CABINET LEAD OFFICER, CABINET SUPPORT EXECUTIVE …moderngov.torfaen.gov.uk/Data/Cabinet/20100914/... · Room. An infra-red system for use with headsets operates in the Cabinet Committee

Liz Monk

01495 742162 8 September 2010 Dear Councillor You are invited to attend a meeting of the CABINET to be held in The Council Chamber, Civic Centre, Pontypool NP4 6YB on Tuesday 14 September 2010 at 10.30am to consider the business set out in the attached agenda.

Please note, this meeting of the Cabinet will be run digitally – i.e. there will be no papers at the meeting (except for press and public copies).

Yours sincerely

Liz Monk

LEAD OFFICER, CABINET SUPPORT

On behalf of Alison Ward, Chief Executive

EXECUTIVE MEMBERS Councillor Bob Wellington (Chair) Councillor Lewis Jones (Vice Chair) Councillor Mary Barnett Councillor Cynthia Beynon MBE Councillor Gwyneira Clark Councillor Richard Clark Councillor John Cunningham MBE KSG Councillor Brian Mawby Councillor Marlene Thomas ALSO INVITED TO ATTEND Officers Peter Durkin, Deputy Chief Executive

Liz Monk, Lead Officer Cabinet Support Alison Ward, Chief Executive Lynda Willis, Chief Legal Officer and Monitoring Officer Assistant Chief Executives All Chief Officers

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Cyfieithiadau Cymraeg Os hoffech dderbyn copi o’r agenda hwn neu unrhyw adroddiad arall yn Gymraeg, cysylltwch â ni ar y rhif ffôn neu’r cyfeiriad e-bost uchod.

Welsh Translations If you would like a copy of this agenda or a particular report in Welsh or any other Community Language, please contact us on the telephone number or email below.

CABINET 10.30am on Tuesday 14 September 2010

The Council Chamber, Civic Centre, Pontypool NP4 6YB

A G E N D A

Page No Sponsor 1. Attendance None Leader Attendance register to be signed 2. Apologies for absence None Liz Monk Apologies should be given in advance of the meeting to Liz Monk on tel:

01495 742162 or by email to [email protected]

3. Declarations of Interest None Leader To receive declarations of interests in respect of items on this agenda,

which should be declared verbally and written in the declarations of interest list

4. Minutes - Cabinet – 13 July 2010

To be confirmed as a correct record 1-8 Leader

5. Update on actions from the above meeting

Update attached 9-10 Alison Ward

6. Quarter One Forecast 2010/11

To present the first quarter monitoring position for the 2010/11 revenue budgets.

11-16 Nigel Aurelius

7. 8.

Award of Contract for a Gwent Wide Integrated Community Equipment Service To seek approval to award the contract to the most economically advantageous tender Green and Food Waste Recycling Facilities To outline the additional costs identified with the tripartite agreement into evaluating future green and food treatment facilities.

17-24

25-28

Sue Evans Christina Harrhy

9. Proposed County Hall Catering Service Closure

To highlight the increasingly adverse financial situation anticipated in the operation of County Hall catering and seek agreement to the closure of existing catering facilities at County Hall

29-44 Julian Williams

10. Energy Strategy

To seek approval to the actions proposed within the Energy Action Plan 45-54 Nigel

Aurelius 11. Arts Connect – South East Wales Valleys and

Monmouthshire Regional Shared Arts Service To seek approval to work towards the principle of developing a regional shared service for the Arts within the South East Wales, Monmouthshire

55-70 Christina Harrhy

and the Vale of Glamorgan area during 2010/11. 12. The Regulation of Investigatory Powers Act 2000

To seek approval to the Council’s policy and guidance and to agree the role of Members in scrutinising the use of The Regulation of Investigatory Powers Act 2000

71-106 Lynda Willis

13. Brookfield School – Request to Declare Surplus to

Requirements To seek approval to declare the school surplus to requirements.

107-108 Pauline James

14. Award of Contract for the Installation of a Micro Hydro

Scheme on the Afon Llwyd, Blaenavon To seek approval to award a contract to Pico Energy Ltd. to undertake the detail design and installation of a micro-hydro generation scheme on the Afon Llwyd in Blaenavon


15. Appointment of Deputy to the Waste Procurement Joint

Committee To seek agreement to delegate authority to appoint a Deputy to the Waste Procurement Joint Committee, in the event of the Torfaen Representatives being unable to attend the meetings


16 Date of next meeting (for information)

The next ordinary meeting of the Cabinet is scheduled for Tuesday 19 October 2010 at 10.30am in the Council Chamber, Civic Centre, Pontypool

None Liz Monk

__________________________________________________________ THIS DOCUMENT IS AVAILABLE IN LARGER PRINT UPON REQUEST

AGENDA ITEM NO.4

MEETING OF THE CABINET OF TORFAEN COUNTY BOROUGH COUNCIL held on Tuesday 13 July 2010 at 10.30am to 11.45am

in The Shared Resource Centre, Victoria House, Blaenavon

NB the agenda for and the reports presented to this meeting are available to view at http://www.torfaen.gov.uk/CouncilAndDemocracy/CouncillorsDemocracyAndElectio

ns/CouncilMinutesAgendasAndReports/CouncilMinutes/Cabinet/13-07-2010a.pdf

MINUTES

1. Attendance: Councillor Bob Wellington (Leader) (in the Chair)

Executive Members (with portfolios): Councillors: Mary Barnett - Children and Young People Cynthia Beynon MBE– Equalities and Community Safety Gwyneira Clark – Planning, Public Protection and Housing Richard Clark – Corporate Governance John Cunningham MBE, KSG – Neighbourhood Services Lewis Jones - Deputy Leader Brian Mawby - Health, Social Care and Well-being Marlene Thomas - Resources

Officers: Nigel Aurelius –Assistant Chief Executive (Resources) David Congreve – Assistant Chief Executive (Communities) Farooq Dastgir – Director of Technology Led Transformation Peter Durkin – Deputy Chief Executive Richard Edmunds - Head of Strategic Services Sue Evans – Chief Officer, Social Care & Housing Bill Hill - Chief Officer, Employment Generation Pauline James – Head of Asset Management Liz Monk – Lead Officer, Cabinet Support Cath Thomas – Head of Regeneration Tony Walker – Assistant Chief Education Officer Alison Ward – Chief Executive Lynda Willis - Chief Legal Officer & Monitoring Officer Also attending:

Neil Jones – Head of Communications Benjamin Rooke (Digital Cabinet Support) Steve J Williams – Head of Public Services Support Unit 6 members of the press and public (G) G = in the public gallery

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Action 2. Apologies for Absence 2.1 No apologies were received.

3. Declarations of Interest 3.1 The Leader welcomed everyone to the first Cabinet meeting to be held

at the Shared Resource Centre. He then reminded Members of the need to declare interests orally and also to write them in the register circulating at the meeting.

3.2 The Chief Legal Officer & Monitoring Officer gave advice to Members

with regard to their declaration of interests that may have been applicable to the items on the agenda.

3.3 No interests were declared 4. Minutes – Cabinet 4.1 AGREED – that the minutes of the Cabinet meeting held on 15

June 2010 be confirmed as a correct record and signed by the Chair.

5. Updates on actions agreed at the above meeting 5.1 The updates were noted 6. The Shared Resource Centre 6.1 The Cabinet received a presentation from the Director of Technology

Led Transformation outlining the innovative work that was being undertaken at Victoria House with the long term aim of accommodating multiple public sector organisations within the Wales wide collaboration agenda.

6.2 The Director of Technology Led Transformation gave an overview of

the project and highlighted in particular: The Shared Resource Centre was now the most connected

building in Wales and the only building to have full Public Service Board connectivity;

The advanced technology would enable full public service integration and collaboration between the Police, Health Board and Local Authorities;

The Centre would enable significant savings from shared accommodation and systems and application development;

Discussions were ongoing with 43 Police Authorities to host one of their four national servers; and

Torfaen were leading in the development of the Centre which was of a ground breaking nature and a first for Wales

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Action 6.3 Members commented and/or questioned (in summary):

Were there any plans for a press release to highlight the innovative work being undertaken at the Centre?

The Centre also provided an excellent opportunity for collaborative working with Coleg Gwent;

Collaborative working and shared resources would enable savings to be made across Wales; and

The speed of progress had been staggering. 6.4 The Director of Technology Led Transformation responded in

summary that the building would be formally opened in the Autumn at which stage a full press release and publicity were planned.

6.5 The Chief Executive stressed the importance of having a vibrant

private sector which would be able to offer local employment opportunities to those when public sector jobs were inevitably shed.

6.6 The Leader thanked the Director of Technology Led Transformation

and his team for the interesting and informative presentation.

7. Medium Term Planning and Budget Guidelines 2011/12 7.1 The Cabinet considered a report of the Assistant Chief Executive

(Resources) outlining the recommended approach to medium term financial planning, within the context of the funding scenario that the public sector is entering and to establish the 2011/12 budget guidelines.

7.2 The Assistant Chief Executive (Resources) outlined the report,

commenting particularly that: The report would effectively start a process that would end with

the agreement of a medium term financial strategy that would see the authority through difficult times and set a budget for 2011/12.

The Medium Term Financial Plan must be developed in conjunction with Corporate Plan 2;

Paragraph 5.3 of the report highlighted salient points from the emergency budget announced by the Chancellor of the Exchequer on 22 June 2010;

There would still be uncertainty until the UK Government’s Comprehensive Spending Review (CSR) in October;

Scenarios were based on a 3% reduction in relation to Revenue and the Assembly was currently modeling on a 10% cash reduction in Capital;

The budget guidelines were more difficult to craft than normal primarily due to the funding outlook being so uncertain;

The Authority was well connected with the policy direction of the Assembly and were already collaborating and integrating with other organisations; and

The situation presented a challenge and an opportunity for reform.

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Action 7.3 The Executive Member for Resources stated that she had met with

trade union representatives before the meeting, as she usually did before Cabinet meetings, and that they had raised the issue of the two year pay freeze for public sector workers (except those earning under £21k). The Unions had requested that the AM ask a question in the Assembly to seek further details as there were a great number of our staff earning less that £21k

7.4 Members commented and/or questioned (in summary):

A number of assumptions had been made in the report, when were we likely to know the effects of Westminster budget?

Would the pay increase apply to all those public sector workers earning less than £21k not just those in Local Government?

The fact that Education had been devolved gave us a much clearer direction of travel than English counterparts; and

Concerns were expressed on what effects budget cuts would pose to free prescriptions, bus passes etc;

7.5

The Assistant Chief Executive (Resources) responded: Once the CSR was completed in October, the Chancellor’s

budget would impact from 2011/12 when the Revenue Support Grant and other grants were significantly reduced;

An update would be provided to Members once the decision from WAG regarding the implications of the pay freeze was known but Local Authorities would be under pressure to honour what was happening nationally even though a policy choice could be made to fund pay increases through the use of resources; and

The Assembly funded the likes of free prescriptions and bus passes and it would be a matter of choice for its Members to continue with that funding or not.

7.6 AGREED – for the reasons set out in the report that Cabinet

agreed that:

(i) The report be noted; and (ii) The guidelines for 2011/12 be agreed and recommended to

Council as initial budget policy for 2011/12.

Nigel Aurelius

8. The Use of Direct Surveillance and Covert Human Intelligence Sources and The Acquisition of Communications Data under The Regulation of Investigatory Powers Act 2000 (RIPA)

8.1 The Cabinet agreed that this item would be deferred as an appendix

had not been circulated with the report and therefore Members had not received all the necessary information.

9. Hollybush and Brookfield Schools, Cwmbran – Request to Declare Surplus to Requirements.

9.1 The Cabinet considered a report of the Head of Asset Management

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Action

seeking approval that following their closure, Hollybush and Brookfield primary schools were declared surplus to requirements.

9.2 The Head of Asset Management outlined the report, commenting

particularly that: Both schools were due to close in July 2010, and the children

would transfer to the new Nant Celyn School at the beginning of the next academic year in September 2010;

Both sites were suitable for residential development, and hence had the potential to generate a significant capital receipt; and

Security of the sites would be kept under review, and discussion had already taken place with regard to Hollybush.

9.3 The Leader proposed and Cabinet agreed to an amendment to the

recommendations 9.4 AGREED - for the reasons set out in the report that Cabinet

agreed that:

(i) Following it’s closure, Hollybush Primary School is declared surplus to requirements;

(ii) The site is subsequently disposed of for the best

consideration obtainable. Such terms to be approved by the Executive Member for Resources on the recommendation of the Head of Asset Management and the Chief Legal Officer and Monitoring Officer; and

(iii)The decision to declare Brookfield Primary School

surplus to requirements is deferred until the next Cabinet meeting to be held on 14 September 2010.

Pauline James

10. The Domiciliary Care Intensive Support Service - Award of Contract

10.1 The Cabinet considered a report of the Chief Officer, Social Care &

Housing informing Cabinet of the outcome of the evaluation of the tender for the provision of an Intensive Support Service and seeking approval to award the contract to the successful tenderer.

10.2 The Chief Officer, Social Care & Housing outlined the report in detail,

commenting particularly that: The purpose of the Intensive Support Service was to offer an

alternative to the traditional model of domiciliary care delivery and provide a service which allowed a service user with high care needs to receive a responsive 24 hour service;

The tender process gave the opportunity to maintain and improve the quality of service to users;

The balance between price and quality was important, as the quality of domiciliary care was more important to the safety of

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Action vulnerable adults than securing a low cost service which was probably not sustainable; and

The overall cost of the contract compared favourably with the current provider of the Intensive Support Service which would result in cost savings of £13,478 per year.

10.3 Members commented and/or questioned (in summary):

Concerns were expressed over the lack of continuity of carers; It was good to learn that service users had been involved in the

tender process; Was the history of a Company considered as part of the tender

evaluation? and It was vital to put quality before cost and this was demonstrated

by the 50% weighting in the evaluation matrix 10.4 The Chief Officer, Social Care & Housing responded that continuity of

the carer was not always possible due to staff sickness and holidays but was carefully monitored by front line staff. She also confirmed that the financial standing of each company was assessed by the corporate finance team as part of the Stage 1 tender evaluation process.

10.5 AGREED - for the reasons set out in the report that Cabinet

agreed:

To award the contract to the successful Tenderer, Company 1, for a period of 3 years with an option for the Council to extend for a further 2 years depending on performance; and

That the six additional companies that were short listed to presentation (Stage 2) are held in reserve. Companies 13, 2, 7, 4, 6 and 12 will approached in that order should there be any withdrawal prior to the award of the contract.

Sue Evans

11. Domiciliary Care Night Service - Award of Contract 11.1 The Cabinet considered a report of the Chief Officer, Social Care &

Housing informing Cabinet of the outcome of the evaluation of the tender for the provision of a Domiciliary Care Night Service and seeking approval to award the contract to the successful tenderer.

11.2 The Chief Officer, Social Care & Housing outlined the report in detail,

commenting particularly that: In 2009 a decision was made to work in partnership with the

current provider to introduce a pilot project to deliver a Domiciliary Care Night Service;

The balance between price and quality was important, as the quality of domiciliary care was more important to the safety of vulnerable adults than securing a low cost service which was probably not sustainable;

There had been thirteen tenders received from interested parties (given different numbering than the previous contract to

6


Action preserve anonymity)

The overall cost of the contract compared favourably with the current provider of the Intensive Support Service which would result in cost savings of £6, 307; and

Four carers were sufficient to meet the demands of the service as this was a service for vulnerable people with very particular needs

11.3 AGREED - for the reasons set out in the report that Cabinet

agreed:

To award the contract to the successful Tenderer, Company 8, for a period of 3 years with an option for the Council to extend for a further 2 years depending on performance; and

That the four additional companies that were shortlisted to presentation (Stage 2) are held in reserve. Companies 3, 10, 5, 13 will approached in that order, should there be any withdrawal prior to the award of the contract.

Sue Evans

12. Date of next meeting (for information) 12.1 The next ordinary meeting of the Cabinet was scheduled for Tuesday

14 September 2010 at 10.30am in the Council Chamber, Civic Centre, Pontypool

Chair NB Councillors who left the meeting briefly (e.g. for a comfort break) during an officer presentation or a debate are not listed in the minutes above as having left and returned. Councillors are only listed as having left/returned if they were absent from the Chamber when a decision was taken. Liz Monk LEAD OFFICER CABINET SUPPORT 27 July 2010

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8

Agenda item no. 5 CABINET

ACTION SHEET – 13 July 2010

Date Minute

para Action to be taken By whom and

when - if time scale decided

Action taken?

15.09.09 6.3 The Acting Assistant Chief Executive (Resources) agreed to provide Cabinet with a report on Procurement Activities.

Nigel Aurelius

15.09.09 7.5 The Executive Member for Regeneration stated that a review of the grants awarded to voluntary organisations was currently being undertaken and he would bring a report to Cabinet once the review was completed.

Cllr Richard Clark / David

Congreve

ongoing

1.12.09 9.6 A further report is presented to Cabinet upon completion of the Leadership Development Programme detailing the programme evaluation outcomes.

Christina Harrhy

16.2.10 7.5 To recommend to Council that the necessary changes are made to The Constitution with regard to the new Joint Committee re the Inter Authority Agreement

Lynda Willis

23.3.10 8.6 Cabinet approved the transport policy as attached at appendix one to the report. Sue Evans 18.5.10 13.4 Cabinet agreed that the Chief Officer Social Care & Housing enter into further

negotiations with Aneurin Bevan Health Board to formulate detailed options and proposals for the integration of Mental Health & Learning Disability services with a view to a further report being presented to Cabinet

Sue Evans

13.7.10 7.6 The guidelines for 2011/12 be agreed and recommended to Council as initial budget policy for 2011/12.

Nigel Aurelius #Agreed by Council on 27 July 2010

13.7.10 9.4 The decision to declare Brookfield Primary School surplus to requirements is deferred until the next Cabinet meeting to be held on 14 September 2010

Pauline James

# On agenda for meeting 14 September 2010

9

# denotes action completed and will be removed from the next action sheet Liz Monk, Lead Officer Cabinet Support 20 July 2010

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AGENDA ITEM NO. 6

CABINET 14 SEPTEMBER 2010 QUARTER ONE FORECAST 2010/11 Report Submitted by: Nigel Aurelius, Assistant Chief Executive (Resources). Report Written by: Nigel Aurelius, Assistant Chief Executive (Resources), David

Lilly, Head of Financial Services and Dave Weaver, Group Finance Officer – Service.

1. Area Affected 1.1 County Borough Wide. 2. Purpose of Report 2.1 The purpose of the report is to present the first quarter monitoring position for the

2010/11 revenue budgets. 3. Recommendation(s) 3.1 It is recommended that:-

(i) The forecast position in respect of each of the service areas is noted; (ii) The actions being taken by service Chief Officers to address their

variances be noted; (iii) The proposal to transfer the excess of the pay award budget, circa

£500,000, from services to a central budget head be approved; (iv) The intention of the Deputy Chief Executive Service to contribute £23,000

to the Elections reserve be approved; (v) The Chief Education Officer presents a report to a future Cabinet outlining

the services’ proposals on how the Education service wishes to utilise their projected forecast;

(vi) The specific approvals required around any current or future use, or amendment, of service specific reserves are actioned by the Executive Member for Resources in accordance with normal practice.

4. Background 4.1 The quarter one forecast position is an extremely important snapshot within our

financial calendar in that it provides an early indication of our potential year end position to allow measured corrective actions to be implemented where necessary. The 2010/11 budget was compiled within the context of the worst settlement since the establishment of the Welsh Assembly Government, and despite the settlement received the budget set avoided major service closure or significant redundancies. However the 1.7% increase meant that the Council had to adopt solutions that required in year resolution to produce the balanced budget, with this placing a greater emphasis on the need for accurate financial management information and a corporate responsibility from each of the service areas to implement the agreed in year resolutions and to manage in year pressures.

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4.2 This report outlines the quarter one forecast position for revenue. It is important that

members remember that this is a forecast; the positions reported here have for the most part not actually occurred but represent a projection of the likely position if corrective action is not taken. This is an important distinction – the purpose of monitoring is to identify issues and manage them and so avoid unexpected positions at the year end.

4.3 In July 2010 the Council considered its budget guidelines for the 2011/12 budget

and did so within the context of the extremely difficult funding period the public sector finds itself in. Indeed without the required forward funding certainties, which will hopefully arise from the outputs of the October CSR and subsequent Assembly announcements, it is important that our financial disciplines continue to be adhered to in year and that our financial standing is maintained to at least a constant which will provide the resilience through providing multi year solutions to our dealings with the impending financial settlements. All services must adhere to their agreed budgets during the 2010/11 financial year as failure to do so will simply increase the service and financial pressures going forward into 2011/12.

5. Quarter One Revenue Forecast 2010/11 5.1 The quarter one forecast position for 2010/11 across all service areas is

summarised in the following table:

Working Budget

Full Year Forecast

Full Year Variance

(Favourable)/ Adverse

£ £ £ Education Services 65,187,384 64,695,274 (492,110)Social Care and Housing 39,358,757 40,181,831 823,074Neighbourhood Services 17,914,884 18,132,124 217,240Planning and Public Protection 2,577,294 2,577,723 429Chief Executive Services 3,943,802 3,960,090 16,288Resources 5,833,384 5,931,126 97,742Community Services 2,471,707 2,551,707 80,000Deputy Chief Exec. Services 4,699,232 4,669,406 (29,826)Capital Finance and Other Cost

Capital Financing 10,251,100 10,253,319 2,219Other* 7,411,639 7,728,244 316,605

159,649,183 160,680,844 1,031,661

Suggested Contribution to reserves Education 492,110 492,110Deputy Chief Exec Services 23,000 23,000

Suggested Contribution from reserves(where specifically identified) Resources (land charges) (41,000) (41,000)

Projected position 1,505,771

*assumes policy headroom, transformation and pay award in line with original budget. 5.2 At a whole authority level the quarter one position highlights:

An overall adverse projection of £1.5million – members need to note that this is only a forecast position i.e. it has not occurred, and corrective action will need to be (and is being) taken;

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Service areas, with the exception of Education and Deputy Chief Exec. Services, are forecasting adverse projections; this is not unusual at this stage in the financial year.

