Agenda and minutes

In terms of Standing Order 28(3)(vi), and in accordance with Section 50(B)(4)(b) of the Local Government (Scotland) Act 1973, the Committee was informed that it had to determine (1) that the item on the agenda was of an urgent nature; and (2) that the Committee required to consider the item and take a decision thereon.  

The Committee resolved:-

to agree that the item was of an urgent nature and required to be considered and a decision taken thereon.

The Committee was requested to determine that the item on the agenda contained exempt information as described in Schedule 7(A) of the Local Government (Scotland) Act 1973.

The Committee resolved:-

in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, to exclude the press and public from the meeting during consideration of the following item of business so as to avoid disclosure of exempt information of the class described in paragraph 6 of Schedule 7(A) of the Act.

The Committee had before it a report by the Director of Education, Culture and Sport which advised of progress in relation to the Council’s agreed transfer of its sports services to Sport Aberdeen and sought approval for the release of additional funding up to a maximum of £60,000 to be paid by way of a repayable grant to Sport Aberdeen in order for the company to meet its known financial commitments and conclude its start up successfully.

The report reminded members that the Finance and Resources Committee of 17^th September 2009 (Article 11 of the minute refers) had authorised the Director of Education, Culture and Sport, in conjunction with the City Solicitor, to provide start up support in terms of repayable grant to Sport Aberdeen in order for the company to sign a lease for accommodation, subject to the appropriate Council officers being satisfied that all of the possible financial consequences could be quantified and were considered reasonable, and subject also to repayment of the grant over a two year period.

The report stated that the Council’s records indicated that payments totalling £157,000 had been made to Sport Aberdeen, which represented the previously agreed grant funding/loan of £152,000 and an additional payment of £5,000, the purpose of which was being clarified.

The report went on to detail Sport Aberdeen’s start up expenditure to date and known commitments which had not yet been invoiced. It was predicted that Sport Aberdeen required up to an additional £60,000 to meet its known financial commitments. This would enable the Sport Aberdeen Board to progress and conclude its start up, including the finalisation of the Sport Aberdeen Corporate Plan and the legal agreements between the Council and Sport Aberdeen.

The report concluded that the circumstances outlined above had resulted in an additional delay in the conclusion of the transfer to Sport Aberdeen. It was intended that with the provision of the recommended additional start up funding, negotiations between Sport Aberdeen and the Council would be concluded in time for a report to be submitted to the Finance and Resources Committee on 17^th June 2010 and for Sport Aberdeen to be fully operational on 1^st July 2010.

The report recommended:-

that the Committee -

(a)              note the current position in relation to the establishment of Sport Aberdeen and progress in the transfer of the Council’s sports services to Sport Aberdeen;

(b)              agree to the release of additional funding up to a maximum of £60,000 to be paid by way of a repayable grant to Sport Aberdeen in order for the company to meet its known financial commitments and conclude its start up;

(c)               delegate authority to the Director of Education, Culture and Sport and the Head of Legal and Democratic Services, in consultation with the Convener of the Finance and Resources Committee, to agree the terms and conditions of repayment of the additional funding; and

(d)              instruct officers to report to the relevant committee if further information became available that additional start up  ...  view the full minutes text for item 3.