Knoydart Community Hall, 6pm
Attending: Davie Newton, Rhona Miller, Tom Harris, Corinna Calder, Reagan Nunn, Frank Atherly, Danny Gorman, Kristy Brown, Sarah and Calum Wilson, Judy Bailey, Samantha Humphreys, Rodger Trussel, Denise Atherley, Richard Williams, Janey De Norwall, Tom Daziel, Sarah Donald, Jacqui Wallace, Helen Evemy, Andrew Baldrey
Apologies: None
Declarations of Interest: DN- Hebnet
Minutes of Previous Meetings inc. single item agenda meetings
January Board Meeting minutes- Approved.
Matters arising
Matters arising and actions from Last Meeting
- All board to agree application form- done.
- CC & JW- To look at mortgage- ongoing.
- SD- Look at finance options with community housing trust- ongoing. See later regarding funding and HIE.
Updates
- Knoydart Trading Update
- Just come out of KT meeting. End of year finances £21K profit in management accounts. Venison just breaking even and everything else making profit. Outgoings £12K to accountant group, £19K to KF for time rebilled. Still trying to sell the Hilux and trailer. Hopefully this will increase the profit.
- Rodger Trussel- Why is the Hilux being sold?
DN- They were bought last year, and users were not that involved in the buying and didn’t want these as part of their day to day. When electric vehicle came up it was decided that this was a more appropriate vehicle for the tasks.
Rodger Trussel- What lessons have been learnt?
DN- Listen to the people that will be using it rather than those buying it. New action plan to sell it buy taking it for MOT and then selling from Mallaig.
- KRL update-Tom Daziel
- February operations report available.
- KRL have drawn up a service level agreement between KF and KRL for in office services. Given DN a copy to agree and sign.
- More under grounding starting in March, plan to use the area behind the wee hooses as a laydown area for the project. Do we need permission to do this? AP- TD- Board have requested a map and more details.
- Expect a grant offer letter from local energy Scotland for ongoing works. Agreement needs to be signed by DN on behalf of KF.
- Locogen (energy security extension project), planning to come and meet with members of community week beginning 26th February- will email community once date has been set.
- Ongoing communication with rangers shed and access.
- DN- Hebnet (broadband), Ian Bolus that does the technical work has been talking with Kyle. Can expect that fibre will be laid at the same time as energy lines. Some people will have fibre, and some won’t initially, but it shouldn’t make a huge difference to speeds.
- The generator shed has been on hold as there is an ongoing discussion about ramping at the front and what KRL want to do around the back. Should be finalised and the project moving in the next week or two.
- Foundation Office update-
- Jacqui has been looking at core costs/running costs. Paying bills every Wednesday. Has access to bank of Scotland. Tidying up debtors list and cleaning up processes with bookkeepers.
- Corinna- Day to day tasks, managing accommodation bookings whilst team away, updated all employment contracts and has found a replacement for HubSpot which has reduced cost £3K per.
Items for decision
- New community director- Kristy Brown has stood to be a direct for the next 8 months. She won’t stand again, only fill this gap. Still one more space to fill.
All agree Kristy Brown as replacement director.
- Phone for Sara- All agree for Sara to have a phone for working remotely. £30 month phone and data plan.
- Leases Millburn – review date and discussion.
Farm has request extension from 1 year to a5 year lease to support HIE funding application. Review date is this month/ start of next. If this is agreed the board should also take into consideration the tree nursery lease. Agreement that there is a need to retain ability of either party to terminate the lease.
AP- All Board- Plan to agree by email after looking at leases.
- House Plot offer to sell finalised (for info)- Yasmine and Tom’s plot sale has gone through the legal processes.
- House plots to go to consultation- 2 groups that have passed qualification for house plots have identified sites that will now go to the community for consultation. These are above the village hall towards the quarry pit.
Rodger Trussel- Have these been chosen by the applicants? Yes.
Janey DeNorwall- Are we allowed to know the applicants? No, it is decided on the suitability of the plot not the applicants, they have already been approved.
- Updates- DN should we be asking for quarterly updates rather than monthly and insist on them? Proposal every 2 months. E.g. ranger, deer management.
Board agrees to quarterly updates.
Reports
- Accommodation Project Officer Report- Sara Donald- Written Report Available.
Helen Evemy- Given that Milburn is deteriorating rapidly would it not be worth knocking it down and building from scratch.
DN- Speaking personally as someone that doesn’t have a great affinity for the building and that it is in a precarious position given future flooding risks. But new builds are more difficult and costly in some ways and renovations tend to be more favourable with the planners. Also, a lot of work have now gone into what has already been done. But it is a fair enough point.
