Public Document Pack

JOINT MEETING OF EXECUTIVE CABINET AND AUDIT PANEL

Day: Wednesday Date: 13 December 2017 Time: 2.00 pm Place: Lesser Hall 2 - Dukinfield Town Hall

Item AGENDA Page No. No 1. APOLOGIES FOR ABSENCE To receive any apologies for the meeting from Members of the Executive Cabinet. 2. DECLARATIONS OF INTEREST To receive any declarations of interest from Members of Executive Cabinet. 3. MINUTES a) EXECUTIVE CABINET To consider the minutes of the last meeting of the Executive Cabinet held on 18 October 2017. b) STRATEGIC PLANNING AND CAPITAL MONITORING PANEL To receive the minutes of the meeting of the Strategic Planning and Capital Monitoring Panel held on 27 November 2017. c) ENFORCEMENT CO-ORDINATION PANEL To receive the minutes of the meeting of the Enforcement Co-ordination Panel held on 25 October 2017. d) CARBON AND WASTE REDUCTION PANEL To consider the minutes of the Carbon and Waste Reduction Panel held on 30 November 2017. e) SINGLE COMMISSIONING BOARD To receive the minutes of the meeting of the Single Commissioning Board held on 31 October 2017 and 24 November 2017. f) ASSOCIATION OF GREATER MANCHESTER AUTHORITIES/GREATER MANCHESTER COMBINED AUTHORITY To consider the minutes of the AGMA Executive Board and Greater Manchester Combined Authority held on 24 November 2017.

From: Democratic Services Unit – any further information may be obtained from the reporting officer or from Robert Landon, Head of Democratic Services, to whom any apologies for absence should be notified. Item AGENDA Page No. No

4. ANNUAL AUDIT LETTER To consider the attached report of Grant Thornton, External Auditor. 5. FINANCE MONITORING REPORTS a) REVENUE MONITORING To consider the attached report of the First Deputy (Performance and Finance)/ Assistant Director (Finance). b) CAPITAL MONITORING To consider the attached report of the First Deputy (Performance and Finance)/ Assistant Director (Finance). 6. TREASURY MANAGEMENT To consider the attached report of the First Deputy (Performance and Finance)/Assistant Director (Finance). 7. COMMUNITY LOANS POLICY To consider the attached report of the First Deputy (Performance and Finance)/Assistant Director (Operations and Neighbourhoods). 8. TAMESIDE DIGITAL INFRASTRUCTURE To consider the attached report of the First Deputy (Performance and Finance)/Assistant Director (Digital Services). 9. SCHOOLS MEALS SERVICE FOR PRIMARY SCHOOLS - PROPOSED CONSULTATION To consider the attached report of Executive Member (Lifelong Learning)/Director of Finance/Director of Place. 10. TRANSPENNINE ROUTE CONNECTIVITY To consider the attached report of the Executive Member (Clean and Green)/Director (Place). 11. STRATEGIC HOUSING AND EMPLOYMENT LAND AVAILABILITY 2017 AND THE BROWNFIELD LAND REGISTER To consider the attached report of the Deputy Leader/Director (Place). 12. GREATER MANCHESTER WASTE DISPOSAL LEVY ALLOCATION METHODOLOGY AND APPROVAL OF A REVISED LEVY ALLOCATION MODEL AGREEMENT (LAMA) To consider the attached report of the Executive Member (Clean and Green)/Assistant Director (Environmental Services). 13. URGENT ITEMS To consider any items which the Chair is of the opinion shall be considered as a matter of urgency.

From: Democratic Services Unit – any further information may be obtained from the reporting officer or from Robert Landon, Head of Democratic Services, to whom any apologies for absence should be notified. Agenda Item 3a

MEETING OF EXECUTIVE CABINET

18 October 2017

Commenced: 2.00 pm Terminated: 3.05 pm

Present: Councillor K. Quinn (Chair) Councillors Cooney, J. Fitzpatrick, Gwynne, Taylor, L Travis and Warrington.

Apologies for Absence: Councillor Robinson. In Attendance: Steven Pleasant Chief Executive Sandra Stewart Director (Governance and Pensions) Angela Hardman Director of Population Heath Kathy Roe Director (Finance) Sarah Dobson Assistant Director (Policy, Performance and Communications) Alan Dow CCG Chair Tom Wilkinson Assistant Director (Finance) Ian Saxon Assistant Director (Environmental Services) Emma Varnam Assistant Director (Stronger Communities) Sandra Whitehead Assistant Director (Adult Services)

25. DECLARATIONS OF INTEREST

There were no declarations of interest submitted by Members of the Executive Cabinet.

26. MINUTES

(a) Executive Cabinet

Consideration was given to the Minutes of the meeting of Executive Cabinet held on 30 August 2017.

RESOLVED That the Minutes of the meeting of Executive Cabinet held on 30 August 2017 be taken as read and signed by the Chair as a correct record.

(b) Strategic Planning and Capital Monitoring Panel

Consideration was given to the Minutes of the meeting of Strategic Planning and Capital Monitoring Panel held on 9 October 2017.

RESOLVED That the Minutes of the meeting of Strategic Planning and Capital Monitoring Panel held on 9 October 2017 be received and the following recommendations approved:

Capital Investment Programme 2017/2020 (i) That the changes to the existing programme (Table 2 in the report) and the revised Capital Investment Programme (Table 5 in the report) for 2017/18 to 2019/2020 be approved; (ii) That the allocation of funds to additional schemes (Table 4 in the report) be agreed in principle, subject to full business cases for each scheme; Page 1 (iii) That the Chief Finance Officer provide regular updates on the funding sources proposed for the Capital Investment Programme and the affordability of the programme; and (iv) That all additional schemes (Table 4 in the report) submit a business case for consideration by Strategic Planning and Capital Monitoring Panel, prior to full approval by Executive Cabinet.

Vision Tameside Phase 2 Progress Update (v) That the progress with the delivery of the overall Vision Tameside Phase 2 programme be noted; (vi) That the emerging risk associated with the delay in securing an appropriate funding package for the Streetscape Improvement project, be noted; (vii) That the budget variations and virements identified in Section 7 of the report, be approved; (viii) That the progress being made to drawdown the £4 million Skills Funding Agency Capital Funding, be noted.

Corporate Asset Management Plan Update (ix) That the list of disposals identified in Appendix 1 to the report be approved subject to further discussion on land at Staley Hill Drive; (x) That the capital scheme on Heginbottom Mill detailed in the section 3.1 of the report - £125,000, be approved; and (xi) That the capital schemes on corporate buildings detailed in Section 3.2 of the report - £13,873.69, be approved.

Engineering Capital Programme 2017/2018 (xii) The allocation of Highways Challenge Fund grant funding and the schemes detailed in Section 1.4, Table 1 of the report, be approved; (xiii) That the Engineering Maintenance Block Allocation, with specific reference to the Highways Structural Maintenance Programme for 2017/18 and the increased investment of £0.250 million to £3 million via the Transport Asset Management Plan, be approved and the planned profiled spend noted; and (xiv) That the Department for Transport Safer Roads Fund bid be noted and supported.

Financing Arrangements for Guardsman Tony Downes House (xv) The payment of £7.0 million to Greater Manchester Pension Fund, subject to the Fund agreeing: (a) To the payment of an annual rent with effect from the 1 January 2017 to the Council of £384,250 per annum, with upward annual reviews linked to RPI, plus service charges for the running of the building and for cyclical maintenance of plant and equipment; and (b) That in the event that the Fund vacates the building before the expiry of 25 years, it will pay the Council a sum equivalent to the total annual passing rent for the period beginning on the date of vacation of the building to the 25th anniversary of the date the Council ‘purchased’ the building (currently assumed to be 1 January 2043). (xvi) That the payment be financed from the earmarked reserve for Capital Investment; (xvii) That the building be taken on to the Council’s balance sheet; and (xviii) That a further report be requested on the proposed use of the ground floor of Guardsman Tony Downes House and the associated financial implications.

