Agenda and draft minutes

To receive any declarations of interest.

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

The minutes of the Executive meeting held on 13 March 2024 were submitted and approved as a correct record.

The Mayor and Executive Member for Adult Social Care and Public Health submitted a report for Executive consideration.

Local authorities had powers to introduce Selective Landlord Licensing (SLL) schemes for a five-year period in areas with a high number of private rented properties, low housing demand, poor housing conditions, high levels of deprivation, crime and migration and/or significant and persistent anti-social behaviour associated with the tenants of private rented properties.

The purpose of such a scheme was to improve standards of property management in the private rented sector, and when combined with other measures, leading to improved physical, social and economic conditions and reduce crime and anti-social behaviour. There were currently three SLL schemes operating in Middlesbrough; one in North Ormesby and two in the Newport ward (commonly known as Newport 1 and Newport 2). Newport 1 scheme was due to end on 12th June 2024. An evaluation of the scheme had been carried out which showed improvement in a number of areas.

The area continued to experience major challenges and therefore it was proposed that it would benefit from a further five-year period of designation as a Selective Landlord Licensing Scheme. The SLL schemes in Middlesbrough did not meet the threshold for Secretary of State approval which was required for those schemes that cover 20% or more of its geographical area or privately rented properties, provided that the authority had consulted for at least 10 weeks on the proposed designation. The schemes in Middlesbrough did not meet the threshold for Secretary of State approval and a ten-week period of consultation had been undertaken. The report provided a summary of the responses to the consultation for consideration by Executive and sought its approval for the Selective Landlord Licensing Scheme to go ahead in the Newport 1 area.

ORDERED

That Executive approve the designation of Selective Landlord Licensing in the Newport 1 area.

OPTIONS

Do not renew the SLL designation/new designations and carry out alternative interventions to replace of a formal scheme.

Alternatives to Selective Licensing were considered in 2014, 2019 and 2023 prior to the designation of the current Selective Licensing areas. These included voluntary registration and the use of traditional enforcement tools. These would have required significant additional investment by the Council to achieve any sustainable change across the area.

There was a need to ensure that that proactive assessment of properties and an increased focus on renting and management practices was sustained. While Selective Landlord Licensing was not intended to be indefinite, a shift to an alternative non-regulatory approach or only relying on traditional reactive enforcement tools were not considered appropriate to sustain or progress the improvements achieved.

Traditional interventions did not provide the level of engagement with landlords necessary for the desired improvements. Landlord take up of previous accreditation schemes had been very low, they tended to only engage with responsible landlords who saw a value in being part of a scheme. An example of a non-mandatory scheme is the Stockton Pluss model which was run by  ...  view the full minutes text for item 23/93

The Mayor and Executive Member for Adult Social Care and Public Health submitted a report for Executive’s consideration.

As local authorities were required to become increasingly financially self-reliant, many were looking at how to make their limited resources go ever further while still maintaining the quality and breadth of services.

Councils, along with the rest of the public sector were being encouraged to use procurement to achieve wider financial and non-financial outcomes, including improving wellbeing of individuals, communities and the environment by making social value a decision-making criterion when awarding contracts.

·        Adoption and effective implementation of a Social Value Charter had the potential to deliver the following benefits:

·        Encourage a more diverse range of suppliers to work with the Council and its partners, including the participation of small and medium sized enterprises (SME's), Voluntary and Community Sector organisations, and local suppliers in general.

·        Promote fair employment practices: Ensuring workforce equality and diversity within supply chains.

·        Increasing the diversity of local apprenticeship, training, and skills development opportunities as well as employment opportunities.

·        Maximising opportunities for Middlesbrough organisations to participate in the council's supply chains and encouraging suppliers to make a social contribution to the local area.

·        Ensuring ethical sourcing practices, including compliance with UK, and international standards, promoting fair trade and fair pricing policies, tackling corruption, child/slave labour, blacklisting of union members and similar social issues.

·        Promoting greater environmental sustainability: Minimising waste and pollution, supporting carbon reduction initiatives, furthering energy efficiency and other sustainability programmes.

ORDERED

That the Executive:

1.     Approve the Social Value Charter, attached to this report at Appendix One and that Council practices are amended to align with its requirements.

2.     Approve the guidance document that will be put in place to support implementation. The implementation plans set out within this report would ensure consideration of social value be embedded within all of the Council’s practices, in particular procurement and decision-making practices.

OPTIONS

The Council could choose not to adopt a Social Value Charter. It would remain compliant with its duties in relation to Best Value. This was not recommended as an option as the Council would miss the opportunity to deliver the wider benefits to the organisation and the town that could be achieved through social value, while still achieving Best Value from its commissioning and procurement activity.

