Minute
North Lanarkshire Council · 1 March 2023
Back to Finance and Resources Committee — 1 March 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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FINANCE AND RESOURCES - 1 MARCH 2023 107 1 March 2023 at 10 am. A Meeting of the FINANCE AND RESOURCES COMMITTEE PRESENT Councillor Fisher, Convener; Councillor B. McCulloch, Vice-Convener; Councillors Bustard, Cairns, Campbell, Carragher, Costello, S. Coyle, Crichton, Currie, Duffy, Dunbar, Fotheringham, Hume, D. Johnston, T. Johnston, Jones, Kelly, Keltie, Loughran, MacGregor, McCluskey, McKendrick, McLaren, McNally, McPake, Mitchell, Roarty, Robb, Robinson, Stevenson, A. Stubbs, L. Stubbs and Sullivan. ALSO IN ATTENDANCE In accordance with Standing Order 64(A) Councillors Hughes, Nolan and Smith attended as substitutes for Councillors Linden, Watson and Di Mascio respectively. CHAIR Councillor Fisher (Convener) presided. IN ATTENDANCE The Chief Officer (Finance); Chief Officer (People Resources); Chief Officer (Assets and Procurement); Chief Officer (Legal and Democratic); Chief Officer (Business and Digital); Business Finance Managers (Resource Solutions); Group Manager (Estates), and Democratic Services Manager. APOLOGIES Councillors Beveridge, Di Mascio, Linden, Logue and Watson. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. Councillors Fisher and Duffy, by virtue of being Members of the Board of North Lanarkshire Properties, declared a connection amounting to a declarable interest in respect of paragraph 8 – North Lanarkshire Properties: Re-financing October 2023 - and left the meeting during consideration of that matter. Councillor Crichton, by virtue of a close family member being a teacher, declared a connection in respect of paragraph 3 – Revised F7 Leave of Absence for Teachers and Associated Professional Policy and Accompanying Guidance Notes – and further declared that he considered the interest sufficiently remote that it did not preclude his participation in consideration of that item of business. Councillor Nolan, by virtue of a family member being an employee of the Council, declared a connection in respect of paragraph 2 – Bank Holiday in Honour of the Coronation of His Majesty King Charles III – and further declared that she considered the interest sufficiently remote that it did not preclude her participation in consideration of that matter. Prior to consideration of the following item of business, Councillor Nolan had, by virtue of a family member being an employee of the Council, declared a connection with the matter and had further declared that she considered the interest sufficiently remote that it did not preclude her participation in consideration of the matter.
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FINANCE AND RESOURCES - 1 MARCH 2023 108 BANK HOLIDAY IN HONOUR OF THE CORONATION OF HIS MAJESTY KING CHARLES III 2. There was submitted a report by the Chief Officer (People Resources) (1) informing the Committee that both the UK and Scottish Governments have proclaimed a Bank Holiday in honour of the Coronation of His Majesty King Charles III which will take place on Monday, 8 May 2023 following the Coronation on 6 May; (2) advising that the purpose of the additional Bank Holiday is to allow for a three day weekend that will give families and communities across the country the opportunity to come together to celebrate; (3) confirming that, in relation to schools and early years establishments, Scottish Ministers have confirmed their view that it is important that families in Scotland are able to participate in the Coronation celebrations and are therefore supportive of the additional Bank Holiday becoming a school holiday and that, although there has been no instruction to close schools or any other local authority services, there is an expectation that many workers will be afforded the opportunity to have the day off, and (4) seeking approval for the implications of the additional holiday in regards to service provision and to agree the principles around the application of the additional Bank Holiday as detailed in the report. Decided: (1) that the formal announcement of a Bank Holiday on Monday, 8 May 2023 following the Coronation of King Charles III be noted; (2) that the closure of all schools and nursery establishments on Monday, 8 May 2023 be approved; (3) that the wider extent of closure of the Council on Monday, 8 May 2023 be approved; (4) that it be noted that, to enable this, an application will be made for the statutory schooling days for pupils in the Council to be reduced to 188 days from 190 days in session 2022/23, and (5) that the principles around the application of a Bank Holiday within the Council be approved. Prior to consideration of the following item of business, Councillor Crichton, by virtue of a family member being a teacher, had declared a connection and had further declared that he considered the interest sufficiently remote that it did not preclude his participation in consideration of the matter. REVISED F7 LEAVE OF ABSENCE FOR TEACHERS AND ASSOCIATED PROFESSIONAL POLICY AND ACCOMPANYING GUIDANCE NOTE 3. There was submitted a report by the Chief Officer (People Resources) (1) informing the Committee that, in recognition that the F7 Leave of Absence Policy for Teachers and Associated Professionals had not been reviewed for several years, a sub-group of the Joint Negotiating Committee for Teachers (JNCT) had been created for the purpose of considering existing terms and policy along with any legislative and operational changes that had occurred in the intervening period; (2) reminding the Committee that teachers' terms and conditions of employment are governed by the Scottish Negotiating Committee for Teachers (SNCT) and that, therefore, some aspects of the policy are not negotiable; (3) explaining that, as part of the review, a guidance note was also developed and introduced as it was recognised that some of the provisions within the policy required further detail and instruction on how and when they applied; (4) intimating that both the revised policy and guidance note have been discussed and approved at both the informal JNCT that took place on 6 September 2022 and the formal JNCT that took place on 27 September 2022, and (5) summarising the review of the F7 Leave of Absence Policy for Teachers' and Associated Professionals, and accompanying guidance note, with a number of key areas that have been developed for change being highlighted. C
