Bath & North East Somerset Council

MEETING:

Council

MEETING DATE:

8 May 2008

AGENDA PAPER NUMBER

 

TITLE:

West of England Governance

 
       

WARD:

All

AN OPEN PUBLIC ITEM

List of attachments to this report:

Appendices A and B - current and proposed Governance arrangements

1 THE ISSUE

This report summarises the progress made by the West of England Partnership (WEP) during 2007/08, and makes proposals to strengthen the Partnership's governance and delivery arrangements.

2 RECOMMENDATION

The Council is asked to

2.1. note and endorse the progress made by the West of England Partnership

2.2. note the proposals for strengthening the governance and delivery arrangements for joint working by the four unitary authorities (4 UAs) included in paragraph 9.

3. FINANCIAL IMPLICATIONS

3.1. The WEP's core administrative budget is funded by the 4 UAs (Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire), on the basis of 25% shares. B&NES is the host authority, and as such is employer of the West of England Partnership Office (WEPO) staff. In addition there are specific external funding streams funding specific work (e.g. development of TIF proposals). One of the 4UAs acts as accountable body in respect of these funding streams, and it should not be presumed that this role falls to B&NES Council because it is host authority for WEPO.

3.2. The costs incurred in establishing and operating Joint Committees can be met within existing resources of WEPO budget funded by the 4 UAs.  The setting up and then running of the proposed delivery vehicle will incur additional costs.  Approximately £70K has been committed to procure external advice on the proposed delivery vehicle and this is being funded jointly by the 4 UAs from joint external (New Growth Points) funding, for which B&NES is the accountable body. Operating costs of the delivery company, once established, are expected to be in the region of an additional £250K per annum.  These will need to be shared equitably amongst the 4UAs (for example in proportion to the scale of projects being delivered in each UA), and factored in to the cost of those projects.

4. COMMUNITY STRATEGY OUTCOMES

5. CORPORATE IMPROVEMENT PRIORITIES

7. CPA KEY LINES OF ENQUIRY

8. THE REPORT

8.1. The West of England Partnership was established in 2004 comprising the four unitary authorities. It is not a partnership in law or a formal decision making body. It does not have the power to take decisions that bind the 4UAs. B&NES is represented on the Partnership Board by 3 cross party Members including the Leader of the Council. Following public and stakeholder consultation, in 2005 the Partnership agreed a 20 year Vision to 2026, available in the weblink below

(http://www.westofengland.org/downloads/ThevisionOct05.pdf )

8.2. The Partnership's aims are contained in Appendix A. In addition to cross-party representation from each of the four local authorities, the Partnership Board contains a range of social, economic and environmental Partners (SEEPs), and is advised by a range of specialist, advisory and programme groups (again cross-party and with SEEP representation) and by the West of England Partnership Office (WEPO).

8.3. Further information and updates on the Partnership's work can be found at

www.westofengland.org

PARTNERSHIP PROGRESS 2007 - 08

8.4. Transport

8.4.1 Vision 2026 states that by 2026 the area will have "easier local, national and international travel, thanks to transport solutions that link communities to employment opportunities and local services, control and reduce congestion and improve strategic connections by road, rail and through Bristol International Airport and seaport."

8.4.2. The 2007-16 Joint Local Transport Plan for the sub-region and the major transport schemes approved through the Regional Funding Allocation, include:

(i) schemes such as the £53m Bath Transport Package, providing new and expanded Park & Ride and Rapid Transit services, and the £42m Greater Bristol Bus Network scheme, providing 10 high quality sub-regional showcase bus corridors, making provision for more than 70 bus services.

(ii) congestion solutions such as 'Our Future Transport', an Expression of Interest document bidding for a share of the Government's £1.4bn Transport Innovation Fund (TIF). It proposes significant improvements to public transport in advance of demand management measures such as road pricing, with an indicative cost estimated at £840m.

(iii) the Partnership has engaged with rail operators and Network Rail, to improve the frequency and quality of local rail services and strategic rail connections.

(iv) Rights of Way: in November 2007 a Joint Rights of Way Improvement Plan was

submitted to DEFRA to develop and improve the network of footpaths

and other rights of way, providing better access for all.

