Rationale Local Authority Company CBCs vision of becoming a - PDF document

Rationale Local Authority Company • CBC’s vision of becoming a strategic commissioning authority Local authority company • Operational management and administration Cheltenham Borough Council of service delivery Cotswold District Council • MTFS and cashable savings Working in partnership • Gloucestershire Waste Partnership • Potential to take on other services • Potential to involve other partners What is the company? In scope services April 2012 • The company will deliver a range of outcomes • Cheltenham Borough Council which will be set out in a service level – waste collection agreement – kerbside recycling collections – organic waste collections • The company is a wholly owned local – servicing of neighbourhood recycling sites authority company created to deliver services – operation of the Swindon Road recycling centre for the local authorities (shareholders) – street cleaning • It is not a trading company – public toilet cleaning – grounds maintenance In scope services August 2012 Project management • Cotswold District Council • Commissioner – project manager Scott – waste collection Williams from CDC – kerbside recycling collections • Company implementation – project manager – organic waste collections Mark Woodward from CBC – servicing of neighbourhood recycling sites • Project board – includes joint project sponsors – street cleaning Grahame Lewis CBC, Ralph Young CDC

Project governance How this will impact on Cheltenham WP60 Local Authority Company Project • Client side monitoring will sit within commissioning division at Board CBC • Customer interface will sit with the customer service team Project Office & Communication within the resources division (Provider – Mark Woodw ard) (Commissioner - • Strategic support on waste/recycling/street cleaning to be Scott Williams) Communications – Bob McNally provided by experienced officer seconded on a part time basis from CDC (Scott Williams) WP64C WP 64C WP62C WP70P Commis mmissioner oner WP65C WP 65C WP61C WP62C Customer Company Company Client lient R Role le Environment onmental al • Strategic support on grounds maintenance provided by Parks Service Level Interface Provider Development lopment Services ices Creation & Agreement Project Project Governance Project oject Revi Re view - - CBC CBC Project (Judy Hibbert) (Rob Bell) Development team (Adam Reynolds) (Clair laire Locke e Locke) (Jane Jane Project (Claire Locke) (Andrew Gr Grif iffiths) North) • Partnership approach – as with CBH • Performance measures developed against the outcomes WP76P WP WP71 71P WP73P WP74P WP75P WP WP72 72P Depot & Busi Bu siness ss Staff Vehicle Operational WP WP77 77P ICT & & Asse Assets ts Infrastructure Suppor upport Transfer/HR Procurement Service Inte tern rnal Project oject Project Project oject Project Project Design gov gover ernance & nance & (Paul aul (Rob (Andr ndrew ew (Julie (Malcolm Delivery Woolcock Woolcock) Bell/Claire compliance complianc e Pow e w ers) rs) McCarthy) Carruthers) Project pr project oject Locke) (Rob Bell/Beth (Mor orag R ag Rose) Boughton) Support services ‐ GO Governance ‐ General • CBC and CDC have control over the Company via • GO will provide shareholders and directors AND control over the delivery – Financial support of services by the Company via the SLA/Contracts. – Payroll services • Company limited by shares – Procurement support • Shareholder Level ‐ Shareholders have overall control – Human resources support exercised at General meetings with voting/shareholding – Health & safety support split 50:50 between the 2 councils • ICT support ‐ CBC • Director Level ‐ control operation and management (subject to control of shareholders). Proposal is to have 4 • Legal ‐ One Legal directors comprising 2 council nominees (1 from each • Audit – Cotswold audit partnership council), the MD and the FD • Property services ‐ CBC Governance ‐ Shareholder Agreement Governance ‐ Articles of Association This contract defines the balance of power between the councils as Shareholders and Company directors. The key provision is the reservation of This is the contract between the shareholder councils and key decisions by the Shareholders. These include: the company Varying the articles • • Public document Permitting additional Shareholders; forming any subsidiary or acquiring • shares • Required for the incorporation of the company at Adopting/amending the business plan • Companies House Entering into any contract over a stated value • Agreeing appointment ( including remuneration) of all directors of the • • Follows a model as set out in the Companies Act 2006 Company other than Shareholder appointed directors Substantial changes to employment terms and conditions of service • Changing the capital of, or issuing any shares of the company • Declaring dividends to a Shareholder •

Governance ‐ Roles Client side management Shareholder Interest ‐ Leader to reserves these executive powers • SLA’s Decision making in respect of the matters reserved to the shareholders • Performance indicators Contract monitoring and Performance ‐ Leader to delegate these powers to Cabinet Member • Regular officer meetings – reviewing Ensure compliance by the council through the SLA/Contract with performance against the outcomes the company including changes and service reviews • Regular officer meetings to update on key Director level ‐ Board of Directors to consist of 1 Council nominee plus MD and FD issues for company/CBC and what action Day to day operation and management of the company; needs to be taken directors are accountable to the councils through rights reserved to shareholders and contract monitoring Members’ roles Implementation timetable • Leader – shareholder • Oct 2011 – Cabinet report • Cabinet lead – agrees SLA, sets strategic and policy direction (although this would change if we have a • Nov 2011 – LA Co formation joint committee for waste) • Nov 2011 – Shadow board formed • Overview and scrutiny – receives performance reports and can call the company to account if • April 2012 – LA Co begins to trade required • April 2012 – CBC staff TUPE to LA Co • Individual members – service requests ie missed bin, complaints etc through customer service team. • August 2012 – CDC / SITA staff TUPE to LA Co Discussions on the way policy being implemented with strategic client officers Questions?