(c) Single Commissioning Board

Consideration was given to the Minutes of the meeting of the Single Commissioning Board held on 29 September 2017.

Page 2 RESOLVED That the Minutes of the meeting of the Single Commissioning Board held on 29 September 2017 be received.

(d) Carbon and Waste Reduction Panel

Consideration was given to the Minutes of the meeting of the Carbon and Waste Reduction Panel held on 7 September 2017.

RESOLVED That the Minutes of the meeting of the Carbon and Waste Reduction Panel held on 7 September 2017 be received.

27. REGIONAL ADOPTION AGENCY

Consideration was given to a report of the First Deputy (Performance and Finance)/Assistant Director (People and Workforce Development) seeking endorsement for Tameside Council to become a formal and constituent member of the Adoption NoW Regional Adoption Agency (Regional Adoption Agency) with effect from 6 November 2017, resulting in Adoption NoW becoming responsible for the delivery of the Council’s statutory obligations with regard to adoption services. It was explained that Adoption NoW was a partnership arrangement between Tameside, Bolton, Rochdale, Oldham, Bury and Blackburn Councils along with Caritas Care and Adoption Matters, and was in line with the Government’s Education and Adoption Act 2016 which required local authority adoption services to regionalise by 2020, with planning to have started by 2017.

By way of background, it was explained that in January 2013 the Coalition Government outlined a vision of a new adoption system where there were fewer organisations recruiting and assessing adopters with most of these organisations operating at a much greater scale. The Education and Adoption Act 2016 required local authority adoption services to regionalise where they were not making voluntary plans to do so by 2020, with the expectation that planning was to have started by 2017, with entry into a regional adoption agency being completed by 2020.

This resulted in a partnership emerging now branded as the Adoption NoW Regional Adoption Agency and a successful bid was submitted, with funding provided by the DfE totalling £390,000 to promote the development of the Regional Adoption Agency, devolved over a two year period. This was set up funding only and would cease at the point that the Regional Adoption Agency became operational.

Development work had been on-going by the Adoption NoW Regional Adoption Agency Board members to design the overall vision, aims and principles for the Regional Adoption Agency arrangement, with Bolton Council being determined as Host for the arrangements. More recent developments had produced a Hub and Spoke preferred delivery operating model, with the proposal that existing staff across the six local authority adoption teams be placed in the Regional Adoption Agency through a secondment arrangement.

The initial two years of the Regional Adoption Agency arrangement would focus on improving quality and as such there would be no intention to achieve savings from the formation of the Regional Adoption Agency, with each local authority committing to maintain staffing levels and operational budgets during this period of time.

The future governance arrangements proposed were a Regional Adoption Agency Steering Committee being established to oversee and monitor the development and progress of the Regional Adoption Agency. The Steering Committee would comprise of one representative from each Voluntary Adoption Agency (Caritas Care and Adoption Matters) and the Lead Member for Children’s Services from each Local Authority (or their designated deputy). The Steering

Page 3 Committee would meet quarterly and the Regional Adoption Agency Board would provide progress reports to the Committee on all aspects of the Regional Adoption Agency.

A legal agreement had been developed which the Council would be expected to sign up to on an individual basis, should it agree to the Regional Adoption Agency proposals, setting out the arrangements for the provision of Tameside Council adoption services in the Regional Adoption Agency.

Ofsted’s position was that it would not be inspecting Regional Adoption Agencies in their own right and that adoption services would continue to be inspected through the eyes of each local authority.

Staff consultation had commenced on 25 July 2017 with council staff affected by the Regional Adoption Agency arrangements. The consultation period was due to close mid October 2017. The main issues identified to date during staff consultation at a local level covered the areas of increased travelling costs, car parking and pay parity. Responses had been provided to staff.

It was proposed that the Regional Adoption Agency would ‘Go Live’ with effect from Monday 6 November 2017, on an initial two year basis, with annual reviews of both the Regional Adoption Agency outcomes and the secondment arrangements taking place.

RESOLVED: (i) That approval be given to Tameside Council becoming a formal and constituent member of the Adoption NoW Regional Adoption Agency (Regional Adoption Agency) with effect from 6 November 2017 and that affected staff be supported to second into the Regional Adoption Agency. Executive Members acknowledged the additional financial implications for the Council by endorsing such arrangement. (ii) That a programme of review against progress be agreed and presented to Executive Board members to ensure the Adoption NoW Regional Adoption Agency partnership arrangement remained fit for purpose for Tameside Council families, children and adopters.

28 NOTIFICATION OF CQC RATING FOR LEARNING DISABILITY SERVICE

Consideration was given to a report of the Executive Member (Adult Social Care and Wellbeing) / Assistant Director (Adult Services), which reflected on the recently published Care Quality Commission rating for the Learning Disability Service (Supported Accommodation) following the inspection in July 2017. Members were informed that there had been very positive feedback and examples given in the Care Quality Commission inspection report, attached as Appendix 1 to the report, regarding the care and support provided by and to staff.

The service had received an overall rating of ‘Good’ with one domain, ‘Responsive’, being rated as ‘Outstanding’. The Executive Cabinet was pleased that the hard work and focus on providing person-centred services to deliver great outcomes for people with learning disabilities had been recognised and acknowledged in the inspection findings.

RESOLVED: That the recent Care Quality Commission ‘Good’ rating for the Learning Disability Service (Supported Accommodation) be noted.

29. GUIDE TO EMPOWERING COMMUNITIES – CHRISTMAS 2017

Consideration was given to a report of the Deputy Leader and the Assistant Director (Stronger Communities) explaining that all Christmas events, apart from the Tameside lantern parade celebration, would be organised either by a local community group, town team or town council.

Page 4 In order to support organisers, meetings had been set up to support them going through the process of setup up a Christmas event and ensuring that an event notification form was submitted to the Council and all local organisers had identified an event manager. This person and other key local representatives had been in conversation with the Council appointed external event manager to ensure that they fully understood what was required of them.

The report set out the dates, initial plans and issues of what each local switch-on would entail as well as an overview of the annual corporate lantern parade.

It was noted that organising teams were now required to fully fund their own events through sponsorship or grant funding. The Executive Cabinet discussed that for parity across the borough, all Town Councils would make a contribution to the funding of the lighting and installation of the Christmas lights. It was requested that future reports on the planning of Christmas events be submitted for consideration earlier in the year and identification of any potential issues.

AGREED That the approach set out in the report be noted and agreed including the dates and plans which would remain in place and not be subject to further change.

CHAIR

Page 5 This page is intentionally left blank Agenda Item 3b

STRATEGIC PLANNING AND CAPITAL MONITORING PANEL

27 November 2017

Commenced: 2.00pm Terminated: 3.00pm

Present: Councillor K Quinn (Chair)

Councillors Cooney, Dickinson, J Fitzpatrick, B Holland, McNally and Taylor

Monitoring Officer: Sandra Stewart

Section 151/Chief Finance Kathy Roe Officer:

Also in attendance: Robin Monk – Director of Place Tom Wilkinson – Assistant Director of Finance Ian Saxon, Assistant Director (Environmental Services) Paul Moore - Head of Planning Ade Alao - Head of Investment and Development Paul Dulson – Head of Adult Assessment and Care Management Dave Wilson – Team Manager – Joint Commissioning and Performance Management

Apologies for absence: Councillor Fairfoull

22. DECLARATIONS OF INTEREST

Members Subject Matter Type of Interest Nature of Interest Councillor Taylor Agenda Item 12 - Prejudicial Chair of Active Tameside Review of Learning Disability Day Services – Oxford Park Development; and Agenda Item 13 – Leisure Assets Capital Investment Programme Update

23. MINUTES

The Minutes of the meeting of the Strategic Planning and Capital Monitoring Panel held on 9 October 2017 were signed by the Chair as a correct record.

