Decisions

The Economy and Growth Committee on the 10 July 2023 considered a report on the Housing Development Framework and gave delegated authority to the Director of Enterprise and Growth to:

(a) determine and pursue the most appropriate delivery route for each Council owned site identified and appropriated for Council-influenced housing development (including but not limited to use of the Housing Development Framework, open market procurement, land deal or joint venture) and, subject to obtaining disposal approval in accordance with the decision making processes for land and property disposals as set out in the Constitution, enter into all necessary legal agreements to enable the site to be developed accordingly.

Economy and Growth Committee 10 July 2023 - Housing Development Framework Update

 

To approve the commencement of an Open Market competitive tendering process in relation to the following Council owned land assets:

Chester Street Car Park, Crewe

Delamere Street Car Park, Crewe

Mountview, Newcastle Road, Congleton

Officer Decision Record - Ryle Street, Macclesfield - Disabled parking bay

To approve statutory consultation for the proposed introduction of a new Disabled Persons Parking Place (DPPP) outside 25 Ryle Street, Macclesfield, as shown on the attached plan (Ref. C2218 RJ05-001) and, in the event that there are no objections, to make an Order bringing into effect the proposals.

 

The Sub-Committee considered a report which set out the key findings and recommendations of the Shareholder Working Group in relation to the governance of the Council’s wholly-owned companies, having regard to its review of compliance with the published CIPFA guidance and other good practice.

 

The Working Group had been chaired by the late Councillor S Carter during this first phase of the review. The review was ongoing and would continue into next year.

 

The Working Group’s conclusions regarding the most effective approach to designing the Council’s longer term company governance, reporting and board arrangements were as follows:

 

1.    There should be a revised Board structure to support good governance.

2.    There should be an observer appointed to attend meetings of each company board to report direct to the Finance Sub-Committee as the shareholder committee.

3.    Immediate attention should be given to rectifying some areas, including the removal of Cheshire East Residents First (the group structure) from the governance structure and relevant documentation.

4.    A further in-depth review of Shareholder documentation should be undertaken.

5.    The risk appetite of the Council in respect of company risk was overall rated as ‘Low’ and risks should be appropriately mitigated to this position.

6.    Risk mitigation and controls should be improved.

7.    The Working Group should continue to report on future proposals for improving governance.

 

Further details were set out in the report.

 

The Director of Governance and Compliance presented the recommendations set out in the report. In doing so, he advised that the remuneration of observer members on company boards would be a matter for consideration by the Independent Remuneration Panel as part of its next full review of members’ allowances. He also advised that the full Council date in recommendation 3.1(a) would need to be changed to a later date to be determined by the Sub-Committee.

 

To assist members in considering the proposals, diagrams showing the current and proposed governance arrangements were circulated at the meeting. The proposed governance arrangements included the removal of Cheshire East Residents First (CERF) as a holding company, with companies reporting direct to the Finance Sub-Committee in future as the shareholder committee.

 

Members commented that a low-risk approach as advocated in the report could mean that the companies would miss out on opportunities by being too risk averse. Officers responded that business opportunities could still be reported to the Sub-Committee for consideration.

 

The recommendations in the report were moved and seconded subject to the determination of a suitable Council date from which the new arrangements would take effect.

 

An amendment to the substantive motion was then moved and seconded that the following changes be made to the recommendations in the report:

 

3.1(a) Two elected members to be appointed to each company board.

 

3.3 the amended shareholder agreements set out in Appendices 1 and 2 be further amended as follows:

 

Para 4.1.1 to provide for two elected members to be appointed to each company board.

 

Para 4.7 to provide that the quorum at any meeting of the directors shall include at least one elected member who is a member of the board.

 

Para 4.8, which provides that the chair of the board will be the managing director, be deleted.

 

It was noted that these arrangements may need to be adapted to the particular circumstances of Tatton Part Enterprises, given the small size of that company.

 

RESOLVED (unanimously)

 

Thatthe Sub-Committee agrees that

 

1.    From 18 October 2023 (date of Full Council), the Board of Directors of each of the wholly-owned companies will be comprised as follows:

 

§  Two elected Members to support local knowledge and service user functions. The Members will be appointed by the Finance Sub-Committee following an open expression of interest and a transparent process; and

 

§  Two Council Officers, being 1x Finance Officer (on the recommendation of the Chief Finance Officer) and 1x Service specific officer (on the recommendation of the Chief Executive);

 

§  The Managing Director of the wholly-owned company; and

 

§  At least one Director who may be appointed through external advert, being an independent sector specialist appointed for their expertise by the Finance Sub-Committee, supported by the Council’s HR service.

 

2.    An Observer will continue to be appointed to attend meetings of the Board of each company as the Shareholder representative by the Finance Sub-Committee from amongst its membership. The Observer will have the right to access all information and documents, to attend all meetings and to ask questions of the Board.