REASONS

Social Value had the potential to release millions of pounds of public money for community benefit and support regeneration of the town. It encouraged smarter spending to not only deliver a proposed service but also address social, economic, and environmental issues in the local community. Adoption of this Charter would ensure the Council’s significant procurement spend had a positive, measurable impact on the communities it served.

The Mayor and Executive Member for Adult Social Care and Public Health submitted a report for Executive consideration.

The Council Plan, formerly known as the Strategic Plan, was the Council’s overarching business plan for the medium-term, and was refreshed on an annual basis. It set out the priorities of the Elected Mayor of Middlesbrough, the ambitions for Middlesbrough’s communities and the ways in which the Council sought to achieve them.

Part of the Council’s Policy Framework, the Council Plan required full Council to approval, as set out in the Constitution. As such, at a meeting of full Council on 8 March 2024, the Council Plan 2024-27 expressing Mayor Cooke’s priorities and ambitions for the town, was approved, and was attached at Appendix 1.

The Council plan articulated the four priorities of the Mayor and outlined the approach that would be taken to addressing those priorities.

To ensure focus upon, and to strengthen delivery of, the above outcomes a supporting workplan had also been developed, bringing together all current and planned activity in support of the Council’s priorities. The proposed workplan and initiatives was set out at Appendix 2.

ORDERED that Executive:

1.     Approve the Council Plan workplan and associated outcomes, to assure achievement of the Council’s priorities for the 2024-27 period; and

2.     Agrees the delegation of approval for minor amendments to in-quarter timescales to the Chief Executive, through the corporate performance management framework and policy arrangements, with any significant variation to approach or deliverables, reported to and seeking approval via the quarterly corporate performance reports to Executive.

OPTIONS

It was imperative that the Council effectively articulated and communicated an overarching plan to direct activity across Directorates and services, towards the achievement of its priorities and ambitions.

The only other realistic potential decision would have been to leave the Council’s strategic objectives unchanged on the assumption they were sufficiently robust to address and achieve previously identified outcome measures. This, however, was not correct and neither would it represent an appropriate response to the needs of the town, it would detrimentally impact local communities and the business of the Council for some years ahead.

The only other feasible decisions, therefore, related to the structure of the document, and its horizon (i.e., reverting to an annual plan). It was strongly in the Council’s interest to plan over the medium-term, (between 3 – 5 years) in line with the indicative budgets over this period outlined by the Government. The proposed document achieved this whilst also providing an appropriate level of detail for all audiences on the Council’s planned activity over this period.

REASONS

To enable the Executive to endorse, following approval by full Council, the supporting workplan to the Council Plan 2024-27, ensuring that it was reflective of major developments of the past year, and those anticipated in the coming three years.

The Deputy Mayor and Executive Member for Education and Culture submitted a report for Executive’s consideration.

The report sought approval for capital schemes to be added to the school’s capital programme for delivery to start in 2024/25.

Middlesbrough Council shared responsibility with governing bodies for the

maintenance of nine community and foundation school buildings across the town:

·        Responsibility for general maintenance, repairs and minor capital works was devolved to schools;

·        The Council was responsible for major capital schemes such as the replacement of substantial parts of buildings, the provision of new buildings and other high-value, strategic schemes that would be unaffordable by schools on their own.

The Council was also responsible for ensuring there were sufficient school places across the town to be able to meet demand, including for pupils with Special Education Needs and Disabilities (SEND) or those requiring Alternative Provision. Investment could be in both locally maintained schools and Academies.

The schools capital programme, maintained and delivered by the Assets Team within Property and Commercial Services, set out all of the centrally funded school capital works being undertaken to discharge these duties. It was a multi-year, rolling programme of capital improvements to school buildings.

The report set out new schemes proposed to be added to the programme. Schemes were selected to address condition, sufficiency, and other strategic priorities. Schemes were prioritised to address those elements of schools with the most urgent need or to secure value for money as part of a larger programme of work.

The costs of the schemes identified in the report were estimates, until such a time as full feasibility studies could be undertaken and were subject to change until they had returned from tender. The schemes would be treated as a programme of works, with savings in schemes being used to offset increased costs in others and the programme being managed within the overall funding envelope.

Where there was a significant deviation from the estimated cost to the Council of individual schemes these would be revisited, and appropriate action taken. This could include reducing the scope of works, re-tendering, or postponing the scheme. Where there was a significant effect on the cost of the programme, which would result in a key decision being required, this would be brought back to Executive for decision.

In addition to the schemes set out in the report, a number of previously approved schemes, with residual works outstanding, would be completed. Emergency works would also be undertaken if/when they occurred and other schemes of moderate value where they were time sensitive e.g. preventative schemes to avoid higher costs later on, or schemes that addressed Health and Safety concerns and ensured compliance.