24. CAPITAL MONITORING QUARTER 2 2017/2018

Consideration was given to a report of the First Deputy (Performance and Finance)/Assistant Executive Director (Finance) summarising the capital monitoring position at 30 September 2017. The report showed projected capital investment in 2017/2018 of £73.703 million by March 2018. This was £6.033 million less than the current capital budget for the year. Re-phasing of £5.494 million into the next financial year was therefore proposed.

Page 7 It was explained that the three year capital programme included earmarked schemes of over £16 million in 2017/2018 which had not yet been fully approved. If these schemes were delivered in 2017/18, then total capital investment in 2017/2018 would exceed £89 million.

Details of the capital expenditure to date were shown by service area and Section 3 of the report referred to the most significant scheme variations.

Reference was also made to capital receipts and prudential indicators and it was –

RESOLVED (i) That the re-phasing to reflect up-to-date investment profiles be approved; (ii) That the changes to the Capital Programme be approved; (iii) The updated Prudential indicator position be approved; (iv) That the current capital budget monitoring position be noted; (v) That the resources currently available to fund the capital programme be noted; (vi) That the updated capital receipts position is noted; and (vii) That the timescales for review of the council’s three year capital programme be noted.

25. VISION TAMESIDE PHASE 2 PROGRESS UPDATE

The Director of Place submitted a report providing a progress update on project delivery, costs and funding, delivery timescales and risks associated with the Vision Tameside Phase 2 Programme, which included the new Shared Service Centre and the Streetscape Improvement Project.

The Director introduced Sean Stafford, who was working with the Council in a consultancy capacity, to help deliver the Vision Tameside programme.

It was reported that, since the last report to the Strategic Planning and Capital Monitoring Panel on 10 July 2017, good progress had been made with key elements of the Programme as follows:  Demolition contract completed on 12 September 2016;  Enabling works for construction commenced on 13 September 2016;  Piling works commenced on 19 September 2016;  Construction contract awarded on 22 November 2016;  Steel beam signing ceremony had been held on 6 December 2016;  Construction of foundations complete;  Steel frame erection complete;  Metal decking complete;  Topping out ceremony on 21 June 2017; and  Upper floor slabs complete; and  Drainage and ground works complete.

It was noted, however, that there were new emerging risks associated with certain elements of the programme. Although not currently on the critical path, these emerging risks needed to be monitored closely to prevent delay with completion.

It was explained that, following the tragedy at Grenfell Tower on 14 June 2017, assurance had been sought from the LEP and Carillion that the specifications and method of installation of the proposed cladding material for the building did not pose unacceptable levels of fire risk. The Council had received confirmation from the designers and constructors that no ACM cladding material would be used in the building. As a third level of assurance, the Council had commissioned an independent technical review to confirm that the specifications, method of construction and overall fire strategy proposed for the building did not post unacceptable levels of fire risk. The report was expected to be received in the next few weeks and details of this would be reported to the next meeting of the Panel.

Page 8 The high level programme, previously reported, was currently reported by the Contractors as being on target and was detailed in the report. The contractor reported that the project remained on programme against the contract programme, however the current construction programme identified a six week delay with the curtain walling. A detailed review of the programme was underway and the contractor had been requested to provide a Recovery Plan to provide assurance that the overall project programme was not compromised by the delay in curtain walling works.

In respect of the streetscape improvement project, Member were informed that, at the last meeting of the Panel on 9 October 2017, it was reported that the council was awaiting the autumn statement funding announcement from government on National Productivity Investment Fund in order to determine if the full project could be delivered or whether there would be a requirement for de-scoping or consideration given to delivering the project in phases. The Department for Transport made their announcement on 19 October 2017 and the NPIF bid for Streetscape Improvement Project was unsuccessful in attracting funding.

Following the announcement, work had now commenced to progress the development of the project in line with the confirmed funding and additional funding would continue to be bid for as and when it became available. Based on the finances available the Vision Tameside Public Realm Task Group had considered various options detailed in the report and recommended the re- phasing and re-programming of works option (option 4 in the report), which entailed committing to prioritising works around the new VTP2 building, completion of Market Square, Wellington Road and outside Clarendon College which was affordable within the current funding. This would realistically take up to 2 years to complete which provided the opportunity to bid for additional funding for the works outside the new Tameside Transport Interchange and along the Ashton Northern bypass up to Penny Meadow.

It was noted that the recommendation to phase the delivery of the wider public realm works did not affect the programme to deliver works within the boundary of the new Shared Service Centre. These works were part of the Vision Tameside contract and would be delivered by the Council’s Environmental Services team to ensure consistency with the wider works as they were delivered. A further report would be provided at a future meeting with details of a recommended phasing plan.

With regard to the recant plan, a detailed Vision Tameside Recant Plan was currently being developed to form part of a wider Council Office Accommodation Strategy which would be implemented when the new Shared Service Centre was completed in summer 2018. The aim was to have a final fully costed Recant Plan available by January 2018 and a comprehensive communication plan for staff would be implemented from January 2018.

It was reported that partnership work continued between Carillion and the Council’s Employment and Skills team to maximise opportunities for local employment, apprenticeships, work placements and local supply chains. A summary of the outputs achieved to date was provided in the report.

An analysis of furniture, fittings and equipment for all elements of the scheme, was completed as part of the Stage 2 submission. The original £1.5 million budget for the Council and partners had been confirmed to be sufficient at Stage 2. The last report to the Strategic Planning and Capital Monitoring Panel on 13 March 2017, highlighted that the projected FF&E contribution from the DWP and CCG, was anticipated to be £432,000. However due to negotiations still underway with NHS Property Services, acting on behalf of the CCG, and recent design changes requested by the DWP, this contribution was under review.

In respect of Variation Notices and impact on Contingency Budget, it was explained that the programme currently had a contingency allowance of £639,711.

In terms of risk management, it was explained that the Vision Tameside Phase 2 programme had a comprehensive risk register and issues log which was pro-actively managed by the Project team. The primary risks associated with the proposals outlined in the report were detailed. The new

Page 9 emerging risk associated with the construction programme had been added and would continue to be monitored closely.

In conclusion it was reported that, delivery of the Vision Tameside Phase 2 programme was key to the achievement of the Council’s overall strategic priorities and a new exciting future for Tameside attracting new businesses, creating new jobs and future opportunities for Tameside residents.

It was important that the one outstanding agreement for lease negotiations was completed urgently to provide certainty around projected income and FF&E contributions.

Careful monitoring of the construction programme was required to ensure no further slippage thereby ensuring that the building could be open for business in September 2018.

Budget monitoring was critical to the successful delivery of this project to ensure costs were contained within the budget envelope. It was essential that the Reviewable Design Data process previously approved, continued to be reviewed, as a matter of urgency, to ensure project remained on time and budget.

Improvement to the public realm was critical to the success of the Vision Tameside programme and following TfGM’s funding announcement on the 1 October 2017 it was important that project development was progressed based on a phased approach to delivery and that funding opportunities continued to be accessed as they became available.

Following completion of the floor plan review, the work to develop a detailed Recant Plan could be progressed. Proposals would be the subject of a future report which was to be considered expediently.

Continuing to maximise opportunities for local employment, apprenticeships and work placements was contributing to economic prosperity in the Borough.

Members raised concerns with regard to the level of financial risk identified in the report as status Red, and sought assurances of the measures in place in respect of the emerging risk associated with the construction programme and the recovery plan to minimise the risk of project delay.

Mr Stafford explained that the a detailed review of the contractor was underway and the contractor had been requested to provide a Recovery Plan to give assurance that the overall project programme was not compromised by the delay.

The risk ratings were challenged by the First Deputy (Finance and Performance) and the Director of Place agreed misleading and needed to be clarified.