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FINANCE AND RESOURCES - 1 MARCH 2023 109 Decided: (1) that the contents of the report be noted; (2) that the changes as described within the report and accompanying documents be approved, and (3) that implementation of the revised F7 Leave of Absence Policy for Teachers and Associated Professionals and the guidance note take place at the earliest possible time. ANNUAL DATA PROTECTION REPORT FOR FINANCIAL YEAR 2021-22 4. There was submitted a report by the Chief Officer (Legal and Democratic) providing Committee with information on the Council's data protection compliance and activity in respect of financial year 2021-22. Decided: that the contents of the report be noted. TREASURY MANAGEMENT STRATEGY 2023/24, TREASURY MANAGEMENT AND PRUDENTIAL INDICATORS 2023/24 TO 2025/26 5. There was submitted a report by the Chief Officer (Finance) (1) outlining the Treasury Management Strategy for 2023/24 in accordance with the CIPFA Code of Practice on Treasury Management; (2) reporting on the Treasury and Prudential Indicators as required by the above Code and the CIPFA Prudential Code for Capital Finance in Local Authorities, and (3) reminding the Committee that, as outlined in 2022, the Scottish Government had introduced fiscal flexibilities for local government to help manage the cost of Covid, subject to statutory guidance, and that these flexible options had been reviewed and considered. Decided: (1) that the Treasury Management Strategy 2023/24 be approved; (2) that the Treasury Management and Prudential Indicators for 2023/24 to 2025/26, as set out within Appendix 1 to the report, be adopted, and (3) that the proposed use of specific physical flexibilities as advised by the Scottish Government, in 2022/23 and 2023/24, with the implementation of such managed in line with the principles detailed within the Treasury Management Strategy 2023/24, be acknowledged, and that the Treasury Management Strategy 2023/24 be remitted to the Council for approval. NON-DOMESTIC RATES – EMPTY PROPERTY RELIEF 6. There was submitted a report by the Chief Officer (Finance) (1) informing the Committee that, as part of the Scottish Government’s 2019/20 budget proposals, a commitment had been made to devolve Empty Property Relief to Local Government from 1 April 2023; (2) proposing that, given the short timescales available prior to 1 April 2023, the Council’s Empty Property Relief Policy should mirror the existing reliefs for a period of at least one year to 1 April 2024, and (3) advising that it is the intention of Finance to undertake a review of the Empty Property Relief Policy during 2023, with a view to implementing a revised policy from 1 April 2024 and for the Service to ensure that engagement with key and external stakeholders takes place as part of this policy review. C
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FINANCE AND RESOURCES - 1 MARCH 2023 110 Decided: (1) that the proposed policy in respect of Empty Property Relief be effective from 1 April 2023; (2) that it be recognised that Finance intends to review the Empty Property Relief Policy during 2023 with a view to implementing a revised policy from 1 April 2024 onwards, and (3) that it be recognised that Finance will consult with key stakeholders to inform the revised policy from 1 April 2024. PAYMENT OF LOCAL TAXATION AND BENEFIT UPDATE 7. There was submitted a report by the Chief Officer (Finance) providing an update on performance within the Revenues and Benefits functions of Finance as at 31 December 2022. Decided: that the contents of the report be acknowledged. Prior to consideration of the following item of business, Councillors Fisher and Duffy, by virtue of being Members of the Board of North Lanarkshire Properties, had each declared an interest and left the meeting during its consideration. NORTH LANARKSHIRE PROPERTIES: RE-FINANCING OCTOBER 2023 8. There was submitted a report by the Chief Officer (Finance) (1) informing the Committee that North Lanarkshire Properties LLP's (NLP) current financing borrowing agreement with its lender, Barclays Bank plc, ceases in October 2023 and that a new funding arrangement requires to be put in place to fund the remaining balance of £33m; (2) indicating that NLP had appointed external financial advisors to support the internal project teams and this contract was awarded in December 2022 to Azets; (3) detailing that, as part of the existing loan arrangement, the Council provides an 80% guarantee and that, as part of the scoping documents being issued to lenders, it would be beneficial to include confirmation of this guarantee going forward as this is anticipated to attract more lenders and potentially provide enhanced beneficial rates, and (4) summarising the trading position for NLP over the previous ten years. Decided: (1) that the requirement for NLP to progress a re-financing agreement with an external lender in the region of £33m be acknowledged; (2) that the current financial trading position of NLP be acknowledged, and (3) that the continuation of the 80% guarantee from the Council to NLP be approved. LOCAL TAXATION DEBT WRITE-OFF 2022/23 9. There was submitted a report by the Chief Officer (Finance) presenting a summary of outstanding local taxation accounts which are deemed uncollectable following all attempts at recovery and that, in accordance with financial guidelines, a provision for credit losses had previously been established for the outstanding accounts and that the total recommended for write-off for 2022/23 was £5,350,609.52.
