Agenda, decisions and draft minutes

There were no declarations of interest received at this point in the meeting.

The minutes of the Executive meeting held on 28 October 2024 were submitted and approved as a correct record.

ORDERED that Executive:

1.    Approve in principle the emerging target operating model;

2.    Approve the continued development and refinement of the proposed target operating model and its intended direction of travel.

AGREED that Executive notes the next steps required to implement the target operating model and develop supporting operational strategies.

The Mayor submitted a report for Executive consideration. The report sought to articulate how the activity of the organisation would be aligned to ensure an integrated and cohesive approach. The report also expressed the Council’s ambitions for its future within a target operating model for Middlesbrough which would support improved outcomes and financial stability.

The report sought Executive support for the principles of the model and consent to continue with its development, enabling the Council to reset and outlined the intended approach in developing the supporting strategies which would support transformation of the Council and bring the target operating model to life.

The model was linked to the Council Plan which set out the Council’s ambitions across 2024-27 as well as outlining the Mayor’s vision for Middlesbrough and the Council’s four key priorities. Those priorities were detailed in the report. The vision for Middlesbrough was a thriving, healthier, safer, and more ambitious place where people wanted to live, work, invest and visit. The Council would support residents to live fulfilling lives, to ensure that Middlesbrough’s communities thrived.

In the Council Plan 2024-27, the Mayor set out his ambition to recover, reset and deliver for the people of Middlesbrough and so the four priorities of the Council Plan 2024-27 focussed on the future wellbeing of Middlesbrough’s communities, and which also provided a crucial foundation for the Councils’ Transformation Programme.

The Council’s values were at the heart of everything the Council did. They were a critical element of its strategy to create a brighter future for Middlesbrough, and the foundation for how the Council operated, interacted, and made decisions.

From creative ideas, to working collaboratively within the organisation and with external agencies, to being passionate about doing things better - we can make a real difference to the people and place we serve.

The proposed operating model was illustrated in the report and further detailed in Appendix 1. It would guide how Council operations would be further defined to both enable the delivery of the Council’s ‘Recover, Reset, Deliver’ Transformation Programme, as well as determine its future target operating state, as focus shifted to continuous improvement and an improved organisational culture through its four layered approach.

Although not unique, Middlesbrough Council had experienced significant and protracted funding cuts from Central Government, with a 46% drop in one decade alone, whilst demand on services coupled with costs for their delivery had risen exponentially.

This pressure had driven the Council’s need to modernise the way it delivered services and engaged with the community. New approaches, utilising emerging technologies, were required to reduce costs and improve outcomes for residents to ensure that services were sustainable and that balanced budgets were achieved into the long term.

ORDERED that Executive:

1.    Approve in principle the emerging target operating model;

2.    Approve the continued development and refinement of the proposed target operating model and its intended direction of travel.

AGREED that Executive notes the next steps required to implement the target operating model and develop supporting operational strategies.  ...  view the full minutes text for item 24/43

ORDERED that Executive approve the proposed arrangements for improving the effectiveness of capital programme governance, monitoring and reporting including the terms of reference for the Strategic Capital Board and Corporate Capital Board.

The Executive Member for Finance submitted a report for Executive consideration.

The purpose of the report was to propose revised arrangements for improvements to the Council’s governance arrangements for planning, managing, delivering and reporting its capital investment programme.

The Council had a sound Capital Financing Strategy that was approved annually by the Council as part of the Medium-Term Financial Plan and should be read together with the Treasury Management Strategy that was fundamentally important to securing long term affordability of capital investment and the wider cash management of the Council. A hyperlink to the 2024/25 Capital Programme & Capital Strategy was provided in the report which was approved by Council on 8 March 2024.

The Council’s performance in the effective deployment of its capital investment plans should be measured by the delivery of capital programmes and projects on time and within budget and the delivery of planned outputs and outcomes that were clearly linked to the Council plan objectives. However, this was difficult to achieve based upon the current working practices and reporting arrangements.

The Capital Programme was the Council’s investment plan in long term assets that was essential to support the delivery of operational services and to enable the transformation of service delivery models across the organisation. The scale of annual capital expenditure was significant (£50m - £100m). These financial resources were limited, valuable, and had to be managed effectively and accounted for and reported appropriately in order to achieve good value for money in the use of Council resources.

ORDERED that Executive approve the proposed arrangements for improving the effectiveness of capital programme governance, monitoring and reporting including the terms of reference for the Strategic Capital Board and Corporate Capital Board.

OPTIONS

The option recommended (with separate capital boards) was viewed as the best way forward given the current weaknesses in the capital governance structure. The only other feasible option would have been to merge this activity with the existing revenue budget monitoring processes. However, there was a need for a cross directorate collaborative approach to capital governance and there were a range of issues that required dedicated attention of officers and members in a forum that was not distracted by operational revenue budget matters.

REASONS

To establish more robust arrangements to address weaknesses in current arrangements and to secure value for money in the use of capital resources.

ORDERED that Executive approve the Corporate Asset Management Plan 2024-25 to 2027-28.

