Agenda and minutes

            The Minutes of the meeting held on 10^th January 2008 were taken as read and signed as a correct record.

            The Authority operated a Treasury Management Policy in accordance with the recommendation of the Chartered Institute of Public Finance and Accountancy’s Code of Practice.            One element of the policy dealt with the Council’s policy on lending. This area was last subject to review in January 2006.

 

            The Authority had a clear policy of lending at minimum risk to its capital, and as such had only lent to a specific list of borrowers each with individual limits, which specified the maximum amount to be lent to each counterparty linked to the period of the investment.

 

            At the time of the last review the Council was investing a sum of around £30m. The current level was around £50m, with a negative cash flow anticipated before the year-end, which would reduce this figure to an estimated level of £35 - £40m for the financial year 2008/9.

 

            The current counterparty lending limits were therefore set a little on the low side, resulting in deals being split into smaller sizes and with multiple counterparties so as to keep within the individual counterparty limits. Generally, there was not a problem with this as it meant that the authority was spreading its risk. The downside however, was that the best rates available in the market could not always be secured, which would be deemed to be the price of security, and this should be considered when looking at the comparative performance indicators at the year end.

 

            It was noted that the Council’s requirements from the market, the counterparties that were interested in dealing with local authorities and the instruments that could be used were constantly changing. These were the main factors influencing the review of the counterparty lending list.

 

            The different types of organisations and the present economic climate were briefly discussed in the report and were as follows:

 

-           flight to quality;

-           the role of the rating agencies;

-            building society sector;

-           bank sector;

-           British banks;

-           foreign banks;

-           local authorities;

-           central government – debt management account

            deposit facility; and

-           private sector – money market funds

 

            RESOLVED: That the list of institutions shown in the report be accepted.      

            The Sub-Committee considered a report which reviewed activities undertaken on the money market as required by the Treasury Management Policy. It was noted that all policy guidelines including the prudential indicators have been complied with.

 

            The report highlighted key issues within:

 

-                     short term rates;

-                     longer term rates;

-                     temporary borrowing/investments;

-                     the position at the end of the month; and

-                     longer term borrowing/investments.

 

            RESOLVED: That the report be noted.

            The Sub-Committee was advised that one of the projects in the previously agreed Widnes Waterfront Masterplan was the creation of a Linear Park on a disused rail siding which ran west to east across the EDZ from Earle Road to Tanhouse Lane.

 

            The Linear Park would be created as part of the wider landscaping scheme being implemented throughout the Widnes Waterfront and would include a combined footpath to show its cycleway. An application for planning permission had been agreed.

 

            Negotiations had been on-going with Network Rail for four years regarding acquisition of the site by Halton Borough Council. This had finally been agreed and was now with solicitors. In addition, it was noted that £665,000 funding for this project had been secured from the North West Development Agency (350k), ERDF (204k) and Neighbourhood Renewal Funds (111k). There were claw back provisions in place from all of these funding bodies should there be any income generated from the site.

 

            It was noted that the Council would take possession of the site with a considerable amount of old rail in situ. Property Services had estimated that the scrap value of the rail tracks was between £12,000 and £15,000 with the purchaser paying the Council’s legal costs and their own removal costs.

 

            Widnes Regeneration Limited had previously disposed of some redundant level crossing gates (from the former Blue Circle Cement Plant fronting onto the east side of Tanhouse Lane) to the Llangollen Railway Society, a charitable organisation which was restoring the former Llangollen Railway. Whilst the proposed Linear Park Scheme incorporated a short length of track in recognition of the Heritage Site, the remainder of the rail was surplus to requirements.

 

            It was therefore proposed that rather than merely disposing of the rail for scrap, it should offered to the Llangollen Railway Society for reuse. All funding bodies for the scheme had agreed that if the rail tracks and level crossing gates were donated to the Llangollen Railway Society, they would waive their rights to claw back of the scrap value.

 

            RESOLVED: That

 

(1)            approval be granted to waive Part 7.9 of Standing Orders relating to Finance and Part 5 of the Procurement Standing Orders in relation to the disposal of the railway tracks, level crossing gates and ancillary equipment and materials at the proposed Widnes Waterfront Linear Park; and

 

(2)            approval be granted to Llangollen Railway Society to remove the railway tracks and level crossing gates for use at the Llangollen Railway and Museum.

            The Sub-Committee was advised that two tenders had been received based on an open list system for the supply of new passenger transport vehicle communications equipment.

 

            Both tenders were evaluated using a pre-determined assessment criteria (which was included with the tender documents based on price and quality criteria). In addition, both suppliers were then required to give a formal 30 minute presentation on their proposals to a Panel of Halton Borough Council’s Officers drawn from the IT Business Management Team and Transport Co-Ordination Team. This represented the remaining 5% of the assessment scoring criteria.

 

            It was reported that good references had been obtained on IKI Group Limited from other organisations (including local authorities) who were currently using the system and a site visit was organised to view the system in operation successfully at Lancashire County Council. Funding had been identified in the Halton Local Transport Plan during 2007/08 of £70,000 towards the purchase and installation costs of the new proposed passenger transport vehicle communication equipment.

 

            RESOLVED: That the award of the Contract for the supply of a new passenger transport vehicle communications equipment system to the IKI Group Limited for £61,375 be noted.

MINUTES ISSUED: 29^th January 2008

CALL IN:  5^th February 2008

Any matter decided by the Executive Board Sub Committee may be called in no later than 5^th February 2008