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FINANCE AND RESOURCES - 1 MARCH 2023 111 Decided: (1) that the decision of the Chief Officer (Finance) to write-off £2,028,171.32 for debts under £500 under delegated responsibilities be acknowledged, and (2) that the write-off of all items over £500 to the value of £3,322,438.20 be approved. REMIT FROM HOUSING COMMITTEE OF 15 FEBRUARY 2022 – FORMER TENANT ARREARS WRITE-OFF TO 31 MARCH 2021 10. There was submitted a report by the Chief Officer (Housing Management) which had been considered by the Housing Committee at its meeting held on 15 February 2023 (1) presenting a summary of outstanding debtor accounts which had been deemed uncollectable following all attempts at recovery or considered uneconomically viable to pursue in accordance with financial guidelines; (2) explaining that the debt to be written-off relates to former tenancies where the tenancy end date is prior to 31 March 2021; (3) detailing that the total recommended write-off is £2,610,389.07 which equates to 1.82% of the total rent income of £143,783,000, and (4) remitting the report to the Finance and Resources Committee for final approval. Decided: that the write-off of £2,610,389.07 be approved. REVENUE BUDGET MONITORING REPORT: CHIEF EXECUTIVE'S AND OTHER CORPORATE SERVICES’ 1 APRIL 2022 TO 6 JANUARY 2023 (PERIOD 10) 11. There was submitted a report by the Chief Officer (Finance) (1) summarising the Chief Executive's and other corporate services’ financial performance for the period 1 April 2022 to 6 January 2023 (Period 10), and (2) illustrating the provisional outturn as at 31 March 2023 with major outturn variances highlighted and explained as per the Council’s approved Financial Regulations. Decided: that the financial position of the 2022/23 Chief Executive's and other corporate services’ revenue budget be acknowledged. CHIEF EXECUTIVE SERVICE – CAPITAL MONITORING REPORT 1 APRIL 2022 TO 6 JANUARY 2023 (PERIOD 10) 12. There was submitted a report by the Chief Officer (Finance) highlighting the financial performance and provisional outturn of the 2022/23 Chief Executive Capital Programme for the period ended 6 January 2023 (Period 10). Decided: that the financial position of the 2022/23 Chief Executive Capital Programme be acknowledged. REVENUE MONITORING REPORT COUNCIL SUMMARY – 1 APRIL 2022 TO 6 JANUARY 2023 13. There was submitted a report by the Chief Officer (Finance) (1) providing an update on the overall position for the General Fund Account, Housing Revenue Account and Adult Health and Social Care for the financial year to 31 March 2023; (2) consolidating the budget monitoring position of all services, and (3) highlighting and explaining major variances as per the Council’s approved Financial Regulations.
