Newquay Town Council
Town Clerk & RFO’s Report
Background
This is a report by the Town Clerk and Responsible Financial Officer (RFO) of Newquay Town Council to Full Council on a particular subject for consideration. It may contain advice, an update on the current position (of an item event or project), budget implications, material facts or submission on an item and/or general information to help members make informed decisions (list not exhaustive).
Topic Description
Recommendations regarding the potential taking over of the Public Conveniences in Newquay, from Cornwall Council (CC), following a meeting of the working party.
Arguments for Taking over the Public Conveniences Return of Newquay’s assets to the Town Council
Public Conveniences will start to be closed by Cornwall Council as of April 2013 with minimal control by Newquay Town Council
Fits in with Newquay Town Council’s policy of asset repatriation Better local control and say on how the toilets are run
Potential revenue generators to offset some of the costs (cost of installation covered by Cornwall Council)
Public Conveniences will be repaired and improved prior to transfer Freehold transfer and interest ownership to the Town Council Minimal TUPE requirements (compared to other towns)
Provided with a grant to aid in the initial transfer (£95,000) and this year we are to receive a government grant of £60,000 which can also be used to mitigate the initial costs
These assets are of value to both residents and visitors to Newquay, if Cornwall Council starts closing and selling them off they will inevitably be sold according to which one is most financially valuable and not based on which assets are most needed to remain open.
Date of this Report: Wednesday 6th March 2013
Committee: Full Council
Date of Meeting: Wednesday 6th March 2013
Topic / Agenda Item: 17 – Public Conveniences Recommendation Author: Mr Andrew Curtis - Town Clerk & RFO
Arguments against taking over the Public Conveniences
Significant cost to Newquay’s ratepayers (double taxation after year 1) Lack of definitive figures – these are all estimates
No guarantees over future funding from Cornwall Council
There will need to be a significant precept increase to cover the costs from 2014-15 No significant income streams are being transferred with these assets (only installing
charging barriers)
All running costs, including repairs due to vandalism will be the responsibility of Newquay Town Council
It is unknown how much income will be generated from charging at this stage Potential capping may prevent future precept increases to cover the costs.
Further Material Considerations
Future ability to manage and take over other services from Cornwall Council unless income generators are also transferred
Impact on insurance costs and overheads
Method of cleaning – direct employment or contractor
TUPE requirements may impact any contractor we engage in a cleaning contract or our costs if direct employment is decided (minimal but will likely have an impact)
Recommendation
The following recommendations have been put forwards by the working party as suggestive options that can be discussed.
Recommendation 1
That Newquay Town Council proceeds in taking over the following Public Conveniences from Cornwall Council on a Freehold Basis and that a consultation exercise will be carried out on the future of those toilets:
Pentire (Lewinnick)
Headland (Towan)
Esplanade (South Fistral)
East Street
Fore Street
Railway Station
Narrowcliff
Watergate Bay
Trenance Gardens
Porth
Beach Road Toilets
Further Impact Details
This proposal is likely to result in a reduction in the grant to Newquay Town Council from £95,000 to £83,000 (subject to confirmation from Cornwall Council).
Should these toilets be run as they are currently, the anticipated cost is estimated to be as followed:
Estimated Cost £181,236 Minus CC Grant -£83,000 Anticipated Shortfall £98,236
The anticipated shortfall would have to be met from Newquay Town Council and would likely be partly subsidised by the Government Grant of £60,000. Further recommendations aim to reduce this shortfall further.
It is also important to bear in mind the anticipated asset capital value. Cornwall Council estimates these to be between £220,000 - £260,000 not including East Street Toilets or Towan Headland (see appendix 5).
Recommendation 2
That subject to Recommendation 1, Newquay Town Council reviews the way in which the following toilets operate and in the first year trial a flexible summer only opening as followed:
Proposed Closures during the
winter period
Esplande
Pentire Headland (Lewinnick)
Narrow Cliff
Watergate Bay
Porth
Further Impact Details
This proposal is likely to result in a reduction in anticipated running costs. Based on a contractor agreeing, through a tender exercise to operate the cleaning schedule as outlined in Appendix 2 and in-line with the suggestive costs per clean already obtained, the anticipated costs are estimated as followed:
Estimated Cost £155,565 Minus CC Grant -£83,000 Anticipated Shortfall £72,565
The anticipated shortfall would have to be met from Newquay Town Council and would likely be partly subsidised by the Government Grant of £60,000. This leaves an anticipated shortfall of £12,565.
Recommendation 3
That subject to Recommendation 1 and 2, Newquay Town Council gives delegated authority to the Chair and Vice Chair of the Economic Development and General Purposes Committee (EDGP), Cllr Walker and the Town Clerk to investigate and decide on the way in which the cleaning is handled (through using a contractor or through direct employment).
Further Impact Details
This proposal will allow added time to research the costs and benefits of either employing staff (and providing a vehicle), or tendering for a contractor. Initial estimated comparative costs for year 1 are as followed:
Contractor for Cleaning (see appendix 3):
Estimated Cost £155,565 Minus CC Grant -£83,000 Anticipated Shortfall £72,565
Employing Staff for Cleaning (see appendix 4):
Estimated Cost £147,638 Minus CC Grant -£83,000 Anticipated Shortfall £64,638
Anticipated difference in costs: £7927 saving
There is one position which is subject to TUPE regulations. The position is worth 21 hours per week and is basically opening and closing the toilets. They are not a member of the Local Government Pension Scheme. The costs of this role have been included in the Employing staff estimate in Appendix 4, but it is important to note that any contractor tendering for the work may be required to employ this member of staff from Cornwall Council, through TUPE; or indeed the Town Council would need to TUPE and employ that member of staff in addition to any cleaning contract.
Recommendation 4
That subject to Recommendations 1, 2 and 3, Newquay Town Council gives delegated authority to the Economic Development and General Purposes Committee (EDGP) and the Town Clerk to negotiate Cornwall Council installing charging barriers in all (or if not, most) of the public conveniences.
Further Impact Details
This proposal would mean a potential revenue stream which could offset some of the costs of running the public conveniences. There are certain aspects to consider such as security of collection by staff/contractors, vandalism and security. Insurance costs may be slightly more and the running costs might increase to allow for added electricity costs.
These are all unknowns at the moment, but needless to say, any way in which the toilets could be partly subsidised is viewed positively by the Working Party and as Cornwall Council have stated they would install such measures to their cost, this is considered quite advantageous.
Additional Recommendation (A) – (Added to this report in the Full Council Meeting) Recommendation 5
That delegated authority is given to the Town Clerk and the Working Party to handle the transfer of the toilets in-line with Recommendation 1 and to handle any repairs and restorations.
Additional Recommendation (A) – (Added to this report in the Full Council Meeting) Recommendation 6
That the Clerk is given the authority to sign the Tenancy at Will subject to removing
Appendix 1 – Original Costs Estimates from Cornwall Council
Business
Other
Cleaning
TOTAL
Water
Rates
Electricity
costs
Cesspool
Costs
COSTS
Grant
NEWQUAY
Pentire (Lewinnick)
£567.28
£0.00
£227.55
£1,668.00
£0.00
£5,334.13
£7,796.96
£0.00
Headland (Towan)
£1,500.00
£0.00
£384.01
£2,194.00
£0.00
£5,334.13
£9,412.14
£6,745.08
Esplanade (South Fistral)
£2,219.25
£0.00
£59.60
£1,705.00
£0.00
£5,665.29
£9,649.14
£6,708.50
Chester Road
£977.40
£558.10
£59.38
£1,308.00
£0.00
£7,484.87
£10,387.75
£0.00
East Street
£5,057.62
£1,495.99
£688.89
£3,219.00
£0.00
£12,697.93
£23,159.43
£0.00
Fore Street
£8,604.40
£0.00
£5,738.65
£3,280.00
£0.00
£12,697.93
£30,320.98
£23,972.02
Beach Road
£2,842.53
£2,359.00
£174.87
£3,541.00
£0.00
£11,084.87
£20,002.27
£0.00
Railway Station
£3,522.92
£2,635.69
£2,911.40
£3,337.00
£0.00
£11,084.87
£23,491.88
£0.00
Narrowcliff
£1,558.51
£0.00
£315.57
£1,547.00
£0.00
£7,484.87
£10,905.95
£7,163.52
Harbour
£5,812.81
£887.39
£179.65
£1,901.00
£0.00
£9,806.54
£18,587.39
£13,684.12
Watergate Bay
£8,100.35
£0.00
£1,537.47
£2,818.00
£0.00
£7,484.87
£19,940.69
£16,234.26
Trenance Gardens
£2,163.50
£0.00
£1,939.97
£2,164.00
£0.00
£7,484.87
£13,752.34
£10,009.91
Porth
£3,186.36
£1,229.66
£220.26
£2,135.00
£0.00
£10,753.72
£17,525.00
£12,148.14
£46,112.93 £9,165.83 £14,437.27 £30,817.00
£0.00
£114,398.89 £214,931.92
£96,665.55*
Appendix 2 – Daily Cleaning Schedule Details
Current Cleaning Schedule
Number of
Cleans per day
Summer
Winter
Railway Station
3
3
Fore Street
3
3
Trenance
2
2
Towan Headland
2
closed
Esplande
2
closed
Pentire Headland (Lewinnick)
2
closed
East Street
3
3
Narrow Cliff
3
3
Watergate Bay
3
3
Porth
3
3
Totals Cleans
26
20
Proposed Cleaning Schedule
Number of
Cleans per day
Summer
Winter
Railway Station
3
3
Fore Street
3
3
Trenance
2
2
Towan Headland
2
closed
Esplande
2
closed
Pentire Headland (Lewinnick)
2
closed
East Street
3
3
Narrow Cliff
3
closed
Watergate Bay
3
closed
Porth
3
closed
Appendix 3 – Estimated Running Costs using a contractor
Business
Other
TOTAL
Water
Rates
Electricity
costs
Cesspool
Cleaning
COSTS
Grant
NEWQUAY
Pentire (Lewinnick)
£354.55
£0.00
£142.22
£1,668.00
£0.00
£4,128.66
£6,293.42
£0.00
Headland (Towan)
£1,500.00
£0.00
£384.01
£2,194.00
£0.00
£4,128.66
£8,206.67
£6,745.08
Esplanade (South Fistral)
£1,387.03
£0.00
£37.25
£1,705.00
£0.00
£4,128.66
£7,257.94
£6,708.50
East Street
£5,057.62
£1,495.99
£688.89
£3,219.00
£0.00
£12,385.97
£22,847.47
£0.00
Fore Street
£8,604.40
£0.00
£5,738.65
£3,280.00
£0.00
£12,385.97
£30,009.02
£23,972.02
Railway Station
£3,522.92
£2,635.69
£2,911.40
£3,337.00
£0.00
£12,385.97
£24,792.98
£0.00
Narrowcliff
£974.07
£0.00
£197.23
£1,547.00
£0.00
£6,192.98
£8,911.28
£7,163.52
Watergate Bay
£5,062.72
£0.00
£960.92
£2,818.00
£0.00
£6,192.98
£15,034.62
£16,234.26
Trenance Gardens
£2,163.50
£0.00
£1,939.97
£2,164.00
£0.00
£8,257.31
£14,524.78
£10,009.91
Porth
£1,991.48
£1,229.66
£137.66
£2,135.00
£0.00
£6,192.98
£11,686.78
£12,148.14
£30,618.28 £5,361.34 £13,138.20 £24,067.00
£0.00
£76,380.13 £155,564.96* £82,981.43**
*Total costs also include anticipated Tender and Insurance Costs (both estimates).
**The grant numbers are subject to change and are no-longer broken down as outlined above. This has been used as a reasonable suggestive amount for budgetary control purposes.
Appendix 4 – Estimated Running Costs using direct employment
Business
Other
TOTAL
Water
Rates
Electricity
costs
Cesspool
COSTS
Grant
NEWQUAY
Pentire (Lewinnick)
£354.55
£0.00
£142.22
£1,668.00
£0.00
£2,164.77
£0.00
Headland (Towan)
£1,500.00
£0.00
£384.01
£2,194.00
£0.00
£4,078.01
£6,745.08
Esplanade (South Fistral)
£1,387.03
£0.00
£37.25
£1,705.00
£0.00
£3,129.28
£6,708.50
East Street
£5,057.62
£1,495.99
£688.89
£3,219.00
£0.00
£10,461.50
£0.00
Fore Street
£8,604.40
£0.00
£5,738.65
£3,280.00
£0.00
£17,623.05
£23,972.02
Railway Station
£3,522.92
£2,635.69
£2,911.40
£3,337.00
£0.00
£12,407.01
£0.00
Narrowcliff
£974.07
£0.00
£197.23
£1,547.00
£0.00
£2,718.30
£7,163.52
Watergate Bay
£5,062.72
£0.00
£960.92
£2,818.00
£0.00
£8,841.64
£16,234.26
Trenance Gardens
£2,163.50
£0.00
£1,939.97
£2,164.00
£0.00
£6,267.47
£10,009.91
Porth
£1,991.48
£1,229.66
£137.66
£2,135.00
£0.00
£5,493.80
£12,148.14
£30,618.28 £5,361.34 £13,138.20 £24,067.00
£0.00
£147,637.51* £82,981.43
Cost Estimations
Staff Costs
(various positions)
36952.68
Vehicle
8500
Materials
20000
Insurance
1500
Petrol
3500
70452.68
*Total costs also include anticipated Insurance Costs (estimate).
The Cost Estimates in relation to the staff costs have been combined as this is confidential information appertaining to the TUPE transfer. The committee will have a better breakdown to aid in their decision making process.
Appendix 5 – Cornwall Council’s Estimated Capital Values
