Meeting documents

To approve as a correct record the Minutes of the meeting held on 9 January 2017, copy attached as an appendix.

RESOLVED –

That the minutes of the meeting held on 9 January 2017 be approved as a correct record.

To consider the attached report.

Contact Officer:  Paul Marston-Weston (01296) 585116

The leisure management contract for the management and operation of the council’s two leisure centres (Aqua Vale Swim and Fitness centre, Aylesbury and Swan Pool and Leisure Centre, Buckingham) were awarded to Sport and Leisure Management Ltd, trading as Everyone Active (EA) from April 2013 for an initial period of ten years with an option to extend the contract, by mutual agreement for up to a further five years.  EA paid the Council approximately £510,000 each year to manage the council’s leisure centres.

Formal contract monitoring was undertaken by the AVDC client officer through a monthly contract meeting with EA Contract managers and site visit together with ad-hoc contract meetings with the Regional Director of EA.  In addition, any complaints  received by the Council were followed up with EA to ensure that they were resolved in a satisfactory manner.  Furthermore, AVDC Environmental Health Officers reviewed the water quality test results if there were any concerns regarding the water quality.

Concerns and reports of poor standards of cleanliness were received from time to time and were usually swiftly handled by EA.  However, more recently concerns appeared to be of a recurring nature.  Some Councillors had also expressed some concerns at the October 2016 Council meeting, and again in December 2016, on negative feedback received from users of Aqua Vale about the poor quality of cleanliness experienced.  The Cabinet Member for Community, Leisure and Civic Amenities have given Members an undertaking to visit Aqua Vale in January 2017 and to meet with EA.  She had also extended an invitation to all Councillors to come along and visit Aqua Vale with her.

Councillor Mrs Macpherson had met with the Regional Director of EA and local contract management in December 2016 to discuss her concerns and to seek assurances that quality standards would be greatly improved.  An action plan had been proposed by EA and agreed by the Council to implement a series of immediate actions and improvements.

As a consequence of the poor standards experienced, monitoring of the contract had been stepped up and a significant increase in unannounced site visits now took place to ensure standards continued to improve.

Councillor Mrs Macpherson and approximately ten Councillors had visited Aqua Vale in January 2017 to see first hand the progress made to date and the current state of the centre.  Improvements to the standards of cleanliness were clearly apparent and further changes were planned to continue to raise standards in the near future.  It was important to note however, that there were no significant cleanliness or service concerns at Swan Pool and Leisure Centre, Buckingham.

An internal audit of contract monitoring was currently underway as part of the audit work programme to review existing arrangements and to seek any best practice recommendations that would strengthen the process and give Members greater confidence.

Councillor Michael Rand (Chairman of the Scrutiny Committee) and Councillor Mrs Macpherson have invited EA to attend the scrutiny committee to enable Members to seek assurances and to learn directly of  ...  view the full minutes text for item 2.

To consider the attached report.

Contact Officer:  Tony Skeggs (01296) 585273

The Committee received a report that had been submitted to full Council on 22 February, 2017, on the Treasury Management Policy Statement for 2017/18.  The statement, as well as the Treasury Management Strategy Statement and the Annual Investment Strategy were attached as appendices to the report.

Under the terms of the Statutory Code of Practice for Treasury Management, the Council was required each year to consider its treasury management performance before 1 April and to determine its Treasury Management Strategy for the succeeding year.  As such, the strategy was being reported to scrutiny following approval by Council.

The annual Treasury Management Strategy included the Prudential Indicators that were used as part of the self governance framework.  The Prudential Indicators that needed to be determined along with some changes were highlighted and were as follows:-

Capital and Debt Indicators

Capital Expenditure -      Represented the agreed Capital Programme and set out the planned capital expenditure over the next three years.

Affordability Index -         This was the proportion of the Authority’s income which was taken up by loan repayments and interest. The more the Authority borrowed the less was available for delivering services.

Capital Financing

Requirement -                 The amount the Authority needed to borrow in order to deliver its Capital Expenditure plans.

Authorised Limit -            The combined maximum amount the Authority could take in borrowing to finance its capital expenditure plans and its day to day cash flow purposes.

Operational Limit -           The amount the Authority realistically expected to borrow and represented the figure that the Authority would not expect to exceed on a day to day basis.

Treasury Management Indicators

Exposure to Interest

Rate Risk -                      The maximum proportion or borrowing which could be on either fixed or variable interest rates. By setting a maximum proportion a limit was placed on the amount by which the Authority’s finances would be affected by movements in base rates.

Maturity Profile -             The maximum length of time over which borrowing could be taken. Authorities could borrow for any length providing that they could afford to do so.

There had been a couple of changes to the 2017/18 strategy to take account of the changes to the Capital Programme and the need to increase the number of potential counter parties.