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FINANCE AND RESOURCES - 1 MARCH 2023 112 Decided: (1) that the financial position of the 2022/23 revenue budget be acknowledged, and (2) that, otherwise, the contents of the report be endorsed. CAPITAL PROGRAMME 2022/23 MONITORING REPORT 14. There was submitted a report by the Chief Officer (Finance) (1) fulfilling the key requirements of the Council's reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice for Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities, and (2) detailing the Quarterly Treasury Management activity for the period 1 October to 31 December 2022 and compliance with the mandatory Treasury and Prudential Indicators. Decided: that the Treasury Management activity for the Quarter ended 31 December 2022, including the positive performance against the key Treasury and Prudential Indicators, be noted. POW11 - REVIEW OF 2022/23 BUDGET SAVINGS 15. There was submitted a report by the Chief Officer (Finance) (1) providing the Committee with an update on the achievements of the approved net savings for financial year 2022/23 of £10.484m; (2) reporting that the Council set aside one-off resources of £3.372m to manage anticipated delays in delivering savings in respect of Active and Creative Communities and the closure of the Muirpark facility, reducing the 2022/23 target to £7.112m, and (3) indicating that it is currently forecast that £5.417m (76%) of the savings would be delivered in year with the remaining balance to be delivered in future years. Decided: that the contents of the report be acknowledged. STRATEGIC PERFORMANCE FRAMEWORK - LATEST PERFORMANCE RESULTS FOR BUSINESS AND DIGITAL 16. There was submitted a report by the Chief Officer (Business and Digital) (1) providing the Committee with an update on the latest results of the strategic performance indicators used by Business and Digital to inform service delivery and underpin operational decisions, and (2) attaching, as an Appendix to the report, a high-level performance overview as at January 2023. Decided: that the high-level performance overview, as presented in Appendix 1 to the report and supporting data contained within a linked document, be acknowledged. STRATEGIC PERFORMANCE FRAMEWORK - LATEST PERFORMANCE RESULTS FOR FINANCE 17. There was submitted a report by the Chief Officer (Finance) (1) providing the Committee with an update on the latest results of the strategic performance indicators used by Finance to inform service delivery and underpin operational decisions, and (2) attaching, as an Appendix to the report, a high-level performance overview as at January 2023. Decided: that the high-level performance overview, as presented in Appendix 1 to the report and supporting data contained within a linked document, be acknowledged.
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FINANCE AND RESOURCES - 1 MARCH 2023 113 STRATEGIC PERFORMANCE FRAMEWORK - LATEST PERFORMANCE RESULTS FOR LEGAL AND DEMOCRATIC 18. There was submitted a report by the Chief Officer (Legal and Democratic) (1) providing the Committee with an update on the latest results of the strategic performance indicators used by Legal and Democratic to inform service delivery and underpin operational decisions, and (2) attaching, as an Appendix to the report, a high-level performance overview as at January 2023. Decided: that the high-level performance overview, as presented in Appendix 1 to the report and supporting data contained within a linked document, be acknowledged. STRATEGIC PERFORMANCE FRAMEWORK - LATEST PERFORMANCE RESULTS FOR ASSETS AND PROCUREMENT 19. There was submitted a report by the Chief Officer (Assets and Procurement) (1) providing the Committee with an update on the latest results of the strategic performance indicators used by Assets and Procurement to inform service delivery and underpin operational decisions, and (2) attaching, as an Appendix to the report, a high-level performance overview as at January 2023. Decided: that the high-level performance overview, as presented in Appendix 1 to the report and supporting data contained within a linked document, be acknowledged. STRATEGIC PERFORMANCE FRAMEWORK - LATEST PERFORMANCE RESULTS FOR PEOPLE RESOURCES 20. There was submitted a report by the Chief Officer (People Resources) (1) providing the Committee with an update on the latest results of the strategic performance indicators used by People Resources to inform service delivery and underpin operational decisions, and (2) attaching, as an Appendix to the report, a high-level performance overview as at January 2023. Decided: that the high-level performance overview, as presented in Appendix 1 to the report and supporting data contained within a linked document, be acknowledged. LAND RE-ALLOCATION FORMER YMCA AND 303 BRANDON STREET, MOTHERWELL, ML1 1RS 21. There was submitted a report by the Chief Officer (Assets and Procurement) seeking approval for the transfer of a building and land held by General Services for inclusion in the New Build Programme incorporating the former YMCA and 303 Brandon Street, Motherwell. Decided: (1) that the land transfer of the former YMCA building and the 303 Brandon Street site from General Services to Place, on the terms as detailed in the report, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement).