RESOLVED That the following RECOMMENDATIONS be made to Executive Cabinet: (i) That the progress with the delivery of the overall Vision Tameside Phase 2 programme, be noted; (ii) That the emerging risk associated with the delay in the installation of the curtain walling, as set out in the report, be noted, however this must be closely monitored to ensure that the overall project programme was not compromised by the delay; (iii) That the outcome of the recent National productivity Investment Fund (NPIF) announcement, which had an impact on the Streetscape Improvement project, as set out in the report, be noted; (iv) That the budget variations and virements identified in Section 7 of the report, be approved; and (v) That progress being made to drawdown the £4 million Skills Funding Agency Capital Funding, be noted. (vi) That a further report be received from the Director of Place on the recant plan as a matter of urgency so clarity could be provided about service delivery going forward. Page 10 26. CORPORATE ASSET MANGEMENT PLAN UPDATE

The Director of Place submitted a report updating Members of the Panel with progress on the disposal of the Council’s surplus assets, anticipated capital receipts that would be realised and investment that was required to maintain those buildings being occupied and retained or dilapidations arising from the termination of leases.

With regard to the disposal strategy, it was reported that in the financial year 2016/17 the total sales achieved amounted to £3,929,550. The Asset disposal process continued with a sum of £1,029,476 achieved since 1 April 2017.

A public consultation exercise for the disposal of the five larger school sites had been completed and terms were agreed subject to contract for the sale of the former Samuel Laycock site completion of which was to coincide with the grant of planning which was expected before the end of the year. An outline planning application had been submitted and approved for the former Mossley Hollins school site and Section 77 consultations were nearing an end in respect of the former Two Trees School. Planning applications for Two Trees and Hartshead schools had been submitted and were awaiting approval. The master planning for the Windsor Road site in Denton was now almost complete.

Continued focus was being placed on future Auctions with work ongoing for a number of sites to be potentially sold at future Auctions.

Properties being actively marketed for sale or lease would be advertised on the council’s website, in addition to the marketing agents’ websites. Where potential disposals would impact on tenants, for example sale of garage or garden plots, which had become too expensive to administer, written notification would be given to tenants in advance for the proposed sale and the tenant would be given the opportunity to purchase.

With regard to leased buildings, as reported at previous meetings of the Panel, the Council’s policy was to terminate leases it had for buildings owned by others and to relocate services to surplus space in Council owned properties, where this delivered value for money, to reduce the revenue costs of operating and occupying buildings.

In respect of Investment in Civic and Corporate Buildings, it was reported that, at the meeting of the Panel on 9 October 2017, it was agreed that the sum of £3,000 would be allocated over 3 years for the purpose of Property Assets Statutory Compliance. This money would be used to ensure the property assets complied with all statutory building compliance issues, e.g. fire regulations, asbestos management, electrical checks etc. Money spent on these requirements would be summarised and reported to the Panel on a regular basis.

It was further reported that, during August and September 2017 a total of £25,730 capital monies was spent on a range of statutory and regulatory building improvements, this included remedial works from fire risk assessments and the replacement of unsafe infrastructures.

As requested at the last meeting of the Panel, the Director of Place explained that the list of properties identified for disposal at Appendix 1 to the report, was as of 5 September 2016, but not yet complete at 27 October 2017. It was noted that the list only included property above the value of £50,000.

A list of completed sales since 1 April 2017 was also appended to the report.

Further to a query from Members, the Director of Place agreed to forward a list of all property identified for disposal, including those valued below £50,000, to Members of the Panel as it was agreed that there needed to be complete transparency.

Page 11 RESOLVED That the following RECOMMENDATIONS be made to Executive Cabinet that: (i) The list of disposals identified in Appendix 1 to the report be approved; and (ii) The capital schemes on corporate buildings detailed in section 3.1 of the report, totalling £25,730.58 be approved. This would be funded from the earmarked resource of £3 million for Property Assets Statutory Compliance works. (iii) The Director of Place provide all members of the Panel with a complete list of all property identified for disposal, including those valued below £50,000.

27. EDUCATION CAPITAL PROGRAMME UPDATE

Consideration was given to a report of the Director of Place, advising Members of the Panel on the latest position with the Council’s Education Capital Programme 2017/18 and sought approval for various recommendations as set out in the report.

The report gave details of:  Funding allocation;  Basic Need Schemes progress update;  School Condition Funding Scheme Proposals, including request for additional funding allocations/amendments;  Procurement and value added; and  Risk Management.

The report concluded that there had been significant capital investment in schools over the recent past to support the Council’s delivery of its statutory responsibilities connected with the provision of sufficient and suitable places. The work identified would enable the Council to meet its statutory duties.

RESOLVED That the following RECOMMENDATIONS be made to Executive Cabinet: (i) That the allocation of Basic Need grant funding schemes as outlined in Section 3 and Appendix 1 be approved; (ii) The allocation of School Condition grant funding schemes as outlined in Section 4 and Appendix 2 and 3; and (iii) The establishment of an Education Capital Programme Working Group be noted, to ensure the programme was delivered effectively in line with Council priorities.

28. SECTION 106 AGREEMENTS AND DEVELOPER CONTRIBUTIONS

Consideration was given to a report of the Director of Place, summarising the current position with regard to receipts received from Section 106 Agreements and Developer Contributions, and made comments for each service area. New Agreements made and requests to draw down funding were also detailed.

It was reported that the summary position as at 31 August 2017 for Section 106 Agreements totalled £483,000, with Developer Contributions totalling £295,000, less approved allocations of £117,000 leaving a balance of £178,000. The balance of unallocated section 106 funds and developer contributions were as follows:-

 Services for Children and Young People - £242,000 (s106) and £80,000 developer contributions;  Community Services (Operations and Greenspace) - £210,000 (s106) and £75,000 developer contributions; and  Engineering Services - £31,000 (s106) and £23,000 developer contributions.

Page 12 It was reported that no new Section 106 Legal Agreements had been entered into since 20 February 2017, although there were a number of resolutions to grant planning permission subject to agreements being entered into. These would be reported to a future meeting of the Strategic Planning and Capital Monitoring Panel.

No new requests to draw down funding had been made since the previous report to the Panel, as follows.

Members were informed that, in 2016, a review was undertaken of Planning Obligations within the Development Management Service. The final report was published in April 2017 and key issues were reported to a previous meeting of the Panel.

Previous reports to the Panel had provided an update on the work that had been taking place since this audit report was published including the recent appointment of a new officer to undertake a piece of work over the course of the next 12 months to monitor and review historic legal agreements and Development Contributions. This work had now commenced, with the officer having held initial meetings with legal and finance to assist in pulling together information and records from the different service areas to allow a review of those historic S106 agreements in the system to commence.

RESOLVED That the content of the report be noted.

29. ENGINEERING CAPITAL PROGRAMME 2017/18

The Director Place, submitted a report updating Members on a successful award of additional Cycle City Ambition Grant 2 (CCAG2) capital grants totalling £0.255 million; additional information for Safer Roads Fund bid, a joint bid with Oldham MBC and details of proposed profiled spend of capital allocation for Flooding – Prevention and Repairs.

RESOLVED That the following RECOMMENDATIONS be made to Executive Cabinet: (i) The allocation of CCAG2 grant funding and the schemes detailed in Section 1.5, Table 1 of the report, be approved; (ii) That the additional information contained with the report regarding Safer Roads Fund bid, a joint bid with Oldham MBC, be noted; and (iii) That the allocation of capital expenditure for Flood repairs with the revised spend for 2107/18, as detailed in Section 5.4, Table 2, be approved.

30. INVESTING IN CHILDREN’S PLAYGROUNDS

Consideration was given to a report of the Assistant Director, Operations and Neighbourhoods explaining that there were 35 Council owned playgrounds within Tameside. They were very well used and an important asset for the community. They had not had significant capital investment for almost 10 years so were now in need of an injection of capital funding to renew play equipment and safety surfacing. This would improve the play offer to Tameside’s younger residents as well as reducing the risk to the Council of personal injury claims due to accidents on poor quality play equipment.

Members were informed that the funding request was for £600,000, which would be spent across playgrounds in Tameside. Officers were currently undertaking an audit of all playgrounds within Tameside and the results of this audit would inform how the funding was spent.

