Minute
North Lanarkshire Council · 24 May 2023
Back to Finance and Resources Committee — 24 May 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 - 24 MAY 2023 68 24 May 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, Currie, Duffy, Dunbar, Fotheringham, D. Johnston, T. Johnston, Kelly, Keltie, Loughran, MacGregor, Masterton, McKay, McNally, McPake, Roarty, Robinson, Stevenson, A. Stubbs, L. Stubbs, and Sullivan. ALSO IN ATTENDANCE In accordance with Standing Order 64(A) Councillors Smith, Hughes and Burgess attended as substitutes for Councillors Mitchell, Robb and Watson respectively. CHAIR Councillor Fisher (Convener) presided. IN ATTENDANCE Chief Officer (Legal and Democratic); Chief Officer (Business and Digital); Chief Officer (People Resources); Chief Officer (Finance); Chief Officer (Assets and Procurement); Business Finance Manager (Resource Solutions); Group Manager (Estates), and Democratic Services Manager. APOLOGIES Councillors Beveridge, S. Coyle, Jones, Logue, Mitchell, Robb and Watson. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. Councillors Fisher, Duffy and Sullivan, by virtue of being members of the Board of North Lanarkshire Properties, declared a connection amounting to a declarable interest in respect of paragraph 3 – North Lanarkshire Properties: Re-financing October 2023 - and each left the meeting during consideration of that matter. 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 10 – North Lanarkshire Properties: Performance Indicators: 28 July 2022 to 11 January 2023 and Financial Performance as at 6 January 2023 - and each did not participate in consideration of that matter. Councillor McPake, by virtue of being a member of Scotland Excel, declared a connection amounting to a declarable interest in respect of paragraph 16: Contract Awards for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish – and further declared that he considered the interest sufficiently remote that it did not preclude his participation in consideration of that matter. MINUTE OF MEETING OF THE JOINT CONSULTATIVE COMMITTEE FOR LOCAL GOVERNMENT EMPLOYEES DATED 21 MARCH 2023 2. There was submitted the Minute of the meeting of the Joint Consultative Committee held on 21 March 2023.
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FINANCE AND RESOURCES - 24 MAY 2023 69 Decided: that the Minute of the meeting of the Joint Consultative Committee held on 21 March 2023 be approved. Prior to consideration of the following item of business, Councillors Fisher, Duffy and Sullivan, by virtue of being members of the Board of North Lanarkshire Properties, had each declared a connection and left the meeting during consideration of the matter. Councillor B. McCulloch assumed the Chair. NORTH LANARKSHIRE PROPERTIES: RE-FINANCING OCTOBER 2023 3. There was submitted a report by the Chief Officer (Finance) (1) informing the Committee that the Financing Agreement with its current lender, Barclays Bank, for North Lanarkshire Properties LLP, ceases in October 2023 and that a new arrangement requires to be put in place to fund the remaining balance of £33m; (2) detailing that an Arms Length External Organisation (ALEO) service review in 2017/18, revisited in 2019, identified that retaining North Lanarkshire Properties as an externalised service delivery vehicle represented best value for the Council; (3) advising that the company had procured external specialist financial and legal advisers to provide professional expertise, including negotiation on North Lanarkshire Properties' behalf with the banking sector and financial modelling of the re-financing terms duly offered to enable the company to make a fully informed decision and achieve best value for it in terms of its future borrowing requirements; (4) indicating that a funding proposal had been prepared and submitted to six prospective lenders with three lenders having provided provisional loan terms and that work was underway on financial modelling and evaluation of those terms with a view to identifying a preferred lender to progress a formalised loan offer; (5) providing an update on the route to refinancing, and (6) seeking approval for the Chief Officer (Finance) to be provided delegated authority to approve the finalised terms of North