Certain assumptions have been made within Social Care & Housing regarding the achievement of budgeted savings. These proposals will be closely monitored by the service management team over the forthcoming months to ensure their achievement or the identification of alternative achievable savings.

It is assumed that the policy headroom and transformation budget lines are as original budget.

5.3 Members will be aware that the pay award for 2010/11 has yet to be settled, with the

current indications being that the offer will be below our budget provision. It is proposed that the service area budget provisions are adjusted to the current employers offer level and that the excess resource, estimated at circa £500,000, is held centrally. It is proposed that this centrally held resource would, subject to the finalisation of the pay award, be used in addressing medium term service and financial planning. The above forecast assumes the pay award at the budget sum.

5.4 A brief summary in relation to each of the service areas is outlined in the following

paragraphs:- 5.5 Education – £492,110 projected underspend This favourable projection is centered on the transport & special education needs

areas. Following the 2009/10 out-turn a full review of the SEN area was undertaken, this review has identified that, based upon current demand, the SEN area will underspend by £433,000 in 2010/11. This significant position has arisen from two factors:

The identification of unbudgeted recoupment income (£223,000) from other local authorities and health boards; and

A change in client projections in relation to out of county placements (£210,000) within the service database.

The Transport area is showing a favourable projection of £45,000 which has arisen from the amalgamation of contracts, and lower than the budgeted daily contract rates. In addition to these favourable variances the Education service area is also experiencing some budgetary pressures within other teams but these relatively minor forecasts are being pro-actively managed by the management team. The revised 2010/11 forecasts for SEN and Transport have the potential to continue on a recurring basis, subject to constant demand. With regards the projected underspend outlined above it is suggested that the Chief Education Officer present a report to a future Cabinet meeting outlining his suggestions for the use of the underspend, as was the case at the closure of the 2009/10 accounts.

5.6 Social Care and Housing - £823,000 adverse projection The pressures in this service largely revolve around the Social Care areas of

Childrens Services and Community Care. Within the Childrens group the primary effected areas creating this forecast are an increase in demand within the children looked after team, additional unbudgeted out of county placements and an

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increased number of court ordered supervision orders. Within the Community Care group the principal budget pressure is a 10% increase in the number of people being cared for at home, this has been partly offset by a reduction in the number of clients supported in nursing or residential homes. The Housing group is currently forecasting a favourable out-turn position which is assisting in reducing the projected deficit for the whole service area. In addition to the projection this forecast also assumes that a number of savings measures/targets identified at budget setting will be fully implemented by the year end, these total £1.2 million and will clearly require careful monitoring and implementation by the Chief Officer for the remainder of the year. In relation both the projected deficit and the budgeted saving measures the Chief Officer and her senior colleagues are currently developing, implementing and monitoring measures to ensure that a balanced out turn is achieved; however where savings do not materialise, corrective/alternative actions will need to be identified and implemented by the service area.

5.7 Neighbourhood Services - £217,240 adverse projection

Following the creation of this Service Area the Chief Officer commissioned a review of operational practices, commenced an engagement process on cultural change and has looked to realign resources to service priorities. The Chief Officer has also re-iterated to the team the importance of following corporate budget disciplines across all service divisions. The outcome of the review, in tandem with the first quarter review, has highlighted projected pressures in the following areas:

Projected non achievement of savings included within the 2009/10 & 2010/11 budget – £236,000;

Ongoing grounds maintenance costs on land not vested in either the Council or Bron Afon, but whose ownership cannot be established - £100,000;

The additional consequences of the transfer of grounds maintenance to Bron Afon in March 2010. The transfer agreed that the Council would undertake the routine maintenance on public highway land previously in Bron Afon ownership. This is producing a pressure of £35,000.

A projected pressure of £90,000 from reduced income resource derived from the sewer and culvert SLA with Bron Afon.

Both the leadership and senior management teams of the service have reviewed the projections produced by the quarter 1 review and have developed proposals which will allow the majority of the pressures to be managed within the service and to ensure a favourable out turn at the end of the year. The area involving income from the sewers SLA is being actively discussed with Bron Afon with a view to resolving the pressures within the financial year. In relation to the continuing maintenance of land in no known ownership, it is understood that the Chief Officer Neighbourhood Services will be asking the Council to consider allocating part of the policy headroom remaining within this year’s budget to alleviate this pressure.

5.8 Planning and Public Protection - on budget projection This service area is being adversely affected by a reduction in the level of income

from development control activities. It is projected that this current pressure of £43,000 can be offset by additional income from building control activities and through holding staff vacancies. It is anticipated that this situation will continue and the service area will achieve a break even position at the end of 2010/11.

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5.9 Chief Executives Services - £16,000 adverse projection The service area is projecting this adverse position due to a combination of staffing

pressures and currently non-achieved budget savings. It is expected that this service area will achieve a balanced out-turn position and the service managers are progressing options to achieve this.

5.10 Resources - £97,742 adverse projection The key pressure area within the service relates to a projected reduction in income

in the Industrial & Commercial units, a significant pressures in the income derived from land charges and a small forecast of non-achievement of some budgeted savings. The adverse variance of £41,000 in land charges has arisen from revised and nationally clarified guidance in respect of the relevant legislation, a factor affecting all local authorities. The Assistant Chief Executive (Resources) is proposing to utilise service specific reserves in 2010/11 to address this specific shortfall which will allow consideration of alternative service provision options prior to the setting of the 2011/12 budget. Full reviews are also being progressed across all areas in order to address the remaining forecast and to ensure a balanced budget is achieved at year end.

5.11 Community Services - £80,000 adverse projection This service area is currently forecasting an adverse position at year end. The main

areas of pressure relates to a projection of lower than budgeted income at the Community Farm and unbudgeted spending within Adult Education. The Assistant Chief Executive and his wider management team are currently exploring various opportunities to mitigate this position.

5.12 Deputy Chief Executive Services - £29,800 favourable projection The unit is currently projecting a favourable out-turn position, with the vast majority

of this position arising from members’ allowances being less than that budgeted. It is proposed, in a consistent manner to 2009/10, that the underspend on this discrete area (£23,000) is transferred to the Elections service specific reserve to provide funding for future TCBC elections.

5.13 Capital Financing - £2,200 adverse projection This area is currently forecasting a very minor adverse projection of £2,200, and it is

anticipated that this position will be rectified and that the originally budgeted position will be achieved by the year end.

5.12 Other – £315,647 adverse projection This budget heading accommodates costs that do not fit into our main service area

budgets. The current adverse projection arises mainly from the projection of non achievement of two central efficiencies, namely £242,000 corporate procurement efficiencies and £75,000 efficiencies in relation to the authority wide admin review. Whilst work continues to achieve these budgeted savings, a prudent non achievement position has been adopted within this forecast. In respect of both these areas the lead officers continue to strive to achieve the required efficiencies and a fuller position statement will be in place, and where necessary mitigation measures, by quarter two.

5.14 In overall summary terms it can be seen that although all service areas are

experiencing pressures, measures are being put in place to achieve a balanced

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position. Clearly where service specific reserves are being used this funding is a ‘one-off’ and should be used as a last resort solution.

6. Recommendation(s) 6.1 It is recommended that:-

(i) The forecast position in respect of each of the service areas is noted; (ii) The actions being taken by service Chief Officers to address their

variances be noted; (iii) The proposal to transfer the excess of the pay award budget, circa

£500,000, from services to a central budget head be approved; (iv) The intention of the Deputy Chief Executive Service to contribute £23,000

to the Elections reserve be approved; (v) The Chief Education Officer presents a report to a future Cabinet outlining

the services’ proposals on how the Education service wishes to utilise their projected forecast;

(vi) The specific approvals required around any current or future use, or amendment, of service specific reserves are actioned by the Executive Member for Resources in accordance with normal practice.

Appendices None

Background Papers Medium Term Planning and budget Guidelines 2011/12: Council July 2010

For a copy of the background papers or for further information about this report, please telephone: Nigel Aurelius, Assistant Chief Executive Officer (Resources), 01495 742623

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THIS DOCUMENT IS AVAILABLE IN LARGER PRINT UPON REQUEST 1

AGENDA ITEM NO. 7

CABINET 14 SEPTEMBER 2010 AWARD OF CONTRACT FOR A GWENT WIDE INTEGRATED COMMUNITY EQUIPMENT SERVICE FOLLOWING A TENDER Report Submitted by: Sue Evans, Locality Director Social Care, Housing & Health Report Written by: Kevin Mayers, Commissioning and Performance Officer

Andrew Maisey, Head of Procurement 1. Area Affected 1.1 Blaenau Gwent County Borough Council, Caerphilly County Borough Council,

Torfaen County Borough Council, Monmouthshire County Council and Newport City Council areas (both Council and Aneurin Bevan Health Board activities)

2. Purpose of Report 2.1 To inform Cabinet of the outcome of the evaluation of the tender for the

provision of a Gwent Wide Integrated Community Equipment Service (GWICES).

To seek Cabinet approval to award the contract to the most economically

advantageous tender.

3. Recommendation 3.1 That Cabinet approves the award of a five year contract for the provision of a

community equipment service to the Organisation B , with an option to extend for a further two years, depending on the performance of the service provider in the first five years.

3.2 That Cabinet approves the holding in reserve of Organisation A to safeguard the continuity of service provision.

4. Background 4.1 Torfaen County Borough Council is the Lead Commissioner for the project known

as GWICES (Gwent Wide Integrated Community Equipment Service).

4.2 This project came into effect by an agreement pursuant to Section 33 of the National Health Services (Wales) Act 2006 on the 30th July 2008. Section 33 of the Act and the regulations grant powers for Local Authorities to exercise certain NHS functions and for Local Health Boards to exercise certain Local Authority health related functions. In addition, Local Authorities and Local Health Boards can establish and maintain pooled funds towards expenditure incurred in the

17


exercise of these functions. Parties to the agreement are, in addition to Torfaen County Borough Council, Blaenau Gwent County Borough Council, Caerphilly County Borough Council, Monmouthshire County Council, Newport City Council, and Aneurin Bevan Local Health Board.

4.3 In furtherance of the strategies produced by the GWICES project, Torfaen County Borough Council, acting as Lead Commissioner, must award a contract to enable services to continue in relation to the provision of standard and complex equipment, including aids for daily living for adults with disabilities, mobility aids, specialist equipment for children with disabilities and equipment for people who are deaf, deafened or hard of hearing. The service provider will be required to store, deliver, install, maintain, test, repair and recycle equipment in order to preserve and promote independent living for service users who are resident in the Gwent area.

4.4 The current contract is due to end on 31st March 2011.

4.5 The GWICES Management Advisory Board decided that the contract award procedure should be reserved under the provisions of Article 19 of The Public Sector Procurement Directive (Directive 2004/18/EC)/ Paragraph 7 of the Public Contracts Regulations 2006 to those economic operators who currently meet Article 19 requirements by operating supported factories, supported businesses or supported employment programmes. This decision ensured that only organisations operating supported businesses or supported employment programmes could be considered for the delivery of the service. This approach is in keeping with the commitment of the Council, GWICES partners and Welsh Assembly Government to support and encourage the employment of disabled persons whilst increasing social inclusion opportunities.

4.6 The Locality Director Social Care, Housing & Health, acting as Lead Commissioner, commenced the tender for a community equipment service on 1st April 2010. Appropriate consultation has taken place with the GWICES Management Advisory Board, Torfaen County Borough Council Head of Procurement and Torfaen County Borough Council Legal Services.

5. Tender Process 5.1

The tender process has reflected the high expectations that the Council, its partners and their service users have of contractors. Although quality has primacy when procuring services for vulnerable people, price is also a factor in the current economic climate. Due to the nature of the community equipment service, the contract could not be awarded solely on the basis of lowest price, but to an affordable and realistic tender submission that could demonstrate how the quality of the service could be improved and managed efficiently to ensure that the best possible service is provided in line with national and local priorities for health and social care for vulnerable adults and children living in the community.

5.2 The tender process was as follows: Advertisement on Buy4Wales (WAG procurement) website and Official

Journal of the European Union Issue of Tender packs

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Receipt of tenders – witnessed by the Head of Procurement, GWICES Project Manager, GWICES Contract manager and Lead Officer Cabinet Support Strategic Services Unit

Compliance criteria met - tender instructions and evidence of Article 19 (Stage 1)

Selection criteria met – financial status, equal opportunities, health & safety (Stage 2)

Desk top evaluation of tender questionnaires – service specification, IT system (Stage 3)

Evaluation of pricing and activity schedule (Stage 3) Short listing 2 tenderers for a presentation and site visit (Stage 4 and 5) Presentation by tenderers to an evaluation panel – service provision and IT

system (Stage 4) Site visit and evaluation of commissioner questionnaire (Stage 5) Final scoring (Stage 5) Recommendation to GWICES Management Advisory Board

5.3

Tenderers were asked to complete various questionnaires to evidence their ability and capacity to take on the contract and their experience of providing a similar service.

5.4

To reflect the commitment to balancing quality and cost the following evaluation methodology and weighted scoring criteria were applied at stage 3 and subsequent evaluation stages.

5.5

The overall service provision points score (quality) had a weighting of 60% and included the following evaluation methodology with various sub weightings:

Service Specification Questionnaire Information Technology System Questionnaire Presentation Commissioner Questionnaire Site visit

Evaluation Criteria

Stage 3 Stage 4 Stage 5

Service Specification Questionnaire points score IT system points score Presentation points score Commissioner Questionnaire and Site visit points score

80% sub weighting 20% sub weighting Not evaluated at this stage Not evaluated at this stage

65% sub weighting 20% sub weighting 15% sub weighting Not evaluated at this stage

45% sub weighting 20% sub weighting 15% sub weighting 20% sub weighting

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5.6

The overall cost of the service points score had a weighting of 40% and was carried forward from stage 3 to stages 4 and 5 with no % sub weighting adjustment.

5.7 The total overall points score was calculated by adding the weighted overall service provision points score to the weighted overall cost of the service points score, which determined the successful tenderer.

6 Expressions of Interest 6.1 12 expressions of interest were received and 2 formal tenders submitted. For the

purposes of the evaluation process the tenderers were designated Organisation A and B.

7. Stage 1 Evaluation 7.1. Both tenderers met the tender instructions and identified compliance criteria and

were progressed to stage 2.

8. Stage 2 Evaluation 8.1 Both tenderers met the selection criteria, consisting of appropriate financial status

(validated by the Senior Accountant, Resources, Social Care & Housing), adequate insurance indemnity, appropriate equal opportunities and anti discriminatory practice, appropriate health & safety arrangements and practice, and were progressed to stage 3.

9. Stage 3 Evaluation 9.1 Service Provision criteria, as identified above in section 5.5, were evaluated by an

assessment panel from the GWICES partners using scoring matrices to determine the points score for both tenderers. The evaluations were based on tenderer responses to service specification, information technology and commissioner questionnaires, presentations, question and answer sessions and site visits.

9.2 Costs of the service were evaluated by an assessment panel comprising of finance officers from the GWICES partners based on a pricing and activity schedule submitted by the individual tenderers. The overall cost points score was calculated by dividing the lowest total tender cost by the individual tenderer’s actual total tender cost, multiplying by 100, and adjusted to reflect the cost of service weighting (40%).

9.3 Organisations A and B were progressed to Stage 4.

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10. Stage 4 Evaluation 10.1 Stage 4 consisted of an assessment panel from the GWICES partners who

received a presentation from the short listed tenderers on the proposed service provision model and information technology system, followed by a question and answer session. A senior solicitor from Torfaen County Borough Council legal services attended as an observer.

10.2 The presentation focussed on the tenderers’ experience of operating a community equipment service as an Article 19 business and proposals for the implementation of a GWICES solution. The assessment panel focussed on the tenderers’ credibility and capability to provide GWICES with an appropriate and high quality community equipment service.

10.3 Organisations A and B were progressed to Stage 5.

11 Stage 5 Evaluation 11.1 Stage 5 consisted of an assessment panel from the GWICES partners who

undertook individual site visits with the tenderers to validate and supplement the information already received. Prior to the site visit a questionnaire (taken from the reference list supplied) was sent to current commissioners of the tenderer’s service and returned for evaluation. A senior solicitor from Torfaen County Borough Council legal services attended both site visits as an observer. Both the site visit and questionnaire points scores were added together to give a total reference/site visit evaluation score.

12. Stage 6 Tender Award 12.1 Organisation B was considered to be the most economically advantageous tender

having received the highest overall score when evaluated against cost and quality. Details of the final scores were as follows:-

Organisation Final Overall Score Tenderer A 92.53 Tenderer B 100.00

12.2

Following the recommendation to award the contract both tenderers will be informed whether they have been successful or not and also provided with the appropriate debrief information. This will start the ten day standstill period, which is required as part of the EU Procurement Process.

13. Factors affecting the Implementation of the contract 13.1 The EU Remedies Directive now requires public authorities to provide full reasons

for the contract award decision at the start of a 10 day standstill period rather than upon request by the unsuccessful tenderer. A formal challenge brought under the standstill period must result in the immediate suspension of the contract award

21


proceedings. If such a challenge is successful it could result in a contract being declared ineffective resulting in the cancellation of prospective contractual obligations and imposition of financial penalties.

14. Financial Implications 14.1 The cost of the contract will be met from the Pooled Fund budget established by

the GWICES commissioning partners and hosted by Torfaen County Borough Council, acting as lead commissioner, under the terms and conditions of a Section 33 Agreement for the provision of an integrated community equipment service.

14.2 The estimated annual cost of a contract with Organisation B for 2011/12 would be £1,133,074, based on the volume of activities used for evaluation purposes. This is approximately £56,000 below the actual expenditure for 2009/10. The estimated annual cost of the contract with Organisation B is approximately £166,313 lower than Organisation A.

14.3 The Head of Procurement, Torfaen County Borough Council, has previously indicated that the Lead Commissioner will want to enter into future discussions to identify the scope for achieving service efficiency savings during subsequent years of the contract period. Both tenderers agreed to work with GWICES to implement a cost reduction programme.

15. Legal Implications 15.1 As previously advised in this report, a Torfaen County Borough Council Senior

Solicitor, Legal Services, has also advised on the drafting of the service contract and tender documents.

15.2 Reference has previously been made to the requirements of the EU Remedies Directive and the potential for legal challenge by any unsuccessful tenderer.

16. Consultation 16.1 The GWICES Management Advisory Board (MAB) considered a similar report at

its meeting on the 26th August 2010 and fully supports the recommendation to proceed with the award of the contract to organisation B. Dependent upon outcome of the MAB meeting.

16.2 Torfaen County Borough Council Head Of Procurement and Senior Solicitor, Legal Services have been consulted and involved throughout the tender process.

17. Conclusion 17.1 The decision by GWICES Management Advisory Board to exercise its option to

reserve the contract under the provisions of Article 19 of the Public Sector Procurement Directive ensured that only organisations operating supported businesses or supported employment programmes could be considered for the

22


delivery of the service. This approach is in keeping with the commitment of the Council, GWICES partners and Welsh Assembly Government to support and encourage the employment of disabled persons whilst increasing social inclusion opportunities.

18. Recommendation 18.1 18.2

To approve the award of the contract for the Gwent Wide Integrated Community Equipment Service to organisation B for a 5 year period from 1st April 2011, with the option to extend the contract for a further 2 years depending on the performance of the organisation during the first five years. That Cabinet approves the holding in reserve of Organisation A to safeguard the continuity of service provision.

Appendices None Background Papers

GWICES Management Advisory Board reports: Decision to tender under Article 19 – 24th September 2008 Head of Procurement Tender Reports – 03rd December 2009 Lead Commissioner Update – Various dates Evaluation outcome and recommendations dated 26th August 2010. GWICES Tender 30 documents.

For a copy of the background papers or for further information about this report, please telephone: Jenny Beaton, GWICES Project Manager or Sarah Evans, GWICES Project Administrator.

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24

AGENDA ITEM NO 8 CABINET 14 SEPTEMBER 2010 GREEN AND FOOD WASTE RECYCLING FACILITIES Report submitted by: Christina Harrhy, Chief Officer Neighbourhood Services Report written by: Mark Howcroft, Head of Finance 1. Area Affected 1.1 County Borough wide.

2. Purpose of Report

2.1 To outline the additional costs identified with the tripartite agreement into

evaluating future green and food treatment facilities.

3. Recommendation(s)

3.1 3.2

That the annual contribution supporting the procurement programme is increased from £7,000 per annum to £66,000 per annum for 2010-11 to 2012-13.

This additional £59,000 is funded from the uncommitted revenue budget.

4. Background

4.1 4.2 4.3 4.4

Cabinet of 15 December 2009 received a report concerning the future Development of Waste Management within Torfaen. This explained the likely targets being imposed on local authorities, offered an approach to achieve such targets, and advised the indicative costs and budget requirements involved with that strategy. Part of that strategy involved a tripartite examination (with Blaenau Gwent and Caerphilly CBC) into the procurement of food and green waste recycling facilities. The legal agreement between the 3 Councils commits the parties to support the procurement exercise, with large penalties attributable to any party that withdraw. The Project Executive received notification that the costs associated with that examination have increased significantly and have approved the additional expense. At present the Council has approved a budget increase of £7,000 per annum in respect of Torfaen CBC’s contribution. By virtue of the revised costs, this annual contribution has been adjusted. This report details those revised costs and the reasons behind them.

25

5. Analysis

5.1 Details of the original and revised costs associated with the Project Team costs are included in Appendix 1.

5.2 Original staffing included the gross costs of Council staff seconded to the project together with equivalent income levels reflecting the fact that their individual employer would continue to pick up those costs. The Finance officer involved with the Project has confirmed that the revisions have the effect that the costs of the three individuals originally seconded to the Project are to be picked up directly be their employing Authority. The direct staffing budget has been supplemented, introducing a net increase in project staffing costs i.e. from £175,000 net to £423,000. The reasons for this net increase are as follows,

Staffing Costs were originally a percentage split between the organics project & the residual project. Staff time however is now being spent mainly on the Organics Project; any Residual Project work will be recorded on timesheets and CCBC contribution reduced accordingly as the Residual Project is a BGCBC & TCBC combined project.

Communications & Project Control Officer was originally an additional “in kind” contribution on 1 day per week but this position is now required full time & funded by the Project.

Staffing costs for the final year were originally only for 3 months, due to delays in commencing the competitive dialogue procurement process they have now been budgeted for the full year.

Staffing costs have been reviewed to ensure year on year correct costs are built in allowing for increments etc.

5.3 Also the level of consultants costs were increased by £481,000 to £890,000.

This is a substantial increase so more detail will be needed here for members.

Project Insurance Advisors were not included in the original budget but are a necessity to the project. Their costs are approx £15,313.

Additional advisors work was undertaken during the outline business case, which was not within the original budget and therefore increased costs.

Within the original budget it was estimated that the Project would receive 16 PQQ submissions to be evaluated. The Project however attracted 29 submissions and the evaluation of these submissions led to increased advisor costs.

A detailed advisors task list has been undertaken with each task being

costed by time & charge, thus enabling the budget to have a more robust supporting document for the advisors anticipated costs.

5.4 Marketing & branding costs are anticipated to increase by £6,500 to allow for

26

the Welsh translation of the web-site and the cost of project stationery & literature.

5.5 Training, hospitality and conference costs are anticipated to rise by £8,000 to allow for additional hiring of facilities for bidders meetings, visits to bidders sites and training of staff involved with the project.

5.6 Additional income from pathfinder grant (£72,000) was secured to part compensate for additional consultants costs and there were savings identified within travel, site activity, IT purchase and contingency totalling £137,000.

6. Result of Cost Changes

6.1 The original budget anticipated a net cost of £83,000, split equally between the 3 authorities involved i.e. £28,000 per authority split over 4 financial years (circa £7,000 per annum). This was the level of support previously approved by Cabinet.

6.2 The budget revisions have added £529,000 net expense to the project, necessitating an annual contribution per Authority of £51,000, an increase of £44,000. As £7,000 was paid in respect of 2009-10 the additional amount for that year has to be recoverable over the 3 subsequent years meaning the annual contribution for 2010-11 to 2012-13 will be circa £66,000.

6.3 It is proposed that this additional £59,000 is funded from the uncommitted

revenue budget. 7. Recommendation(s)

7.1 7.2

That the annual contribution supporting the procurement programme is increased from £7,000 per annum to £66,000 per annum for 2010-11 to 2012-13.

That this additional £59,000 is funded from the uncommitted revenue budget.

Background Papers

Note: Members of the public are entitled, under the Local Government Act 1972, to inspect background papers to reports. The following is a list of the background papers used in the production of this report. None

For a copy of the background papers or for further information about this report, please telephone: Mark Howcroft, Finance Manager, Ext 2281

27

APPENDIX 1 ORGANICS PROJECT TOTAL TOTAL DIFFERENCEExpenditure ORIGINAL REVISED Staff Costs 619,409 422,618 (196,792) Travel 44,965 17,884 (27,081) Site activities 230,355 138,251 (92,104) Consultants 408,297 890,127 481,830 IT purchase/charges 13,951 10,666 (3,285) Training/hospitality/conferences 21,000 29,185 8,185 Website & branding 10,000 16,300 6,300 Marketing 11,500 11,700 200 Contingency 67,974 52,534 (15,439) Total Expenditure 1,427,451 1,589,266 161,815 Income SCIF Project preparation (50,000) (50,000) 0 SCIF - Procurement activities (380,000) (380,000) 0 SCIF - Business case production (120,000) (120,000) 0 SCIF - service delivery (250,000) (250,000) 0 Pathfinder Project (100,000) (172,000) (72,000) Site Development 0 (5,200) (5,200) Total WAG Income (900,000) (977,200) (77,200) In-kind contributions Caerphilly (Procurement officer) (157,133) 157,133 Torfaen (technical officer) (148,043) 148,043 Blaenau Gwent (Communications officer) (17,241) 17,241 Blaenau Gwent (Finance officer) (122,003) 122,003 Total In-Kind Contributions (444,420) 444,420 Total income (1,344,420) (977,200) 367,220

NET EXPENDITURE (Funded by 3 Las) 83,031 612,066 529,035

Financial contributions per Authority (27,677) (203,896) (176,219) Collective LA contributions (83,031) (611,688) (528,657)

NET BUDGET 0 378 378

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AGENDA ITEM NO. 9 CABINET 14 SEPTEMBER 2010 PROPOSED COUNTY HALL CATERING SERVICE CLOSURE Report Submitted by: Peter Durkin, Deputy Chief Executive Report Written by: Mark Howcroft, Head of Finance, Neighbourhood Services 1. Area Affected 1.1 Users of Cwmbran County Hall catering facilities. 2. Purpose of Report 2.1 The purpose of this report is to highlight the increasingly adverse financial

situation anticipated in the operation of County Hall catering and seek agreement to the closure of existing catering facilities at County Hall.

3. Recommendation(s) 3.1 It is recommended that the existing County Hall catering function is ceased from

31st March 2011. 4. Background 4.1 The County Hall catering service is provided for the benefit of Torfaen CBC and

Monmouthshire CBC staff. The arrangement is funded through fees and charges paid by customers and an annual contribution by Monitor facilities management, which is jointly funded by the two Councils. Previous reports have highlighted an increasing trend in costs despite savings and economies being made, and a reduction in fees & charges. Throughout this period the Monitor subsidy has remained static such that Torfaen CBC has effectively picked up the annual deficit. This is not an arrangement that is particularly sustainable particularly given the net egress of staff out of County Hall as a prelude to formal closure of the building. It is anticipated that the service will incur a £50,000 deficit in 2010-11, consistent with previous years.

5. Issues and Findings 5.1 The financial activity of the service over the last five years is shown in Appendix 1,

in summary it is as follows:

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THIS DOCUMENT IS AVAILABLE IN LARGER PRINT UPON REQUEST

Net Expenditure Analysis against Budget Year Net Expenditure

Budget Net Costs Budget variance

2004-05 -44,399 11,417 55,816 2005-06 -46,200 1,770 47,970 2006-07 -50,300 15,374 65,674 2007-08 -32,400 30,829 63,229 2008-09 -9,900 49,562 59,462 2009-10 6,000 51,749 45,749

On average there has been an adverse variance each year over the last six years of £56,000. This is despite the £30,000 subsidy provided by Monitor.

5.2 Cost Analysis There has been a focus on controlling expenditure over the years most notably reducing staffing numbers/hours where economies of scale allow. The difficulty with this is that commonly costs/potential hours saved will not reduce directly proportionate to income levels. The model exhibits more of a stepped approach, made more difficult by kitchen and building layout. Currently the restaurant is open from 12:00 until 2:00 pm, and the shop from 8:45 until 3:00pm, with food preparation being required beforehand. Compounding a general weakening in the income levels is the considerable volatility in food prices. There are noticeable pressures around food costs which are anticipated to continue. These are affected significantly by oil prices, both directly and indirectly, in terms of cooking, delivery, processing and harvesting of items. Also adverse global situations and climate factors affect the availability of produce causing scarcity and knock on increases to food prices. This has most commonly affected staple crops such as cereals and grains, rice and vegetables but in the forthcoming year is also anticipated to affect citrus fruits following widespread failure of such crops in America. These fruits are a common base for most soft drinks. The Council is part of a South East Wales purchasing consortium which utilises its collective purchasing power and volumes to drive price economy. The main partner in this catering arrangement is currently re-tendering its catering service. It is anticipated that this could have a significant consequence for the remaining partners in terms of reduced volumes and increased costs if the subsequent catering provider no longer uses the consortium. As the outcome of that tendering is unknown, at present this isn’t reflected in 2010-11 budget.

5.3 Income Analysis

As mentioned previously, the arrangement for funding the County Hall function includes a common contribution through Monitor by the two authorities totaling £30,000 as well as the fees and charges for meals and services. Whilst attempts have been made to reduce expenditure levels year on year, the main problem is that the income from fees and charges is increasingly eroded.

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5.4 In summary the position is as follows,

Year Expenditure Income

from charges

Subsidy from Monitor Position

Net Expenditure

2004-05 392,450 -351,033 -30,000 11,417 2005-06 393,451 -361,681 -30,000 1,770 2006-07 389,549 -344,175 -30,000 15,374 2007-08 393,123 -332,294 -30,000 30,829 2008-09 407,245 -327,683 -30,000 49,562 2009-10 412,660 -330,,911 -30,000 51,749

5.5 There appears no one overriding cause for the drop of income; it is felt to be a

mixture of factors all of which contribute to a reduction in charges received. There is some evidence of a reduced footfall using the canteen facilities, despite previous customer questionnaire being positive and valuing the service provided. There have been direct measures to alter menus to respond to customer appetites. The introduction of “light” bites being a good example, these being healthier smaller portions however there is little evidence to suggest these changes have had any effect on increasing the customer base, yet the necessity to charge less for these smaller portions has potentially compounded the income shortfall.

5.6 Activity/footfall data for both the restaurant and shop are included in Appendix 2. The average income levels per day in 2003-04 were £524.85 and involved on average 231 transactions. In 2009-10 these average income levels had dropped to £445 per day and only involved on average 181 transactions. Both the restaurant and shop have exhibited a further average decline in activity and income per day during the first four months of 2010-11, with the restaurant now exhibiting an average daily income of £431 involving on average 163 transactions. It is particularly noticeable that income levels are still on the decline despite an annual inflation revision to fees & charges and revisions to menus designed to sustain and attract customers. The activity within the shop is generally of lower unit value than the restaurant which is what you would expect. 2007-08 proved an interesting year in that this was the first year when the income from the shop outstripped the restaurant provision. This trend has continued subsequently.

5.7 The finite life of the County Hall building will necessitate a net egress of staff out of County Hall, and there is some evidence that these movements have already started to occur. This egress is likely to have an adverse effect on the customer base for the restaurant and hence its sustainability. Equally alternate workplace strategies such as flexi-time, hot-desking and working

31


from home and advances in technology also mean that there is less of a customer base in the building. There is some anecdotal evidence that healthy eating strategies have impacted upon vending machine activity but is difficult to quantify with any certainty as it is also apparent that lunchtime attitudes and activities have changed over the years. At the inception of the shared arrangement it was commonplace for many staff to spend an hour with colleagues down in the restaurant. Now with the advent of flexi-time and the introduction of lunchtime “sporting” activities it is quite common for staff to grab a snack or sandwich at their desk or on the move. The state of the building itself and its prospective closure will have an increasing impact upon external function catering, both directly through a reduction in, for example, the number of weddings held at this venue and also indirectly through for instance NALGO club closure, where it was commonplace to reduce wastage through the selling of part barrels from functions. In response to this the bar facility tends to be more cans than barrel provision to cut down on wastage but the profit on cans tends to be far less than that of a barrel There is also evidence that in consequence of service budget constraints, that refreshment ordering for meetings is on a significant decline.

5.8 Three main options were considered. These included,

Running the existing catering facilities up to the decommission of the building, seeking increased funding from Torfaen CBC and Monmouthshire CBC through the annual Monitor payment.

Ceasing existing services and sharing of decommissioning costs. Closing the restaurant and re-engineering service around shop provision

6. Consultation 6.1 The sustainability issues in this report and proposed approach have been

considered by Green Team, senior Monmouthshire County Council officers, and Monitor Board.

6.2 The future building requirements of Torfaen and Monmouthshire County Borough Councils do not currently include a staff restaurant. Consequently there will be a need for future redeployment/redundancy considerations of existing catering staff which at present level and costs are of the order of £89,000. Other than simple closure, consideration has been given to increasing the level of subsidy provided through the Monitor Board. The Monitor Board volunteered use of a future rate rebate to assist. Given the inherent unsustainability of the function which is only likely to worsen, the austere financial environment facing local government and lack of certainty concerning rate rebate, its extent or when it might be received, it is still felt most prudent to recommend bringing the catering service to an end. In supporting closure proposals, the Green Team requested that arrangements be explored to provide staff with alternate basic catering facilities. One of the options they wished progressed is consideration of a franchise arrangement possibly

32


involving social enterprise broadly around the shop provision. Preliminary consultation with employees and UNISON revealed acceptance of the need for closure, a request that both Councils should support the service at present levels through to final closure and understandable emphasis placed upon the redeployment and severance provisions of the Council’s Statement of Good Employment Practice. The period up until 31st March 2011 provides the opportunity to fully explore redeployment opportunities for employees and to seek interest in provision of a franchised, temporary shop provision.

7. Implications 7.1 7.2 7.3

Keeping the service open until 31st March 2011 will introduce a cost burden for the Council of £50,000 The proposal involves a potential for redundancy costs which presently are predicted to be of the order of £80,000, but which may be mitigated through exploration of redeployment opportunities. The closure of County Hall catering would introduce a differential service to that of Civic Centre but there are also many staff geographically dispersed around the Borough that do not have access to this quality of formal catering facilities.

8. Risks 8.1 At present it is unclear what appetite there might be to operate a franchised

alternative catering service given the short period until closure of the building. This will be tested over forthcoming months. A lot of staff will be potentially affected by the closure, there is a potential for dissatisfaction which would need to be managed. The reduced arrangement may prompt an increase in kitchen appliances in offices and a consequent need for electrical testing/health and safety assessment. The main risk of not going ahead with proposal is an additional annual cost of £50,000.

9. Action to be taken following decision 9.1 Endorsement of recommendation to proceed will result in a more detailed

engagement with staff affected and the exploration of potential redeployment opportunities. The work to explore a franchised arrangement can progress and a plan for communicating likely changes to staff/customers drawn up.

10. Monitoring and Evaluation 10.1 A successful outcome of this process would be the sensitive closure of the

catering facilities and where possible the redeployment of staff working within this catering facility to safeguard their employment whilst reducing the costs burden

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falling upon Torfaen CBC. 11. Conclusion/summary 11.1 In the present financial climate it is understood that additional subsidy to continue

the existing service is not prudent. The provision of a shop only service by the Council is not feasible and potentially will introduce further additional costs as there were economies of scale in providing a restaurant and shop facilities. Closure of the facility would seem to provide the best opportunity for the Council to mitigate its cost burden.

12. Recommendation(s) 12.1 It is recommended that the existing County Hall catering function is ceased from

31st March 2011.

Appendices Appendix 1 – 5 year Financial Activity

Appendix 2 – Footfall data for shop and restaurant

Background Papers

Note: Members of the public are entitled, under the Local Government Act 1972, to inspect background papers to reports. The following is a list of the background papers used in the production of this report. County Hall catering service provision report Green Team 04/05/10 and Policy Development Forum 05/05/10 County Hall catering service provision report Monitor Facilities Board 14/5/10 County Hall catering service provision report Monitor Facilities Board 22/7/10

For a copy of the background papers or for further information about this report, please telephone: Mark Howcroft, Head of Finance, Neighbourhood Services ext 6711

34

APPENDIX 1 - 6 YEAR FINANCIAL ACTIVITY

County Hall Catering

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Budget Outturn Variance Budget Outturn Variance Budget Outturn Variance Budget Outturn Variance Budget Outturn Variance Budget Outturn Variance

Salaries 32,793 32,361 33,800 33,762 34,800 35,301 48,900 28,366 190,800 189,573 192,000 187,862Wages 139,833 152,760 146,400 166,242 155,300 169,173 118,200 162,071Overtime 2,636 3,600 4,176 2,000 3,206 10,000 3,981 10,000 22,843 10,000 17,281Redundancy/notice 8,744 13,978Training 14 99Agency staff 2,064Pension costs 20,892Employees 172,626 208,649 36,023 183,800 204,194 20,394 192,100 207,680 15,580 177,100 205,325 28,225 200,800 212,416 11,616 202,000 219,121 17,121

Building repair 100 6 100 133 100 0 1,033Propane cylinders 76 115 94 101 200 174Cleaning mats 2,000 2,289 2,000 2,166 2,200 2,479 2,200 3,125 4,300 3,895Pest control 200 200 360 360 2,200 3,989Premises 2,100 2,571 471 2,100 2,614 514 2,300 2,933 633 2,200 4,619 2,419 2,200 3,988 1,788 4,500 4,070 -430

Transport 0 0 0 0 0 0 5 5 0 0 0

Equipment Purchase & Repair 3,000 4,048 3,000 2,951 3,000 2,975 3,000 2,937 3,000 2,405 1,700 1,550Equipment Rental 1,500 1,264 1,500 1,447 1,700 1,150 1,700 950 1,700 1,207 1,200 876Crockery & Cutlery 1,500 254 1,500 1,344 1,500 1,194 1,500 140 1,500 551 700 567Disposables 6,500 6,302 6,500 6,320 6,500 7,256 6,500 6,871 6,500 6,676 7,000 7,187Food Costs 154,700 164,831 154,700 168,939 153,500 160,554 133,500 165,487 139,900 175,272 157,600 174,963Protective clothing & uniforms 500 958 500 1,258 1,000 941 1,000 1,470 1,000 770 1,800 1,555Laundry 500 469 500 581 500 660 500 932 700 718 1,000 797Office expenses 75 1,276 100 1,157 1,100 822 1,100 461 1,300 784 1,000 477Security costs 600 1,828 600 2,646 2,500 3,384 4,000 3,931 4,000 2,458 2,500 1,497Supplies & Services 168,875 181,230 12,355 168,900 186,643 17,743 171,300 178,936 7,636 152,800 183,179 30,379 159,600 190,841 31,241 174,500 189,468 14,968

Total Expenditure 343,601 392,450 48,849 354,800 393,451 38,651 365,700 389,549 23,849 332,100 393,123 61,023 362,600 407,250 44,650 381,000 412,660 31,660

INCOME

Government GrantsOther FundingBar - wet -10,000 -6,461 3,539 -5,000 -11,138 -6,138 -5,000 -12,080 -7,080 -5,000 -9,027 -4,027 -3,000 -6,124 -3,124 -3,000 -16,028 -13,028 Bar - dry -3,000 -684 2,316 -1,500 -3,736 -2,236 -3,000 -1,433 1,567 -1,500 -915 585 -1,500 -2,019 -519 -1,500 -2,046 -546 Cafeteria -110,000 -108,515 1,485 -115,000 -110,646 4,354 -120,000 -102,681 17,319 -110,000 -94,683 15,317 -110,000 -95,143 14,857 -120,000 -92,078 27,922Vending Machine - wet -100,000 -99,973 27 -100,000 -102,014 -2,014 -110,000 -102,108 7,892 -110,000 -105,750 4,250 -110,000 -110,068 -68 -115,000 -109,773 5,227Vending Machine - dry -20,000 -16,663 3,337 -17,500 -16,239 1,261 -20,000 -12,665 7,335 -20,000 -14,068 5,932 -20,000 -11,819 8,181 -10,500 -5,106 5,394Credit Income -55,000 -74,778 -19,778 -80,000 -77,790 2,210 -80,000 -64,106 15,894 -40,000 -55,948 -15,948 -50,000 -58,283 -8,283 -55,000 -61,123 -6,123 Other bodies -30,000 -30,116 -116 -32,000 -30,000 2,000 -38,000 -30,000 8,000 -30,000 -30,000 0 -30,000 -30,000 0 -30,000 -30,000 0Recharges to Other Services -60,000 -43,843 16,157 -50,000 -40,118 9,882 -40,000 -49,102 -9,102 -48,000 -51,903 -3,903 -48,000 -44,228 3,772 -40,000 -44,758 -4,758

Total Income -388,000 -381,033 6,967 -401,000 -391,681 9,319 -416,000 -374,175 41,825 -364,500 -362,294 2,206 -372,500 -357,683 14,817 -375,000 -360,911 14,089

NET (SURPLUS)/DEFICIT -44,399 11,417 55,816 -46,200 1,770 47,970 -50,300 15,374 65,674 -32,400 30,829 63,229 -9,900 49,567 59,467 6,000 51,749 45,749

35

COUNTY HALL - AVERAGE SPEND PER TRANSACTION. 2003 - 2009

APPENDIX 2 - FOOTFALL DATA FOR SHOP & RESTAURANT

SUMMARY

Year

Average Daily Shop Takings

Average Daily Shop

Transactions

Average Value per

Transaction

Average Daily Restaurant

Takings


Transactions

Average Value per

Transaction2003-04 £444.83 364 £1.22 £524.85 231 £2.272004-05 £457.74 356 £1.29 £520.17 217 £2.402005-06 £477.20 357 £1.34 £549.33 226 £2.432006-07 £464.87 327 £1.42 £485.44 194 £2.512007-08 £493.42 290 £1.70 £465.19 154 £3.022008-09 £506.13 335 £1.51 £472.78 188 £2.512009-10 £493.10 310 £1.59 £445.28 181 £2.462010-11 to July inclusive £481.21 291 £1.65 £431.49 163 £2.65

YearAverage Daily Combined Takings

Proportion of Shop Takings

Proportion of Restaurant Takings

2003-04 £969.68 46% 54%2004-05 £977.91 47% 53%2005-06 £1,026.53 46% 54%2006-07 £950.32 49% 51%2007-08 £958.61 51% 49%2008-09 £978.91 52% 48%2009-10 £938.39 53% 47%2010-11 to July inclusive £912.70 53% 47%

U:\Strategic Services\Democracy\Democratic Services\Cabinet and Subs\Cabinet\Reports\2010\Finals\14 Sept 2010\9. County Hall app 2 Average transactions36


DETAILED ANALYSIS

Date By MonthAverage Daily Shop Takings

Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2003 £434.90 367 £1.18 £477.23 216 £2.21

May 2003 £391.80 327 £1.20 £454.83 218 £2.08

June 2003 £416.36 356 £1.17 £489.96 217 £2.25

July 2003 £453.86 378 £1.20 £494.30 224 £2.21

August 2003 £378.98 320 £1.18 £378.43 177 £2.14

September 2003 £470.74 394 £1.20 £601.84 278 £2.16

October 2003 £431.79 361 £1.20 £579.16 243 £2.38

November 2003 £488.28 398 £1.23 £617.18 261 £2.36

December 2003 £499.55 340 £1.47 £466.31 188 £2.48

January 2004 £446.08 371 £1.20 £556.91 246 £2.27

February 2004 £463.78 382 £1.21 £545.85 242 £2.25

March 2004 £461.86 374 £1.23 £636.16 264 £2.41

AVERAGE 2003-04 £444.83 364 £1.22 £524.85 231 £2.27




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2004 £413.53 327 £1.26 £503.26 200 £2.52

May 2004 £357.47 288 £1.24 £428.21 186 £2.30

June 2004 £444.28 365 £1.22 £537.27 224 £2.40

July 2004 £452.19 367 £1.23 £511.79 232 £2.21

August 2004 £395.68 320 £1.24 £417.49 188 £2.22

September 2004 £460.14 342 £1.35 £568.83 226 £2.51

October 2004 £491.88 385 £1.28 £546.93 230 £2.38

November 2004 £504.22 398 £1.27 £616.65 255 £2.42

December 2004 £548.68 352 £1.56 £426.21 171 £2.50

January 2005 £495.35 386 £1.28 £591.05 243 £2.44

February 2005 £477.61 379 £1.26 £552.20 228 £2.42

March 2005 £451.90 361 £1.25 £542.10 222 £2.45

AVERAGE 2004-05 £457.74 356 £1.29 £520.17 217 £2.40




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2005 £468.62 368 £1.27 £570.96 237 £2.40

May 2005 £475.98 372 £1.28 £524.66 220 £2.38

June 2005 £468.46 351 £1.34 £496.17 219 £2.27

July 2005 £473.65 367 £1.29 £499.09 208 £2.40

August 2005 £429.70 309 £1.39 £461.93 195 £2.37

September 2005 £458.99 351 £1.31 £559.98 221 £2.53

October 2005 £472.41 359 £1.31 £591.27 234 £2.52

November 2005 £500.83 374 £1.34 £648.82 260 £2.49

December 2005 £542.54 330 £1.64 £463.16 182 £2.55

January 2006 £454.92 348 £1.31 £613.55 252 £2.43

February 2006 £480.12 368 £1.30 £586.73 247 £2.38

March 2006 £500.24 380 £1.32 £575.58 232 £2.48

AVERAGE 2005-06 £477.20 357 £1.34 £549.33 226 £2.43




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2006 £391.37 263 £1.49 £452.22 178 £2.54

May 2006 £439.21 338 £1.30 £449.37 184 £2.44

June 2006 £421.88 325 £1.30 £422.96 174 £2.43

July 2006 £488.87 369 £1.32 £457.30 193 £2.37

August 2006 £448.91 311 £1.45 £456.52 192 £2.37

September 2006 £431.19 329 £1.31 £489.98 216 £2.27

October 2006 £504.30 351 £1.44 £563.30 224 £2.52

November 2006 £511.87 355 £1.44 £578.16 238 £2.43

December 2006 £563.21 324 £1.74 £428.97 161 £2.67

January 2007 £455.59 346 £1.32 £521.13 202 £2.58

February 2007 £445.42 309 £1.44 £506.92 192 £2.64

March 2007 £476.67 304 £1.57 £498.46 168 £2.97

AVERAGE 2006-07 £464.87 327 £1.42 £485.44 194 £2.51




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2007 £477.72 244 £1.96 £453.64 121 £3.74

May 2007 £471.15 201 £2.34 £481.64 102 £4.73

June 2007 £491.29 339 £1.45 £456.79 185 £2.47

July 2007 £456.19 283 £1.61 £475.32 162 £2.93

August 2007 £463.80 329 £1.41 £402.45 161 £2.49

September 2007 £497.56 287 £1.74 £342.84 130 £2.64

October 2007 £511.83 267 £1.92 £515.86 143 £3.60

November 2007 £530.03 368 £1.44 £561.53 215 £2.61

December 2007 £539.47 280 £1.93 £372.39 130 £2.88

January 2008 £487.98 339 £1.44 £553.85 212 £2.61

February 2008 £521.28 212 £2.46 £535.68 114 £4.71

March 2008 £472.75 327 £1.45 £430.25 171 £2.52

AVERAGE 2007-08 £493.42 290 £1.70 £465.19 154 £3.02




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2008 £506.49 321 £1.58 £523.65 195 £2.69

May 2008 £485.57 339 £1.43 £419.84 175 £2.41

June 2008 £501.43 345 £1.46 £451.24 184 £2.46

July 2008 £492.02 346 £1.42 £478.92 195 £2.46

August 2008 £478.25 323 £1.48 £373.05 156 £2.39

September 2008 £522.88 353 £1.48 £465.10 217 £2.14

October 2008 £515.02 340 £1.52 £500.77 199 £2.52

November 2008 £550.45 361 £1.52 £548.71 213 £2.57

December 2008 £547.86 309 £1.78 £394.33 151 £2.61

January 2009 £505.95 332 £1.53 £506.90 196 £2.59

February 2009 £468.14 307 £1.52 £465.53 179 £2.61

March 2009 £499.54 343 £1.45 £545.30 200 £2.72

AVERAGE 2008-09 £506.13 335 £1.51 £472.78 188 £2.51




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2009 £488.81 329 £1.49 £467.50 176 £2.66

May 2009 £500.59 338 £1.48 £449.23 185 £2.43

June 2009 £500.50 315 £1.59 £449.44 180 £2.49

July 2009 £497.83 332 £1.50 £441.44 178 £2.48

August 2009 £475.29 327 £1.45 £389.85 158 £2.46

September 2009 £483.21 232 £2.08 £425.26 180 £2.36

October 2009 £492.90 338 £1.46 £487.65 215 £2.27

November 2009 £538.48 337 £1.60 £469.99 202 £2.32

December 2009 £533.02 291 £1.83 £393.29 152 £2.59

January 2010 £512.15 288 £1.78 £425.17 179 £2.38

February 10 £405.33 263 £1.54 £431.62 178 £2.42

March 10 £489.12 326 £1.50 £512.97 193 £2.66

AVERAGE 2009-10 £493.10 310 £1.59 £445.28 181 £2.46




Average Daily Shop

Transactions

Average Value per

Transaction


Takings


Transactions

Average Value per

Transaction

April 2010 £464.60 257 £1.81 £426.93 139 £3.07

May 2010 £511.32 333 £1.54 £446.70 186 £2.40

June 2010 £464.09 273 £1.70 £412.55 165 £2.50

July 2010 £484.83 301 £1.61 £439.77 162 £2.71

AVERAGE 2010-11 £481.21 291 £1.65 £431.49 163 £2.65


1

AGENDA ITEM NO. 10

CABINET 14 SEPTEMBER 2010 ENERGY STRATEGY Report Submitted by: Nigel Aurelius, Assistant Chief Executive Resources. Report Written by: Allan Jones, Energy Manager, Pauline James, Head of Asset

Management. 1. Area Affected 1.1 Whole of Torfaen. 2. Purpose of Report 2.1 The purpose of this report is to refresh the Council’s current energy strategy and place

it within the policy contexts of carbon reduction, environmental impact and noting that a primary consideration is for energy consumption to be reduced as part of the Council’s commitment to a more sustainable Torfaen.

3. Recommendation(s) 3.1 It is recommended that:

the actions proposed in the Energy Strategy Action plan are approved in

principle but not implemented until the funding for each action is identified and approved as part of the medium term financial plan and capital strategy;

4. Background 4.1 The Council spent £2,727,975 on energy and £468,425 on water payments in the

2009/2010 financial year. These costs covered the consumption of electricity, gas, water, oil, and coal throughout all our properties, including electricity for street lighting.

4.2 The amount of energy consumed in 2008 / 09 equated to 16,038 tonnes of carbon

emissions. 4.3 Our energy is procured through the Office of Government Commerce (OGC) under a

joint arrangement with other Welsh Authorities. While this ensures that our contract price is competitive, energy prices are volatile, and fluctuate in response to market and economic conditions. Current estimates are that prices for contracts due for renewal in October 2010 are likely to rise by 6 – 7% for electricity, and potentially 11% for gas. The only reliable way therefore to reduce costs is by a persistent and relentless effort to reduce the amount of energy that is consumed across the whole of the Council.

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A separate approach for demonstrating community leadership in energy and carbon reduction is being formulated, and will be the subject of a related report to Cabinet, and potentially the LSB.

5.0 Legislation 5.1 There is a whole raft of international and national legislation covering carbon and

energy reduction. Legislation flows from international agreements such as Kyoto and Copenhagen, via the European Union and UK Government through to the Welsh Assembly Government. WAG has a strong commitment to sustainability and in addition to having regard to the wider legislative requirements, has therefore set targets of its own. In a nutshell, the UK and Welsh policy context can be summarised as follows: UK Targets

The UK has gone beyond its Kyoto Protocol target and has committed the UK to a goal to achieve an 80% reduction in emissions (from a 1990 baseline) by 2050.

Welsh Targets

The Assembly Government has committed itself to contributing to the UK’s achievement of the Kyoto target and wider UK Government goals on CO

2

emissions. Within the “One Wales” agreement the Assembly Government has set a target to

achieve annual carbon reduction-equivalent emissions reductions of 3% per year from 2011

Ambitious targets have also been set for renewable energy through the installation of micro heating and electricity systems, and a number of combined heat and power systems by 2020.

There is an aspiration that all new buildings should be zero carbon. There is a requirement for public buildings over a certain size to have a Display

Energy Certificate (DEC) which analyses and records the energy efficiency of the building, and which can be used as a publicly available tool to identify potential energy improvements to the building. (A UK-wide requirement).

5.2 Cabinet has previously received a report dealing with the CRC Energy Efficiency

Scheme (CRCEES). This is a new regulatory incentive to improve energy efficiency in large public and private sector organisations in the UK, as a mechanism to contribute towards the 2050 reduction targets, through effectively establishing both a “price” for carbon and a “cap” on the levels of carbon emissions produced by large organisations within the scheme. Torfaen meets the qualification criteria for the scheme, which are based on how much electricity an organisation used in 2008. Participating organisations will have to monitor their emissions and purchase credits, initially sold by the Government, for each tonne of CO2 they emit. The more CO2 an organisation emits, the more credits it has to purchase. At the end of each year, a league table will be published which compares the performance of all participants. Participants will either have to buy more credits to cover their increased consumption, or may receive some of their revenue back if they have done well in the league table by reducing their consumption.

6.0 The Council’s position.

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6.1 The last Energy Strategy agreed by the Cabinet was in December 2007 as part of a

Climate Change Policy. In respect of this report, the key aims in relation to the initial phase of the Carbon Management Strategy were as follows:

• to reduce the energy and fuel costs of Torfaen County Borough Council by 15% by 2012

• to reduce CO2 emissions from directly controlled council buildings by 2% per annum from 2006/07 levels.

• to achieve a 1% year on year reduction in fleet vehicle mileage over the next 5 years

• to reduce the emissions from staff business and commuting travel by 2% per annum over the next 5 years

6.2 Since that strategy was produced much has been achieved including:

A reduction in carbon emissions of 12% against a 2003/04 baseline as part of an

agreement with WAG Reductions of energy consumption at individual sites including:

o 16% per annum reduction in electricity consumption at the Civic Centre o 16.5% reduction in electricity consumption at Pontypool Active Living

Centre o 12.5% reduction in electricity consumption at Cwmbran Stadium

The provision of the SALIX energy fund (invest to save) of £300,000 with £150,000 secured from the Carbon Trust

Installation of renewable energy systems such as the biomass boiler and solar hot water system at the Life Station

Installation of automatic meter readers at sites for accurate gas and electricity billing and consumption information.

The introduction of electronic invoicing and payment of utility bills leading to reductions in invoice handling costs and reducing the need for paper bills.

Engagement of staff and members in climate change and energy efficiency through seminars and information provision

The second phase of the Carbon Management Strategy planning has recently concluded and findings / recommendations will form part of the options in this document.

6.3 Despite the above there remains much to be done around energy – in particular to

ensure we are fully ready to address the financial and operational challenges posed by the Carbon Reduction Scheme , which infers a need to substantially reduce our energy consumption and so our expenditure. As Members will know from the previous reports the Carbon Reduction Scheme is extremely complex in both its construct and application. However, it is basically a vehicle to ensure that large organisations (such as ours) reduce their emissions, and infers that if we as a public body focus on (i) making ourselves as energy efficient as possible and (ii) reducing energy consumption, then the Carbon Reduction Scheme’s detailed requirements will take care of themselves and will lead to Council savings. Thinking of it in those terms will also make it more readily understandable across the organisation which is extremely important – much of this is about a cultural change in the way in which we use and think about energy. Since the Carbon Reduction Scheme

47

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can be quite a complex area with many strands to it, keeping a simplified approach will help to communicate and achieve progress.

6.4 Hence, taking forward these two points will be the focus of the revised strategy. 6.5 The current very difficult financial climate facing the public sector makes it all the more

critical that we make real progress on this agenda. 7.0 Target areas 7.1 The Council’s buildings account for 70% of the total emissions of the whole Council. A

breakdown of these emissions by building category is shown below.

7.2 For the purposes of this report only building energy use is being considered, as these

are by far the largest sources of emissions. From the assessment of the baseline, the following key areas of opportunity have been identified:

• Schools These are responsible for 56% of the building portfolio emissions and have high heating loads; • Leisure Centres. These account for about 20% of the building portfolio emissions and are heavy users of both gas and electricity. • Oil Consumption

This has relatively high carbon intensity, represents between 5% and 6% of the building portfolio emissions and has the potential to be replaced with alternative fuels;

• Electrically heated buildings These are a small proportion of the building portfolio, but make up a relatively significant proportion of the electricity consumed.

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5

7.3 The Display Energy Certificates (DECs) referred to in 5(1) above are being used to identify opportunities to improve energy consumption in specific buildings. These show that our energy performance in larger buildings is generally poor. DECs can be used to assist in identifying opportunities to improve the energy consumption of premises.

8. The revised strategy 8.1 As indicated above the energy management and carbon reduction agendas can be very

complex with many strands and at times this complexity can actually impede focused progress. Therefore the report aims to make clear – what we need to do; why; when; specific activities/actions; investment required; returns/savings.

8.3 Attached as an appendix is the revised strategy which is summarized below:

Summary of the key activities: Using the assessment from the baselines and the Display Energy Certificates that are prepared for our larger public buildings, the following actions have been prioritised and are described below:

Installation of effective heating controls at sites: a study carried out by independent control specialists showed that on a sample of 6 representative Torfaen sites a saving of 6% of heating fuel could be achieved from effective controls. If this is extrapolated across the buildings which require a DEC, this will realise estimated savings of £55,280 per annum at current gas costs, at a cost of £165,000 giving a simple payback of 3 yrs. This will reduce CO2 emissions by 525 tonnes per annum.

Experience shows that a concerted awareness/good housekeeping programme should provide savings of 5% to 10% over the period. This would require investment in materials and resources estimated at £5,000 over an 18 month period to ensure success. Savings of 5% would equate to £205,000 over the same period, giving a net saving of £136,400 per annum and CO2 reductions of 850 tonnes over the period.

Reduction of landlord energy costs in the managed Industrial and Commercial Estate: Under the CRCEES the Council is responsible for this energy use and will need emission credits for its energy use. It is estimated that savings of £9,110 p.a can be realised from an investment of £21,000, mainly in lighting and heating controls, giving payback within 2.3 years.

Installation of automatic water meter readers at all sites will allow for electronic billing of water to proceed. This will reduce administration costs, increase our use of e-billing services, identify leaks in real time, and provide information for further water reduction opportunities to be undertaken. Good practice shows that 15% to 20% savings can be realised, at an estimated cost of £200,000, with the potential of savings of £70,500 per annum.

To gather information on consumption trends in buildings it is proposed to install a system to remotely monitor all circuits in the Civic Centre to enable optimisation of all supplies at a cost of £11,900 with savings of £2,975 expected per annum.

To ensure all PCs and peripheral devices are shut down each night it is proposed to install 1,000 power down sockets to desktops across the Council, the cost will be £20,000. This will produce a cost saving of £10,200 and 55 tonnes of CO2.

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6

Installation of high speed, high efficiency hand driers at the Civic Centre to replace paper towel rolls. Currently £5,300 per annum is spent on paper towel rolls, switching to high speed driers will cost £8,800, but will reduce costs by £5,142, divert 10.5 m3 of paper waste from landfill, and reduce CO2 emissions by 7.2 tonnes

One of the early actions is Automatic Meter Reading, implementation of which is ongoing and should provide Torfaen CBC with a positive benefit in the league table. Another early action is based around achieving accreditation of – for example - the Carbon Trust Standard: the cost for this would be £10,000, but accreditation secures a guaranteed return of £14,400 over the first three years of the CRCEES and a higher position in the league table. It also demonstrates public commitment to managing Carbon Reduction, and is entirely consistent with the Council’s wider policy objectives for sustainability. After year 3 the effect of these two ‘early action’ metrics will drop out of the league table positioning criteria, and 2014 absolute emissions reduction will be the only way forward. The other ‘investment’ required for the management and purchase of carbon credits for the CRCEES : £180,000 is required to be set aside for credit purchases. These credits are then “recycled” depending on the level and impact of the improvement activities. As such this is in effect, a ”cash flow” issue with sums being recycled in the following October depending on performance. Poor performance could result in cash losses up to 10% in year one. As such it is not included within the appendix.

8.4 To achieve the above will potentially require an investment of £466,700 but with a

relatively short payback period. This will need to form an integral part of our medium term financial planning and options will include:

Using the SALIX invest to save fund where there is payback under 5yrs, although this needs the site to sign up to repaying the loan for the works undertaken

Making a case to use the Invest to Save budget on some of the larger schemes – especially relevant given the short payback period;

Potential case to be made with respect to the transformation resources;

If the strategy is agreed these options will be explored in greater depth, alongside any opportunities that might exist through linking the Council’s internally focused work with the wider role of facilitating carbon reduction within our communities, and through working with other public service partners.

8.5 If implemented, this agenda we will achieve:

A reduction in Carbon emissions of 1513 tCO2 - a 13% reduction in emissions; A financial saving of £299,905 per annum; Progress towards our Carbon Reduction Commitment; Water savings of 36,400 cubic metres (7,722,000 gallons) p.a. (included in the

over all saving figure above). Reduction of waste to landfill of 8.5 m3

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9. Risks 9.1 The risks associated with this report are ones that would arise if we fail to carry out the

recommendations. Failure to implement the action plan will mean the Council does not meet its targets for the reduction of carbon emissions, potentially incurring penalty costs from the CRCEES, and does not reduce the budget costs associated with our energy consumption, inferring that higher cash savings could be needed from direct service delivery.

9.2 A critical success factor will be the extent to which sites (especially schools, which have

a degree of autonomy for their site management arrangements) agree to take a more medium term approach to work that could be funded by the SALIX ‘Invest to Save’ scheme, and committing to repaying the loans that facilitate change.

10 Conclusions 10.1 The ‘Business as Usual’ approach to energy use is no longer an option. Action needs to

be taken to reduce emissions and consequently costs. The Council has good quality data relating to the energy and carbon efficiency of our premises. The actions described will go a long way in ensuring Torfaen CBC can reach an initial position on the national league table for the CRCEES that will ensure no loss of credit payments. The Energy Strategy is a practical demonstration of the Council’s determination to address climate change issues and reduce operational costs.

11. Recommendation(s) 11.1 It is recommended that:

the actions proposed in the Energy Strategy Action plan are approved but not

implemented until the funding for each action is identified and approved as part of the medium term financial plan and capital strategy;

Appendices Appendix 1 Action Plan Background Papers

Note: Members of the public are entitled, under the Local Government Act 1972, to inspect background papers to reports. The following is a list of the background papers used in the production of this report. Carbon Trust Control report on Torfaen sites Carbon Management Action Plan Phase 1 and Phase 2

For a copy of the background papers or for further information about this report, please telephone: Allan Jones, Energy Manager.

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Appendix 1 Energy Strategy Action Plan – July 2010 to April 2012 Outcome What Needs

To Be Done Why When Actions required By Who Annual

Budget required

One-off Investment needed

Return Expected

£

Payback Period

Comply with CRCEES legislation

Reduce liability on CRCEES

To ensure a higher position in the national league table

By December 2010 Obtain Carbon Trust Standard or similar

Energy Manager Energy Technician Admin Support Team

£10,000 £3,800 p.a.

3 yrs

Reduce Cost and Emissions

Reduce fuel consumption through the installation of boiler controls in schools.

