Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

EXECUTIVE SUMMARY

1) Summary of Decision Area

1.1. The Executive Member is asked to make a decision whether to approve in principle the proposed memorandum of agreement for the Basingstoke Canal Partnership.

2) Issues Covered in Report

2.1 The Basingstoke Canal is owned by Surrey and Hampshire County Councils. The Canal is managed by a Joint Management Committee of the two County Councils and six riparian borough and district councils. The Joint Management Committee has agreed a draft memorandum of agreement, which the constituent local authorities have been asked to approve.

2.2 The Basingstoke Canal is 35 miles in length with half in Hampshire and half in Surrey. The Canal was restored, with substantial help from the Surrey and Hampshire Canal Society, and was reopened in 1991. The Basingstoke Canal Joint Management Committee (JMC) is currently chaired by Surrey County Council and alternates between the two Counties as owners of the canal. On 17 October 2008 the JMC agreed a draft memorandum of agreement and following the Committee the chairman wrote to each of the constituent local authorities to ask them to agree the memorandum. The background to the draft memorandum of agreement is set out in the following paragraphs.

2.3 Since 1991 the Canal has been managed by the staff of the Basingstoke Canal Authority, who are employed by Hampshire County Council. Except for agreement of the arrangements setting up and operating the Joint Management Committee itself, and an initial joint funding formula, there has been no other formally agreed arrangements between the local authorities. The memorandum of agreement is proposed as the means of formalising the way forward for management of the Canal in the face of challenging times for many of the partner authorities.

2.4 In 2006 the Joint Management Committee considered an options appraisal for future management of the Canal. This arose from the ongoing financial constraints faced by many local authorities and the need to ensure the long-term financing of the Basingstoke Canal Authority. The Committee had agreed that the status quo would not be considered as an option as this would continue the slow decline of the Canal and would not resolve the funding constraints. The process resulted in agreement of the need for the following:

· a memorandum of agreement between the local authority partners to cover the current arrangements for the joint operation and management of the Canal;

· a revised formal funding agreement on a rolling three year basis linked to a service level agreement to secure guaranteed funding from all the local authorities;

· consideration of the option of establishing a charitable Trust which could organise the day-to-day operation of the Canal;

· organisation of a condition survey of the Canal and production of an Asset Management Plan to repair and maintain the structure.

3) Recommendations

It is recommended that:

The proposed memorandum of agreement, service level agreement and funding formula are approved in principle as a way of securing financial commitments and achieving a more sustainable position for the partnership. On receiving approval in principle some further work is required between the partners to agree the final detailed wording of the Agreement. Consequently authority is sought for the Director of Recreation and Heritage and the Chief Executive (Head of Legal Practice) to finalise the documentation with other parties.

MAIN REPORT

1) Contextual Information

1.1 The Basingstoke Canal is a much visited tourism destination. The Canal therefore assists in helping to deliver the County Council's priority to promote economic development. The Canal also assists in delivering Hampshire County Council's Community Strategy priorities relating to improving learning and health opportunities for children and young people, promoting health lifestyles, improving Hampshire economy, and encouraging active citizenship through assisting volunteer activity. The Surrey and Hampshire Canal Society makes a considerable contribution to the maintenance cost of the Canal through voluntary work and are very much part of the partnership approach. In addition to this the canal is a nationally designated wildlife site which brings both responsibilities to the owners and great value in terms of biodiversity. The wildlife, recreation and heritage aspect of the canal is of crucial importance to enhancing the quality of place included in Hampshire County Council's priorities.

2) Key Issues

2.1 The Basingstoke Canal is one of the highest (red) risks on the County Council's risk register. This is due to risk of failure of the Canal's structure. Mitigation measures which are in place include monitoring and regular inspections by qualified structural engineers under the Reservoirs Act. A condition survey has now commenced which is assessing the need for structural repair and which will lead to preparation of an Asset Management Plan as referred to in the paragraphs above.

2.2 As such the Canal fulfils a crucial drainage facility which requires and receives 24/7 emergency cover and call out provision through staff a the Canal Authority. As owners of the Canal the two County Councils currently cover the capital costs of structural repair. Due to the unlikelihood of a charitable Trust being able to take on responsibility for the structure, this responsibility is likely to remain with the County Councils. Paragraph 15 of the memorandum refers to the preparation of an Asset Management Plan for the Canal. This will establish the need for repair and replacement of the Canal structure, apportionment of the long-term costs and the need for an annual capital budget. The survey of the condition of the Canal has now commenced and will be completed in 2009. The Asset Management Plan will be completed in 2010 and following the results of the condition survey there will be a need to secure appropriate levels of capital investment by both County Councils to maintain this asset.

3) Outline of Options

3.1. The memorandum of agreement, service level agreement and funding formula are proposed as a way of securing more stable financial commitments Other options are to leave the arrangements on a looser footing, or to abandon the partnership altogether. Neither of these are recommended to members

4) Option Analysis / Comparison

Having a partnership of local authorities and other organisations spreads the cost of operating the Canal. There is also a significant `ownership' of the value brought by the canal within partner authority communities and they genuinely wish to see the canal sustained. From this perspective the recommendation proposed is likely to provide best possible option to secure the ongoing public benefits associated with the canal and seeking to secure aits future. The other two options would not achieve this and the abandonment of the partnership would be wholly counterproductive in these terms.

5) Conclusions

5.1 The recommendation seeks to formalise the way forward for management of the Basingstoke Canal and to secure the financial commitments which enable the Canal to be operated and be maintained in a sustainable way.

6) Recommendations

Please see Executive Summary for Recommendations,

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

1) Equalities Impact Assessment:

a) The Agreement is intended to set out the management arrangements for the Partnership and will not advantage or disadvantage any particular part of the community.

2) Impact on Crime and Disorder:

a) n/a

3) Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

· n/a

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

· n/a