Lanarkshire Properties' borrowing on behalf of the Council, in cognisance of the deadline of 31 October 2023 by which the loan agreement and funds must be in place. During consideration of this matter, and following a request from the Committee, the Chief Officer (Finance) committed to bring a report to a future meeting of the Committee, at an appropriate time, providing details of the finalised financing agreement. Decided: (1) that the requirement for North Lanarkshire Properties to progress a re-financing arrangement with an external lender for £33m be acknowledged; (2) that it be acknowledged that the review work undertaken in 2017/18, and revisited in 2019, had identified that retaining North Lanarkshire Properties as an ALEO represented best value for the Council; (3) that the ongoing evaluation of the provisional loan terms be acknowledged, and (4) that authority be delegated to the Chief Officer (Finance) to approve North Lanarkshire Properties’ future borrowing on behalf of the Council, including the appointment of the successful lender and finalised loan agreement terms. Councillor Fisher resumed the Chair. REVENUE MONITORING REPORT COUNCIL SUMMARY - 1 APRIL 2022 TO 3 MARCH 2023 4. There was submitted a report by the Chief Officer (Finance) (1) providing an update on the overall position of the General Fund Account, Housing Revenue Account and Adult Health and Social Care
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FINANCE AND RESOURCES - 24 MAY 2023 70 for the financial year to 31 March 2023; (2) consolidating the budget monitoring position for all Services, and (3) highlighting and explaining major variances as per the Council's Financial Regulations. Decided: (1) that the financial position of the 2022/23 Revenue Budget be acknowledged, and (2) that the contents of the report be otherwise endorsed. REVENUE BUDGET MONITORING REPORT: CHIEF EXECUTIVE'S AND OTHER CORPORATE SERVICES' - 1 APRIL 2022 TO 3 MARCH 2023 (PERIOD 12) 5. There was submitted a report by the Chief Officer (Finance) (1) providing a summary of the Chief Executive's and other corporate services' financial performance for the period 1 April 2022 to 3 March 2023 (Period 12), 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'S SERVICE - CAPITAL MONITORING REPORT - 1 APRIL TO 3 MARCH 2023 (PERIOD 12) 6. There was submitted a report by the Chief Officer (Finance) highlighting the financial performance and provisional outturn for 2022/23 for the Chief Executive's Service Capital Programme for the period ended 3 March 2023 (Period 12). Decided: that the financial position of the 2022/23 Chief Executive's Service Capital Programme be noted. CAPITAL PROGRAMME 2022/23 MONITORING REPORT 7. There was submitted a report by the Chief Officer (Finance) (1) providing an update on the 2022/23 resources and expenditure for the Council's Strategic Capital Investment Programme, and (2) detailing the 2022/23 projected outturn position and the resultant variances. Decided: that the financial position of the Council's Strategic Capital Investment Programme, as at 3 March 2023, be acknowledged. TREASURY MANAGEMENT MONITORING REPORT FOR QUARTER ENDED 31 MARCH 2023 8. 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 on 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 January to 31 March 2023, and compliance with the mandatory treasury and prudential indicators. During consideration of this item of business a request was made by the Committee for training to be delivered for Elected Members on the matter of Treasury Management. The Chief Officer (Finance)
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FINANCE AND RESOURCES - 24 MAY 2023 71 confirmed that training had previously been offered to Elected Members but that there had been a low take-up and she would arrange for further training to be made available. Decided: that the Treasury Management activity for the Quarter ended 31 March 2023, and the positive performance against the key treasury and prudential indicators, be noted. REVENUES AND BENEFITS UPDATE 9. 