A control study carried out at 6 TCBC sites showed savings of at least 6% on heating costs and consumption

Start October 2010 Using existing framework with heating contractor to deliver works to identified priority sites

Energy Manager Energy Technician Neighbourhood Services (maintenance)

£165,000 £55,280 p.a.

2.9 years


Instigate a robust Energy Awareness programme to support all Services and Schools

Research shows a robust programme can deliver up to 10% reductions

October 2010 to April 2012

Resources required to deliver dedicated awareness training/programmes to Services/Schools,

Energy Manager, Communications team.

A sum of £5,000 for awareness materials

£136,398 p.a

1 month


Reduce emissions and cost by monitoring energy use at Civic Buildings

To improve performance, meet emissions targets

October/November 2010

Install remote monitoring on all circuits of Civic Centre.

Energy Manager Energy Technician

£11,900 £2,975 p.a.

4 years


Reduce emissions and cost managing ICT equipment


Start in October 2010

Installation of Power Down sockets on 1,000 desktop PC’s


£20,000 £10,200 p.a.

2 years


Reduce heating losses from pipes and valves


Start October 2010 Installation of Insulation on exposed valves at 20 primary Schools


£25,000 £6,500 p.a.

3.8 years

Reduce Reduce water Automatic Go to tender in Installation of Water Energy Manager £200,000 £70,500 3 years

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9

Cost and Emissions

consumption and enable payment of water bills by electronic process

Meter Reading (AMR) of water use will highlight leaks and anomalies on sites

November 2010 for start of April 2011

AMR on all water meters

Energy Technician

p.a.


Reduce emissions and costs


Start in September 2010

Install controls on lighting and heating systems at Managed Industrial and Commercial estates, Landlords supplies


£21,000 £9,110 p.a.

2.3 yrs


Reduce emissions and costs


Start in September 2010

Install High Speed, High Efficiency hand driers at Civic Centre.


£8,800 £5,142 1.75 yrs

TOTAL £466,700

£299,905 p.a.

19 months

* All costs savings are at 2009/10 energy contract rates

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10

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_______________________________________________________________________ THIS DOCUMENT IS AVAILABLE IN LARGER PRINT UPON REQUEST

AGENDA ITEM NO. 11 CABINET 14 SEPTEMBER 2010 ARTS CONNECT – SOUTH EAST WALES VALLEYS AND MONMOUTHSHIRE REGIONAL SHARED ARTS SERVICE Report submitted by: Christina Harrhy Chief Officer Neighbourhood Services Report written by: Sally Church, Head of Leisure and Culture,

Neighbourhood Services 1. Area Affected 1.1 Arts Services in the South East Wales Valleys, Monmouthshire and the Vale

of Glamorgan. 2. Purpose of Report 2.1 The report (jointly authored with the Group Director for Environmental Services and

the Head of Cultural Services Rhonda Cynon Taff) aims to seek Cabinet approval to work towards the principle of developing a regional shared service for the Arts within the South East Wales, Monmouthshire and the Vale of Glamorgan area during 2010/11, covering the 7 Local Authorities listed below:

Blaenau Gwent County Borough Council Bridgend County Borough Council Caerphilly County Borough Council Merthyr Tydfil County Borough Council Monmouthshire County Borough Council Rhondda Cynon Taf County Borough Council Torfaen County Borough Council The Vale of Glamorgan

. 3. Recommendation(s)

3.1 It is recommended that Cabinet approve:-

The principle of establishing a regional shared service for the Arts,

covering partner Authorities across South East Wales, Monmouthshire and the Vale of Glamorgan.

The engagement of specialist support if appropriate, utilising the balance of the Making the Connections Arts Connect budget (WAG funded) and Arts Council of Wales funding, to help develop the service model in preparation to move to a regional shared service.

A further report be brought before the Cabinet detailing the proposed model for implementation.

4. Background 4.1 ArtsConnect started as a partnership of 7 Local Authorities: Blaenau Gwent,

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4.2

4.3 4.4 4.4.1 4.4.2

Bridgend, Caerphilly, Merthyr Tydfil, Monmouthshire, and Torfaen, recently the Vale of Glamorgan have joined the partnership. The project is led by Rhondda Cynon Taff. It is advised by Arts Council of Wales, Welsh Assembly Government, and Welsh Local Government Association representatives, who are also members of the partnership. ArtsConnect was developed in 2008 to lead an action-research change management programme to support the implementation of key Welsh Assembly Government initiatives: Beyond Boundaries (Delivering the Beecham Review) and the Wales Arts Review. The key aim of the project was to seek a means of protecting in a sustainable way highly valued discretionary services in the context of an ever worsening financial outlook for the public sector. The project also tackled some of the shared operational challenges and opportunities that had been identified by Local Authority arts services, in terms of boosting their contribution to the creative economy and the cultural identity of Wales.

Throughout the period 2008-2010 work has been carried out to identify the benefits of working collaboratively together across the region. This report brings together the all of those benefits, informed by the changing financial context within local government and the changes within the Leadership Group during 2009/10. In addition it draws upon the most recent objective discussions between the corporate support officers and the examination of the regional strategic and operational issues, by the regions enthused and passionate arts officers. The partners have developed a Shared Vision and Aims for the Arts in the Region. The shared 21 year Vision is: Vision Statement ‘By 2030 the region is a place where people are entitled to engage in a range of cultural activities, with great spaces and places to produce and enjoy the arts; are free to express themselves, to create, present and enjoy cultural activities in safety, to take artistic risks, and to be confident that the distinctive cultural heritage of the region will be protected for future generations’ Aims

Secure a sound future for local government arts service provision in the region – namely Theatres and theatre programmes, Arts Development, community outreach and creative industries programmes and advising Councils on the Arts within cross cutting strategies.

Raising the profile of local government arts and boosting their contribution to the creative economy and cultural identity of Wales.

5. Issues and Findings 5.1.

The joint agreement to form one shared Arts Service based upon current provision and Officer expertise, will enable much needed focussed delivery.

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5.2 5.3 5.3.1

5.3.2 5.3.4

However it is fully accepted that the introduction of a single shared service is complex, and is further complicated by the uneven contribution of funding for arts provision by each partner and its allocation of resources. As a work in progress the structure for a single shared arts service will need to be achieved through the resources currently available in each of the respective 7 partner Authority arts services’ organisational structures. However job-evaluation has yet to be consistently applied to the proposed posts especially as partners are at different stages in this process. In depth discussion and consultation will need to be undertaken with staff, trade unions and Human Resources. The Main Benefits of a Single Shared Arts Service The benefits identified for a single shared Arts Service are grouped as follows:

Leadership – Single Vision, Shared Aims Profile of the Arts – Critical mass resulting in greater influence at

regional and national level Customer/Citizen – Enhanced focus on audiences, citizens,

communities, artists, increased level and range of participatory opportunities

Financial – More for less by realizing efficiencies of 10% of net expenditure over the next 2/3 years

Employees – Access to a wider range of specialist skills, experience and expertise amongst their peers.

Governance – One regional arts programme will deliver against each of the partners differing local priorities. Service levels will be agreed with each partner,

For more details of the benefits listed above see Appendix 1. Within the regional shared service it is proposed that the theatres (with the possible exception of Monmouthshire) would be managed regionally for all of the operational functions and by the Artistic Programme Manager for the artistic element, including Audience Development and Marketing. There is also the opportunity for the grant-aided voluntary managed theatres (for example the venues grant funded by Torfaen: The Congress Theatre, Blaenavon Workmen’s Hall and Llantarnam Grange to buy-in/benefit from the regional approach and expertise. The development of a shared Arts Service within the context of the vision and the aims will enable the partners to work together to deliver on the Cultural Duty (as recommended in the Wales Arts Review) once it has been formalised by the Welsh Assembly Government.

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6. Consultation 6.1 Consultation to date has been between:

o The Chief Officers responsible for the Arts in the 7 named Local Authorities, W.L.G.A, WAG, and Arts Council for Wales. All Officers are in agreement with the recommendations.

o South East Wales connecting board has been supportive of the Arts Council proposals. Further reports will be presented to the Board shortly.

o Officers from Legal, Finance and Human Resources were invited to a workshop in early May 2010 to start to work up the detail for a regional shared service. The portfolio Members from each partner Local Authority were invited to the afternoon session of the workshop to receive a briefing on the outline proposals and the outcomes from each of the days workshops.

o To date, no formal consultation has been undertaken in detail with staff although they have been appraised of the possible way forward.

o Initial consultation has taken place with the Trade Unions and Human Resources. Detailed Consultation with the Trade Unions will be undertaken on a Regional and local basis prior to any final report on the future of the Arts service being presented to all of the relevant Councils.

7. Implications

7.1 7.2

Policy: The proposal is consistent with the policy direction of the Council set out in the Corporate Plan – Working in Partnership and that of the WAG – Making the Connections. Financial: The ArtsConnect Group Lead Officers have tasked the relevant Finance Officers from each partner Local Authority with finalising the costs for single regional shared service, based upon current regional expenditure and provision, whilst taking into account the efficiencies of 10% which each partner Authority aims to achieve collectively. The current financial figures for the region are:

Total net expenditure is: £3.5m, of which expenditure for salaries is c£2.5m

Total income is c£2m The cost of the proposed new regional shared arts service structure is reached after deducting 10% of gross expenditure:

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7.3 7.4 7.5

Total current net expenditure on arts

services

10% efficiency saving required over

3 years (not including with Trust

status)

Estimated cost of new shared service

£3.5m £350,000 £3.15m There are a number of ways of sharing the costs of a single shared service across partner Authorities, and the preferred option is one which ensures all partners have a similar return for their investment and which takes into account the relative size of an Authority. It is envisaged that each partner will contribute some or all of their current Arts related budgets. The net budget for Torfaen is currently c£420k. This sum includes the Arts Development functions, the events such as Carnivals/Festivals, Jazz and the grants to the Congress Theatre, Llantarnam Grange and the Blaenavon Workmen’s Hall. Legal: It is proposed that the shared arts service be hosted by Rhondda Cynon Taff. The Legal Officers from each partner Local Authority are working on a shared service agreement. It is proposed that an ArtsConnect Management Board, made up of representatives from each Authority, will oversee the work of the shared service. Whilst it is accepted that competing strategic priorities and conflicts could arise, this Board will also approve the work programme for the service and measure performance against strategic targets. The Management Board will also take democratic responsibility by preparing an annual report for each partner. Essentially consideration is being given to the delegation of the arts function as a shared service, to ArtsConnect (hosted by RCT). It is proposed that the 8 Authorities will opt into the shared service for a minimum period of 12 Months. This would enable the service to become established and demonstrate its worth. Following that time Authorities could withdraw, giving 12 months notice. Human Resource: Currently RCT leads the Arts Connect project on behalf of all of the partners. If a new regional shared service structure is established, it is proposed that all staff would be seconded to RCT, subject to full consultation with HR, Trade Unions and staff. There are significant issues to be resolved in respect of the different stages each Authority is at in terms of Job Evaluation, TUPE etc which will all have to be managed as a part of the process. The Torfaen Arts Team is led by the Arts Development Manager who has a dual role providing the marketing support to the Leisure Service. The marketing support will need to continue after any future transfer of staff to ArtsConnect. The detail of how this will be achieved will be developed as the project progresses. Next Steps The timescale for implementing a regional shared service is as set out below:

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Phase 1 Tasks Timescale 2010-2011

Establishing cross-partner Corporate support officer project team – HR, Legal, Financial

May 2010

Cabinet approval will be sought to progress the shared Arts Service .

September 2010

Confirm: 1. Proposed Structure 2.Financial projections

September 2010 September/October 2010

Updating the Trade Unions and staff with HR Ongoing

Review existing Job Descriptions Create new job evaluated job descriptions

September 2010 October/November 2010

Consulting formally with the Trade Unions and staff October 2010

Complete discussions on Governance arrangements

February 2011

A further report will be presented to the Learning Scrutiny Committee for consideration once the model is developed further, prior to Cabinet approval

Early 2011

Set out in 6.1 is the first of a series of workshops involving key Officers from each partner Local Authority (Legal, Human Resources and Finance). It was agreed at this workshop that the Officers will continue to work on the detail for their respective area of expertise, in addition it was agreed that Officers from Asset Management, Property Services and ICT would be invited to a similar workshop to start to work up the detail for how these services will be brought together in a shared service model. The outcomes from all of this detailed work will feed into the detailed proposal for the shared service model will be presented in a further Cabinet report in the autumn.

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8. Risks 8.1

When developing an alternative service model such as the ArtsConnect, a number of risks will need to be considered. The main risks are detailed below:

Risk Mitigation Measure Serious current and future public sector financial outlook will further ‘squeeze’ arts and leisure service resources

Continue to reduce service levels year on year or deliver services via an alternative model.

Failure by the partners to agree on the arrangements for the transfer of staff to ArtsConnect

Withdraw from the project. Go ahead with those partners in agreement.

Withdrawal from a shared service partner/partners

The partners should agree to remain with the Trust for a minimum of one year.

Partners budgets being reduced dramatically

The project will be scaled back in line with the reductions. It is recommended that partners freeze current levels of funding because savings will be realised from the new service delivery model.

Failure to achieve savings target

Expenditure will be further reduced in line with any shortfalls.

Performance

The Partners should establish the criteria for assessment of the alternative service delivery model’s performance.

Failure to deliver against Partners priorities

The Partners should consider the level of control over theatre prices arts programming. The Partners risk register should cover the risks to each Council during the transfer of services and the period for which the alternative service delivery model will provide services. The partners should set out the level of service each local authority area will receive and how any disputes will be resolved if the Partners believes it is not receiving the agreed levels of service.

Failure to agree continuing marketing support for Leisure Services

Develop a shared management arrangement. Disaggregate the salary relating to the Marketing post to create a new post.

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9. Action to be taken following decision 9.1 If Cabinet approves the principle of a shared service for the Arts in the South

East Wales and Monmouthshire the work programme set out in 7.3.1 will commence.

10. Monitoring and Evaluation 10.1 The work programme will be monitored by the ArtsConnect Leadership Group.

Regular reports will be provided to the appropriate portfolio holder. 11. Conclusion/Summary 11.1 11.2 11.3 11.4

The establishment of firstly, a ‘shared service’ for the region has been clearly identified through the work of the Arts Connect Group, as the best way to deliver better quality arts programmes and projects, and to achieve a secure and sound future for the arts in the area, particularly in the current financial environment. There have already been outcomes from this approach, in particular through the production of a 21 Year vision and Aims for the arts in the area, a draft Workforce Development Plan and an innovative and a networking model for Arts Development Officers, utilising the latest IT systems and enabling best practice in project delivery to be shared. The key aim of a successful shared services programme is to protect and sustain highly valued arts services and to ensure that Arts services in the region will be more efficient and effective. By integrating provision where it matters most, services will deliver good value for money and arts audiences, participants, other beneficiaries and customers will benefit from a high quality and cost effective service. It is recognised that a balance must be struck between arts service efficiency and serving local need. Therefore a guiding principle is one of local choice, but made in the context of maximising efficiency and effectiveness through coordination of arts services, reduced duplication of effort, shared expertise and best practice in delivery.

12. Recommendation(s) 12.1 It is recommended that the Cabinet approve:-

The principle of establishing a regional shared service for the Arts,

covering partner Authorities across South East Wales, Monmouthshire and the Vale of Glamorgan.

The engagement of specialist support if appropriate, utilising the balance of the Making the Connections Arts Connect budget (WAG funded) and Arts Council of Wales funding, to help develop the service model in preparation to move to a regional shared service.

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A further report be brought before the Cabinet prior to any final move to the Shared Arts Service

Appendices Appendix 1

Background Papers

None

For a copy of the background papers or for further information about this report, please telephone: Sally Church, Head of Leisure and Culture on 01633 648980

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APPENDIX 1 BENEFITS OF A SINGLE SHARED ARTS SERVICE The following sets out, for the benefits for the partner Local Authorities, and to our citizens and communities, of delivering a single arts service. 1. Leadership Benefits

Single arts leadership will benefit those of us with smaller arts teams or single arts officers only, by uniting all shared arts service employees to a common purpose, through a consistent and clear vision for Arts Connect.

A shared service approach will make this vision widely known within each partner Authority, especially in terms of the contribution that the arts make to our quality of life, health and well-being and the sense of place within and ownership of our towns and communities.

2. Benefits for the Profile of the Arts

The critical mass which Arts Connect will create will undoubtedly raise the profile of the arts services across our area. This should enable us to achieve greater influence at regional/national level and indeed, we have already secured the interest of the Wales Strategy Board and of local government and Arts Council of Wales Officers in North Wales.

Currently we all respond separately to WAG policies and initiatives eg Single Plans for Children and Young People; speaking as one regional voice will strengthen our argument and give us more credibility to bring greater influence on such plans and other WAG policies. There would also be arts service one voice for Heads of the Valleys, the Arts Council of Wales, the WLGA and at NALGAO.

Our Arts Development Officers are already engaged in delivering on cross-cutting themes and by working more closely they will achieve even greater impact for local people.

There will be greater scope to develop progression routes and pathways into the creative and cultural industries (CCI) as we will be able to speak on a regional basis CC Skills Wales (the CCI sector skills agency) on our contribution to delivering the Creative Blueprint for Wales. We are already collaborating to explore the possibility of a Creative Apprenticeship, shared across several of our theatres and arts officers collaboratively delivering projects, such as the Gathering (youth music) and the Zoom Film Festival, are keen to formally share their expertise and experience across the whole area.

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Working together will make us better able to serve young people’s interests; only Blaenau Gwent and RCT have Youth Arts Plans which are recognised by the ACW, as referred to within the ACW Investment Review 2010.

A shared service will place arts in a better position to influence Health, Social Care and Well Being, Education and Lifelong Learning and other appropriate strategies, providing us all with a consistent argument which can be applied at a local level. This will optimise the contribution of the arts to cross-cutting Council themes and Local Service Board priorities, eg Young People, Safer Communities.

A shared service working to an agreed artistic policy and strategy can also facilitate programming and producing choices which can resonate strongly with audiences and funders throughout the Arts Connect region. Events such as bringing the National Theatre of Scotland or RSC to Ebbw Vale can have educational, social and economic impacts that will also assist in raising the profile of Arts Connect.

3. Benefits for the Customer/Citizen

Through a shared service of Arts Officers already eager to work more closely together, there will be an enhanced focus on our audiences, citizens (of all ages) communities, artists and creative producers and an increase level and range of participatory opportunities. Regional working will see the roll out of exemplary ways of delivering the arts delivery to benefit local people across all our areas.

We will:

Integrate arts provision where it matters most within each partner authority

and across the Arts Connect area

Increase the accessibility of arts provision for an improved level of engagement with local people and communities, thereby increasing participation and audience numbers.

Coordinate services: marketing, single point ticket sales/ box office, event

management, as there is the potential for one point of contact for wider theatre programme choice.

Ensure consistency of local arts projects and clarify, for the customer,

which arts officers are responsible for their area

There will be more on offer to local people in terms of engaging in audience development activities and being introduced to theatre programmes. Currently only RCT has a specific Audience Development post and a related participation programme (TakepART).

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Artists and arts organisations we are independently supporting (as referred to within the ACW Investment Review report 2010).will be more able to work with us on a regional basis.

Programming across the region will benefit consumer/customer choice as there will be a pooling of programmer’s networks of promoter’s agents and companies and opportunities to maximize programme offers and initiate deals placing appropriate products in the best placed theatre’s to deliver audiences for that work.

4. Financial Benefits

The accepted financial benefits are achieving ‘more for less’ by realising efficiencies of 10% of net expenditure over (the next) 2-3 years, to reduce costs to partners, with each partner having a similar return for their investment, taking into account the relative size of an authority. There will be a collective responsibility for overseeing the expenditure of a regional pooled budget

There will be scope to deliver efficiencies through joint:

Programming – through a regional approach to programming we may be

able to achieve better deals with suppliers and also, because of the adoption of a specialism for each theatre, reduce duplication in professional programming, without significantly affecting customer/citizen choice. Regional programming and event management enable risk (in terms of meeting audience/income targets) to be shared across a larger number of venues and cultural events

Theatre and arts service management – the creation of a new staffing

structure with a reduction in the current number of posts which will ensure a focussed and strategic delivery of arts services – outreach and in theatres – across the area

Marketing – reducing duplication in media advertising costs and officer

time and effort

Ticket sales – ultimately a single Box Office would reduce Box Office hours, with less staffing costs and more scope for increased income, including hires by the voluntary and private sector, whilst still allowing for local needs to be met

Procurement – both of generic and specific arts sector supplies and

services for our arts venues and community outreach work (including relationship with the voluntary arts sector)

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Bars, catering and merchandising operations - the shared service will enable best practice to be shared and has the potential to enable each theatre to improve its profitability in secondary spend. Alternatively, the operation of a number of catering outlets across the region may be more appealing to a franchise provider than a single catering operation, resulting in a guaranteed source of regular income.

Commercial activity – utilising the knowledge that currently exists on the

mixed economy of theatres, with the potential to utilise a number of the theatres for commercial hires (conferences/training) to supplement the professional arts programme

Technical support – pooling technicians time and substantial expertise and

sharing technical resources.

A single shared arts service will create one representative and consistent voice for all of us as individual arts services. This will enable us to have a unified dialogue with Welsh Assembly Government officers, including those from the C1st, Heritage and Culture and HoV departments (including the Heart and Soul programme) and with the Arts Council of Wales, on all aspects of funding. Duplication and competition between arts services will be removed and should result in achieving new and additional investment in the arts.

This could be considered and commenced now by Arts Connect, through developing a collaborative bid to the ACW Venue Development Fund, as described in their “Renewal and Transformation” document.

All partners’ interests will be represented through future cohesive funding proposals and packages, making it easier to gain the support of the key national bodies. The H4A community arts programme, currently being delivered in the HoV areas of Blaenau Gwent, Caerphilly, Merthyr and Torfaen, is a good example of how a collaborative approach to funding has already worked and it includes an arts officer being seconded from Caerphilly to Blaenau Gwent. It is being proposed to WAG C1st directorate that the H4A model be expanded as the H4A+ programme. It will still be led by Blaenau Gwent and if successful will benefit all of the communities within the original 4 partner authorities, plus Bridgend, Monmouthshire and RCT.

Working together as a shared arts service will help us secure any new sponsorship opportunities and provide us with a coherent approach and non-competitive to working with Arts and Business Cymru. Arts sponsors are more likely to be attracted to a larger organisation/service than to smaller ones and would be approached once only, rather than have competing enquires.

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A regional approach to our theatre assets, some of which are listed, will provide us with the potential for delivering coordinated long-term improvements to our collective assets, which are excellent places to make and present artistic work of local relevance and interest. Plans could be developed by Arts Connect in its first years, in consultation with the Arts Council. In 2009/10 a successful RCT application to HoV for technical equipment for the Coliseum Theatre, Aberdare, made the case that the new mobile lighting and sound resources would benefit audiences beyond the Cynon Valley and Rhondda Fawr with the creation of a shared service.

A regional approach to programming will facilitate better dialogue with the national performing arts companies in Wales – reminding them of their duty to deliver across the nation. This will include a creative partnership role with National Theatre of Wales, National Dance Company of Wales, Theatre Genedlaethol Cymru, plus BBC National Orchestra of Wales and WNO. A better dialogue with National Youth Arts Wales and the current levels of participation in all its companies (drama, orchestra, choir and dance) by this region’s young people are there to be improved.

5. Benefits for Arts Service Staff

Staff in the new shared arts service will have access to a wider range of specialist skills, experience and expertise amongst their peers e.g. there will be an overall Technical Manager for the region; one Arts Development team, a regional programming team and access to a regional Workforce Development Plan. This will mean professional development for staff who are already passionate about working in the arts and service local people and communities and many officers are looking forward to the opportunities that will be on offer.

Regional planning and development mechanisms will us to avoid duplication in functions and activity and to streamline, harmonise and simplify our performance management. Improved arts services will result from sharing specialist arts expertise and reducing duplication of effort will help with the capacity issues currently being experienced by our arts officers.

Potentially there will be greater and renewed motivation amongst staff through being part of a more ambitious regional arts service, with the scope for greater innovation and capability. There will be a smoothing of provision and expertise across the region, as arts services are currently unevenly resourced, especially in terms of Marketing, Audience Development and Art Development Officers. Arts service staff competencies will benefit from sharing processes such as Child Protection, standard rates for paying artists and current methods of procuring and contracting community arts provision.

Arts service officers will become part of a new service design and single strategic management structure. The creation of specialist art form/cross cutting posts, based upon current expertise and allowing for much needed focused delivery, will contribute to retaining high calibre and committed staff.

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6. Governance Benefits

One regional arts programme will deliver against each of our differing local authority priorities and that clearly sets out the level of service to be received from Arts Connect. The Arts Connect Board will approve the agreed work programme, ensuring that local (members’) voices are heard, measuring performance against targets and preparing an annual report for each partner. Individual Risk Registers will cover the risks to each Council during the transfer of services and the process of resolving disputes will be agreed.

New and more fruitful relationships will be established with relevant officers regionally and within each authority, as required - e.g. Youth Offending and Youth Services, Librarians and Regeneration officers.

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AGENDA ITEM NO. 12 CABINET 14 SEPTEMBER 2010 THE REGULATION OF INVESTIGATORY POWERS ACT 2000 (RIPA) Report Submitted by: Lynda Willis, Chief Legal Officer & Monitoring Officer Report Written by: Delyth Harries, Assistant Chief Legal Officer & Deputy Monitoring Officer 1. Area Affected 1.1 County Borough wide. 2. Purpose of Report 2.1 To approve the Council’s policy and guidance on the use of direct surveillance and

covert human intelligence sources and on the acquisition of communications data under the Regulation of Investigatory Powers Act 2000 and to agree the role of Councillors in scrutinizing the use of RIPA.

3. Recommendation 3.1 That Cabinet agrees to

adopt the policy and guidance on the use of direct surveillance and covert

human intelligence sources referred to in the report as Appendices A, B and C

adopt the policy and guidance on the acquisition of communications data referred to in the report as Appendix D

delegate any further amendments to the above documents to the Chief Legal Officer and Monitoring Officer

delegate the annual review of the RIPA policies to the Executive Member for Resources and Corporate Business

request the Resources and Corporate Business Overview & Scrutiny Committee scrutinize the use of RIPA on an annual basis.

4. Background 4.1 The Regulation of Investigatory Powers Act 2000 was introduced to enable

authorities including local authorities to undertake covert surveillance and acquire and disclose communications data in accordance with the Regulation of Investigatory Powers Act 2000.

4.2 Covert Surveillance

There are two types of surveillance that can be undertaken by local authorities.

4.2.1 The first is direct surveillance. This is covert and is undertaken for a specific

investigation or operation in a way likely to obtain private information about a person. It must be necessary and proportionate to what it seeks to achieve. This is the most common use of surveillance undertaken by the Council.

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4.2.2 The second is covert human intelligence sources (CHIS). This is the use and

conduct of someone who establishes or maintains a personal or other relationship with a person for a covert purpose of obtaining information. The authorisation must be necessary and the conduct must be proportionate to what it is thought to be achieved. This is very rarely carried out by the Council.

4.3 The Local Authority can use surveillance for a wide range of activities ranging from

anti social behaviour to licensing and trading standards offences. There are currently seven Officers who are authorised to approve the use of surveillance.

4.4 The Central Record of authorisations is kept within Legal Services and updated by

the Deputy Monitoring Officer. The record contains a list of information such as the date the authorisation was given, name and grade of the authorising officer and the date the authorisation was cancelled.

4.5 The Office of Surveillance Commissioners (OSC) is responsible for overseeing the

conduct of covert surveillance and covert human intelligence sources by public authorities. Inspectors appointed by the OSC regularly inspect local authorities and scrutinize the use of surveillance in respect not only of the authorizations and central record but also the Council’s policies and procedures.

4.6 Copies of the Council’s policies and guidance on the use of direct surveillance and

covert human intelligence sources are attached as Appendices A, B and C and Cabinet is being asked to adopt these documents.

5. Acquisition of Communication Data 5.1 The Local Authority also has powers under the Regulation of Investigatory Powers

Act 2000 to acquire and disclose communications data for the purpose of preventing or detecting crime or disorder. It must be necessary and proportionate in accordance with the law. There are three types of communication data namely information about communication service users, information about the use of communication services and information about communication data (traffic data). Local Authorities are not allowed to request traffic data. Officers can use communication data to identify the operator or a business that has committed or is suspected of committing a crime when other investigatory techniques have been unsuccessful. The Council can request for example the name of the customer who is the subscriber for a telephone number, account information such as an address for billing and telephone call records. There have been very few authorizations granted since the inception of the Act.

5.2 The procedure is that an application is made which is assessed by a single point of

contact (SPOC). The SPOC is an accredited individual trained to facilitate lawful acquisition of communications data and provide advice to the applicant and dedicated person (DP). The SPOC also records all authorizations granted. The DP is a Senior Officer within the Council who considers the application and records his/her considerations. The Senior Responsible Officer (SRO) is responsible for ensuring compliance with the Act.

5.3 A copy of the Council’s policy and guidance in relation to the acquisition of

communication data is attached as Appendix D and Cabinet is asked to adopt

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these documents. 6. Changes to Directed Surveillance and CHIS 6.1 The Home Office has recently published three new RIPA orders which came into

force on the 6 April 2010. As a result of these orders the following changes have been made in relation to Directed Surveillance and the use of CHIS.

6.1.1 It revises the prescribed officers who can sign authorizations to “Director, Head of

Services, Service Manager or equivalent”. Previously this was set at “Assistant Chief Legal Officer, Service Manager or equivalent or any more Senior Officer”. The list of Authorising Officers has been amended to reflect this change.

6.1.2 The new codes consider it good practice to appoint a Senior Responsible Officer

(SRO) which should be someone of at least the rank of Authorising Officer and who should be made responsible for:

The integrity of the process in place within the public authority for the management of CHIS and Directed Surveillance

Compliance with Part 2 of the Act and with the Codes Engagement with the OSC Inspectors when they conduct their inspections

where applicable and Where necessary, oversight of the implementation of post inspection action

plans approved by the OSC. It states that the Senior Responsible Officer should be a member of the Corporate Leadership Team and should be responsible for ensuring that all Authorising Officers are of an appropriate standard in the light of any recommendations in the OSC inspection reports. It is proposed that the SRO will be the Chief Legal Officer and Monitoring Officer.

6.1.3 Councillors will be given a formal scrutiny role in relation to RIPA. The new codes

states that at least once a year they should review the authority’s use of RIPA at least on a quarterly basis to ensure that it is being used consistently as per the Council’s policy and that the policy remains fit for purpose. Councillors however will not be involved in making decisions on specific authorisations. In view of the very few authorizations granted it is proposed that the review is done on an annual basis and that review of the policies is delegated to the Executive Member for Resources and Corporate Business and that the use of RIPA should be scrutinized by the Resources and Corporate Business Overview and Scrutiny Committee again on an annual basis. The Chair of the Resources and Corporate Business Overview and Scrutiny committee has been consulted and is agreeable to this proposal.

7. Monitoring and Evaluation 7.1 The Deputy Monitoring Officer and the SPOC will continue to oversee all

authorizations for direct surveillance and the acquisition of communications data respectively. The Executive Member for Resources and Corporate Business will continue to monitor RIPA compliance on an annual basis.

8. Conclusion/Summary

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8.1 The Authority has powers to undertake covert surveillance and the acquisition and disclosure of communications data in accordance with the Regulation of Investigatory Powers Act 2000. The Council is required to have policies and procedures in place in relation to these powers which Cabinet is being asked to approve.

9. Recommendation 9.1 That Cabinet agrees to

adopt the policy and guidance on the use of direct surveillance and covert

human intelligence sources referred to in the report as Appendices A, B and C.

adopt the policy and guidance on the acquisition of communications data under the Regulation of Investigatory Powers Act 2000 referred to in the report as Appendix D

delegate any further amendments to the above documents to the Chief Legal Officer and Monitoring Officer

delegate the annual review of the RIPA policies to the Executive Member for Resources and Corporate Business

request the Resources and Corporate Business Overview & Scrutiny Committee scrutinize the use of RIPA on an annual basis.

Appendices

Appendix A, B and C – Policy & Guidance Documents on the use of Direct Surveillance and Covert Human Intelligence Sources Appendix D – Policy and Guidance Document on the Acquisition of Communications Data

Background Papers

Regulation of Investigatory Powers Act 2000

For a copy of the background papers or for further information about this report, please telephone: Delyth Harries, Assistant Chief Legal Officer & Deputy Monitoring Officer, Ext 2652

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Appendix A

REGULATION OF INVESTIGATORY POWERS ACT 2000

TORFAEN COUNTY BOROUGH COUNCIL: POLICY STATEMENT ON THE USE OF DIRECTED SURVEILLANCE AND COVERT HUMAN INTELLIGENCE SOURCES

1. Background The key purpose of enforcement work carried out by Torfaen County Borough Council is to protect individuals and the environment. Occasionally it is necessary to carry out surveillance in order to fulfil our statutory enforcement duties. However, surveillance will only be used where no other technique will suffice. 2. Regulation of Investigatory Powers Act 2000 Part 2 of the Regulation of Investigatory Powers Act 2000 (RIPA) came into force on 25th September 2000. It deals with covert surveillance and the use of human intelligence sources. It introduced systems of authorisation for investigatory activities to ensure that individuals’ rights under the Human Rights Act 1998 are protected. Torfaen County Borough Council is committed to conducting its investigations in a manner which complies with the provisions of RIPA and the Human Rights Act 1998, and which strikes an appropriate balance between the rights of individuals and the legitimate interests of the public. The Office of the Surveillance Commissioner has been established to ensure compliance with RIPA. Part 2 of RIPA provides public authorities with powers to undertake covert surveillance in the form of directed surveillance or through the use of a covert human intelligence source The Council undertakes a variety of work which may require the authorisation of these covert surveillance techniques. Trading Standards Officers, Benefit Fraud investigators and Environmental Health Officers have secured authorisations under RIPA to assist them with their work. Other officers across the Council may also have cause to seek authorisations if they are required to engage in the observation of employees, or members of the public in the course of their duties. This may be with a view to obtaining information about an individual’s activities or in situations where they are assisted by individuals who help the Council to obtain certain types of information covertly in connection with an investigation. Codes of Practice on the use of directed surveillance and covert human intelligence sources have been issued by the Home Office in accordance with RIPA. The Council aims to comply with the provisions set out in these codes and the procedures outlined in this policy have been developed so as to accord with the guidance. The Council is committed to ensuring that its procedures under RIPA are subject to an ongoing programme of review. To achieve this objective, the Chief Legal Officer and Monitoring Officer will undertake a review of existing procedures on an annual basis. 3. Statement of policy to ensure compliance with Part 2 of RIPA 2000 Torfaen County Borough Council will not undertake any directed surveillance or make use of covert human intelligence sources without prior authorisation from an officer designated to authorise such surveillance.

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The Chief Legal Officer and Monitoring Officer is an authorising officer for the purposes of RIPA and has power to specify by name other authorising officers. In urgent cases other officers responsible for the management of an investigation may be designated as an authorising officer. Before designating a member of staff as an authorising officer the Chief Legal Officer and Monitoring Officer must be satisfied that the officer in question has received sufficient knowledge on the provisions of RIPA or has received appropriate training. Authorising Officers must always seek advice from the Chief Legal Officer and Monitoring Officer before authorising the use of Covert Human Intelligence Sources. Authorisation for the use of covert human intelligence sources involving a minor may only be authorised by the Chief Executive (or in his or her absence, the Chief Legal Officer). An authorising officer will not authorise the use of directed surveillance or covert human intelligence sources unless satisfied that the authorisation is necessary for the purpose of preventing or detecting crime or of preventing disorder. In addition, the authorising officer must be satisfied that the surveillance is proportionate to the results it seeks to achieve. In making this judgement the authorising officer will consider whether the information can be obtained using other means and whether steps have been taken to reduce the impact of the surveillance on third parties. Except in urgent cases, where legislation allows, an authorisation will be made in writing. If an authorisation is required as a matter of urgency, then it need not be in writing. However, as soon as practically possible the authorisation must be recorded in writing. The Chief Legal Officer and Monitoring Officer will maintain a central register of authorisations issued under the Act. This register will be confidential and will be accessible on a strictly “need to know” basis. Authorising officers will have responsibility for the safe keeping of their authorisation records. Authorising officers will send the original signed documents to the Chief Legal Officer and Monitoring Officer and will retain copies. The Chief Legal Officer and Monitoring Officer will retain the records for the purpose of review, Council audits or inspection by The Office of the Surveillance Commissioner. CCTV systems will not be used for the purposes of directed surveillance without prior authorisation from an authorising officer. Torfaen County Borough Council is committed to ensuring that staff are suitably trained on the provisions of Part 2 of RIPA. A programme of training will be implemented to achieve the following outcomes: General awareness of the Human Rights Act 1998 and the Regulation of Investigatory Powers

Act 2000 for all relevant staff, and awareness of the potential for their work to be affected by these provisions.

The acquisition of a detailed knowledge of the RIPA provisions and the Council’s procedures

for implementation for those officers most affected, including all officers responsible for granting authorisations and all officers whose work regularly requires them to consider the need for authorisations.

The Chief Legal Officer and Monitoring Officer will produce and maintain guidance on the use of directed surveillance which will be available to officers via the Council’s internal intranet system.

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The Chief Legal Officer and Monitoring Officer will produce and maintain guidance on the use of covert human intelligence sources which will be available to officers via the Council’s internal intranet system. Torfaen County Borough Council will invoke its customer complaints procedure in response to any complaint by an individual who has been subject to any form of surveillance. In addition a separate statutory complaints system has been set up whereby the Investigatory Powers Tribunal may consider complaints from members of the public. This policy statement, together with details of the Council’s complaints procedures will be kept available for public inspection at the Council’s customer care centre.

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APPENDIX B

GUIDANCE ON DIRECTED COVERT SURVEILLANCE AND AUTHORISATION UNDER THE REGULATION OF INVESTIGATORY

POWERS ACT 2000 Updated June 2010

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GUIDANCE ON COVERT SURVEILLANCE AND AUTHORISATION UNDER THE REGULATION OF INVESTIGATORY POWERS ACT 2000 What is covert surveillance? Covert surveillance is surveillance which is carried out so that the people who are being observed or listened to or monitored are unaware that it is or may be taking place. When might the Council undertake covert surveillance? The Council is involved in every day functions of law enforcement. For example Trading Standards might covertly observe traders as part of their enforcement function. The Council’s internal Auditors might undertake observations of staff to see if there is an abuse of someone’s official position, e.g. stealing money. What safeguards must the Council observe before undertaking surveillance of any sort? Firstly, the Council has to be satisfied that the surveillance is undertaken in connection

with a statutory function with which the Council is charged. Secondly, if the surveillance is likely to intrude upon someone’s human rights, for

example the right to respect for private and family life, home and correspondence, that such interference can be justified legally. Advice on the Human Rights Act is on the Council’s Intranet site.

Thirdly, that the surveillance is properly authorised and lawful. What does the Regulation of Investigatory Powers Act 2000 say? The Regulation of Investigatory Powers Act 2000 (2000 Act) came into operation on the 25 September 2000. The 2000 Act regulates the use of investigatory powers which are to be externally supervised by Surveillance Commissioners, and the Act was passed to ensure that law enforcement and other operations are consistent with the duties imposed upon public authorities by the Human Rights Act. The 2000 Act provides that surveillance will be lawful if an authorisation has been properly issued and a person acts in accordance with that authorisation. This is important because Firstly, a person acting in accordance with a duly issued authorisation will be protected

from civil liability, and Secondly, if the Council is involved in any proceedings before the Court the Council

will be able to show that it has acted lawfully and that it has gathered evidence properly.

What types of surveillance are covered?

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The 2000 Act covers most types of surveillance, including the interception of communications. For the most part the Council will only be involved in Directed Surveillance, that is to say, covert surveillance which is undertaken in relation to a specific investigation which is likely to result in the obtaining of private information about a person. If the surveillance involves anything taking place in residential premises or a vehicle and involves the presence of a person or surveillance device on or in the premises or vehicle, then the Act imposes very strict limitations. Such surveillance is then referred to as Intrusive Surveillance. Surveillance is not intrusive if it is carried out by means of a surveillance device in relation to anything taking place on any residential premises or in any private vehicle but is carried out without that device being present on the premises or in the vehicle unless the device is such that it consistently provides information of the same detail and quality as might be expected to be obtained from a device actually present on the premises or in the vehicle. This guidance primarily refers to Directed Surveillance. If the surveillance you propose is Intrusive Surveillance you must seek legal advice from the Chief Legal and Monitoring Officer. No officer of the Council is authorised to grant an authorisation for Intrusive Surveillance. The interception of communications sent by post or by means of public telecommunication systems or private telecommunication systems attached to the public network are dealt with under Part 1 of the 2000 Act and is not covered in this guidance. Who in the Council may authorise Directed Surveillance? The following Officers have been designated Authorising Officers (this list may change from time to time). Chief Executive Chief Internal Auditor Chief Officer for Planning and Public Protection Chief Legal Officer and Monitoring Officer Assistant Chief Legal Officer and Deputy Monitoring Officer Head of Public Protection Head of Revenues and Benefits Ideally the Authorising Officer should not be responsible for authorising their own activities, i.e. those operations or investigations in which they are directly involved or for which they have direct responsibility. How is an application for authorisation made? An application for authorisation for Directed Surveillance must be in writing. It should specify: the action to be authorised; the identities, where known, of those to be the subject of Directed Surveillance; an account of the investigation or operation; the grounds on which the authorisation is sought (e.g. for the detection of crime); why the Directed Surveillance is considered to be proportionate to what it seeks to

achieve;

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an explanation of the information which it is desired to obtain as a result of the authorisation;

the potential for collateral intrusion, that is to say, interference with the privacy of persons other than the subjects of the surveillance, and an assessment of the risk of such intrusion or interference;

the likelihood of acquiring any confidential material; where authorisation is sought urgently, reasons why the case is considered to be

urgent. There should then be a record of whether authority was given or refused, by whom and the time and date. How long will the authorisation last? The written authorisation will cease to have effect (unless renewed) at the end of a period of 3 months beginning with the date on which it took effect. Exceptionally, an oral authorisation may be given in cases of urgent necessity, in which case the detail referred to above should be recorded in writing as soon as reasonably practicable, and such authorisations will cease to have effect after 72 hours beginning with the time when the authorisation was granted. Can an authorisation be renewed? If at any time before an authorisation ceased to have effect, the Authorising Officer considers it necessary for the authorisation to continue for the same purpose for which it was given, then he/she may renew it in writing for a further period beginning with the day when the authorisation would have expired but for the renewal. The renewal will normally be for 3 months. The request for a renewal of an authorisation should record: whether this is the first renewal, or on how many occasions it has been renewed; the same information as outlined for an original application; details of any significant difference in the information given in the previous

authorisation; the reasons why it is necessary to continue with the surveillance; the content and value to the investigation or operation of the information so far

obtained by the surveillance; an estimate of the length of time the surveillance will continue to be necessary. Can or should an authorisation be revoked? The Authorising Officer who granted or last renewed the authorisation must cancel it if he/she is satisfied that the Directed Surveillance no longer meets the criteria for authorisation. Regular reviews of authorisations should be undertaken to assess the need for the surveillance to

continue. The results of a review should be recorded. Reviews should be more frequent where

there may be collateral surveillance on persons other than those who are the subject of surveillance.