The funding would be profiled over two financial years – 2018/19 and 2019/2020. Officers would need to programme the playground works carefully to ensure that playgrounds are open during the Page 13 school holidays. The funding would only be spent on children’s playgrounds, it would not be used for Multi Use Games Areas (MUGAs) or outdoor gym equipment. The £600,000 would ensure that playgrounds were at a good safe standard however further capital investment would be required in the future.

The replacement of play equipment, particularly if it was on a like for like basis, was popular with most residents. The public recognised the importance of playgrounds and were keen to see the Council invest in facilities for young residents.

Once the audits of playgrounds had taken place and costs received for work, officers would consult with Ward Members on the work planned for playgrounds within their area. Following consultation with Members, officers would notify residents of planned work to the playground by displaying posters around the playgrounds illustrating the work to be done and planned timescales for the work.

A report would be brought to the next meeting of the Panel setting out the proposed works and associated costs to be spent on each play area based on the audit currently being undertaken.

RESOLVED That the following RECOMMENDATIONS be made to Executive Cabinet: (i) That £600,000 capital funding be allocated for improvements to children’s playgrounds across Tameside Council; and (ii) That a report be submitted to the next meeting of the Panel setting out the proposed works and associated costs to be spent on each area based on the audit currently being undertaken.

31. 4C COMMUNITY CENTRE ASHTON – CAPITAL INVESTMENT PROGRAMME

A report of the Assistant Director, Adults, was submitted a report providing an overview of the developments and plans in relation to the delivery of the new community development in Ashton, working in partnership with Christ Church Community Developments Charitable Organisation (CCCD). The £150,000 investment programme would provide a high quality community facility in the centre of Ashton.

It was explained that Christ Church Community Developments was an experienced innovative and successful organisation who had much experience in attracting external funding. It had already been successful in securing a significant amount of funding to reach the position it was currently in.

Match funding negotiations had been ongoing with a number of funders, the primary one being the ASDA Foundation for £30,000. ASDA had also confirmed a donation of up to £5,000 worth to internal equipment. Plans were well underway to attract the remaining £20,000 required for the match funding, through a number of smaller grant applications. Support was also being provided by an organisation called Gifted Philanthropy to assist with the remaining match funding requirements.

The £150,000 capital investment programme was comprised of a number of individual elements to complete the build and these were detailed in the report.

The primary risks associated with the 4C Community Centre were also set out in the report.

Discussion ensued with regard to the proposed investment and Members raised concerns with regard to the lack of detail in the report and the absence of a clear business case.

The Chair made reference to the Council’s Community Loans Policy currently being developed and requested that a clear business case be submitted to a future meeting, which included how the proposals would link to this policy. Page 14 RESOLVED (i) That the content of the report be noted; and (ii) That a further report be submitted to the Strategic Planning and Capital Monitoring Panel, setting out a clear business case for the investment programme and explaining how the proposals would link with the Council’s Community Loans Policy.

Having declared a prejudicial interest, Councillor Taylor left the meeting during consideration of the following two items and paid no part in the voting or decisions thereon.

32. REVIEW OF LEARNING DISABILITY DAY SERVICES – OXFORD PARK DEVELOPMENT

The Head of Operations, Adult Services, submitted a report explaining that the Learning Disability and Autism internally provided day services had been significantly reduced since 2012 as a result of budget reductions. The review was undertaken in response to further savings being set against this area of operations.

The report reviewed current internal and external day service capacity and current and future demand and identified that, due to current lack of capacity to meet current and future predicted demand for day services that closure of any further day services would result in a lack of capacity to meet assessed need and would have a potential impact in terms of higher costs of provision having to be purchased from specialist providers out of area.

The report proposed capital investment in a new disability centre at Oxford Park Ashton. This centre would increase current day service capacity as well as providing services for looked after children, children with disabilities and as an alternative post 16 further education site reducing out of area placements. The centre and site would be utilised to expand the internship programme assisting 16-24 year olds into employment and could be utilised for a range of other early intervention and prevention services focused on promoting good health. It was envisaged that through collaborative working that significant financial and non-financial savings and benefits could be achieved across the sector through the development of this scheme.

It was concluded that due to current and future predicted demand that it would be unwise to close a day centre base as this would result in possible increased cost in future to meet demand and assessed needs. The report highlighted the developmental proposal of Oxford Park as a means of meeting current and future demand of children, young people and adults who had learning disabilities and autism as well as providing a base to assist with the provision of services to other vulnerable groups such as looked after children and hard to reach young people as well as providing a resource for post 16 further education and independent living opportunities. The scheme would also fit with the upcoming Employment Review and would link in this work with the Oxford Park offer and other provider offers to increase pre-employment training, qualifications and placements.

Following a review of the available options the recommendation was to seek capital investment to develop the Oxford Park site to become a disability service base for children, young people and adults, and to review internal day service packages to establish if individuals currently using internal services could move into services provided by the sector releasing capacity for more complex individuals. Both financial and non-financial efficiencies and benefits would be realised across partner agencies with cost avoidance return on investment being realised within three years of the scheme opening.

Discussion ensued with regard to the above and the need to ensure that the project was deliverable and would not adversely impact Active Tameside’s revenue generating activities, as this may affect the contribution sought from the Council through the leisure management contract.

Page 15 RESOLVED That the following RECOMMENDATION be made to Executive Cabinet:

That capital investment of £0.455 million to fund the development of the Oxford Park site be approved, subject to agreement being reached with Active Tameside to ensure that the project, as described, is deliverable and will not adversely impact Active Tameside’s revenue generating activities as this may affect the contribution sought from the Council through the leisure management contract. The Council should record and monitor the costs avoided through the development to ensure that best value can be shown and the assumptions upon which the decision was based were correct.

33. LEISURE ASSETS CAPITAL INVESTMENT PROGRAMME UPDATE

[Cllr Taylor left the meeting when this item was discussed]

A report was submitted by the Director of Place, providing a summary of progress to date with the delivery of the Council’s capital investment programme into improving sports and leisure facilities in Tameside.

Individual elements of the programme were highlighted in the report as follows:  Active Copley Heating Replacement (£0.369m)  Active Copley Pitch Replacement (£0.177m)  Active Medlock Roof Replacement (£0.120m)  Active Hyde Wave Machine Replacement (£0.060m)  Active Hyde Pool Extension (£3.096m)  New Denton Wellness Centre (£14.724m)  Active Dukinfield (ITRAIN) (£2.3m)  Active Longdendale (Total Adrenaline) (£0.6m)

It was reported that overall, good progress was being maintained with the delivery of the Council’s capital investment programme to improve sports and leisure facilities.

RESOLVED That the content of the report be noted.

CHAIR

Page 16 Agenda Item 3c

ENFORCEMENT CO-ORDINATION PANEL

25 October 2017

Commenced: 10.30 am Terminated: 11.25 am

Present: Councillors S Quinn (Chair), Bowerman, D Lane, Taylor and Ward

In Attendance: Peter McCaughley Principal Solicitor General Law Sharon Smith Head of Environmental Services (Public Protection) Tracy Gallimore Environmental Services Manager Kevin Garside Integrated Neighbourhood Services Manager, North Tameside John Gregory Licensing Manager - Environmental Services (Public Protection) Mark Hobson Senior Enforcement Officer (Planning) Mike Pavasovic Marketing and Communications Officer

Apologies for Absence: Councillors Robinson and Sweeton

8. DECLARATIONS OF INTEREST

There were no declarations of interest.

9. MINUTES

The Minutes of the previous meeting of the Enforcement Co-ordination Panel held on 26 July 2017 were approved as a correct record.

10. ENFORCEMENT ACTIVITY a) Planning and Building Control

The Assistant Director of Environmental Services submitted a report, which provided an update on planning enforcement activity for the period July to September 2017.

The Senior Enforcement Officer (Planning) reported that during the second quarter there had been 77 complaints received alleging a breach of planning and building control, of which 53 were found to be proven breaches. This represented a level of crime of 68.8% meaning that more than two thirds of the complaints received required further investigation and possibly further action. The level of crime had decreased slightly from the first quarter of the year, which was at 74.1% and the number of complaints received had increased by 23.