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FINANCE AND RESOURCES - 1 MARCH 2023 114 LAND RE-ALLOCATION - PETERSBURN PRIMARY SCHOOL SITE, PETERSBURN ROAD, AIRDRIE, ML6 8DX 22. There was submitted a report by the Chief Officer (Assets and Procurement) seeking approval for the transfer of land held by Education and Families for Inclusion in the New Build Programme incorporating Petersburn Primary School Site, Petersburn Road, Airdrie. Decided: (1) that the land transfer of the former Petersburn Primary School site from Education and Families to Place, on the terms as detailed in the report, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). CONTRACT AWARD FOR LAN/SAN AND SERVER HARDWARE SUPPLY AND MAINTENANCE SERVICES 23. There was submitted a report by the Chief Officer (Business and Digital) seeking approval of the award of a contract for the Local Area Network/Storage Area Network (LAN/SAN) and server hardware supplier maintenance to Virgin Media Business Limited for a total period of 36 months anticipated to commence on 1 April 2023 with the value of the contract not to exceed £3,932,110 exclusive of VAT. Decided: (1) that the award of the contract to Virgin Media Business Limited to a maximum value of £3,932,110 exclusive of VAT be approved, and (2) that it be noted that there had been completion of a procurement procedure where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council. CONTRACT AWARD HR CASE MANAGEMENT SOLUTION 24. There was submitted a report by the Chief Officer (People Resources) (1) informing the Committee that, in the absence of an appropriate Committee meeting, Chief Executive approval had been sought, in accordance with General Contract Standing Orders 21.3.2, to expedite the contract award for an HR Case Management Solution to CDW Limited and that this approval had been granted on 31 October 2022; (2) reporting that the contract was for an initial period of 12 months commencing on 1 November 2022 with the Council having the opportunity to extend the contract for 12 months plus another extension period of 14 months and 15 days and that this extension period would align this contract with the current ITSM contract with CDW Limited, and (3) detailing that the contract shall not exceed £1,327,200.68 exclusive of VAT. Decided: (1) that the approval by the Chief Executive to award the contract to CDW Limited to a maximum value of £1,327,200.68 exclusive of VAT be noted, and (2) that it be acknowledged that this recommendation follows the completion of the procurement procedure where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council.
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FINANCE AND RESOURCES - 1 MARCH 2023 115 CONTRACTS AWARDED BELOW COMMITTEE APPROVAL THRESHOLD 25. There was submitted a report by the Chief Officer (Assets and Procurement) notifying the Committee of contracts awarded between 1 October to 31 December 2022 with a value below the financial threshold requiring Committee approval. Decided: that the contracts awarded below Committee approval threshold between 1 October and 31 December 2022, as per the process within the Council's General Contract Standing Orders, be noted. It was agreed in terms of Section 50A(4) of the Local Government (Scotland) Act 1973, that the public be excluded from the meeting for the following item on the grounds that the business involved the likely disclosure of exempt information as defined in paragraphs 8 and 9 of Part 1 of Schedule 7A of the Act. DISPOSAL OF FORMER WILLOWBANK SCHOOL, 299 BANK STREET, COATBRIDGE, ML5 1EG 26. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to sell the site of the former Willowbank School at 299 Bank Street, Coatbridge to the highest bidder at the closing date following a marketing campaign. Decided: (1) that the sale of the site of the former Willowbank School at 299 Bank Street, Coatbridge, on the terms as detailed within the report, to the highest bidder or their nominees be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). PROPOSED PURCHASE OF HOUSES AT BERTRAMFARM, SHOTTS 27. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to acquire ten houses at Bertramfarm, Shotts to support the Council’s new housing supply programme. Decided: (1) that the purchase of ten houses at Bertramfarm, Shotts, on the terms as detailed in the report, subject to grant funding approval from the Scottish Government, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). DRUMCAVEL ROAD/LOCHEND ROAD, GARTCOSH – LICENCE FOR OFF-SITE JUNCTION UPGRADE WORKS 28. There was submitted a report by the Chief Officer (Assets and Procurement) seeking approval to amend the terms of the previously approved licence to include additional Council land to allow off-site junction improvement works at the junction of Drumcavel Road with Lochend Road, Gartcosh with the works being associated with a mixed-used private development on Avenuehead Road, Moodiesburn.
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FINANCE AND RESOURCES - 1 MARCH 2023 116 Decided: (1) that the contents of the report be noted, and (2) that the amendments to the original licence terms, as detailed in the report, be approved. PROPOSED PURCHASE OF HOUSES AT TORRANCE PARK, HOLYTOWN 29. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to acquire up to eight terraced houses at Torrance Park, Holytown to support the Council’s new housing supply programme. Decided: (1) that the purchase of an initial four terraced houses at Torrance Park, Holytown on the terms as detailed in the report, and subject to grant funding approval from the Scottish Government, be approved; (2) that the purchase of an additional four terraced houses at Torrance Park, Holytown, subject to the local area housing office confirming its requirements for the stock, be approved, and (3) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement).