The Mayor and the Chief Executive Officer for the EDC presented the budget proposals for the business unit to the Board.

The Board questioned whether in terms of the overall budget build, would the EDC be able to make the savings required form 1^st April 2012. The Board were advised that the EDC would be able to make the savings and they were confident that the savings would be implemented from the 1^st April 2012.

The Board questioned how confident the CEO of the EDC was to meet the targets for income generation as set out in the budget proposals. The Board were advised that the CEO of the EDC was confident the income would be generated.

The Board questioned how far advanced the proposals are to transfer Brixham Town Hall to the Town Council and move connections staff out. The Board were advised that discussions are ongoing and that a meeting is taking place on the 26^th January with Brixham Town Council to discuss this further. The Board advised that there are also ongoing discussions taking place with Brixham Library regarding the potential moves. 

The Board questioned whether there are any development items or cost pressures within the EDC which O&S should be aware of at this time. The Board were advised that there are no immediate pressures, however they were reminded that the EDC no longer had any unallocated reserves in place as a consequence of the 2012//13 budget build. The Board were advised that if any pressures were to arise that the CEO of the EDC would come back to Council to discuss.  The Board were advised that the EDC was presently looking at further opportunities to maximise economic growth associated with the recently confirmed South Devon Link Road and on-going negotiations relating the future development of the Whiterock Business Park.
  

The Board asked whether the EDC provided any grants and grants in kind (reduction in fees etc) and if so what changes are proposed in these areas. The Board were advised that the EDC does not provide grants/grants in kind.
 

The Board questioned when additional income is generated within the EDC what the process is for recovering over target amounts into a central pot. The Board were advised that as the EDC is a separate ‘not for profit’ legal entity (although wholly owned by Torbay Council) and that any surplus would normally be reinvested in front line delivery. The Board were advised that EDC does receive a formal Contract Fee from Torbay Council for services provided and that this can be reduced if service delivery surpluses are made. The Board were advised that the EDC is likely to return £150,000 back to the Council this year.

The Board questioned whether there were any implementation costs associated with the proposals as there are none outlined in the budget papers. The Board were advised that there were none.

The Board questioned whether the proposal to close administrative offices over Christmas and New Year would effect customer access to any front line service and if so, which services and what contingency is in place. The Board were advised that this would only impact on back office staff and that all customer access points would remain open.

The Board questioned whether the cleaning contract is in place and delivering the required savings. The Board were advised that the contract is currently out to tender.

The Board questioned whether the proposed reductions in repairs and maintenance costs would mean additional expenditure may be incurred in the longer term. The Board were advised that the reduction has been put forward as we are disposing of council assets and will no longer have to maintain as many buildings in the future. The Board were advised that no council assets would fall into disrepair over the next 2/3 years as a result of this reduction.

The Board questioned how much Estates Management support we are currently buying in. The Board were advised that this service is being brought back in house.

The Board questioned whether the deletion of the vacant energy post was good value for money and whether the penalty charges would outweigh the deletion of this post. The Board were advised that the person that was in the post has resigned and has left the council so is vacant. The Board were advised that if the EDC was able to bring in income to pay for the post they would reinstate it.