The capital programme covered schools widely distributed across the town. There were no specific ward implications. Ward members would be consulted on individual building schemes where appropriate as part of the normal process of securing planning permission.

The Deputy Mayor clarified that information about the School Capital Allocation had been made available since the report’s publication. This  ...  view the full minutes text for item 23/96

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

The purpose of the report was to gain approval to allocate funding to develop and deliver transport and infrastructure improvements as detailed within the report.

Middlesbrough Council received Local Transport Plan funding from the Department for Transport, via Tees Valley Combined Authority, to undertake maintenance and improvement works on the Councils transport network.

The current Council approved LTP allocation for 2024/25 is £1.377m, specified against Incentive Funding (new works) and £2.638m for Highways Maintenance. Appendix 2 detailed the planned works totalling £4.015m.

It was proposed that the Council approve the expenditure of the Local Transport Plan allocation for 2024/25, as outlined in Appendix 2. This would provide the Council time to identify the most prudent method of delivering a longer-term programme; ensuring that best value for money was achieved.

The projects within the proposed programme had been identified from the Council’s “Future Year scheme” list. This was a compiled table of all known requirements and suggestions received, which were matrix ranked for their suitability against a set criterion, forming a priority basis. However, this was also conditional upon external funding criteria, eligible uses, statutory obligations, and other implications.

The maintenance schemes were based on asset condition rating systems and allocation of resources work to address a “worst first” is used. This was rationalised based on public safety and asset longevity priorities (such as ensuring that structures were safe). This ensured that the Council was sequentially addressing the areas of the network in most need of resolving.

The Council also received specific allocations through competitive grant programmes and awards that were to deliver prescribed pieces of work, depending upon national / regional criteria. Any awards for such projects by-passed the matrix scoring criteria (although this may be used to identify the most suitable candidates) and could be awarded / was accessible throughout the financial year. The proposals within the report included all known awarded allocations at time of approval but could be subject to change.

If required, approvals would be sought through the formal decision-making process. A map of the scheme locations was contained in Appendix 1. The full funding allocations used to identify the projects / programmes was contained in Appendix 2.

Following a discussion about recommendation three in the report, it was agreed the words “and virements” be removed from that recommendation.

ORDERED that Executive:

1.     Approve the removal of the words “and virements” from recommendation three of the report.

2.     Approve the allocation of £4.015m of approved LTP grant funding to develop and deliver infrastructure improvements as outlined within the report.

3.     Approve the programme package as set out in Appendix 2.

4.     Should it be required to change the phasing of these programmes to delegate any programme amendments to new or prioritised projects and where such activity is permissible within the funding criteria, to the Director of Environment and Community Services and the Executive Member for Environment where appropriate.

OPTIONS

Re-assessing the project proposals – this  ...  view the full minutes text for item 23/97

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

The purpose of the report was to seek to increase the charge for Building Cleaning and Caretaking Services in Middlesbrough Schools by 13%.

The Council provided services to a number of Middlesbrough Schools with the provision of Building Cleaning and Caretaking Services Staff who were currently employed by the Council. Details of this were detailed at paragraph two of the report.

Whilst in previous years, those services had provided a surplus for the local authority, this was now not the case and at present the Council was subsidising the schools for these services. The table contained at paragraph three of the report showed the amount the Council has been subsidising over the past two years. These did not include the corporate overheads and support from enabling services, estimated to be around £0.090m per annum.

By increasing the price for cleaning and caretaking by 13% this would eliminate losses on this service. This was detailed in the table at paragraph four of the report.

ORDERED that Executive:

1.     Approve the proposal to increase the price of Building Cleaning and Caretaking Services by Middlesbrough Council to contracted Middlesbrough Schools by 13%.

2.     Approve the transfer of remaining Core Council Cleaning Services for Council Buildings from the Environment and Community Services Directorate to Regeneration Directorate to report under Property Services when appropriate to do so.

OPTIONS

The Council could stop trading in these services at this time. However, if the service could be cost neutral there was no need to undertake this approach. However, if a large number of schools withdrew from the service this option might come back to the Executive for consideration.

REASONS

This approach was required in order to bring this service in to financial balance.

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

The report sought approval of the Council’s Corporate Procurement Strategy 2024 – 2026.

The current strategy was in place from 2020 to 2023 and a new strategy was required. A new two-year corporate procurement strategy was contained in Appendix A and was recommended to be put into place until 2026. This timeframe was shorter than previous strategies to ensure any future revisions reflected the transformation anticipated over the next two years within the authority.