The Executive Member for Regeneration submitted a report for Executive consideration. The report sought approval for the implementation of the Corporate Asset Management Plan (CAMP) 2024- 25 to 2027-28.

The Council refreshed the 2014 Estate Strategy in 2019/2020. The strategy predominantly focussed on actions to improve the efficiency of the Valuation & Estates Service, with a view to understand the benefit that the town could derive from the Council’s commercial estate.

Further progress had been made with the most significant being a service restructure in August 2023, which amalgamated Strategic, Operational Property Management and Valuation & Estates. The purpose of this change being to have all property related activities managed by one service.

These changes necessitated the implementation of the CAMP, including adopting the principals of the Corporate Landlord model, which transferred responsibility for all property related activity, and expenditure, to be within the remit of the Directorate of Regeneration.

The establishment of the Corporate Asset Management Group (CAMG) would provide governance for strategic decisions relating to land and built assets.

This approach would ensure that finances were properly prioritised, management was consistent, and opportunities were realised across the whole estate. In this way, the Council could be confident that the needs of the whole organisation, as well as individual service operations, were met to allow them to provide better outcomes for the community.

The CAMP had three elements which were:

The Asset Management Policy which set out the framework of rules, culture and behaviour that would ensure the consistent management and high performance of the Council’s property assets.

The Asset Management Strategy which highlighted the strategic context, factors that would influence change, and translating organisational objectives into property objectives.

The Asset Management Action Plan was an action plan of activities and projects that delivered the Council’s property objectives.

The CAMP was attached at Appendix 1 of the report.

ORDERED that Executive approve the Corporate Asset Management Plan 2024-25 to 2027-28.

OPTIONS

Continue to adopt the principals of the 2020 Estate Strategy. This was not recommended as it did not provide a strategy that endorsed best practice of the Corporate Landlord Model and governance for the whole estate.

REASONS

The Corporate Asset Management Plan (CAMP) was a Policy and Strategic plan setting out how the property portfolio would support the Council Plan, Transformation, Corporate priorities, and objectives, providing the direction for the ongoing management of the portfolio over the next three financial years.

This would allow the Council to demonstrate robust corporate governance relating to acquisition, disposal, corporate and commercial estates management and investment.

Effective performance management would allow the council to demonstrate duty of best value by making arrangements to secure continuous improvement in the way in which Asset Management functions were exercised, having regard to a combination of economy, efficiency, and effectiveness.

The CAMP had been developed in accordance with Chartered Institute of Public Finance and Accountancy (CIPFA) Asset Management best practise guidance.

ORDERED that Executive:

1.    Approve the exploration of a new museum with external partners that could replace the CCBM within Stewart Park in the longer term;

2.    Approve the continued operation of the CCBM in 2024/25 on the basis that the required saving of £0.100m for 2024/25 had been met by a permanent reduction in staffing and that this saving was ongoing;

3.    Approve the continued operation of the CCBM in 2025/26 and 2026/27 subject to securing external revenue support of £0.150m per annum. Failure to secure this funding would result in closure of the CCBM and the transfer of some or all of the collection to the Dorman Museum; and

4.    Approves a reduction in the required saving from the CCBM from £0.345m to £0.303m in 2025/26 and 2026/27 on condition that the remainder of the saving £0.042m will be found within the Regeneration budget via a senior management review.

The Executive Member for Development submitted a report for Executive consideration.

The purpose of the report was fourfold:

1.    To bring Executive’s attention to the exploration of a new museum with external partners that could replace the CCBM within Stewart Park in the longer term;

2.    To advise Executive that the continued operation of the CCBM in 2024/25 on the basis that the required saving of £0.100m for 2024/25 had been met by a permanent reduction in staffing and that this saving was ongoing;

3.    To advice Executive that the continued operation of the CCBM in 2025/26 and 2026/27 was subject to securing external revenue support of £0.150m per annum. Failure to secure this funding would have resulted in the closure of the CCBM and the transfer of some or all of the collection to the Dorman Museum;

4.    To seek approval for a reduction in the required saving from the CCBM from £0.345m to £0.303m in 2025/26 and 2026/27 on condition that the remainder of the saving £0.042m will be found within the Regeneration budget via a senior management review.

Up to 2024, the Captain Cook Birthplace Museum was previously open for 7 months of the year (April – October) but was only open to the public during school holidays in the same period.  A paid-for museum, it welcomed approximately 5,500 visitors a year, with an additional 35,500 people visiting the café and shop housed in the same building. The Cook Museum hosted a café tenant ‘Cook’s Café’ currently on a rolling lease. Any potential closure or change of operator of the building would impact upon this.

The Dorman Museum was open 6 days a week (Tuesday to Sunday) throughout the year and welcomed around 80,000 visitors per annum. 

School workshops took place at both venues across the year during term time with 3,500 visits in 23/24. The museums featured permanent exhibits, alongside a programme of changing exhibitions and special events, including those aimed at key audiences e.g. families.

As an Accredited Museum Service, and a member of the Tees Valley Museums Group (National Portfolio Organisation), the service had a commitment to care for its 250,000-strong collection in line with industry standards and to make these collections accessible to the public.