8.5. Housing and spatial planning

8.5.1. The West of England partners made joint submissions to the Regional Spatial Strategy, Examination in Public (RSS EIP), whose report was published in early January. As expected, this recommends an increase in additional housing numbers for the West of England. The Secretary of State will publish "Modifications" to the panel report (expected in May) and, after a 12 week period of consultation, the final adoption of the RSS would take place in late autumn 2008.

8.5.2. A Partial Review of the RSS, covering Gypsies and Travellers, took place in Exeter in March. This will specify the numbers of pitches each authority needs to provide and the West of England Partnership has made a joint submission to this review.

New Growth Points funding to support the delivery of additional homes

8.5.3. The West of England has been awarded up to £23.8m New Growth Points funding over the next three years - the second highest allocation in the country and just under 10% of the national allocation. Potential projects have been assessed as a basis for a three year expenditure programme and these have been agreed by the Programme Steering Group, prior to a single member decision. B&NES is the "accountable body" for receiving and allocating funds and we have developed project management protocols.

Infrastructure Delivery Plan to support growth

8.5.4. This plan assesses the infrastructure (including transport, health and education facilities) required to support growth across the West of England and can be updated as infrastructure requirements and costings emerge from work on Local Development Frameworks and other Planning documents.

8.5.5 The plan facilitates bidding for resources from government and its agencies to supplement the use of public assets and developer contributions through section 106 agreements.

8.6. Waste Management

8.6.1. The Partnership's work in developing a joint waste management strategy is well advanced. An Expression of Interest requesting government and financial support has been submitted to DEFRA, with a full business case by the Autumn.

8.6.2. There are four phases to the implementation of the preferred Joint Waste Strategy:

8.6.3. B&NES' Cabinet has signalled its intention not to participate in the PFI procurement of a mass burn Energy from Waste solution in phase three of the above strategy and this will be considered by Cabinet at a future meeting. B&NES will of course remain in the West of England Partnership and will continue to work closely with its West of England colleagues to achieve the agreed zero waste aspiration. Having met with DEFRA and the Government Office South West regarding the Council's intentions, they have acknowledged the rationale behind them.

8.6.4. During the development of the strategy, the Waste Project Board has sought contributions from the Waste Joint Overview and Scrutiny Reference Group and each Council's scrutiny panels.

8.6.5 A Joint Waste Development Plan Document will form part of each Council's Local Development Framework, providing a spatial dimension for waste planning. An Issues and Options stage is complete, Preferred Options consultation will follow.

9. STRENGTHENING THE WORKING ARRANGEMENTS BETWEEN THE 4 UAs

9.1. The Government's Sub-National Review of Economic Development and

Regeneration (SNR) envisages a strengthened role for sub-regional partnerships, with the potential for additional investment, powers and influence for those that can demonstrate clear focus and accountability.

9.2. The 4UA's have, through the Partnership, achieved success in attracting infrastructure funding but some difficulties have been experienced in demonstrating to Government a clear focus and accountability, because of the nature of the current arrangements and their reliance on individual Council accountability. There is an opportunity to strengthen governance and delivery arrangements. This will improve the implementation of high profile major projects and programmes, whilst retaining democratic accountability, securing the contribution of strategic partners and greater business investor confidence.

9.3. It is proposed to strengthen governance and delivery by:

9.3.1. the negotiation of a Multi-Area Agreement (MAA). This is similar to a Local Area Agreement, but focuses on key sub-regional priorities and is more flexible. The Partnership's aim is to devolve more flexibility, powers and resources to the sub-region, in return for joint delivery of agreed and measurable outcomes, thus establishing better ways of doing business with our strategic partners, regional/national agencies and government departments.

9.3.2. the establishment of Joint Executive Committees for Transport and for Waste Management and (see Appendix B for details). The draft Terms of Reference and Responsibilities indicate the scope of the role of the Joint Committees but are not the drafts for inclusion in the final Constitutions referred to at paragraph 10.11 below.