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As soon as a decision is taken to cease surveillance, an instruction must be given to those involved

in the operation to stop listening, watching or recording the activities of the subject. The date on

which that instruction is given should also be recorded.

What will the Authorising Officer have to consider? Firstly, the Authorising Officer must be satisfied that the authorisation is necessary for the purpose

of preventing and detecting crime or preventing disorder. The Authorising Officer must also

believe that the surveillance is proportionate to what it seeks to achieve.

What is meant by the term “proportionate”? Proportionality is a very important concept, and it means that any interference with a person’s rights must be proportionate to the intended objective. This means that the action is aimed at pursuing a legitimate aim. Interference will not be justified if the means used to achieve the aim are excessive in all the circumstances. Thus where surveillance is proposed that action must be designed to do no more than meet the objective in question; it must not be unfair or arbitrary; and the impact on the individual or group of people concerned must not be too severe. What records must be kept? The following records must be kept: A copy of the application for authorisation. A copy of the authorisation. A record of the period over which the surveillance is taking or has taken place

(including any significant suspensions of coverage). A record of the result of periodic reviews of the authorisation. A copy of any renewal of authorisation, together with the supporting documentation

when the renewal was requested. Who keeps the record? A Central Record of Authorisations will be kept by the Chief Legal Officer and Monitoring Officer who is also designated the Senior Responsible Officer (SRO). The SRO is responsible for ensuring compliance with the Act, engagement with the OSC Inspectors and oversight of the implementation of post inspection action plans.. Authorising Officers and those authorised by them will be responsible for updating the Central Record. Who is responsible for overseeing compliance with the 2000 Act?

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Under the 2000 Act, the Chief Surveillance Commissioner and Surveillance Commissioners together with their Assistants have been appointed to provide independent oversight of the use of the powers contained in Part II of the Act. They will inspect the Council from time to time to ensure that the Council is complying with the Act. In addition, the 2000 Act establishes an independent tribunal. This tribunal has full powers to investigate and decide any case where a person complains about the conduct of the Council in exercising its powers carrying out surveillance. What reference documents are there? The Council and those persons acting under Part II of the 2000 Act must have regard to the Code of Practice issued under the Act. The Council has prepared 3 specific forms for use by officers applying for authority to carry out Directed Surveillance. They are: Application for authority for Directed Surveillance (Appendix 1) Application for renewal of Directed Surveillance authority (Appendix 2) Cancellation of Directed Surveillance (Appendix 3) Copies of these forms are available on the Home Office website. There is a Help Chart and Flow Chart attached to this document to help you decide what you need to do.

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Is a Council function being carried

Yes

No Don’t know?

Seek legal d i

Is the person to be observed, listened to or monitored aware that the surveillance

START

Is the action proposed to observe, listen to

N

Yes

N

Yes

HELP CHART

This procedure does not

Will the decision or action proposed interfere with any of the Convention rights (of

Yes Are there circumstances when a Convention right can legitimately be limited or

No

YesN

Is the surveillance

necessary:

for the purpose of preventing and

Is this the only way of obtaining the information or is it achieved in a way which is less severe which interferes less which is more fair which has less impact on the

person/people concerned

Is the action aimed at pursuing a legitimate aim e.g.

No

Yes

Yes

It is likely that the action proposed is proportionate and an authorisation may be given

It is unlikely that the proposal would be regarded as a proportionate response and an

Yes

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YES YES REFUSED GRANTED NO NEED IDENTIFIED

START

Incident requiring

investigatio

Covert surveillance

Prepare and submit RIPA request

END

Extra evidence in

Application refused, decision recorded in log and applying

Authorising officer assesses

FLOW CHART

Cancel authorisation, update log and

END

Periodic review by authorising officer to assess

Surveillance authorised, recorded in log and applying officer advised

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APPENDIX C

GUIDANCE ON THE USE AND CONDUCT OF COVERT HUMAN INTELLIGENCE SOURCES AND AUTHORISATION UNDER THE

REGULATION OF INVESTIGATORY POWERS ACT 2000

Updated June 2010

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GUIDANCE ON THE USE AND CONDUCT OF COVERT HUMAN INTELLIGENCE SOURCES AND AUTHORISATION UNDER THE

REGULATION OF INVESTIGATORY POWERS ACT 2000 What is covert human intelligence sources? A person is a covert human intelligence source (CHIS) if he or she establishes or maintains a

personal or other relationship for the covert purpose of obtaining information or to provide access to

any information to any other person or he or she secretly discloses information obtained by the use

of such a relationship or as a consequence of the existence of such a relationship.

When might the Council use human intelligence sources? The Council is involved in every day functions of law enforcement. For example Trading Standards might use an informer (CHIS) as part of their enforcement function. The Council’s internal Auditors might use an informer to see if there is an abuse of someone’s official position, e.g. stealing money. When is a relationship covert? A relationship is used covertly if it is conducted in a manner calculated to ensure that one party is unaware of its purpose. What safeguards must the Council observe before using human intelligence sources?

The Council has to be satisfied Firstly, that the use of a CHIS is in connection with a statutory function with which the

Council is charged. Secondly, if the use of a CHIS is likely to intrude upon someone’s human rights, for

example the right to respect for private and family life, home and correspondence, that such interference can be justified legally. Advice on the Human Rights Act is on the Council’s Intranet site.

Thirdly, that the use of a CHIS is properly authorised and lawful. What does the Regulation of Investigatory Powers Act 2000 say? The Regulation of Investigatory Powers Act 2000 (2000 Act) came into operation on the 25 September 2000. The 2000 Act regulates the use of investigatory powers which are to be externally supervised by Surveillance Commissioners, and the Act was passed to ensure that law enforcement and other operations are consistent with the duties imposed upon public authorities by the Human Rights Act. The 2000 Act provides that the conduct or use

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of covert human intelligence will be lawful if an authorisation has been properly issued and a person acts in accordance with that authorisation. This is important because Firstly, a person acting in accordance with a duly issued authorisation will be protected

from civil liability, and Secondly, if the Council is involved in any proceedings before the Court the Council

will be able to show that it has acted lawfully and that it has gathered evidence properly.

What about other types of informants? The 2000 Act does not apply to members of the public who volunteer information as part of their civic duties, or members of staff who report information in accordance with their contract of employment, or under the Council’s Whistleblowing Policy. Who in the Council may authorise Directed Surveillance? The following Officers have been designated Authorising Officers (this list may change from time to time): Chief Executive Chief Internal Auditor Chief Officer, Planning and Public Protection Chief Legal Officer and Monitoring Officer Assistant Chief Legal Officer and Deputy Monitoring Officer Head of Public Protection Head of Revenues and Benefits Ideally the Authorising Officer should not be responsible for authorising a CHIS in connection with their own activities, i.e. those operations or investigations in which they are directly involved or for which they have direct responsibility, or where he or she would be the ‘Controller’ or ‘Handler’. How is an application for authorisation made? Guidance must be sought from the Chief Legal Officer and Monitoring Officer when considering the use of a CHIS. An application for authorisation for the use or conduct of a CHIS must be in writing. It should specify: the details of the purpose for which the CHIS will be used; the identities, where known, of those to be the subject of the use or conduct of the

CHIS; details of what the CHIS will be asked to do; an account of the investigation or operation; the grounds on which the authorisation is sought (e.g. for the detection of crime); why the use of CHIS is considered to be proportionate to what it seeks to achieve;

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an explanation of the information which it is desired to obtain as a result of the authorisation;

details of the level of authority required; the potential for collateral intrusion, that is to say, interference with the privacy of

persons other than the subjects of the investigation, and an assessment of the risk of such intrusion or interference;

the likelihood of acquiring any confidential material and what that might be; where authorisation is sought urgently, reasons why the case is considered to be

urgent. There should then be a record of whether authority was given or refused, by whom and the time and date. How long will the authorisation last? Except in relation to a juvenile CHIS the written authorisation will cease to have effect (unless renewed) at the end of a period of 12 months beginning with the date on which it took effect. Exceptionally, an oral authorisation may be given in cases of urgent necessity, in which case the detail referred to above should be recorded in writing as soon as reasonably practicable, and such authorisations will cease to have effect after 72 hours beginning with the time when the authorisation was granted. Can an authorisation be renewed? If at any time before an authorisation ceased to have effect, the Authorising Officer considers it necessary for the authorisation to continue for the same purpose for which it was given, then he/she may renew it in writing for a further period beginning with the day when the authorisation would have expired but for the renewal. The renewal will normally be for 3 months. The request for a renewal of an authorisation should record: whether this is the first renewal, or on how many occasions it has been renewed; the same information as outlined for an original application; details of any significant difference in the information given in the previous

authorisation; the reasons why it is necessary to continue with the CHIS; the content and value to the investigation or operation of the information so far

obtained by the CHIS; an estimate of the length of time the use or conduct of the CHIS will continue to be

necessary. Can or should an authorisation be revoked? The Authorising Officer who granted or last renewed the authorisation must cancel it if he/she is satisfied that the use of CHIS no longer meets the criteria for authorisation. Regular reviews of authorisations should be undertaken to assess the need for the use of the CHIS

to continue. The results of a review should be recorded. Reviews should be more frequent where

there may be collateral information obtained relating to persons other than those who are the subject

of surveillance. As soon as a decision is taken to cease the operation, an instruction must be given

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to those involved in the operation to stop using the CHIS. The date on which that instruction is

given should also be recorded.

What will the Authorising Officer have to consider? Firstly, the Authorising Officer must be satisfied that the authorisation is necessary for the purpose

of preventing and detecting crime or for preventing disorder.

Secondly, the Authorising Officer must also believe that the use of the CHIS is proportionate to what needs to be achieved; satisfactory arrangements exist for the management of the CHIS; there are arrangements for a person to have responsibility for maintaining the records.

What is meant by the term “proportionate”? Proportionality is a very important concept, and it means that any interference with a person’s rights

must be proportionate to the intended objective. The action must be aimed at pursuing a legitimate

aim (for example, protecting a child from potential abuse). Interference will not be justified if the

means used to achieve the aim are excessive in all the circumstances. Thus the use or conduct of

the CHIS must be designed to do no more than meet the objective in question; it must not be unfair

or arbitrary; and the impact on the individual or group of people concerned must not be too severe.

In deciding whether the use or action is proportionate the risk of intrusion into the privacy of

persons other than those who are the object of the investigation must be considered and the

measures proposed to minimise such intrusion must be assessed.

What management arrangements should be in place for the Covert Human Intelligence Source?

The following persons must be nominated in relation to each CHIS:- a Handler - this person must be an officer of the Council and that person will have

day to day responsibility for dealing with the CHIS and for the CHIS’s security and welfare.

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a Controller - this person must be an officer of the Council and that person will have a general oversight of the use made of the CHIS.

a Record Keeper - this person must be an officer of the Council who is given the responsibility for maintaining the records relating to the CHIS and the use of the CHIS.

The Handler will need to explain to the CHIS what he or she must do. For example CHIS may be a trading standards officer or health inspector who is asked to undertake a test purchase of items which have been labelled misleadingly or are unfit for consumption.

It is not the intention that authorisations be drawn so narrowly that a separate authorisation is required each time the Handler asks the CHIS to do something. Rather, an authorisation might cover, in broad terms, the nature of the CHIS’s task. If this changes, then a fresh authorisation may need to be sought.

When unforeseen action occurs, it must be recorded as soon as practicable after the event and, if the existing authorisation is insufficient, a new authorisation should be obtained before any further such action is carried out.

The day to day contact with the CHIS is to be conducted by the Handler. Some arrangements may be made in direct response to information provided by the CHIS on the occasion of his/her meeting with the Handler.

Steps should be taken to protect the safety and welfare of the CHIS, when carrying out actions in relation to an authorisation, and to others who may be affected by the actions of CHIS. Before authorising the use or conduct of a CHIS, the Authorising Officer should ensure that a risk assessment is carried out to determine the risk to the CHIS of any action and the likely consequences should the role of the CHIS become known to the subject of the investigation or those involved in the activity which is being investigated. The ongoing security and welfare of the CHIS after the cancellation of the authorisation should also be considered at the outset.

The Handler is responsible for bringing to the Controller’s attention any concerns about the personal circumstances of the source, insofar as they might affect:-

- the validity of the risk assessment - the proper conduct of the CHIS, and - the safety and welfare of the CHIS.

Where deemed appropriate, the Controller must ensure that the information is considered by the Authorising Officer, and a decision taken on whether or not to allow the authorisation to continue.

Can a child be a Covert Human Intelligence Source?

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A child is a person under the age of 18. Special safeguards apply to the authorisation where the

CHIS would be a child.

Authorisations should not be granted unless:- - a risk assessment has been undertaken as part of the application, covering the physical dangers

and the psychological aspects of the use of the child. - the risk assessment has been considered by the Authorising Officer and he or she is

satisfied that any risks identified in it have been properly explained; and - the Authorising Officer has given particular consideration as to whether the child is to

be asked to get information from a relative, guardian or any other person who has for the time being taken responsibility for the welfare of the child. A child under the age of 16 must never be asked to give information against his or her parents.

Authorisations should not be granted unless the Authorising Officer believes that management arrangements exist which will ensure that there will be at all times a person who has responsibility for ensuring that an appropriate adult will be present between any meetings between Council representatives and a CHIS under 16 years of age. Authorisations for the use of a child as a CHIS can be granted only by the Chief Executive or in her absence by the Chief Legal Officer and Monitoring Officer What about vulnerable persons such as those who are mentally ill, infirm or have learning disabilities? Only in the most exceptional circumstances should a vulnerable person be authorised to act as a CHIS and the authorisation must be given by the Corporate Director (Resources). What type of things can a CHIS be asked to do? Once authorised a CHIS could be asked to obtain information, to provide access to information or to otherwise act incidentally for the benefit of the Council in the performance of the statutory enforcement and regulatory functions. The CHIS might be asked to wear or carry a surveillance device. No additional authorisation is required if that person is invited into a private vehicle or residential premises. A CHIS must not be asked to install a surveillance device nor intercept post or any other communications including those sent by telephone or e-mail. A CHIS must not be asked to do anything or not to do something which would involve the commission of a criminal offence by the CHIS, for example a CHIS must not be asked to steal a document to get information. What is confidential material? Confidential material is anything which is subject to legal privilege, for example communications between a legal

adviser and his/her client.

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which is confidential personal information, for example information about a persons health or spiritual counselling or other assistance given or to be given to him or her.

which is confidential journalistic material (this includes related communications), that

is, material obtained or acquired for the purposes of journalism and subject to an undertaking to hold in confidence.

Are there any special rules for confidential material? Additional safeguards are required where the use or conduct of a CHIS may result in acquiring knowledge of confidential material. The following requirements apply:- the Authorising Officer must be the Chief Executive Officer or in his/her absence the

Chief Legal Officer. the application for authorisation must include an assessment of how likely it is that

confidential material will be acquired. those involved in the operation must be advised that confidential material may be

involved. confidential material should not be retained or copied unless there is a clear relevant

and specific purpose. confidential material should only be disclosed to those who have a clear and

substantial need to know and for a specific and proper purpose. confidential material must be clearly marked or accompanied by a clear warning of its

confidentiality. confidential material should be destroyed as soon as it is no longer necessary. What records must be kept? The following records must be kept:-

Full details of the CHIS and the management arrangements; the authorisation granted and, where relevant, renewed; any authorisation which was granted or renewed orally (in an urgent case) and the

reason why the case was considered urgent; any risk assessment made in relation to the CHIS; the circumstances in which tasks were given to the CHIS; the value of the source to the Council; the reason why the Authorising Officer renewing an authorisation, considered it

necessary to do so;

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the results of any reviews of the authorisation; the reasons, if any, for not renewing an authorisation; the reasons for cancelling an authorisation. The original signed documents referred to above must be sent to the Chief Legal Officer and Monitoring Officer within seven days of the authorisation, renew, renewal or cancellation. Authorising Officers must keep copies of these documents for their own records. What information should be kept about the CHIS? The following information should be available:- the identity of the CHIS; the identity or identities used by the CHIS, where known; the means used within the Council of referring to the CHIS; any significant information connected with the security and welfare of the CHIS; any confirmation made by an Authorising Officer granting or renewing an authorisation

for the conduct or use of a source, that the security and welfare of the CHIS has been considered and that any identified risks to the security and welfare of the CHIS have been properly explained to and understood by the CHIS;

the date when, and the circumstances in which the CHIS was recruited; the authority for the related investigation or operation; the identities of the Controller, the Handler and the person monitoring the records of

the CHIS. the period for which those responsibilities have been discharged by those persons; the tasks that are given to the CHIS and the demands made of him in relation to his

activities as a CHIS; all contacts or communications between the CHIS and the Council or where the CHIS

is a Council Officer, the Handler and the Controller; the information obtained by the Council by the conduct or use of the CHIS; in the case of a CHIS who is not an Officer of the Council, every payment, benefit or

reward or every offer of a payment, benefit or reward that is made or provided by or on behalf of the Council in respect of the CHIS’s activities for the benefit of the Council;

Who may see the records?

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Only those people who need to know, otherwise they are strictly confidential. Who keeps the records? The detailed records outlined above will be kept by the person nominated as the record keeper for

the CHIS. A central register will be kept by the Chief Legal Officer and Monitoring Officer who is

also designated as the Senior Responsible Officer (SRO). The SRO is responsible for ensuring

compliance with the Act, engagement with the OSC Inspectors and oversight of the implementation

of post inspection action plans. Authorising Officers and those authorised by them will be

responsible for updating the Central Record.

Who is responsible for overseeing in compliance with the 2000 Act? Under the 2000 Act, the Chief Surveillance Commissioner and Surveillance Commissioners

together with the Assistants have been appointed to provide independent oversight of the use of the

powers contained in Part II of the Act. They will inspect the Council from time to time to ensure

that the Council is complying with the Act. In addition, the 2000 Act establishes an independent

tribunal. This tribunal has full powers to investigate and decide any case where a person complains

about the conduct of the Council in exercising its powers which are covered by the Act.

What reference documents are there? The Council and those persons acting under Part II of the 2000 Act must have regard to the Code of Practice issued under the Act. The Council has prepared 3 specific forms for use by officers applying for authority to use a CHIS. They are:- Application for authority for Covert Human Intelligence Surveillance (Appendix 1) Application for renewal of authority for Covert Human Intelligence Surveillance (Appendix 2) Cancellation of authority for Covert Human Intelligence Surveillance (Appendix 3) Copies of these forms are available on the Home Office website. There is a Help Chart and Flow Chart attached to this document to help you decide what you need to do.

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Is a Council function being carried

Yes

No Don’t know?

Seek legal d i

Is the relationship to be conducted so that the other person is unaware of its

Is the person going to use his relationship with another to obtain information or to access informa-tion or to disclose information obtained because of the relation-ship or as a conseuquence of the relationship.

N

Yes

Yes

No

HELP CHART

This procedure does not

Will the action proposed interfere with any of the Convention rights (of someone) set out

Yes Are there circumstances when a Convention right can legitimately be limited or interfered with?

No

YesN

Is the action necessary:

for the purpose of preventing and

Is this the only way of obtaining the information or is it achieved in a way which is less severe which interferes less which is more fair which has less impact on the

person/people concerned

Yes Is the action aimed at pursuing a legitimate aim e.g.

No

N

Yes

Yes

It is likely that the action proposed is proportionate and an authorisation may be given

It is unlikely that the proposal would be regarded as a proportionate response and an

START

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YES YES REFUSED GRANTED NO NEED IDENTIFIED CONTINUING NEED IDENTIFIED

START

Incident requiring

investigatio

Covert surveillance

Prepare and submit RIPA request

If the CHIS is a child or a vulnerable person or there is likely to be a disclosure of Confidential information the Authorising Officer must be the Corporate Director (Resources)

END

Extra evidence in

Application refused, decision recorded in log and applying

Authorising officer assesses

FLOW CHART

Cancel authorisation, update log and

END

Periodic review by authorising officer to assess

Surveillance authorised, recorded in log, applying officer, Handler, Controller

Approve renewal, update log and advise applying officer

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Appendix D

OPERATIONAL POLICY AND GUIDANCE ON THE ACQUISITION OF COMMUNICATIONS DATA UNDER THE REGULATION OF

INVESTIGATORY POWERS ACT 2000

1. What is Communications Data? RIPA defines communications data in Section 21(4) of the Act. Communication data means any traffic or any information that is or has been sent over a telecommunications system or postal system, together with information about the use of the system made by any person. It embraces the ‘who’, ‘when’ and ‘where’ of a communication but not the content, not what was said or written. It includes the manner in which, and by what method, a person or machine communicates with another person or machine. There are three types of communications data:

Information about communication service users – Section 21(4)(c) Information about the use of communication services – Section 21(4)(b) Information about communication data (traffic data) – Section 21(4)(a)

(NB Local Authorities are not allowed to request traffic data) 2. When might the Council use Communications Data? The local authority is only allowed to acquire and disclose communications data for the purpose of preventing or detecting crime or preventing disorder. The Council is involved in every day functions of law enforcement. For example, Trading Standards might apply for and use communications data as part of their enforcement function. The Wales illegal Money Lending Unit might use communications data to discover the name and address of the subscriber of a telephone number identified in their operations who is suspected to be an illegal money lender. Council Officers have used communications data to identify the operators of a business that has committed, or is suspected of committing, a crime when other investigation techniques have been unsuccessful. 3. What types of data can be acquired? The type of data that the Council can request information from a Communications Service provider fall into two categories: Subscriber Information – Section 21(4)(c)

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Name of the customer who is the subscriber for a telephone number, an e-mail account, PO Box number, a Post paid mailing stamp, or is entitled to post to a web space;

Account information such as address for billing, delivery or installation; Subscriber account information such as bill paying arrangements including bank or

credit/debit card details; Information about the provision of forwarding and redirection services; Information about connection, disconnection and reconnection of services the

customer subscribes to including conference calling, call messaging, call waiting and call barring telecommunications services;

Information provided by the subscriber to the CSP such as demographic information or sign up data (other than passwords) such as contact telephone number;

Information about telephones or other devices provided by the CSP to the subscriber and associated codes, including Personal unlocking Keys for mobile phones.

