Agenda and minutes

Cabinet is asked to approve as a correct record the minutes of the last meeting held on 25 June 2019.

The minutes of the last meeting held on 25 June 2019 were approved as a correct record and signed by the Chair.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to a full application to the North East European Regional Development Fund to progress the scheme ‘A Sustainable Future for Chopwell’.

RESOLVED -           (i)        That the submission of a full application for £5.8m                                            of grants to the NE ERDF Low Carbon fund be                                                 approved.

                                    (ii)        That the awarding of contracts to Willmott Dixon                                               Construction Ltd for the design, preconstruction                                                works and pilot installations in relation to the

                                                Scheme be approved.

                                    (iii)       That the Acting Strategic Director, Communities                                               and Environment be authorised, following                                                          consultation with the Strategic Director, Corporate                                      Resources, to agree detailed terms, scope of                                                             contracts with Willmott Dixon Construction Ltd,                                                 within the agreed capital budget of £0.5m.

The above decisions have been made for the following reasons:

(A)         To support the delivery of the Chopwell and Blackhall Mill 10 Year Plan.

(B)         To support the Thrive agenda, by reducing energy costs and fuel poverty in Chopwell, and supporting housing improvements and their associated benefits.

                                    (C)      To continue to reduce carbon emissions of                                                        housing in Gateshead, in line with Gateshead’s                                                Climate Change Strategy.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to changes to the Council’s management agreement with Gateshead Housing Company to update and strengthen the Council’s oversight of the Company.

RESOLVED -            (i)         That the immediate updating of the Management                                             Agreement by way of a variation letter recording                                               newly agreed performance metrics, reporting and                                              monitoring processes between the Council and                                      Gateshead Housing Company based on                                                             Appendices 2 and 3 in the report be approved and                                           the Strategic Director, Communities and                                                       Environment be authorised, following consultation                                             with the Leader of the Council and the Cabinet                                                 member for Housing, to approve any minor                                                        amendments to the proposed variations following                                            further discussions with GHC or such amendments                                          as might be required by the Regulator for Social                                                 Housing.

(ii)        That the proposal to commence a comprehensive review of the delivery model for management of the Council’s housing stock, including a full options appraisal of alternatives and all necessary consultation with stakeholders be endorsed.

(iii)       That the Strategic Director, Communities and Environment be authorised     , following

consultation with the Leader of the Council and the Cabinet member for Housing, to agree to the renewal of the Management Agreement for a period of up to two years, to allow time for the review to be concluded and any revised arrangements implemented.

The above decisions have been made to ensure the Council’s housing stock is managed, and housing services delivered, in the interests of the Council and its tenants as effectively and efficiently as possible.

Report of the Acting Strategic Director, Community and Environment

Consideration has been given to the adoption of the Council’s Enforcement Policy for the Communities and Environment Directorate.

RESOLVED -            That Council be recommended to adopt the Enforcement

                                    Policy, as set out in appendix 2 to the report.

The above decision has been made to ensure that enforcement action is carried out successfully by the Council to protect and promote the health and safety of the public and residents and to protect the environment.

Report of the Strategic Director, Corporate Resources

Consideration has been given to the latest position on the 2019/20 capital programme and prudential Indicators at the end of the first quarter to 30 June 2019.

RESOLVED -            (i)        That the Council be recommended to agree all                                                  variations to the 2019/20 Capital Programme,

                                                as detailed in Appendix 2 to the report, as the                                                   revised programme.

                                    (ii)        That the financing of the revised programme be                                                recommended to the Council.

                                    (iii)       That it be confirmed to Council that the capital                                                  expenditure and capital financing requirement                                                   indicators have been revised in line with the                                                           revised budget and that none of the approved                                                       Prudential Indicators set for 2019/20 have been                                                breached.

The above decision have been made for the following reasons:

(A)       To ensure the optimum use of the Council’s capital                  resources in 2019/20.

                                    (B)       To accommodate changes to the Council’s in-year                                           capital expenditure plans.

                                    (C)      To ensure performance has been assessed                                                       against the approved Prudential Limits.

Report of the Strategic Director, Corporate Resources

Consideration has been given to the latest position on the 2019/20 revenue budget at the end of the first quarter.

RESOLVED -            That the Council’s revenue expenditure position at the                                    end of the first quarter, as set out in Appendix 1, of the                               report be noted.

