council to support the business case and establishment of a Local Authority Trading Company for a range of previously agreed “in scope” leisure related activities/functions together with associated authorisations.

RESOLVED that Cabinet recommend that Council –

(a)       support the final Business Case for the Project (this will include refinements to the draft business case attached at Appendix A to the report);

(b)       support the establishment of a not for profit Local Authority Trading Company limited by Guarantee (LATC);

(c)        support the appointment of the Corporate Director: Economy and Public Realm to the Board of the LATC;

(d)       support the retention of the current name ‘Denbighshire Leisure’ for the LATC, and

(e)       that Cabinet confirms that it has read, understood and taken account of the Well-being Impact Assessments (Appendix B, Ref no 564 to the report) as part of its consideration.

Councillors Bobby Feeley and Julian Thompson-Hill presented the joint report seeking Cabinet’s consideration of the draft Business Case (confidential appendix attached to the report) for establishing a Local Authority Trading Company (LATC) for a range of previously agreed “in scope” leisure related activities/functions together with associated authorisations prior to formally reporting to Council so that the anticipated savings could be achieved from financial year 2020/21.

Councillor Feeley reiterated the value and importance of the Council’s leisure service provision in terms of people’s health and wellbeing and highlighted the significant investment in those facilities in recent times.  The reasoning behind the establishment of an Alternative Delivery Model (ADM) was explained in order to provide significant savings for the Council in the current financial climate whilst also enabling the service to trade more commercially to help sustain facilities for the future.  The model would allow a more flexible, innovative and entrepreneurial approach to commercial leisure whilst also allowing the Council to retain complete control with robust governance arrangements proposed.  Reference was made to other Councils who were already using similar ADMs to deliver a range of functions together with lessons learnt and an overview was provided as to how the proposed LATC would operate in practice.  Councillor Julian Thompson-Hill reported upon the financial considerations which had been comprehensively detailed within the report highlighting both the significant savings and operational costs incurred for the new company together with financial management responsibilities going forward.  In brief the savings were estimated at £1,107k with the net annual saving in the first year estimated at £800k.  Councillor Mark Young asked for confirmation of staff terms and conditions for those who would be transferred over to the new company as after meetings with unions it had been raised as a question.  It was confirmed that staff affected would be transferred to the new LATC under TUPE regulations and be subject to the same terms and conditions.  Cabinet was also advised that, whilst the current model related to particular leisure related activities/functions there were potential opportunities to add other activities/functions in the future as appropriate.

Cabinet noted the significant financial savings arising from the proposal together with longer term benefits to help secure the financial viability and quality of leisure services going forward together with future opportunities for growth.  Questions were raised regarding various financial aspects arising from the report together with governance arrangements which were considered a key element in contributing to the future success of the LATC.  Assurances were also sought in terms of managing identified risk and safeguarding staff terms and conditions both upon transfer and in the future.

The Lead Members and officers responded to questions as follows –

·        Councillor Mark Young asked how the new business would be cash flowed.  The Head of Finance confirmed in terms of ensuring sufficient cash flow in the initial stages and going forward the intention was for the Council subsidy to be paid in advance which would allow the LATC working capital to manage its affairs and also to transfer a cash reserve to enable the company some freedom around minor investment – it was not anticipated that the company would go over budget but in that event the net savings figure would be reduced accordingly in line with that amount

·        assurance could be taken regarding the robust governance arrangements proposed with two separate boards (1) Operational Board to manage the day to day running of the company, and (2) Strategic Governance Board to provide strategic oversight.  A 10 year contract would be agreed, along with a new leisure strategy.  Both boards would be in addition to  ...  view the full minutes text for item 6.

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.

RESOLVED that Cabinet –

(a)       note the budgets set for 2018/19 and progress against the agreed budget strategy, and

(b)       note the proposed use of service carry forwards.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy.  He provided a summary of the Council’s financial position as follows –

·        the net revenue budget for 2018/19 was £194.418m (£189.252m in 2017/18)

·        an underspend of £0.287m was forecast for service and corporate budgets

·        highlighted current risks and variances relating to individual service areas, and

·        provided a general update on the Housing Revenue Account, Housing Capital Plan and the Capital Plan (including the Corporate Plan element).

Cabinet was also asked to note the proposed use of service carry forwards as detailed within the report.

Cabinet was advised that most of the major capital projects remained on budget and on target.  With regard to Ysgol Llanfair the building works on site were on target to be completed within the contract period.  However the Council was in the process of agreeing an easement for the access to the foul drain within third party land to provide the foul connection to the new school site.  The easement had been signed by the Council and was currently with the trustees of the land owner for review.  Until the easement was completed, works remaining to be carried out could not be planned into the construction programme or submitted to Welsh Water.  Consequently there was a potential delay with the project due to those external circumstances which were largely outside the Council’s control.  Councillor Huw Hilditch-Roberts hoped for a quick resolution to the third party negotiations to avoid any potential delay with the project.

The Leader referred to the Rhyl Queens Market Redevelopment and thanked Welsh Government for the financial support provided to enable purchase of the site for future development and regeneration in Rhyl.

RESOLVED that Cabinet –

(a)       note the budgets set for 2018/19 and progress against the agreed budget strategy, and

(b)       note the proposed use of service carry forwards.

RESOLVED that Cabinet’s Forward Work Programme be noted.

The Cabinet Forward Work Programme was presented for consideration and members noted the following amendments –

·        North Wales Growth Bid Governance Agreement 2 – to be moved from May

·        Denbighshire County Council Framework for Housing Voids Works – to be added for May

RESOLVED that Cabinet’s Forward Work Programme be noted.

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public 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 of Part 4 of Schedule 12A of the Act.

To consider a confidential report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing changes to the outcome process of the NWCF2 and recommended appointment of contractors.

RESOLVED that the change to Lot 3 be approved and the named contractor as detailed in paragraph 3 of the report be appointed to the North Wales Construction Framework 2.

Councillor Julian Thompson-Hill presented the confidential report detailing changes to the outcome process of the North Wales Construction Framework 2 (NWCF2) and recommended appointment of contractors to be used for major construction works over £250k.

Cabinet had approved the appointment of named contractors to the North Wales Construction Framework 2 on 26 February 2019.  Since then one of the contractors had been excluded from the procurement process and consequently approval was sought to appoint the next ranked contractor to the place that had become vacant in Lot 3 as detailed within the report.  Cabinet considered the changes to the outcome of the procurement process and noted that whilst there was a different contractor proposed the same conditions would apply and the impact on the Council was the same.  Consequently it was –

RESOLVED that the change to Lot 3 be approved and the named contractor as detailed in paragraph 3 of the report be appointed to the North Wales Construction Framework 2.

The meeting concluded at 12.55 hrs.