Service Use Data – Section 22(4)(b)

Itemised telephone call records (numbers called); Itemised records of connections to internet services; Itemised timing and duration of service usage (calls and/or connection); Information about amounts of data downloaded and/or uploaded; Information about the use made of services which the user is allocated or has

subscribed to (or may have subscribed to) including conference calling, messaging, call waiting and call barring telecommunications services;

Information about the use of forwarding/redirection services; Information about selection of preferential numbers or discount calls; Records of postal items, such as records or registered, recorded or special delivery

postal items, records or parcel consignment, delivery and collection. 4. What does RIPA say about Communications Data? RIPA came into operation on the 25 September 2000. It introduced a statutory framework to regulate access to communications data by local authorities. The acquisition of communications data under the Act will only be lawful if the conduct being authorised or required to take place is both necessary and proportionate and in accordance with the law. This is important because:

If the Council is involved in any proceedings before the Court the Council will be able to show that it has acted lawfully and that it has gathered evidence properly. The Council has to be satisfied that:

o The access to communications data is in connection with a statutory function

with which the Council is charged. o If the access is likely to intrude upon someone’s human rights, for example the

right to respect for private and family life, home and correspondence, that such interference can be justified legally.

o The access is properly authorised and consequently provides a basis for justifying any intervention of Human Rights.

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A person acting in accordance with a duly issued Notice will be protected from civil liability.

The process is externally supervised by an Inspector from the Office of the Interception of Communications Commissioner.

5. Authorising access to Communications Data Acquisition of communications data under the Act involves four roles within the Council

o The Applicant

The applicant is a person involved in conducting an investigation who makes an application in writing or electronically. In making an application, the officer needs to demonstrate that they are seeking to prevent or detect crime or disorder.

o The Single Point of Contact (SPOC)

All application forms are assessed by a Single Point of Contact (SPOC). The SPOC is an accredited individual trained to facilitate lawful acquisition of communications data and effective co-operation between a local authority and the CSP. The SPOC provides objective judgement and advice to both the applicant and the Designated Person. In this way the SPOC provides a ‘guardian and gatekeeper’ function ensuring that local authorities act in an informed and lawful manner.

o The Designated Person (DP)

The Designated Person is a senior officer within the Council that considers the application and records his considerations. In Torfaen the following are those who by virtue of their function will ordinarily act as DP for RIPA: Chief Legal Officer and Monitoring Officer Assistant Chief Legal Officer and Deputy Monitoring Officer Chief Officer, Planning and Public Protection Head of Public Protection

o The Senior Responsible Officer

The Senior Responsible Officer is responsible for ensuring the integrity of the process is in place to acquire communications data. The SRO ensures compliance with the Act and the Code of Practice and to oversee the reporting of errors to the Commissioner. The SRO should be a person holding the office, rank or position of a DP. In Torfaen the SRO role for communications data rests with the Chief Legal Officer and Monitoring Officer.

6. How is an application for Communications Data made?

An application for communications data must be made in writing using the application form held on the intranet. On the form, the applicant must provide the following information:

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o The applicant’s name, rank and contact details; o Operation name if applicable; o The purpose for which the data is required which can only be for the prevention or

detection of crime or preventing disorder; o Details of the communications data required; o Time period for which the data is required; o Why it is necessary to obtain the data and what is expected to be achieved from

obtaining it; o Why it is proportionate for the data to be obtained, including why the intrusion

benefits the investigation and whether the level of intrusion can be justified against the individual’s right to privacy;

o Details of whether there is any meaningful collateral intrusion and why that intrusion is justified;

o Timescale within the data is required, which can only be the ‘routine non-urgent’ timescale i.e. Grade 3, unless there is a high level of urgency for obtaining the data, such as when life is in danger;

o The applicant also signs to undertake to inform the SPOC of any changes in circumstances that no longer justify the acquisition of the data

The form is then passed to the SPOC for assessing communications data. 7. What does the SPOC consider? The SPOC will assess the application, and on it record:-

If the request is not reasonably practical and the reason why this is so; Whether the data falls into Section 21(4)(a); (b) and it is legal for the Council to

access such data Whether a notice or authorisation is appropriate; Any adverse cost implications to the CSP or local authority; Details of any data that is likely to be obtained in excess of the data requested; Any other factors that the designated person should be aware of; Description of the data to be acquired and, where relevant, specifying whether any

historic or future data is required and the time periods sought; Identifying the relevant CSP

The SPOC will issue a Unique Reference Number for the form and pass it to the DP for consideration. 8. What will the DP have to consider before granting a Notice or Authorisation? The DP will consider the application, the comments of the SPOC and draft notice and then complete the form stating whether they grant or refuse the application. On the form the DP must record:

Why he/she believes acquiring the communications data is necessary Why he/she believes the conduct involved in acquiring the communications data is

proportionate

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If accessing the communications data involves a meaningful degree of collateral intrusion, why he/she believes that the request is still proportionate

If the application is approved the DP can authorise the accessing of communications data by one of two different methods:

By a Notice under RIPA s.22(4) which is a notice given to the postal or telecommunications operator and requires that operator to collect or retrieve the data provide it to the Authority that served the Notice.

By an Authorisation under RIPA s.22(3) which allows the local authority to collect and retrieve the data itself. (This process is not operated by the Council at present)

The SPOC will provide the DP with a draft Notice or Authorisation. Once the application is approved, the Notice is then served on the CSP by the SPOC. Once the data is obtained, the SPOC will provide the data to the applicant. 9. What does the term ‘necessary’ mean?* RIPA provides a framework for ensuring that any acquisition to communications data does not infringe the human rights of the individual. In considering whether or not to grant a Notice the DP must consider whether the proposed acquisition is necessary and justify his/her decision to approve an application. A DP must consider a number of issues in deciding if an acquisition is necessary. These include: Does the request prevent or detect crime or disorder Explain why there is a need to access this data (is there a pressing social need? Is

there a legal duty to investigate these issues?) Every case must be considered on its merits, as what is necessary in some circumstances is not necessary in others. Officers must always consider other ways in which the information could be obtained, such as use of third party information powers, the internet and other sources. The Designated Person and the Applicant need to show that they have considered these other avenues of enquiry and be able to demonstrate that process. Obtaining communications data must be an integral part of an investigation. Officers must not seek to obtain information through acquiring communications data that is not needed for the investigation. 10. What does the term ‘proportionate’ mean?* Proportionality is a very important concept, and it means that any interference with a person’s rights must be proportionate to the intended objective. This means that the action is aimed at pursuing a legitimate aim (for example, protecting a child from potential abuse). Interference will not be justified if the means used to achieve the aim are excessive in all the circumstances. Thus where the obtaining of communications data is

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proposed, that action must be designed to do no more than meet the objective in question; it must not be unfair or arbitrary; and the impact on the individual or group of people concerned must not be too severe. A DP will consider:

What are the objectives of the application How is this intrusion balanced against the privacy of the subject Could less intrusive means be employed (the necessity of this “covert” approach) Is the action proposed justifiable (how serious is the offence)

Authorisations should not be granted solely upon the seriousness of the offence. Consideration must be given to the level of intrusion on the privacy of the subject and others balanced against the need for the tactic to further the investigation. 11. What does ‘collateral intrusion’ mean? Collateral intrusion occurs when officers obtain information about people unconnected with the investigation. The applicant and the DP must consider the likelihood and extent of collateral intrusion when considering any application. If collateral intrusion is likely, the DP must decide if the circumstances of each case still justify that access to the required data. A situation where collateral intrusion can occur includes, for example a telephone number for which subscriber details/call data have been requested which could provide biographical details of a person unconnected with the investigation.

*Designated Persons can obtain more information on the concepts of Necessity, Proportionality and Collateral Intrusion from the Home Office Code of Practice on Accessing Communications data 12. How long will a Notice or Authorisation last? All notices and authorisations will be valid for one month from the date that they become valid. The notice should be served within that month. Where a notice/ authorisation relates to the acquisition of data that will or may be generated in the future, the future period is restricted to no more than one month from the date upon which the notice/authorisation was given. 13. Renewal of notices and authorisations Any valid authorisation or notice may be renewed for a period of up to one month by the granting of a further notice/authorisation or the giving of a further notice. A renewed notice or authorisation takes effect upon the expiry of the notice or authorisation it is renewing. The reasoning for seeking renewal should be set out by an applicant in an addendum to the application upon which the notice or authorisation was given. 14. Cancelling a Notice or Authorisation

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If the need for communications data ends before the provision of this data by the CSP the DP must cancel the notice. 15. What records must be kept?

A copy of the application form for authorisation A copy of the Notice or Authorisation A copy of any renewal of the notice or authorisation together with the supporting

documentation when the renewal was requested A copy of the cancellation of the notice or authorisation

16. Who keeps the records? All records are kept centrally by the SPOC within the department. Both the SPOC and the DP will hold electronic e-mails sent by them and received by them in relation to the applications, notices and received data. The SPOC also maintains a SPOC log to ensure traceability of any communications data requests. 17. Who is responsible for overseeing compliance with RIPA? The Act provides for an Interception of Communications Commissioner whose remit is to provide independent oversight of the exercise and performance of the powers and duties contained under Chapter II of Part 1 of the Act. In addition, the Act establishes an Independent Tribunal. The Commissioner will inspect the Council from time to time to ensure the Council is complying with the Act. If he finds that an individual has been adversely affected by a wilful or reckless failure by the Council to carry out its duties under the Act he shall inform the individual of the existence of the tribunal and its role.

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AGENDA ITEM NO. 13 CABINET 14 SEPTEMBER 2010 BROOKFIELD SCHOOL- REQUEST TO DECLARE SURPLUS TO REQUIREMENTS. Report Submitted by: Pauline James, Head of Asset Management Report Written by: Eirian G Jones, Senior Valuer, Pauline James. 1. Areas Affected 1.1 Llantarnam ward. 2. Purpose of Report 2.1 To request that Cabinet declares Brookfield School surplus. 3. Recommendations 3.1 That following its closure, Brookfield Primary School is declared surplus to

requirements. 3.2 That the site is subsequently disposed of for the best consideration obtainable such

terms to be approved by the Executive Member for Resources on the recommendation of the Head of Asset Management and the Chief Legal Officer and Monitoring Officer.

4. Background 4.1 Brookfield school is due to close in July 2010, and in September 2010 the children

will transfer to the new Nant Celyn School being built on the site of Hollybush School.

4.2 The Brookfield site is suitable for residential development, and hence has the

potential to generate a capital receipt for the Council. 5. Issues and Findings 5.1 The adjoining school (Our Lady of Angels RC Primary School) will continue to use

the Brookfield playing fields until such time as the site is disposed of. The Local Education Authority is assisting with the identification of alternative playing facilities.

5.2 Demolition of the school once it has closed might have to be considered for

security reasons, but it is hoped that this can be avoided. A cost benefit analysis will be carried out before this decision is made.

6. Consultation

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6.1 The local ward members have been consulted. 7. Implications 7.1 Declaring the school site surplus to the Council’s requirements will enable work to

continue to prepare the site for disposal. 7.2 Disposal of the site can be expected to generate a capital receipt that will be

available for use by the Council in its Capital Programme. 8 Action to be taken following decision 8.1 Preparations for the disposal of the site will be finalised.

8.2 Security of the site will be kept under review until the disposal has been completed. 9. Conclusion/summary 9.1 The site has the potential to produce a valuable capital receipt. 10. Recommendations 10.1 That following its closure, Brookfield Primary School is declared surplus to

requirements. 10.2 That the site is subsequently disposed of for the best consideration obtainable such

terms to be approved by the Executive Member for Resources on the recommendation of the Head of Asset Management and the Chief Legal Officer and Monitoring Officer.

Appendices None

Background Papers

Note: Members of the public are entitled, under the Local Government Act 1972, to inspect background papers to reports. The following is a list of the background papers used in the production of this report. None

For a copy of the background papers or for further information about this report, please telephone: Eirian G Jones, Senior Valuer extension 2901

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1

AGENDA ITEM NO. 14 CABINET 14 SEPTEMBER 2010 AWARD OF CONTRACT FOR THE INSTALLATION OF A MICRO HYDRO SCHEME ON THE AFON LLWYD, BLAENAVON Report Submitted by: Christina Harrhy, Chief Officer Neighbourhood Services Report Written by: Steven Rogers, Forgotten Landscapes Partnership

Scheme Manager 1. Area Affected 1.1 Blaenavon 2. Purpose of Report 2.1 To seek approval from Cabinet to award a contract to Pico Energy Ltd. to

undertake the detail design and installation of a micro-hydro generation scheme on the Afon Llwyd in Blaenavon

3. Recommendation(s) 3.1

That Pico Energy Ltd. is appointed to undertake the detail design and installation of a micro-hydro generation scheme on the Afon Llwyd in Blaenavon at a cost of £194,590

4. Background 4.1 4.2 4.3 4.4 4.5

The Forgotten Landscape Partnership comprises of Torfaen County Borough Council (Lead Partner), Monmouthshire County Council, Blaenau Gwent County Borough Council, Brecon Beacon National Park Authority, Welsh Assembly Government and many other key organisations. This project aims to undertake sustainable landscape management of the upland landscape of the Blaenavon World Heritage Site and its landscape setting through a series of innovative projects. On the 19th March 2010 the Heritage Lottery Fund approved the delivery stage of the Forgotten Landscapes Partnership Scheme. One of the key areas of work to be delivered in the first year of the programme is a micro-hydro renewable energy scheme located on the ‘Dragon’s teeth,’ below Forgeside Blaenavon. The micro-hydro system will remove a proportion of the water from the river, divert it through a turbine which produces electricity, and return the water back into the river. The scheme requires minimal physical intervention as it utilises an inlet located on the concrete river bed, a small buried pipe and a small turbine house Funding has been secured for the work from the Heritage Lottery Fund, Valleys Regional Park and Brecon Beacons National Park Authority.

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2

4.6 4.7 4.8

The turbine is predicted to produce energy to the value of between £17,000 to £30,000 per annum subject to weather conditions, water flow and feed in tariff payments. Finance from the scheme will be reinvested into heritage and management projects in the World Heritage Site and its landscape setting and possibly part fund an officer to manage volunteers working on projects in the landscape. This will substantially help the Council meet its obligation for management of the Blaenavon World Heritage Site. A percentage of the revenue cost will be set aside for annual maintenance and repair so that Torfaen CBC will incur no additional revenue cost. An open tendering procedure was used to procure the work following consultation with the Head of Procurement. Tenders were sent out to seven contractors who expressed an interest in tendering following advertising on Buy 4 Wales website and tenders were received from two contractors. Tenders were assessed on the basis of 40% cost and 60% quality of submission and one tender was rejected on the basis that they had not complied with tendering instructions and not provided the information required. The remaining tender from Pico Energy Ltd. for £194,590 (inclusive of 10% contingency) was assessed and found to be satisfactory. The Head of Procurement is satisfied that the single tender can be accepted and appointed to undertake the work as an open tendering procedure was carried out and that the process complies with the Council’s Contract Standing Orders. The Forgotten Landscapes Partnership Scheme Manager is satisfied the tender from Pico Energy Ltd represents value for money. The revenue generated by the scheme will eventually be managed by a community enterprise group set up through the Forgotten Landscapes Partnership project. Until the community enterprise is established the revenue generated will be managed by Torfaen County Borough Council.

5. Issues and Findings 5.1 The Forgotten Landscapes Partnership project is seeking to undertake an

innovative project to install a micro-hydro project for the local generation of renewable energy. The revenue generated from the installation will be used to resource community based management works in the landscape of the Blaenavon World Heritage Site.

5.2 A single compliant tender was considered to be appropriate to award a contract to

Pico Energy Ltd to undertake the work as a open tender procedure was followed. 5.3 A community enterprise group will be established through the Forgotten

Landscapes Partnership project to manage the revenue generated by the project. 5.4 Planning Consent was granted on the 12 January 2010 and the Environment

Agency have provided a flood defence consent and abstraction licence in order for the work to be undertaken.

5.5 In accordance with Contract Standing Orders CSO 5. 3 Contracts with a value in

excess of £150,000 that are awarded on the basis of both price and quality shall be awarded on behalf of the Council by Cabinet.

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3

6. Consultation 6.1 Consultations have taken with:

a) The Chief Legal Officer who is happy with the proposals. b) Finance, who have commented that there are no financial implications to

the Authority since the proposals will be grant funded.

c) TCBC Asset Management who confirmed that they support the proposal.

d) The Head of Procurement who has advised that he is satisfied with the tendering procedure for the work.

e) TCBC Senior Ecologist who is happy that the proposal will have no

adverse impact on biodiversity.

f) The Group Leader Highways Network who commented he is happy that there would be no flooding implication and would like to be consulted again regarding the final detailed design of the micro –hydro scheme.

g) The Environment Agency who have provided a flood defence consent

and abstraction licence in order for the work to be undertaken.

h) Western Power who are satisfied that they can provide a grid connection of the required size to the proposed generator.

7. Implications 7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8

Policy – None Legal – The management of the micro-hydro scheme will be undertaken by a Community Group established through the Forgotten Landscapes Partnership project which will be legally constituted in order to manage the revenue. Financial – The cost of appointing Pico Energy to undertake the work will be £194,590 and this will all be met through external funding. Communication – The project will be promoted by the Council’s communication team and by project partners and funding bodies. Personnel – none Social Inclusion and Equalities – The management of the micro-hydro scheme will be undertaken by a Community Group set up through the Forgotten Landscapes Partnership project. Decision-making – none. Business community – The management of the micro-hydro scheme will be undertaken by a Community Group set up through the Forgotten Landscapes Partnership project.

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4

7.1.9 7.1.10

Sustainability – The project is an important project producing clean? Carbon neutral renewable energy from the river. Crime and disorder – none.

8. Risks 8.1 Project finance could be lost if the project is not given approval to proceed. 9. Action to be taken following decision 9.1

Appoint Pico Energy Ltd. to undertake the detail design and installation of the micro-hydro generation scheme on the Afon Llwyd in Blaenavon

10. Monitoring and Evaluation 10.1 The success of this proposal will be assessed by the regular meetings with Team

Leader Countryside and Environmental Projects The amount of electricity generated and revenue produced will be monitored and recorded through the Councils financial systems.

11. Conclusion/summary 11.1 The micro-hydro scheme is an innovative project and will provide much needed

funding to assist the Council in fulfilling its obligations of ensuring effective long term management of the Blaenavon World Heritage Site and its landscape setting.

12. Recommendation(s) 12.1 That Pico Energy Ltd. is appointed to undertake the detail design and installation

of a micro-hydro generation scheme on the Afon Llwyd in Blaenavon at a cost of £194,590

Appendices None Background Papers

N/A

For further information about this report, please telephone: Steve Rogers, Forgotten Landscapes Partnership Scheme Manager 01633 648582.

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AGENDA ITEM NO.15

CABINET 14 SEPTEMBER 2010 APPOINTMENT OF DEPUTY TO THE WASTE PROCUREMENT JOINT COMMITTEE Report Submitted by: C Harrhy, Chief Officer Neighbourhood Services Report Written by: C Harrhy, Chief Officer Neighbourhood Services 1. Area Affected 1.1 County Borough wide. 2. Purpose of Report 2.1 To agree to delegate authority to appoint a Deputy to the Waste

Procurement Joint Committee, in the event of the Torfaen Representatives being unable to attend the meetings.

3. Recommendation 3.1 That Cabinet agree that, in the event of either Councillor Cunningham

or Councillor Thomas being unable to attend a meeting of the Joint Committee for any reason, that the Executive Member of Neighbourhood Services be authorised to appoint any other member of the Council’s Cabinet to deputise in his/her/their place/s.

4. Background 4.1 The Council’s Cabinet have previously agreed that Councillor

Cunningham and Councillor Thomas be the nominated Representatives on the Joint committee, which forms part of the joint Waste Procurement Project between Torfaen, Blaenau Gwent and Caerphilly Council’s.

4.2 The Inter Authority Agreement (which binds each of the Council’s to the

Joint Procurement process) allows each participating Authority to appoint a Deputy. Para 5.7.3 of the Constitution specifies that Cabinet will decide the Membership of the Joint Committee and appointees can be any Member or Officer. Cabinet may delegate its functions to a individual member which would be appropriate here when a deputy may be needed urgently.

4.3 As the Joint Committee exercises executive functions,, it is proposed

that the Deputy be chosen from amongst the remaining Members of the Cabinet.

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5. Consultation 5.1 Consultation has taken place with the Chief Legal Officer, the Leader,

and the Executive Member for Neighbourhood Services and Resources.

6. Recommendation 6.1.1 That Cabinet agree that, in the event of either Councillor Cunningham

or Councillor Thomas being unable to attend a meeting of the Joint Committee for any reason, that the Executive Member of Neighbourhood Services be authorised to appoint any other member of the Council’s Cabinet to deputise in his/her/their place/s.

Appendicees None Background Papers

None

For a copy of the background papers or for further information about this report, please telephone: Christina Harrhy, Chief Officer Neighbourhood Services on 01495 766707

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