Andrey Baldrey- In my experience knocking down is the right thing and I am sorry it has got to the stage that we already are. Would suggest thinking hard about knocking it down.
SD- The land and building were purchased through the Scottish Land Fund and there was a plan then to do a renovation, this is public money and therefore is likely to have some implications.
AB- There are significant concerns with this building and flooding. Also, there are draw backs from a VAT perspective.
SD- New builds wouldn’t be allowed there and would have to be much further back. Planning fees and warrant fees are less because there is already a building there. Also, the VAT situation is different if you are renting properties out.
Frank Atherley- The time to have raised this issue is some time ago. I suspect to unpick the whole thing will push it back several years and risks losing funding, therefore it would be braver to continue with the plan we are on.
Janey De Norwall- How realistic is it that it is going to be done?
DN- The public funding was for the land buy there was a condition associated with it that said we would renovate those houses but there was no funding associated with it.
JDN- As long as there is not too much being spent on getting nowhere.
DN- Renovating a house like this it doesn’t matter where you start you are taking it down to bear walls which are reasonably solid.
SD- It is relatively dry inside currently.
Rodger Trussel- There is a business plan for the current way ahead. We can’t compare it with a business plan for knocking it down.
DN- This is the problem when a project drags on too long, people re-evaluate it. But there was an initial consultation that was agreed. We would need more of a reason at present to change it.
Tom Harris- The deadline for hearing back from the planners at end Feb is unrealistic.
Frank- There was a consultation. Due process so unless there is significant change, we need to continue on with that.
Richard Williams- I think it is a good debate to be had but now is not the time to review the plan. We are looking at the wider site including the new builds and self-build plots to give a range of options. Worker’s accommodation- the challenges to get a contractor for that, we have to view Millburn may be a similar challenge.
Helen Evemy- It is important that planning is given on the site but that we should keep things open for review and be aware that things change.
DN- Also be aware that there are rules about knocking down buildings too.
The payout to Toby, are you sure that money is going to come in for that?
SD- Once we get a contractor signed money moves from Scottish government into control of highland council at the moment, they are saying it is too risky to pay it as there is not a contractor signed.
DN- 23% HIE shortfall does that include the mortgage- Jennifer recommends that mortgage is applied to Millburn and that KF should apply to the capital grant fund for the full amount needed for the workers accommodation.
Items for discussion
- Finance – management accounts to end of 2023. Received this week. KF -£91K deficit for the year. Included £30K transfer to KRL and some grant payouts that are not balanced by grant pay ins esp. around sara’s work but need to dig down on this. £45-50K deficit on normal expenditure. £50K transferred out of reserves in the last 2 months. £210K remaining in reserves. £21K profit for KT in management accounts. So can assume some amount of donation but not enough to cover deficit.
The biggest change in costs is for the accountant group and auditor. Plan to bring some bookkeeping in house to reduce some of these costs.
Andrew Baldrey- Is current performance typical?
DN- Historically until 6-7 years ago KT balanced deficit of foundation. Turnover has changed very significantly. The resulting accountancy costs have increased a lot. KT has been unable to keep up with the changes at the foundation. Overheads increased all round. As turnover has increased now there is an auditor requirement- approx. £8K per year.
AB- Is there a feeling of confidence that things can improve?
Jacqui- Yes. I have only been in the job for 5 weeks. There are several things that we have changed. Chasing outstanding bills. Reducing Interco transfers. Simplifying the process.
Frank- Operations are now more structured but the right questions have not always been asked. I feel more encouraged now about the progress that is being made than I was 2 years ago.
- Audit- Andrew at EQ is starting the audit process.
- FIRNS application- Carbon financing. Jim Brown and KFT have been taking it forward with a consultant called Callum Aitken. May in medium term address some of the financial issues. Issues around monetizing this is an ethical way.
- Commercial Lets- Talked about reviewing these lets. Increases in these rents will not make much difference to the financial position but may still do this anyway.
- Place Plan- DN does not feel like KF has capacity to do this at present. But open for discussion. AP- DG to speak to Philip Evemy about place plan.
- Recruitment – identify operations role required. Standing item
- Legal representation- standing item
AOB
- New director- Need one more director for the next 8 months.
- Insurance Issue- VAT/ Tax investigation Insurance. £300+VAT. Will run until end March 2024. EQ have advised taking out insurance with them in case there is a tax investigation. All board Agree.
Andrew Baldrey- Highland Council have approved a grant today.
Date of next meeting: Monday11.03.2024 @6pm @ Knoydart Hall