During the reporting period, four formal notices were issued, three Planning Contravention Notices and one Section 215 Untidy Land Notice. Enforcement action carried out at a vacant residential property in Dukinfield was outlined and it was confirmed that the contactors costs had been recharged to the owner.

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Reference was made to Appendix 1 containing details of the current enforcement activity and where formal notice had been served and cases recently concluded.

RESOLVED That the content of the report be noted.

b) Environmental Services

The Assistant Director of Environmental Services submitted a report summarising the key enforcement activities undertaken by the Environmental Enforcement team during the period 1 July to 30 September 2017.

The Head of Environmental Services (Public Protection) began by giving a statistical summary of the business compliant unit over the quarter. 248 inspections had been carried out, 178 food hygiene assessments and 19 re-visits. One Food Hygiene Improvement Notice had been served and 20 enforcement notices had been issued around noise, receptacles, pest / vermin and boarding premises.

Members were notified that Officers had taken part in a number of Joint Enforcement Team operations resulting in one arrest and a large amount of illicit cigarettes and tobacco, nitrous oxide canisters and canister holders were seized from an off licence. A review of the premises licence was considered at a meeting of the Speakers Panel (Liquor Licensing) where it was determined that the licence be revoked.

It was reported that Environmental Services Officers had worked as part of a multi-agency team on a Modern Day Slavery week of action. Businesses were visited and inspected for issues surrounding modern day slavery and they discovered that parts of an industrial estate had been converted into residential accommodation, which was occupied by a family of five and a man was living in the boiler room. In addition, car wash establishments were visited across the borough and it was discovered that illegal immigrants were working there, some living in poor, squalid conditions on site.

It was further reported that Officers had dealt with complaints from concerned relatives of elderly people who had been targeted by rogue doorstep traders and a cockroach infestation at a convenience store. Officers had worked with a local food company to recall a product due to incorrect allergen labels and had dealt with an Animal Welfare breach under the Animal Welfare Act 2006.

With regard to environmental protection issues, two separate complaints had been received about dogs barking and noise monitoring equipment was installed in both properties to gather evidence resulting in noise abatement notices being served on the owners of the dogs. A vacant property had been secured following information provided by Greater Manchester Police and Neighbourhood Services and two abatement notices had been served for loud music at a residential property and a public house.

In relation to Licensing matters, Greater Manchester Police had submitted a review application of a Premises Licence following a series of violent incidents at a public house, which was scheduled for 31 October 2017. A convenience store had its premises licence revoked and there had been three immediate revocations of private hire and hackney carriage drivers licences.

RESOLVED That the content of the report be noted.

c) Engineering Services

The Assistant Director of Environmental Services submitted a report, which provided information on

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enforcement activities relating to abandoned vehicles, skips, scaffolding, pay and display car parks, on-street parking, bus lane enforcement, utility works and banners. The Head of Environmental Services (Public Protection) informed the Panel that despite communication messages the number of abandoned vehicles continued to increase, with 283 vehicles reported during the quarter. This was mainly due to tax discs no longer having to be displayed in vehicles. The number of scaffolding and skip permits continued to be high with 84 scaffolding permits issued and 364 skip permits issued. The continued rise was attributed to revised processes and monitoring and an increase in enforcement action around illegal scaffolding and skips.

Statistical information was given with regard to Penalty Charge Notices issued in Pay and Display Car Parks and On-Street Car Parking, both of which had remained constant in all areas. Members were informed that the number of vehicles driving in bus lanes continued to decrease.

With regard to new roads and street works activities, it was reported that the number of utility openings had decreased to 903, compared to 1424 in the previous quarter. There were 35 defects and 6 overstays during the quarter. There had been a decrease in the number of banner permits issued and an increase in the number of illegal banners.

RESOLVED That the content of the report be noted.

d) Neighbourhood Services

The Assistant Director of Environmental Services submitted a report, which provided an overview of the activities of Neighbourhood Services throughout the period 1 July to 30 September 2017.

The Integrated Neighbourhood Services Manager reported that during the quarter the CCTV control room had monitored 494 incidents. The report set out the type and number of incidents with the highest categories being incidents of violence, anti-social behaviour, driving offences and missing from home. Examples of collaborative work between the CCTV unit and Greater Manchester Police were provided, which had resulted in two offenders being apprehended. In addition, CCTV operators had assisted with protecting vulnerable residents with 53 missing from home incidents and 12 reports of suicidal people.

Members were provided with details of incidents of anti-social behaviour. There had been 54 reported incidents during the quarter, which was not representative of the true picture due to a lack of official reporting by residents. A recent campaign outlining the importance of reporting incidents had recently been undertaken. A table showing the number of anti-social behaviour incidents by Ward was detailed in the report.

There had been a recent rise in the number of anti-social behaviour incidents occurring in Tameside’s town centres. In response, a partnership operation to deter anti-social behaviour had recently commenced and staff numbers working in the CCTV control room had been doubled on Friday and Saturday evenings. Members were invited to visit the CCTV control room to observe the work undertaken by the team.

With regards to loan sharking, Neighbourhood Services Officers had been successful in securing two bids of £5,000, which had been used to raise awareness in vulnerable communities of unlicensed money lenders. This had taken the form of two artwork projects, education to an over 55s group and the commission of a film involving year 9 pupils from Copley Academy. Officers also made residents aware of how to access secure loans through recognised organisations.

RESOLVED That the content of the report be noted.

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e) Waste Services

The Assistant Director of Environmental Services submitted a report, which provided an update on the implementation of the Council’s new Waste Policy and Enforcement Strategy.

It was reported that the second Waste App was under development, which would allow the subjects of high level contact, i.e. fly tipping, littering and dog fouling etc., from service users, to be reported using the app on a smart phone. The Digital by Design team were looking at delivering the ‘Tell Tameside’ App by the end of 2017. The in-cab app was fully operational and proving to be very effective.

Members were informed that the number of complaints continued to decrease with a graph detailing the downtrend since November 2016 shown in the report. Based on 1 million collections per month, the percentage of complaints to service contact was extremely low (0.0021%).

With regard to fly-tipping, the new waste enforcement vehicle, which had been in operation since October 2016, had resulted in the issuing of 728 fixed penalty notices. During the quarter, July – September 2017, 89 fixed penalty notices had been issued for littering offences and the team had responded to over 300 fly-tipping issues.

It was reported that CCTV cameras had been located at hotspot sites around the borough and would be rotated over the next 12 months. Larger capacity memory cards had been purchased that had enabled the cameras to stay longer in each location to catch fly-tippers.

Members were notified that a revised Days of Action calendar had been produced for 2017/18, detailing all days that had been held during the year to cover the full range of enforcement activities (littering, dog fouling, fly-tipping, blue badges, parking, smoking and taxi licensing). This work involved staff from across various service areas and a number of partners. The team were currently finalising a Day of Action for duty of care visits at businesses across Tameside to ensure that business waste was being correctly disposed.

In relation to bin collections, a graph detailing the increase in blue bin tonnage since a two weekly collection was introduced was shown and explained to the Panel. To date, there had been a 4.44% increase in paper and cardboard recycling compared to 2015/16 data. The overall recycling rate for September was 59% and it was anticipated that recycling rates would be 60% for 2017-18, making Tameside one of the top recyclers in Greater Manchester. Waste Services had promoted Recycling Week at Ashton Market on 24 October 2017.

RESOLVED That the content of the report be noted.

11. 2017 REVIEW OF THE RIPA POLICY AND PROCEDURE

The Head of Legal Services submitted a report explaining that the Council was required to review its policy in relation to surveillance and ensure all officers engaged in investigatory work understood the requirements of the Regulation of Investigatory Powers Act 2000 (RIPA).

It was reported that the Office of Surveillance Commissioners had carried out their three yearly inspection in November 2015 where the Council’s performance was rated as ‘good’. They had made one recommendation as follows:-

‘The Council Policy document should contain more practical advice for applicants and authorising officers and advice regarding the use of social networking sites and the internet by Council employees for Council business to fully explain how such use might meet the criteria for authorisation as a covert human intelligence source or as directed surveillance.’