The above decision has been made to contribute to sound financial management and the long-term financial sustainability of the Council.

Report of the Chief Executive

Consideration has been given to the Making Gateshead a Place Where Everyone Thrives – Year End Assessment of Performance and Delivery Report for 2018/19.

RESOLVED -            (i)        That the recommendations of all the Council’s                                                  Overview and Scrutiny Committees in relation to                                              the 2018/19 year-end performance report, as set                                         out in Appendix 4 to the report, be approved.

                                    (ii)        That it be conformed that the activities undertaken                                           during April 2018 to March 2019 are supporting                                                delivery of the Thrive agenda.

The above decisions were made to ensure performance and focus supports the delivery against the strategic approach of Making Gateshead a Place Where Everyone Thrives.

Report of the Strategic Director, Care, Wellbeing and Learning

Consideration has been given to the response to the consultation exercise on the proposed changes to sixth form provision in Gateshead Special Schools and a proposed change to the designated age range for Hill Top and Dryden Schools.

RESOLVED -            (i)         That the responses to the consultation exercise be                                          noted.

                                    (ii)        That Council will continue to support funding for                                               post 16 provision for two years of sixth form for                                                 children in the main school of Hill   Top and Cedars,                                          and commits to continuing to strengthen the                                                          Council’s work with young people and families                                                 from Year 9 onwards to identify and secure the                                                 most appropriate post 16 pathway which will best                                             prepare individual learners for adulthood and to                                             ensure all children are offered a choice of

                                                provisions.

                                    (iii)       That a statutory consultation exercise be                                                            undertaken during the Autumn Term 2019 to                                                     change the designated age range of Dryden and                                           Hill Top Schools to be 11-18 schools

The above decisions were made for the following decisions:

(A)         To meet the Council’s statutory duty to promote high educational standards and to make effective use of resources.

                                    (B)       To comply with school organisation legislation.

Report of the Strategic Director, Corporate Services and Governance

Consideration has been given to the procurement and award of contracts.

RESOLVED -            That the Service Director, Corporate Commissioning and

Procurement be authorised to invite or negotiate tenders or conduct other procurement processes (or to complete the relevant processes where they have already begun) in respect of the contracts, listed in Appendix 2 to the report, and to award the relevant contracts to the tenderers submitting the most economically advantageous tenders (or otherwise proving successful in accordance with other procurement processes) in accordance with the Contract Procedure Rules.

The above decisions have been made to enable the procurement of goods, works and services required for the efficient and effective delivery of services.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to the authorisation of the Acting Strategic Director, Communities and Environment and the Service Director, Council Housing, Design and Technical Services, following consultation with the Strategic Directors, Corporate Resources and Corporate Services and Governance, to jointly approve schemes and estimates, and to invite and accept tenders over certain thresholds, during the summer recess following this Cabinet meeting up to the Cabinet meeting on 17 September 2019.

RESOLVED -              That the Acting Strategic Director, Communities

                                    and Environment and the Service Director, Council                                         Housing, Design and Technical Services be authorised,                                 in consultation with the Strategic Directors, Corporate                                        Resources and Corporate Services and Governance, to                                     jointly approve the letting of any contracts relating to the                                     Cabinet approved 2019/20 Capital Works Programme                                     whichexceed £250,000 in value: such approval is to be                                 in the form of either:

                                    (a)       an authorisation to invite or negotiate tenders in                                               accordance with Rule 6 of the Contract Procedure                                           Rules (“the Rules”) or to conduct some other                                                  procurement process in accordance with the Rules                                               and to award the contract to the economic                                                         operator submitting the most economically                                                         advantageous tender as determined by the                                                        Service Director, Corporate Commissioning and                                          Procurement in accordance with the stated terms                                      of the tender or other process and, where

                                                applicable, the Regulations; or

(b)       an authorisation subsequent to the conduct of a                       tendering process or other procurement process in                        accordance with the Rules to award the contract.

The above decisions have been made to enable projects to progress and to avoid delay in delivery of the capital programme and its related expenditure.

Report of the Strategic Director, Corporate Services and Governance

Consideration has been given to an update on petitions submitted to the Council and the action taken on them.

RESOLVED -            That the petitions received and action taken on                                                 them be noted.

The above decision has been made to inform the Cabinet of the progress of the petitions.

