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Mugdock Country Park Agreement

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Mugdock Country Park Agreement Stirling Council Agenda Item No.12 Date of Environment & Housing Meeting: 6 June 2019 Committee Not Exempt Mugdock Country Park Agreement Purpose & Summary To advise the Committee on the current status of the Mugdock Country Park Agreement 1999-2049 which has been subject to periodic review with the most recent variation ending on 31 March 2019 and to seek approval on proposals for the replacement of the Agreement following a renegotiation until 31 March 2024, when it would again be subject to further review. Recommendations Committee is asked to: 1. note the status of the Mugdock Country Park Agreement; 2. note the implications of the proposed replacement Mugdock Country Park Draft Minute of Agreement; and 3. note the approval for the proposed replacement Mugdock Country Park Draft Minute of Agreement for the period 1 April 2019 until 31 March 2024 will be agreed by the Senior Manager, Infrastructure in conjunction with the Convenor and Vice Convenor of Environment & Housing Committee. Resource Implications The delivery of the revenue resources and capital investment programme will be managed and co-ordinated by East Dunbartonshire Council with Stirling Council representation at both elected member and officer level on the Mugdock Park Joint Management Committee. Operational activities within the Park would be delivered by East Dunbartonshire Council. The financial revenue resource implications for Stirling Council would be £50,000 per year with East Dunbartonshire contributing £368,000 per year. The financial capital resource implications for Stirling Council would be 50% of the capital investment in the Park, capped at £375,000 over the five years, an average of £75,000 per year, with East Dunbartonshire also contributing £375,000 over the five years. The capital investment shall be geared towards increasing income generation and replacement or restoration of the Parks infrastructure. Legal & Risk Implications and Mitigation There are risks attached to failing to continue the Mugdock Country Park Agreement as the park is almost entirely within Stirling Council title and failure to put in place a continued agreement with East Dunbartonshire could potentially risk the burden of maintaining and operating the park reverting in its entirety to the landowner, Stirling Council. A continued Agreement between the two Council’s would mitigate against such a risk. 1. Background 1.1. The current minute of agreement was entered into in 1999 between Stirling Council and East Dunbartonshire Council and is a 50 year agreement. Included within the agreement there has been variations at 10 and more recently 5 year intervals since the original agreement. The previous variation lapsed on 31 March 2014 and due to delays the latest 5 year variation was not concluded until February 2016. 1.2. The latest variation lapsed on 31 March 2019 and another variation or agreement is required from this date. 1.3. The most recent variation included a financial revenue commitment for Stirling Council to contribute on a gradual increased percentage from 12.5% in 2015/16 to 20% in 2018/19. This equated to a flat £50,000 contribution per year while the park grew income and East Dunbartonshire sought to reduce their percentage contribution from revenue. East Dunbartonshire Council contributed £368,000 or 87.5% on a percentage basis per year in 2018/19 and Stirling Council’s percentage contribution has remained at 12.5%. 1.4. The most recent variation also included capital contributions on a 50%/50% basis between the two Council’s. This has equated to £50K capital per Council per year, though it should be noted no ceiling or floor on contributions was set. 1.5. East Dunbartonshire currently seek to agree the financial contribution(s) with Stirling Council for the next period of agreement. 1.6. East Dunbartonshire and Stirling Councils Legal Services are currently preparing a draft Minute of Agreement for the period 1 April 2019 – 31 March 2024. 2. Considerations 2.1. The minute of agreement reflects that Stirling Council as owners of the park agree that East Dunbartonshire shall operate the park on behalf of the two Council’s in a partnership arrangement. 2.2. The agreement sets out the fiscal framework for the operation of the park financially and governs both Council’s contributions. 2.3. The Mugdock Park Joint Management Committee meet quarterly. The minute of agreement allows for six elected members on the Committee from East Dunbartonshire Council and two elected members from Stirling Council. The Stirling Elected Members on the Committee are Councillor Graham Lambie and Councillor Alastair Berrill. The Committee chair is currently Councillor Jim Gibbons of East Dunbartonshire. 2.4. The Mugdock Park Joint Committee is also attended by several officers from East Dunbartonshire Council’s Place and Business Development, Finance and Corporate services and an officer from Stirling Council’s Environment and Place, Operations service. 