Page 20

The Council’s policy had been amended following the inspection and the revised document was appended to the report and considered by the Panel. The need for ongoing training on the practical application of RIPA was highlighted by the inspection in addition to the Council’s policy and guidance regime being of a good standard and also appropriate. Of significant importance was training and vigilance around social networking sites and the internet and Officers were keeping under review how investigations were carried out and that they complied with the requirements around surveillance.

It was reported that Legal Services were currently engaged in specific training for social workers, scheduled to take place on 27 November 2017. It was noted that there had been no requests for authorisation to use powers under RIPA since 2013.

RESOLVED (i) That the agreed Policy attached at Appendix 1 be noted; and (ii) That a corporate programme of refresher training in relation to the Regulation of Investigatory Powers legislation and guidance led by the Director of Governance and Pensions continues.

12. DATES OF FUTURE MEETINGS

RESOLVED: That the dates of future meetings of the Enforcement Co-ordination Panel be held as follows, commencing at 10.30am:-

24 January 2018 28 March 2018

13. URGENT ITEMS

There were no urgent items.

Page 21 This page is intentionally left blank Agenda Item 3d

CARBON AND WASTE REDUCTION PANEL

30 November 2017

Commenced: 10.00 am Terminated: 11.50 am Present: Councillors Kinsey (Chair), Cooper, Feeley, B Holland, Mills, Pearce and Taylor

In Attendance: Ian Saxon Assistant Director of Environmental Services Alan Jackson Head of Highways and Transport Alison Lloyd-Walsh Head of Environmental Development Garry Parker Head of Waste Management Gary Mongan Environmental Services Manager Danielle Bamford Project Support Officer Christina Morton Environmental Development Officer

Apologies for Absence: Councillors Patrick and Peet

16. DECLARATIONS OF INTEREST

There were no declarations of interest.

17. MINUTES

The Minutes of the proceedings of the Carbon and Waste Reduction Panel held on 7 September 2017 were agreed and signed by the Chair as a correct record.

18. GREATER MANCHESTER PROJECTS OVERVIEW

The Head of Environmental Development gave a presentation on the Greater Manchester Low Carbon Programme.

It was reported that Greater Manchester’s Climate Change Strategy was produced in 2011, which set out high level priorities to reduce carbon emissions, spur low carbon economic transition, adapt to climate change and encourage greater carbon literacy by 2020. An implementation plan was produced for 2012-2015 and an air quality strategy was produced by Transport for Greater Manchester in 2016. Following a consultation, a Climate Change and Low Emissions Implementation Plan was produced for 2016-2020, which incorporated the main air quality actions. The plan’s aims and objectives would be integrated into the development of the Greater Manchester Strategy and Greater Manchester Spatial Framework.

A number of projects and programmes were outlined including:-

 Heat Network Developments  NEDO – Smart Communities  Smart Systems and Heat – Energy System Catapult  Non Domestic Energy Efficiency  Greater Manchester Green Deal and ECO Framework

Page 23

 Clean Air Zone  Sustainable Consumption and Production – Green Growth Programme  Sector and Skills  Natural Climate – Climate Resilience, Greater Manchester Pioneer City and LIFE Integrated Project

The Panel were notified that the Greater Manchester Mayor would be holding a Green Summit, scheduled for 21 March 2018 at the Manchester Central Convention Centre.

RESOLVED: That the content of the presentation be noted.

19. LOCAL ENERGY ADVICE PROGRAMME UPDATE

The Environmental Development Officer updated the Panel on the Local Energy Advice Programme.

It was reported that since August 2017 65 referrals had been made into the scheme, 137 small measures had been installed including LED light bulbs, radiator panels and draught proofing, which had resulted in savings of approximately £2,000 for Tameside residents. 18 households had been referred on for larger measures such as cavity wall / loft installation or a new boiler and 4 households had new heating controls fitted. Residents had also been assisted with switching tariff and income maximisation via the scheme.

The Panel were informed that events had been held to publicise the scheme and details of the scheme had been placed on the Council’s website and social media. Leaflets had been distributed to partner organisations and Panel Members were provided with leaflets and posters.

The Environmental Development Officer was pleased to announce that the Greater Manchester Combined Authority had been successful in their bid for Warm Homes funding, which provided gas central heating systems. The funding was applicable to properties in the 25% most deprived areas across Tameside that had no heating system. The provider would be Cadent and Affordable Warmth Solutions with a value of £180 million over three years. It was anticipated that each area would have 40 gas central heating systems and 10 air source heating systems installed.

RESOLVED: That the information provided be noted.

20. CLEAN ENERGY SWITCH UPDATE

The Project Support Officer gave an update on the Greater Manchester Big Clean Energy Switch, which was an initiative that the Greater Manchester Combined Authority was working on to encourage residents and businesses in Greater Manchester to switch to clean energy.

It was reported that there had been four switches in Tameside and residents had saved in-between £110 to £531 per year. The average saving across Greater Manchester was over £300 per year. The process of switching was a quick and easy process and Panel Members were provided with a step-by-step guide of how to switch on-line.

Panel Members commented that not everyone had access to computers and it was confirmed that the service was available over the telephone in addition to the online form. Panel Members suggested that it would be beneficial to hold some events across the Borough to advertise the campaign and to display information in libraries.

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RESOLVED: That the information provided be noted.

21. AIR QUALITY UPDATE

The Environmental Services Manger provided an update on the government’s Air Quality Action Plan, Tameside’s Air Quality Steering Group and the National Clean Air Day.

With regards to the National Air Quality Plan, it was reported that the Plan had been published in July 2017 following a consultation. The plan contained a list of 38 authorities with one or more roads forecast to exceed nitrogen dioxide levels. Eight Greater Manchester Local Authorities were on the list including Tameside for a section of the A635 in Ashton-under-Lyne. All of the Greater Manchester Local Authorities were working together with Transport for Greater Manchester to develop a plan that did not require a chargeable clean air zone.

The Panel were notified that a Tameside Air Quality Steering Group had been created at senior management level comprising of representatives from planning, transport / highways, environmental health, public health and communications with input from climate change and carbon reduction programmes, sustainability strategies, low emission strategies, procurement policies and education. The group had met on two occasions and had developed a plan that was being actioned.

In relation to the National Clean Air Day, it was reported that the next event would be held on 21 June 2018. Transport for Greater Manchester had a budget of £80,000 to spend on all aspects of the campaign and Local Authorities had been asked to provide suggestions for an interactive and proactive approach within their Boroughs. Members were asked to feedback any suggestions they may have.

An elected member development session was being held at 6:00pm on Thursday 30 November 2017 on air quality.

RESOLVED: That the information provided be noted.

22. FLOODING

The Head of Highways and Transport gave a presentation on flood management. There were two main pieces of legislation for flood risk management – Flood and Water Management Act 2010 and Land Drainage Act 1991.

A map was shown to the Panel, which outlined the main river and ordinary watercourses in Tameside. Main rivers were the responsibility of the environment agency and the Local Authority was responsible for ordinary watercourses and groundwater flooding. The Local Authority had shared responsibility with the Highway Authority for highway surface water and surface water from other sources. Water supply companies had responsibility for water supply infrastructure and riparian owners (landowners with land adjoining, above or with a watercourse running though it) had certain rights and responsibilities.

It was reported that in the last 12 months there had been two significant flood events in Tameside. In November 2016 the impact of the flood was focused on the East of the borough with parts of Mossley, Stalybridge and Hollingworth affected. Three roads were closed, six flooding sites were recorded and 80 properties were affected. The cost of investigating and repairing the damage had been estimated at £300,000 with works to roads, footpaths, bridges and bridleways required.

In September 2017 the flood impacted 8 properties on Micklehurst Road, Mossley, footpaths and bridges were affected and a culvert collapsed causing flooding at properties and on the highway.

