Agenda item

With reference to Article 13 of the minute of its meeting of 7 January, 2010, the Committee had before it a progress report by the Director of Education, Culture and Sport on the development work undertaken in relation to leased community centres, including the cost of repairs to bring centres up to an acceptable Grade B standard; the development of a new model lease, management agreement, enhanced grant and constitution; and information on the outcomes of a social capital and financial analysis.

At its meeting in January, 2010, the Committee had approved both a lease and management agreement, and a financial model, with officers remitted to conclude negotiations with the leased centres on the approved documents.  The report advised that, in response to issues raised by both Members and leased centres, there had been two versions of the lease produced with three revisions, as well as three versions of the management agreement.  The report then highlighted key concerns which had been raised by the leased centres in relation to the responsibility on centres to find any budget deficit arising from the historical costs of gas and electricity; the health, safety and financial implications if centres were to take responsibility for the routine testing and maintenance of fire equipment; the cost of public liability and employers’ liability insurance; the disparity of costs covered by budgets and the difference in the settlements received by each centre;  and the reduction in the centre development grants.  The report outlined the officer responses to each area of concern, and advised that the centres were content with the responses provided.  It was noted that officers had also identified an omission in the management agreement, which stated that the Council would be responsible for water charges.  This omission had been corrected.

Officers recommended that there should be a transition year, with all centres receiving a one year lease.  This would allow there to be a review of financial arrangements and a report on the longer-term financial implications for the Council would be brought before Committee in June, 2011, after one year of operation under the new scheme.

In relation to the cost of repairs to bring centres up to an Acceptable Grade B, the report advised that, as previously reported to Committee, centres had been assessed on a scale from A (pristine) to D (poor).  While the overall condition of a building could, for example, be a Grade B, the report noted that there could be aspects of the building which were a Grade C and would therefore require attention in the immediate future.  It was noted that the previous survey undertaken did not identify the detailed costs of remedial repair works, and it was advised that a further survey would be required to ascertain the cost to bring the centres to an acceptable Grade B level.  The report advised that there was no internal capacity to undertake this work and therefore it would require to be out-sourced, leading to additional costs.  It was recommended that once the cost of this work was known, it should be referred to the Finance and Resources Committee for approval of the necessary funding.

In relation to the model constitution, the report advised that since the previous report was considered by the Committee in January, 2010, the consultation with leased centres had resulted in further issues with the constitution being identified by both centres and officers.  These had been discussed in full at a leased centre workshop which had been held on 5 March, 2010.  The report advised that there had been concern raised in respect of the possibility of any future change to centres to charitable status and the need for amendments to the constitution in line with the Office of Scottish Charity Regulator, and the lack of provision for termination of Membership Appeals Process.  Officers had also identified that more flexible options for the election of a centre Management Committee could avoid difficulties in attaining quorate meetings.  There were further concerns about the period of tenure for postholders, the prohibition on Ward members having voting rights or being office bearers, the influence of the Council over outside lets and the role and status of the proposed Community Centre Liaison Officer.  The report outlined the action proposed to address each concern.

The report outlined the social capital survey which had been undertaken, and further details of the outcome of the survey were included at Appendix 3 to the report.  Finally, the report advised on the revenue costs for each leased centre based on the actual out-turn with details relating to each centre provided at Appendix 4 to the report.

The report recommended:-

that the Committee:

(a)       note the progress made in discussions with leased community centre management committees on the model lease, management agreement, constitution and enhanced grant finance model;

(b)       agree a transition year, with one year leases being granted to all centres to allow centres to adjust to the new financial arrangements with officers providing a report reviewing implications in June, 2011;

(c)        agree that the City Solicitor be remitted to formally conclude the model lease and management agreement on terms and conditions as necessary to protect the Council's interests for a transition period of one year;

(d)       agree to refer the cost of out-sourcing work to assess the costs of remedial repairs to the Finance and Resources Committee;

(e)       agree that once costs were assessed that they would be considered as part of the Council’s 5 year business plan and service priorities;

(f)         agree to receive a further report detailing all the financial implications of repairs to inform decisions on the granting of longer-term leases;

(g)       agree that the Council retain responsibility for the payment of:-

·                 energy and water bills;

·                 routine maintenance checks including fire equipment;

·                 public liability and employers’ liability insurance;

reviewing and receiving a report on these commitments in June, 2011;

(h)        agree that a Leased Centre Efficiency Group comprising centre representatives, members and officers be set up to look at efficiency options for the proposed transition year;

(i)         agree the adoption of the new model constitution and Standing Orders as agreed by all parties; and

(j)         note the outcomes of the social and financial capital analysis and remit officers to put in place the identified supports.

At this juncture, the Convener advised that he proposed to move revised recommendations from those contained in the report, namely:-

“that the Committee:- (a)  note progress made; (b)  request a report back on implementing a 20 year lease with repairs and maintenance being undertaken in agreement with leased centres along the same lines as Devolved Educational Management Schools budgets were dealt with at the present moment; and (c)  request that consultation must be undertaken with leased community centres on the formulation of this report.”

Councillor Donnelly moved, as an amendment:-

approval of the original recommendations contained in the report, subject to the amendment from a one year lease to 25 year leases at recommendation (b).

The Convener, having sought advice from the Director and the Head of Legal and Democratic Services which was then conveyed to the Committee, declared the motion to be incompetent within the terms of Standing Order 12(3).

The Committee resolved:-

(i)         to approve the amended recommendations as detailed above;

(ii)        to request that a report on the implementation of a 20 year lease be brought back to Committee by 16 September, 2010, at the latest; and

(iii)       to acknowledge the huge amount of work undertaken by officers and community centre management committees thus far.