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 March 2023. Decided: that the content of the report be acknowledged. Prior to consideration of the following item of business, Councillors Fisher and Duffy had, by virtue of being members of the Board of North Lanarkshire Properties, each declared a connection with the matter and did not participate in consideration of the matter. Councillor B. McCulloch assumed the Chair. NORTH LANARKSHIRE PROPERTIES LLP - PERFORMANCE INDICATORS: 28 JULY 2022 TO 11 JANUARY 2023 AND FINANCIAL PERFORMANCE AS AT 6 JANUARY 2023 10. There was submitted a report by the Chief Officer (Assets and Procurement) (1) providing details of North Lanarkshire Properties LLP's performance from 28 July 2022 to 11 January 2023; (2) providing an update on significant events and service delivery highlights during the reporting period, and (3) detailing the financial performance for the period from 1 April 2022 to 6 January 2023. Decided: (1) that North Lanarkshire Properties LLP's operational performance against its 2021/22 targets for the period 28 July 2022 to 11 January 2023 be acknowledged; (2) that North Lanarkshire Properties LLP's financial performance during the period from 1 April 2022 to 6 January 2023 be acknowledged, and (3) that the service delivery highlights as detailed within the report be acknowledged. Councillor Fisher resumed the Chair. AMENITY LAND SALES POLICY UPDATE 2023 11. There was submitted a report by the Chief Officer (Assets and Procurement) (1) advising the Committee of proposed changes to the Amenity Land Sales Policy, together with the applicable sales rates; (2) seeking approval of the updated policy, and (3) attaching, as an Appendix to the report, the Amenity Land Sales Policy. Decided: (1) that the contents of the report be acknowledged, and (2) that the Amenity Land Sales Policy be adopted. C
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FINANCE AND RESOURCES - 24 MAY 2023 72 LEASE OF FORMER WHIFFLET PARK BOWLING CLUB, 11 BUTE STREET, COATBRIDGE, ML5 4HF 12. There was submitted a report by the Chief Officer (Assets and Procurement) (1) seeking approval for a 40-year lease to Burnbank Football Club for refurbishment works to the former pavilion and conversion of the bowling greens into football pitches, and (2) proposing that an additional area of land extending to 719 square metres, as shown on the plan attached to the report, be incorporated within the existing leased area. Decided: (1) that a 40-year lease to Burnbank Football Club, on the terms as detailed within the report, be approved; (2) that the inclusion of the additional area of land within the extent of the area to be leased be acknowledged, and (3) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). PROPOSED SALE OF AMENITY LAND TO THE REAR OF 15 STUART QUADRANT, WISHAW 13. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to dispose of the land, as shown on the plan attached to the report, to the owner of the adjacent property at 15 Stuart Quadrant, Wishaw. Decided: (1) that the sale of land adjacent to 15 Stuart Quadrant, Wishaw, on the terms as detailed within the report, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). CONTRACT AWARD FOR PROGRESS LICENCE AND SOFTWARE MAINTENANCE 14. There was submitted a report by the Chief Officer (Business and Digital) seeking acknowledgement from the Committee of the award of a contract for Progress Licence and Software Maintenance to Progress Software Limited for an initial period of 24 months commencing on 1 April 2023, with the value of the contract not exceeding £184,000, exclusive of VAT. Decided: that the award of the contract to Progress Software Limited at the maximum value of £184,000 be acknowledged. ENTERPRISE CONTRACT - CONTRACT AWARD FOR TECHNICAL AND COMMERCIAL ADVISORY SERVICES 15. There was submitted a report by the Chief Officer (Assets and Procurement) seeking acknowledgement by the Committee of the award of a contract for technical and commercial advisory services to Optimum Professional Solutions Limited, which had been awarded via a Negotiated Tendering Procedure in accordance with General Contract Standing Order 9, with the contract to be for an initial period of six months commencing in February 2023 and with the Council reserving the right to extend the contract for a further period, or periods, of up to 14 months, with the maximum contract period being 20 months and the value of the contract to not exceed £440,000, exclusive of VAT.