As part of this transformation an options appraisal would be developed concerning the most cost-effective delivery model for procurement across the authority. The strategy recognised the opportunity that procurement activity had in maximising added value and efficiencies with a focus on achieving value for money, alongside collaborating with internal and external partners. The Procurement vision was to offer an outstanding procurement experience for stakeholders and suppliers that was transparent, provided opportunities for local businesses, delivered fantastic goods and services, delivered the best value for Middlesbrough’s residents, and supported achievement of the Council’s strategic priorities.

ORDERED that Executive approve the Corporate Procurement Strategy 2024-2026.

OPTIONS

Do Nothing – The current strategy would expire, without a replacement. As such there would be no strategic vision aligning to the Council Plan for the purchase of goods and services

REASONS

The Corporate Procurement Strategy set the strategic direction for the implementation of the Contract Procedure Rules, which were the regulatory framework for all staff to follow in respect of purchasing goods, services and works regardless of value. This strategy supported the aims and priorities of the Council.

The Executive Member for Finance and Governance submitted a report for Executive Consideration.

The report sought approval for Middlesbrough Council’s tender pipeline for 2024/25 and to agree delegation of award to the relevant Director in consultation with their Executive Member.

A tender pipeline for April 2024 to 31st March 2025 had been developed as part of the Council’s governance processes. The report sought Executive approval for that planned procurement activity and delegated authority for contract award to the relevant Director in consultation with their Executive Member.

The tender pipeline for 2023/24 had 50 procurements proposed and details of their progress were provided in the report. The tender pipeline would be a live record which would be maintained by the Commissioning and Procurement Team and would be available for the supplier market to view on the Council’s website.

If any new procurements with a full contract value of £250,000 or more were identified during the course of the year, an individual Executive report outlining the procurement request would be presented. This eventuality should be minimal, as all known procurements were captured within the pipeline work programme, however this may occur if new funding is made available, i.e through grant income.

ORDERED that Executive:

1.     Approves the tender pipeline for 2024/25.

2.     Approve delegation of award to the relevant Director in consultation with their Executive Member.

OPTIONS

Do Nothing – if this pipeline report was not progressed, each procurement activity in excess of the key decision threshold would need presentation to Executive for approval, in accordance with the Contract Procedure Rules. This was not a feasible option as this would increase the Executive agenda significantly and create potential delays within the procurement process. The tender pipeline report detailed all planned procurement activity for the year ahead.

REASONS

To continue to have strong governance arrangements in place for procurement activity carried out by the Council. The pipeline report identified the proposed procurements throughout 2024/2025, including those under threshold in order to provide full transparency with regard to proposed purchases. Approval was requested, in accordance with the Contract Procedure Rules for authorisation to progress with procurement activity which was above the key decision threshold. Delegated Authority was required to ensure due governance was completed and Directors were fully aware of new contractual obligations and their associated financial impact.

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

The purpose of the report was to update the Executive on the process being followed by the Directors to close down the Middlesbrough Development Company. The report also fulfilled the commitment to report on the Company’s status, in line with the requirements of the Partly and Wholly Owned Council Companies policy and supporting minimum standards.

In September 2023 Executive were advised that following a decision of the Directors of the company to close down the Middlesbrough Development Company was underway, and the process and timetable for this to happen were set out. Although the company had ceased trading at that point, there were still three major items identified at the time as requiring ongoing work or consideration: Construction contract for Boho Village; Construction contract for Newbridge Court and Newbridge Court the details of which were contained within the report.

As the three items were interrelated in terms of the Company’s balance sheet, they needed to be addressed in a specific sequence to ensure the company remained solvent at the point of closure. Without adhering to the above sequence (and transferring the asset last) the company would be unable to demonstrate it was able to meet its liabilities throughout the process.

Following the completion of the three stages detailed in the report, the closure of the company was now being progressed by FRP and would take a period of three to four months. This allowed for the appropriate notifications to be advertised and all remaining filings to be completed. The remaining net assets of the company would then be distributed to the Council.

ORDERED that Executive:

1.     Notes the progress made towards closure of the Middlesbrough Development Company, the commencement of the Members Voluntary Liquidation, and the distribution of key assets and liabilities to the Council.

2.     As the shareholder, formally endorses the director’s decision to close the company.

OPTIONS

Other options considered by the Directors of the Middlesbrough Development Company for supporting the final closure of the company had been examined, including the option to support the simple deregistering of the company. Although this option could have been delivered at lower cost (£15) it did not provide the appropriate assurance that all matters had been concluded satisfactorily and all risks had been managed.

REASONS

The previous decision of the Directors of the Middlesbrough Development Company to close down the company through a Members Voluntary Liquidation required the appointment of an external liquidator, to minimise the risk to the company and the Council. The process followed by the external liquidator would include the distribution of key company assets to the Council. This distribution of assets would allow the Council to commence proactive management of Newbridge Court.

None.

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.