9.3.3. the establishment of a 'Delivery' Vehicle to commission consultants and contractors to deliver major infrastructure projects within agreed timescales, specification and budget once they are financed and approved. It is envisaged that the Delivery Company will be a Local Authority controlled vehicle owned by the 4 UAs, that it will undertake procurement and commissioning on behalf of the four Councils within an agreed framework and will be the grant recipient / "accountable body" for Government funds. It will be led by an experienced, commercial manager with a successful track record in strategic procurement, its main Board may comprise the 4UA Chief Executives, and in due course subsidiary companies may be created, separated for accounting purposes so that they are individually, not collectively accountable for any financial liabilities. Risk will probably be shared proportionate to the investment in the local authority area, and the company will employ common core finance, procurement, legal, etc staff as appropriate.

9.3.4. The 4UAs have invited tenders for detailed independent legal advice on the above proposals; this advice is anticipated by the end of June 2008.

10. RATIONALE

10.1 MAA negotiations continue with government departments, the RDA and the new Homes & Communities Agency as part of securing longer-term increases in investment to meet the demands of the high levels of planned and projected growth and the ambitions of Vision 2026, and to secure the powers to match the sub-region's place-making responsibilities.

10.2 The Delivery Vehicle will share/transfer risk by ensuring major infrastructure projects are well specified and by commissioning and overseeing top quality consultants and contractors.

10.3 Strengthened Governance will enable the 4UAs to:

10.4. The West of England Partnership Board will continue to be the hub of joint working in the sub region to deliver Vision 2026.

10.5 The two Joint Committees proposed - one for Transport, the other for Waste Management - will, within the powers delegated to them by each of the 4UAs, take decisions on behalf of each of the UAs on sub-regional policy, investment and financial frameworks, such as the Joint Local Transport Plan, Joint Waste Strategy, Transport Innovation Fund Strategy, and the strategy for acquiring and exercising increased powers over local bus services. This will speed up the decision making process.

10.6 They will comprise the relevant Cabinet Member from each authority. Cabinets may reserve certain critical decisions for themselves for decision. It is anticipated that each Authority will be prepared to delegate all the powers necessary for each Joint Committee to get on with relevant projects, subject to approval of any reserved decisions.

10.7 As the current proposals are that only executive decisions will be delegated to each joint committee, responsibility for taking the decisions to participate in a joint committee rests with the Leader of the Council.

10.8 It is proposed to establish joint Overview and Scrutiny Committees to provide advice and scrutinise the Joint Executive Committees. At present there is no general power for local authorities to set up such Joint O & S Committees. It is proposed that each Authority should ensure that each joint scrutiny committee and its functions should be specifically within the remit of a specified Council scrutiny committee. This would enable each Authority to appoint a small sub-committee for this purpose and for arrangements to be made for the sub-committees of each of the Authorities to meet at the same place, time and date.

10.9 The Transport Bill is still before Parliament and an Integrated Transport Authority is unlikely to be feasible before 2009. These proposals lay the groundwork for any further formalisation of joint working that proves to be in the interest of the sub-region.

10.10 Current negotiations with the Department for Transport regarding funding for major schemes such as the Greater Bristol Bus Network are focussing on the Government's decision to increase transport investment and devolve powers to the sub-region. These negotiations, and the detail of the legal advice, may result in proposals for further definition or development of the strengthened governance arrangements set out in this report.

10.11 The constitutions for the Joint Executive Committees will include their objectives, terms of reference and responsibilities and the procedures appropriate to local authority bodies. The Committees will be underpinned by a Joint Working Legal Agreement between the authorities. Further formal details will be considered when the Joint Executive Committees are established.

11. OTHER OPTIONS CONSIDERED

11.1 The current arrangements are unlikely to provide the increased subregional powers envisaged by the Government and subregional investment is therefore likely to be somewhat restrained. It is in Bath & North East Somerset Council's interests to strengthen arrangements with the other local authorities in the sub-region and with strategic partners, government and its agencies in order to benefit from increased investment in the subregion.

12. RISK MANAGEMENT

12.1 A risk assessment related to the issue and recommendations has been undertaken, in compliance with the Council's decision making risk management guidance.

13. CONSULTATION

13.1. The West of England Partnership Board have discussed these proposals at its meetings of 7 December 2007 and 14 March 2008, and workshops were held 21 and 29 February 2008. A further briefing was held on 2nd May for Members and officers. Leaders and Chief Executives of the four Councils in the West of England have discussed and agreed the proposals in principle, subject to their respective Council's approval.