The Cabinet may wish to exclude the press and public from the meeting during consideration of the following item(s) on the grounds indicated:

Item                                                     Paragraph of Schedule 12A to the Local                                                                   Government Act 1972

14                                                                    3

15                                                                    3

16                                                                    3

17                                                                    3

18                                                                    3

19                                                                    3

20                                                                    3

21                                                                    3

RESOLVED -            That the press and public be excluded from the                                                meeting during consideration of the remaining business in                             accordance with paragraph 3 of Schedule 12A to the                                             Local Government Act 1972.

Report of the Acting Strategic Director, Communities and Environment and Strategic Director, Care, Wellbeing and Learning

Consideration has been given to the scheme and estimate to create a new

expanded school on a new site to replace the existing Gibside School.

RESOLVED -            (i)        That the scheme and estimate be approved.

                                    (ii)        That the Service Director, Council Housing, Design                                         and Technical Services be authorised to place an                                            order through the SCAPE Major Works Framework                                      within the agreed overall budget limit.

The above decisions have been made for the following reasons:

                                    (A)       To enable the Council to fulfil its statutory duty to                                              ensure a match between the predicted demand for                                          school places and the number of schools and                                                             places maintained, and to ensure efficient use of

                                                resources.

                                    (B)       To meet the required timescale for delivery of the                                             additional school places.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to a proposal to enter into a contract with Wates Construction Ltd. (WCL) for the enabling works and site remediation ahead of delivery of the residential development and regeneration of the former Clasper Village housing site.

RESOLVED -            (i)        That the entering into a contract with WCL be                                                    approved , via the Scape Framework for the site                                               enabling works up to the value of £6.7m and                                                   the Service Director, Council Housing, Design and                                        Technical Services be authorised to place an order                                          for the works, subject to the form and content of                                               the contract being approved by the Strategic                                                   Director, Corporate  Services and Governance in                                              accordance with the Constitution.

(ii)        That the total scheme cost estimates be noted and                  further reports be received on the next phase of                        delivery.

                                    (iii)       That the Service Director, Council Housing, Design                                         and Technical Services be authorised to progress                                            the scheme and to establish full contract estimates                                                for the construction works and sales and marketing                                               activity to deliver the housing development.

The above decisions have been made for the following reasons:

                                    (A)       To promote the accelerated delivery of homes                                                  within the Borough.

                                    (B)       To help meet housing need in the Borough.

                                    (C)      To realise the Council’s policies and objectives in                                             relation to housing growth.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to an update on the supporting infrastructure needed to bring forward the development of Gateshead Quays and the progression of initial designs and pre-construction work to develop the supporting infrastructure for Gateshead Quays.

RESOLVED -              (i)         That the progression of initial design and                                                                  pre- construction work to develop the                                                                        supporting infrastructure for Gateshead Quays be                                                          approved.

                                    (ii)        That the development of a Gateshead                                                                       Quays Development Framework to coordinate                                                         site development and infrastructure improvements                                                        be approved.

The above decisions have been made to progress the development of the Gateshead Quays site.

Report of the Acting Strategic Director, Communities and Environment

High Street South Delivery Plan

Consideration has been given to the conclusions of the High Street South Delivery Plan.

RESOLVED -              (i)         That comprehensive development of the High Street                                               South regeneration area be approved, as set out in the                                           report.

                                    (ii)        That the provision of a 5 year capital allocation, as                                                   detailed in the report, be approved.

,

                                    (iii)       That the Strategic Director, Corporate Services and                                                 Governance be authorised, following consultation with                                             the Leader of the Council, and with the Strategic                                                           Directors, Communities and Environment and                                                      Corporate Resources, to negotiate and agree the                                                     necessary legal documentation to give effect to the                                                  proposals and enter into contracts for that purpose.

The above decisions have been made for the following reasons:

                                    (A)       To regenerate High Street South.

                                    (B)       To provide new homes and community facilities in the                                             Town Centre to improve performance and economic                                                growth.

                                    (C)       To improve the perception of the centre of Gateshead,                                            and to provide safe attractive passage from the                                                        Exemplar Neighbourhood to the Town Centre.

                                    (D)       To integrate health and wellbeing into the regeneration                                            objectives.

                                    (E)       To maximise internal trading opportunities where                                                     feasible and subject to capacity.