There was a single staffing structure which operated both museums. This structure was reviewed in 2023, but some positions had never been advertised due to the savings requirement.  The current structure included a Museums Manager, Visitor Operations Manager, Collections Officer, Visitor Experience Coordinator (vacant), Visitor Experience Assistants (x 4), Cultural Support Officer, Senior Learning & Engagement Officer, and Learning & Engagement Officer.  The permanent team were supported by casual staff where required. The following two posts on the staffing establishment had been held vacant in order to support the saving requirement:

·         Senior Collections Officer – Full time, Grade I

·         Creative Programmes Manager – Full time, Grade K

During the 2024/25 budget setting process, in response to the financial challenges facing the Council, a proposal was put out to public consultation  ...  view the full minutes text for item 24/46

AGREED that Executive note the information in the public report:

1.    Notes the principles of the lease agreement set out within the agreed Heads of Terms for the Southlands Community Facility and Sporting Hub, between the Council and Middlesbrough FC Foundation;

2.    Notes the delegated authority for the Director of Regeneration and the Director of Finance, to approve or amend the lease agreement, in line with the Heads of Terms insofar that such approval or amendments protects the Council’s position or enhances the sustainability of the Southlands scheme

3.    Notes the business case that outlines how Middlesbrough FC Foundation will manage and finance the site;

4.    Notes the passporting of liabilities to the partner organisation and how these will be managed through the lease agreement;

5.    Notes the long-term risks and liabilities that could arise, in the event that the partnering organisation ceases to exist.

AGREED That the decision be taken once all the exempt information had been considered.

The Executive Member for Development and the Executive Member for Finance submitted a report for Executive’s consideration.

The purpose of the report was to seek Executive approval of the Heads of Terms for Middlesbrough Council to enter into a lease agreement with Middlesbrough FC Foundation, who would manage the facility Southlands Community Facility and Sporting HUB once construction was completed. The report also informed Executive of the long-term risks and liabilities associated with the facility and how those will be mitigated through the lease agreement.

Work was ongoing to redevelop the site, providing a new state-of-the-art sporting hub.  The Council had secured an approved capital funding commitment of £3.876m for the redevelopment of the Southland site, of which £1.158m was Council Capital funding, £1.442m was from the IGF Fund, and £1.276m from the Towns Fund.  £0.363m of the budget had been spent to date.

The Council saw significant benefits of partnering with an organisation with the appeal and credibility of Middlesbrough FC Foundation, who were keen to commit to an initial 25-year lease to manage the redeveloped site. The Foundation would also contribute funding to assist with the site construction for specifications above and beyond the base-build specification.   

By using their years of experience, together with Middlesbrough FC, their mission was firmly established to raise aspirations, help realise individual potential and improve the life chances of people across the Tees Valley. The strategic objectives of Middlesbrough FC Foundation were detailed in the table at paragraph 11 of the report.

The Council had worked closely with a Project Representative Group, made up of local residents and Ward Councillors, to develop the proposals.

The partnership with Middlesbrough FC Foundation would continue this work and would aim to deliver a site which sat at the heart of the community and engaged local people. 

Middlesbrough FC Foundation aimed to establish the Southlands as a flagship centre for staff and participants, and the site would offer a chance to create a state-of-the-art facility, to inspire the local communities and people across Teesside.

This would be strengthened by the development of a new Community Use Agreement which will accompany the proposed lease agreement.

Southlands would host a wide range of provision aligned with Middlesbrough FC Foundations strategic themes as well as local consultation and insight. These included:

·         Education and Employability through workshops, courses and school visits;

·         Health and Wellbeing including mental wellbeing sessions, physical activity circuits and social groups;

·         Social Inclusion including free after school football for children and young people, targeted mentoring and adult football which brings the community together;

·         Updated, quality facilities which sit at the heart of the community and engage local people; and,

·         Middlesbrough FC provision including links to the Women’s team, Academy and Middlesbrough Girls.

The proposal was to relocate the Foundation’s headquarters and activities to the Southlands site, which presented a huge opportunity for further collaboration between the Council and the Foundation and enable further engagement with the local communities.

AGREED that Executive note the information in the public report:  ...  view the full minutes text for item 24/47

None.

To consider passing a Resolution Pursuant to Section 100A (4) Part 1 of the Local Government Act 1972 excluding the press and public from the meeting during consideration of the following items on the grounds that if present there would be disclosure to them of exempt information falling within paragraph 3, of Part 1 of Schedule 12A of the Act and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

ORDERED that the press and public be excluded from the meeting for the following items on the grounds that, if present, there would be disclosure to them of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 and that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

The Executive Member for Development presented the exempt information for Executive’s consideration.

ORDERED That the recommendations of the report be approved.

REASONS

The decision was supported for reasons outlined in the report.

All decisions will come into force after five working days following the day the decision(s) was published unless the decision becomes subject to the call in procedures.

The Executive Member for Development presented the exempt information for Executive’s consideration.

ORDERED That the recommendations of the report be approved.

REASONS

The decision was supported for reasons outlined in the report.

All decisions will come into force after five working days following the day the decision(s) was published unless the decision becomes subject to the call in procedures.