 

3.    All current and future Director appointments will be subject to a Shareholder approved service contract, and all Directors will be required to enter into this contract as part of their new or continuing appointment.

 

4.    The amended shareholder agreements set out in appendices 1 and 2 be adopted from 18 October 2023 subject to the following further amendments:

 

Para 4.1.1 to provide for two elected members to be appointed to each company board.

 

Para 4.7 to provide that the quorum at any meeting of the directors shall include at least one elected member who is a member of the board.

 

Para 4.8, which provides that the chair of the board will be the managing director, be deleted, and the remaining paragraphs of that section of the shareholder agreement be renumbered accordingly.

 

5.    That Cheshire East Resident First (CERF) no longer form part of the governance structure of any Council wholly-owned companies and any shares it holds be transferred to Cheshire East Council.

 

6.    That the Shareholder Working Group be asked to continue to:

 

(a)  undertake a full detailed review of the Shareholder Agreements against the CIPFA guidance and other good practice;

 

(b)  ensure that the wholly-owned companies support the Council’s strategic objectives and decision-making;

 

(c)  ensure that an appropriate and proportionate mechanism for control and review of risk is developed;

 

(d)  consider the purpose of Orbitas Bereavement Services and Tatton Park Enterprises;

 

(e)  consider the creation of a timely mechanism for seeking shareholder permissions between scheduled committee meetings; and

 

(f)    develop a business planning template to be implemented across the wholly-owned companies.

 

7.    Company risk registers and strategic decisions made by the companies form part of the reporting and monitoring mechanisms.

 

8.    It be recommended to the Corporate Policy Committee that companies’ risks should be a separate category on the strategic risk register.

 

9.    That the Council’s risk appetite in respect of the companies is ‘Low’ and that the companies should maintain a low-risk approach to business activity.

 

The Sub-Committee considered details of the waivers referred to in the Procurement Pipeline report.

 

In addition, the Sub-Committee was briefed on a matter relating to a contract let by Ansa for the processing of mixed recycling. A briefing paper setting out the background to the matter, and the options for further action, had been circulated to members prior to the meeting.

 

Councillor A Moran and Mr Kevin Melling were permitted to attend for this matter.

 

RESOLVED

 

That

 

1.    the details of the waivers referred to in the Procurement Pipeline report be noted; and

 

2.    with regard to the contract for the processing of mixed recycling, Ansa proceed on the basis of Option 2 as set out in the briefing paper.

 

Mr Melling left the meeting at this point.

 

Councillor Moran was permitted to remain for the next item as Vice-Chair of the Adults and Health Committee.

 

The Sub-Committee considered a report which provided an update of the pipeline of procurement activity, an update on the contracts awarded this financial year, and an update on the number of cases where, and reasons why, procurement activity had required the use of waivers.

 

The detailed waivers referred to in the report would be considered in Part 2 of the meeting.

 

It was proposed that a member working group be re-established for the current year to review procurement activity and report back to the Sub-Committee.The Procurement Working Group terms of reference had been approved on 6^{th of} July 2022 and were set out at Appendix 3 to the report.

 

RESOLVED (unanimously)

 

That the Sub-Committee

 

1.   approves the 1 pipeline project in Appendix 1, column H of the report as business as usual;

 

2.   notes the reason for 4 waivers approved between 1^st April 2023 and 31^st August 2023 (4 in total in 2023/24);

 

3.   notes the contracts awarded since April 2023 as set out in Appendix 2; and

 

4.   appoints a Procurement Working Group for the current year to review 2022/2023 procurement activity, the members to be:

 

Councillor J Clowes

Councillor B Drake

Councillor M Gorman

Councillor R Kain

 

That the Head of Planning, in consultation with the Chair of the Environment and Communities Committee:

 

Accept the examiner’s recommendations to make modifications to the Little Bollington Neighbourhood Development Plan, as set out in Little Bollington Neighbourhood Plan examiner’s report; and confirms that Little Bollington Neighbourhood Development Plan is made and forms part of the Development Plan for Cheshire East.

That the Head of Planning, in consultation with the Chair of the Environment and Communities Committee:

 

Accept the examiner’s recommendations to make modifications to the Little Bollington Neighbourhood Development Plan, as set out in Little Bollington Neighbourhood Plan examiner’s report; and confirms that Little Bollington Neighbourhood Development Plan is made and forms part of the Development Plan for Cheshire East.

Officer Decision Record – Oak Street

1.To authorise the commencement of the statutory process under the Road Traffic Regulation Act 1984 for the removal of the Oak Street, Crewe car park from the Cheshire East Borough Council (Off-Street Parking Places) (Consolidated) Order 2015 in advance of a decision on planning application: 22/4964N

2.If planning permission is granted and after due consideration of any representations received during the statutory consultation to authorise the making of the Order to remove reference to Oak Street, Crewe from the Cheshire East Borough Council (Off-Street Parking Places) (Consolidated) Order 2015.