13.2. The B&NES West of England Board Members, Section 151 Finance Officer and Monitoring Officer were consulted in drafting this report.

14. ISSUES TO CONSIDER IN REACHING THE DECISION

14.1. Customer Focus, Sustainability, Equality (age, race, disability, religion/belief, gender, sexual orientation), Corporate, Impact on Staff; Other Legal Considerations.

15. ADVICE SOUGHT

15.1. The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer have had the opportunity to input to this report and have cleared it for publication.

 

Contact person

Peter Rowntree, Ext 4567

Background papers

www.westofengland.org

http://www.westofengland.org/downloads/ThevisionOct05.pdf

Please contact the report author if you need to access this report in an alternative format

APPENDIX A

1 Purpose of the Partnership

2 Specialist Groups

 
  • Planning, Transport & Environment.

  • Transport Programme Steering Group.
  • Housing.
  • Economy & Skills.

 

  • Employment & Skills Programme Board.

  • Leisure & Culture.
  • Waste Management & Planning.
  • Rural Strategy

3 Membership of the Partnership Board

4 Purpose of the Board

7 Formal arrangements for the Partnership

The Partnership is not a partnership in law and has no formal decision making powers to bind an authority. It has a constitution. The Partnership is supported by its Chief Executive and a team of specialists, as well as officers in partner organisations. Resources are made available for independent specialist studies and reports.

CURRENT GOVERNANCE: DIRECTION AND STRATEGIC PLANNING

1 COUNCILS. CABINETS.

Bath & NE Somerset

Bristol

N. Somerset

S. Gloucestershire

2 COUNCIL LEADERS

PROGRAMME BOARDS

 

Transport.

Waste Management.

 

Cabinet Members

3 PARTNERSHIP BOARD

Council Leaders & Party Group Leaders. Strategic Partners & Agencies.

4 SPECIALIST GROUPS

JOINT SCRUTINY GROUPS

Planning, Transport & Environment*

Housing. Economy & Skills.

Leisure & Culture. Rural Strategy**

Waste Management.

Executive Members.

Strategic Partners & Agencies.

(*cross-party Members;

** no Members)

Cross-party Members.

Strategic Partners & Agencies.

5 SPECIALIST OFFICER GROUPS

PARTNERSHIP OFFICE

DELIVERY

A EMPLOYMENT & SKILLS BOARD

Business-Led. Officers. Strategic Partners.

B HOMES WEST

RSL Consortium delivering affordable housing.

APPENDIX B

Proposed strengthening of governance and delivery

1. Strengthen the operation of joint working arrangements between the 4 UAs, in particular by:

2. Establish two formal joint committees of the local authorities, one for waste, the other for transport, comprising the relevant Executive Members in order to:

3. Establish a local authority controlled vehicle to commission and procure consultants and / or contractors to deliver major infrastructure projects

PROPOSED GOVERNANCE: DIRECTION AND STRATEGIC PLANNING DELIVERY

1 COUNCILS. CABINETS.

Bath & NE Somerset

Bristol

N. Somerset

S.Gloucestershire

2 COUNCIL LEADERS

JOINT COMMITTEES

PROGRAMME BOARD

 

Transport.

Waste Management.

Planning, Housing & Communities.

 

Cabinet Members

Cabinet Members

A DELIVERY VEHICLE

Commission delivery of transport, waste & housing infrastructure

B EMPLOYMENT & SKILLS BOARD

and review scope for wider economic role

Business-led. Council Leaders.

3 STRATEGIC PARTNERSHIP BOARD

Council Leaders & Party Group Leaders. Strategic Partners & Agencies

C HOMES WEST

RSL Consortium delivering affordable housing

D AREA BASED DELIVERY COMPANIES

Development & Regeneration

4. ADVISORY/SCRUTINY

sub-committees

SPECIALIST GROUPS

5 SPECIALIST OFFICER GROUPS

PARTNERSHIP OFFICE

Transport. Waste. Planning, Housing & Communities. Economy & Skills

Culture & Leisure. Rural Strategy.

Cross-party Members.

Strategic Partners & Agencies

Cabinet Members.

Strategic Partners & Agencies.

West of England

Joint Waste Committee

Terms of Reference & Responsibilities

West of England

Joint Transport Committee

Terms of Reference & Responsibilities