The Capital Programme now included the scheme to refurbish the Pembroke Road depot, the cost of which was to be met from borrowing.  As a result there was a need to increase both the Operational and Authorised Limits otherwise the total borrowing would exceed the current limits.  Increasing the limits would also allow for any short term borrowing that might be required as a result of changes in cash flow.  It was not envisaged that there would be a need to take any short term borrowing in 2016/17 and 2017/18.

Members were informed of the increase in limits, as detailed in the table below:

To consider the future work programme.  Meetings are scheduled as follows:-

10 July, 2017 – Investment Strategy, Vale Commerce Business Plan, Quarterly Finance Digest

3 October 2017 – no items as yet

30 November 2017 – no items as yet

The Committee considered the work programme for the period up until December 2017.

The list of updated agenda items for meetings would be:-

(i)            10 July 2017 – Investment Strategy, Vale Commerce Business Plan, Quarterly Finance Digest (March 2017)

(ii)           3 October 2017 – Leisure Centres Management Contract, Quarterly Finance Digest (June 2017)

(iii)          30 November 2017 – Draft Budget Proposals for 2018/19, Quarterly Finance Digest (September 2017), Connected Knowledge Strategy (implementation).

It was also commented that future agenda items could include an update on the new business rates system and on preparations AVDC were taking regarding modernising local government in Buckinghamshire.

RESOLVED –

That the work programme be agreed, as discussed at the meeting.

To consider the attached report.

Contact Officer:  Maryvonne Hassall (01296) 585663

The Council’s IT Strategy for 2017 – 2022 (under the banner of "Connected Knowledge") had been approved by full Council on 22 February, 2017.  It had been noted that the Strategy would be implemented in phases.  A report similar to that which would be considered by Cabinet on 11 April 2017 was considered which detailed the funding requirements for, and the expected benefits from, the first phase and an indication of the costs of subsequent phases.

Delivery of the Connected Knowledge Strategy would enable AVDC to continue to be at the vanguard of innovative thinking, delivering excellent customer service, making savings in service delivery and generating income by both supporting general commercial opportunities, and providing consultancy services to other councils.

The Strategy would be delivered over a five year period.  Phase one covered the period up to the end of 2017.  The learning from phase one would be factored into the proposals for subsequent phases.  A further update would be submitted in December, 2017, at which time proposals for the implementation, funding and expected benefits of future phases would be presented.

AVDC had a good track record of delivering large scale, strategic projects of this type, e.g. the Waterside Theatre, and the "Right Here Right Now" programme.  These were high profile transformational programmes delivered successfully.  Phase one of the Connected Knowledge Strategy would require investment in three key areas:-

·                    The introduction of process automation and customer self service.

·                    The removal of legacy technology and the introduction of more flexible systems that would further support integration of data to enable customer needs to be anticipated.

·                    The introduction of innovative new solutions such as voice recognition.

Experience gained in connection with earlier major change programmes was that strong governance processes were required both to ensure that the programme delivered on time and on budget and that any variations in scope or costs were closely scrutinised.  This also ensured that the predicted benefits were achieved and banked.  Accordingly, the release of funds during the course of implementing the programme would be closely monitored.  As with any major change programme of this type there would inevitably be changes in circumstances.  Phase one covered the foundational projects required to deliver future strategic and visionary elements.

A programme of this scale and complexity required dedicated support to ensure focus on delivery was maintained throughout the life cycle of the project:-

·                    A programme manager (1) to manage and control the overall programme and ensure that it focussed on the anticipated outcomes.

·                    Project managers (5) to deliver individual projects and outputs.  It was envisaged that one of these individuals would be a senior project manager.

·                    Business analysts (5) to complete detailed analysis into current processes, costs, technology solutions and costs.

AVDC staff would wherever possible be used to fill programme roles and would be supplemented by external resource where there was insufficient internal resource or there was a requirement for a specific skills set which was not available internally within AVDC.  Additional non-dedicated resource would also be required  ...  view the full minutes text for item 5.

The following matter is for consideration by Members "In Committee". It will therefore be necessary to

RESOLVE –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

Item No. 10 – Connected Knowledge Investment Proposal

The public interest in maintaining the exemption outweighs the public interest in disclosing the information because the report contains information relating to the financial or business affairs of organisations (including the Authority holding that information) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals or transactions.

RESOLVED –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act.

Connected Knowledge Investment Proposal (Part 3)

The public interest in maintaining the exemptions outweighed the public interest in disclosing the information because the documents contained information relating to the financial or business affairs of organisations (including the authority holding that information), and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals/transactions.

To consider the attached confidential report.

Contact Officer:  Maryvonne Hassall (01296) 585663

As part of the discussions at Minute 5, consideration was given to the information contained in the confidential appendix.