Report of the Acting Strategic Director, Communities and Environment

Consideration has been given to a proposal to enter into a contract with the Gateshead Housing Company for construction works for the conversion of Longside House into a Children’s Home.

RESOLVED -            That the Service Director, Council Housing, Design and Technical Services be authorised to place an order with the Gateshead Housing Company, as set out in the report, and enter into a contract for the works with the Gateshead Housing Company, following consultation with the Strategic Director, Corporate Services and Governance.

The above decision has been made for the following reasons:

(A)         Young people needing residential care will be placed within Gateshead rather than being placed at a distance.

                                    (B)       There will be savings to be made by bringing                                                    young people back into our own resource.

Report of the Acting Strategic Director, Communities and Environment, Strategic Director, Corporate Services and Governance and Strategic Director, Corporate Resources

Consideration has been given to the freehold transfer of two sites that make up Bundle 2 to the Gateshead Regeneration Project (GRP) for the delivery of 62 homes at Whitehills Drive in Windy Nook and the former Rowlands Gill Primary School site in Rowlands Gill.

RESOLVED -            (i)        That the transfer of the freehold interest in the                                                   sites at Rowlands Gill and Windy Nook for nil                                                    consideration to Gateshead Regeneration                                                   Partnership for the provision of new homes be                                                        approved.

                                    (ii)        That the provision of a capital injection, as set out                                            in the report, for these sites to facilitate the delivery                                         of new homes be approved; and that the Council                                         enter into site specific funding agreements with                                         GRP in a form approved by the Strategic Director,                                            Corporate Services and Governance in                                                               accordance with the Constitution.

The above decisions have been made for the following reasons:

(A)         To support the delivery of 62 homes, with a start          on site in August 2019.

(B)         To secure the delivery of 52 homes and Accelerated Construction funding from Homes      England for the Kelvin Grove site.

(C)         To enable income to accrue to the Council; and            training, employment and socioeconomic

                                                benefits for the residents and businesses of                                                       Gateshead.

(D)        To utilise the Council’s land and property portfolio        to support the Council’s policy priorities in      accordance with the provisions of the Council’s Corporate Asset Strategy and Management Plan         2015 – 2020 and Housing Strategy 2019-30.

Report of the Acting Strategic Director, Communities and Environment and Strategic Director, Corporate Resources

Consideration has been given to proposed changes to the funding arrangements on the Council’s Waste PFI Contract.

RESOLVED -            (i)         That the principle of South of Tyne and Wear                                                    Energy Recovery Limited revising their funding                                                             arrangements in accordance with the provisions                                               contained within the PFI contract be approved.

                                    (ii)        That the Strategic Director, Corporate Resources                                             be given delegated powers to approve the                                                         revisions to the financial model and funding terms,                                               including the calculation of the gain for the                                                      Partnership in consultation with the S151 Officers                                            from Sunderland and South Tyneside Councils                                                             and in accordance with advice from external                                                  financial consultants, Local Partnerships LLP.

                                    (iii)       That the Strategic Director, Corporate Services                                                 and Governance be given delegated powers to                                                 approve and agree any revisions to the contractual                                         documentation necessary to reflect the changes to

                                                the funding terms in accordance with advice from                                             external legal consultants, Pinsent Masons

                                                LLP.

                                    (iv)       That the Strategic Director, Corporate Services                                                 and Governance be given delegated powers to                                                 execute the variation agreement and other                                                      necessary documentation as is required to give                                            effect to the above decisions, so far as such power                                          is not already delegated by the Council’s                                                            constitution.

The above decisions have been made to deliver a revenue saving for the Council by reducing the financing costs associated with the Council’s Residual Waste Treatment Contract.

Report of the Strategic Director, Corporate Resources

Consideration has been given to the current trading activity undertaken

through subsidiaries wholly owned by the Council.

RESOLVED -            (i)         That the report outlining company activity to date                                             including the contribution to Council Thrive                                                        priorities be noted.

                                    (ii)        That an annual composite report be presented                                                  to Cabinet covering the activities of the companies.

The above decisions have been were made for the following reasons:

(A)       To contribute to the sound governance, operational and financial management

                                                of the Council’s wholly owned subsidiary                                                            companies.

(B)       To assist effective financial and performance    oversight and awareness of all Council activity,     regardless of delivery model.