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FINANCE AND RESOURCES - 24 MAY 2023 73 Decided: that the award of the contract to Optimum Professional Solutions Limited, following the completion of a Negotiated Tender Procedure in accordance with General Contract Standing Order 9, at the maximum value of £440,000, exclusive of VAT, be acknowledged. Prior to consideration of the following item of business, Councillor McPake, by virtue of being a member of Scotland Excel, 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. CONTRACT AWARDS FOR SUPPLY AND DISTRIBUTION OF: FRESH MEATS; COOKED MEATS; AND FRESH FISH 16. There was submitted a report by the Chief Officer (Assets and Procurement) (1) informing the Committee that Scotland Excel's Multi-Lot Framework Agreement for the Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish 0322 was now live, covered the period 1 April 2023 until 31 March 2027, and was available for use by participating members, including the Council; (2) advising that the tender evaluation model used for each Lot on the Framework produced a ranked list of contractors, each of which was scored against Council requirements; (3) seeking approval for three individual call-off contracts to the contractors with the highest tender score (rank 1 position) for the Council's requirements as follows:- Lot 1 Fresh Meat – recommended contractor is McLays Limited, Lot 2 Cooked Meats – recommended contractor is Brake Bros Limited, and Lot 4 Specialised Products – recommended contractor is McLays Limited, and (4) advising that the duration of the contracts would be in line with the Framework and that, based on previous usage and forecasting demand, the Council's anticipated aggregate spend across these contracts would be £2.785m, exclusive of VAT. Decided: (1) that the contract award for Lot 1 – Fresh Meats, to McLays Limited, with an estimated contract value of £1,700,001, exclusive of VAT, be approved; (2) that the contract award for Lot 2 – Cooked Meats, to Brake Bros Limited, with an estimated contract value of £963,996, exclusive of VAT, be approved; (3) that the contract award for Lot 4 – Specialist Products, to McLays Limited, with an estimated contract value of £121,003, exclusive of VAT, be approved, and (4) that it be noted that the recommendations included in the report follow the Framework evaluation scoring, where the contractor recommended for award is in rank 1 position, with their bid being the most economically advantageous tender in terms of cost and quality for the Council. CONTRACTS AWARDED BELOW COMMITTEE APPROVAL THRESHOLD 17. There was submitted a report by the Chief Officer (Assets and Procurement) notifying the Committee of contracts awarded between 1 January and 31 March 2023 with a value below the financial threshold requiring Committee approval. Decided: that the contracts awarded below the Committee approval threshold between 1 January and 31 March 2023, as per the process contained within the Council's General Contract Standing Orders, be acknowledged.
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FINANCE AND RESOURCES - 24 MAY 2023 74 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 items 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. PROPOSED PURCHASE OF ADDITIONAL HOUSES AT BERTRAMFARM, SHOTTS 18. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to acquire an additional two houses at Bertramfarm, Shotts to support the Council's New Housing Supply Programme. Decided: (1) that the purchase of two 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). ACQUISITION OF 55-57 MAIN STREET, COATBRIDGE, ML5 3BA 19. There was submitted a report by the Chief Officer (Assets and Procurement) advising the Committee of the outcome of recently negotiated agreed terms for the acquisition of a retail property at 55-57 Main Street, Coatbridge, ML5 3BA and seeking approval to purchase on that basis. Decided: (1) that the purchase of 55-57 Main Street, Coatbridge, ML5 3BA be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). PROPOSED PURCHASE OF HOUSES AT JOHNSTON ROAD, GARTCOSH 20. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to acquire 12 residential properties at Johnston Road, Gartcosh, to support the Council's New Housing Supply Programme. Decided: (1) that the purchase of the 12 residential properties at Johnston Road, Gartcosh 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). PROPOSED SALE OF LAND AT GARRELL ROAD, KILSYTH, G65 9JX 21. There was submitted a report by the Chief Officer (Assets and Procurement) advising the Committee of the outcome of recently negotiated terms of sale for an industrial site at Garrell Road, Kilsyth, G65 9JX and seeking approval to sell on that basis.
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FINANCE AND RESOURCES - 24 MAY 2023 75 Decided: (1) that the sale of the 2.04 acre site at Garrell Road, Kilsyth, G65 9JX be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). SALE OF LAND AT LIMEKILNS ROAD, BLAIRLINN INDUSTRIAL ESTATE, CUMBERNAULD 22. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to sell land of approximately 6,600 square metres (1.63 acres), or thereby, at Limekilns Road, Blairlinn Industrial Estate, Cumbernauld. Decided: (1) that the sale of land at Limekilns Road, Blairlinn Industrial Estate, Cumbernauld, on the terms as detailed within the report, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement). OPTION AND LEASE OF LAND AT BARBLUES BING, HARTHILL 23. There was submitted a report by the Chief Officer (Assets and Procurement) seeking consent to grant an option to lease, and to approve the terms of the lease, for an area of land at Barblues Bing, Harthill. Decided: (1) that the option to lease, and the terms of the lease, as detailed within the report, subject to the land being declared surplus to the Council's requirements, be approved, and (2) that all other terms and conditions be adjusted by the Chief Officer (Assets and Procurement).