2.5. Mugdock Country Park visitor numbers are over 600,000 per year and the park strategy 2015-20 currently places an emphasis on improvements to assets and a review of existing spaces. The 2017-2022 park business plan continues to look towards financial sustainability and maximising income which is currently circa £133K per annum. 2.6. Planned capital strategy projects include, replacement of a septic tank, improvements to business/education space with small business pods, a shed for school groups for evening hires and an education base for nursery (Mugdock Barns), Improvements to Mugdock Castle, Enhancement of WWII gun sites, Improvements to paths and Improvements to car parks. 2.7. It is recommended by East Dunbartonshire Council’s solicitor that as the proposed Minute of Extension and Variation would be the third extension and variation of the original Minute of Agreement, with the current one taking the agreement up to 31 March 2019 that the Council’s enter into a fresh Minute of Agreement, rather than a further variation and extension, as it is thought this would be the simplest way to proceed. 2.8. Stirling Council’s solicitor has advised that that amalgamating the original lease with subsequent variations/extensions would be a good way to clarify the position for all parties and bring matters up to date. 2.9. The refreshed Mugdock Country Park Draft Minute of Agreement 2019-2024 is intended to be subject of a future report to the Joint Park Management Committee. 2.10. At the 2015/16 renegotiation there was a meeting between the two Council’s respective Directors at that time. In the renegotiation East Dunbartonshire Council sought to decrease their revenue through an increase in Stirling Council’s contribution and income generation. It was also sought to increase Stirling Council’s capital contribution in line with East Dunbartonshire Council’s as the asset was ultimately Stirling Council’s. 2.11. With regard to options going forward, to discontinue the agreement would result in the park reverting to Stirling Council to operate entirely at Stirling Council’s cost and would seem the least preferred option. Also any decrease in revenue support, given East Dunbartonshire Council’s greater contribution at present, may risk East Dunbartonshire Council seeking to withdraw from the agreement. 2.12. In terms of revenue expenditure, it is therefore proposed to maintain the existing level of revenue investment from Stirling Council at a standstill £50,000 per year plus inflationary increases for another five years. 2.13. In terms of capital expenditure, the previous £50,000 per annum has been directed by the park capital strategy. East Dunbartonshire Council seek an increase in capital funding with a contribution from Stirling Council of £375,000 over the next five years at £75,000 per annum. This is to fund larger projects including Mugdock Barns project and replacement of a septic tank. The Mugdock Country Park Proposed Capital Programme 2019-2014 is outlined in (Appendix 1) 2.14. The recent 2019/20 bid to the ten year capital plan reflects the level of capital being sought for the next few years and an allocation of £75,000 was provided in 2019/20. 3. Implications Equalities Impact 3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as it concluded there were no negative impacts on any groups. Fairer Scotland Duty 3.2 The contents of this report were considered in terms of the Fairer Scotland Duty and were determined not to be of strategic importance. Sustainability and Environmental 3.3. N/A Other Policy Implications 3.4. The investment in parks areas is in accordance with the vision and objectives of the 2012 Open Space Strategy. Consultations 3.5. Finance and Legal Services have been consulted on the implications of entering into a revised minute of agreement for Mugdock Country Park. 4. Background Papers 4.3. EqIA Relevance Check 5. Appendices 5.1. Appendix 1 – Mugdock Country Park Proposed Capital Programme 2019-2024. Author of Report: Contact Details: David Crighton [email protected] Service Manager Roads & Land 01786 237793 Colin Mackay [email protected] Land Services Team Leader 01786 237772 Approved by: Brian Roberts Signature: Date: 14 May 2019 Details of Convener(s), Vice Convener(s), Councillor Thomson and Councillor Gibson Portfolio Holder and Depute Portfolio Holder consulted on this report: Wards affected: 2 Key Priorities: E - We will create & implement environment and infrastructure improvements; deliver new ownership & delivery methods around energy generation, public transport & internet access, ensuring profits & services work to community, not commercial priorities Increased investment in greenspace and parks with Key Priority Considerations: associated benefits to health and wellbeing. Stirling Plan Priority Outcomes: Resilient - People are part of safe and caring (Local Outcomes Improvement Plan) communities within an attractive and sustainable environment .
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