Page 25

The cost of investigating the damage caused had been estimated at £30,000 with works required to repair the culvert.

A series of photographs showing the impact of the flooding from the 2016 and 2017 events were shown to the Panel.

It was further reported that there were 48,000 gullies across the Borough and an average of 14,000 gully cleanses were undertaken each year. Main roads were cleaned on an annual basis and side roads were cleaned bi-annually.

RESOLVED: That the content of the presentation be noted.

23. CYCLING

The Assistant Director of Environmental Services gave a presentation on cycling initiatives across the Borough.

It was reported that in July 2017 Chris Boardman was appointed as the Greater Manchester Cycling and Walking Commissioner. Tameside Council had requested his assistance to raise the profile of cycling in Tameside and to sign off the Highways England Designated Funds Scheme.

In March 2017 Highways England invited proposals for cycle scheme bids linked to the strategic road network. Tameside bid for six schemes around the M67 and were awarded funding for four schemes with a value of £1.95 million. A three year programme of works had been developed covering scheme feasibility, design and construction.

A Project Steering Group had been established between Tameside MBC and Sustrans, who had 40 years of National Cycle Network development. The route options had been designed and would provide an alternative to using roads, which would be beneficial to new bike users.

A sequence of maps were shown and explained to the Panel, which detailed the proposed routes, as follows:-

1. Hyde town centre to Newton for Hyde Station 2. Mottram Rise Links and Harrop Edge Road 3. Mottram to Hollingworth Link 4. Hattersley roundabout to Mottram

The Panel were informed that in February 2017 Transport for Greater Manchester accepted a Tameside bid for £15,000 to improve cycle parking provision in three town centres. Denton, Hyde and Stalybridge were selected following consultation. It was confirmed that shelters and cycle stands had been procured and were awaiting installation in 2018.

It was explained that the Tameside Asset Management Plan – Improvement Programme, was an opportunity to install or improve cycling facilities during road resurfacing and re-lining works. A budget of £20 million had been secured for improvements to be made to roads and footways in- between 2017 and 2021. This equated to approximately 500 schemes. A procedure had been introduced whereby each scheme was assessed for the potential of adding or improving existing cycle facilities. To date, additional cycle facilities had been agreed for King Street, Dukinfield and Stockport Road, Denton

A detailed discussion ensued and Members commented that drivers needed to have increased awareness of cyclists and suggested that the Council work with schools to improve their cycle facilities. It was confirmed that Council employees who used large good vehicles had been trained

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in cycle awareness and the Council had worked with Droyslden Academy and were currently working with West Hill on cycling facilities and cycle routes to schools.

RESOLVED: That the content of the presentation be noted.

24. WASTE SERVICES UPDATE

The Head of Waste Management provided an update on waste services.

The Panel were informed that the current recycling rate for Tameside was 60%, which was the third highest rate across Greater Manchester, and 10% above the National target for recycling. 6.47 tonnes of fly-tipping had been collected, the Waste Twitter account had 2150 followers and complaints continued to be low, however, there was a spike in October due to red tags, which were introduced as a temporary measure due to the rejection of 14 recycling loads in ten days due to contamination. Communication would continue to be used to reinforce the message of using the correct bin to recycle waste.

With regard to the Waste PFI, it was confirmed that the contract with Viridor had terminated on 29 September 2017 and they would continue to provide a disposal service until 2019. A new contract was being written and a new supplier was being sought for April 2019.

Members enquired about businesses responsibilities towards recycling. It was confirmed that businesses had a legal duty to dispose of their waste and a series of clean up action days had been arranged concerning Duty of Care, the details of which would be shared with Members in due course.

RESOLVED: That the information provided be noted.

25. URGENT ITEMS

There were no urgent items.

CHAIR

Page 27 This page is intentionally left blank Agenda Item 3e

TAMESIDE AND GLOSSOP SINGLE COMMISSIONING BOARD

31 October 2017 Commenced: 2.00 pm Terminated: 4.00 pm Present: Dr Alan Dow (Chair) – NHS Tameside and Glossop CCG Steven Pleasant – Tameside Council Chief Executive & Accountable Officer for NHS Tameside and Glossop CCG Councillor Brenda Warrington – Tameside MBC Dr Alison Lea – NHS Tameside and Glossop CCG Dr Jamie Douglas – NHS Tameside and Glossop CCG Dr Christina Greenhough – NHS Tameside and Glossop CCG Carol Prowse – NHS Tameside and Glossop CCG

In Attendance: Sandra Stewart – Director of Governance Stephanie Butterworth – Director of Adult Services Gill Gibson – Director of Quality and Safeguarding Jessica Williams – Interim Director of Commissioning Tom Wilkinson – Assistant Director of Finance Sarah Dobson – Assistant Director, Policy, Performance & Communications Ali Rehman – Head of Business Intelligence and Performance Debbie Watson – Interim Assistant Director of Population Health

Apologies: Councillor Gerald P Cooney – Tameside MBC Councillor Peter Robinson – Tameside MBC

56. DECLARATIONS OF INTEREST

Members Subject Matter Type of Interest Nature of Interest

Christina Greenhough Item 6(a) – Tameside and Prejudicial Director of Go-to-Doc Glossop Proposal for Effective Urgent Care: Case for Change

57. MINUTES OF THE PREVIOUS MEETING

The Minutes of the previous meeting held on 26 September 2017 were approved as a correct record.

58. FINANCIAL POSITION OF THE INTEGRATED COMMISSIONING FUND

Consideration was given to a jointly prepared report of the Director of Finance, Tameside and Glossop CCG / Tameside MBC and the Director of Finance, Tameside and Glossop Integrated Care NHS Foundation Trust providing a 2017/18 financial year update on the month 5 financial positon, at 31 August 2017, and the projected outturn at 31 March 2018.

It was highlighted that Tameside and Glossop Integrated Care Foundation Trust had still to agree a financial control total with its regulator, NHSI Improvement and the Trust. However, as reported a previous meetings of the Single Commissioning Board, this was affecting the Trust’s eligibility to access the targeted element of Sustainability and Transformation funding as providers must have accepted an agreed control total. The Chief Executive and Accountable Officer added that Jon Rouse, Chief Officer, Greater Manchester Health and Social Care Partnership, had written to the Department of Health expressing the Partnership’s concern on this matter. Page 29 RESOLVED (i) That the 2017/18 financial year update on the month 5 financial position at 31 August 2017 and the projected outturn at 31 March 2018 be noted. (ii) That the significant level of savings required during the period 2017/18 to 2020/21 to deliver a balanced recurrent economy budged be acknowledged. (iii) That the significant amount of financial risk in relation to achieving an economy balanced budget across this period be acknowledged.

59. PERFORMANCE REPORT

Consideration was given to a report of the Assistant Director (Policy, Performance and Communications) providing an update on quality and performance data. Assurance was provided for the NHS Constitutional Indicators. In addition, Clinical Commissioning Group information on a range of other indicators were included to capture the local health economy positon. This was based on the latest published data at the end of July 2017. The following which were highlighted as exceptions:

 A&E Standards were failed at Tameside Hospital Foundation Trust;  Diagnostic standard failed;  Ambulance response times were not met at a local or at North West level;  111 Performance against Key Performance Indicators.

In response to a previous request from members of the Single Commissioning Board, the Assistant Director outlined examples and suggestions of Children’s Social Care performance. This was not intended to be exhaustive but rather a starting point for inclusion in future performance reports.

It was also reported that the North West Ambulance Service had recently introduced new standards to enable the service to identify patients’ needs better and send the most appropriate response. Under the new standards there were four response categories:

 Category one – for calls about people with life-threatening injuries and illnesses;  Category two – for emergency calls;  Category three – for urgent calls; and  Category four – for less urgent calls.

The Single Commissioning Board noted that these changes followed the largest study of an ambulance system and the bar would be set at 90% of calls to be reached in the target times rather than 75% under the old system. The North West Ambulance Service would be providing data on performance against the new standards from November 2017 and these would be integrated into future performance reports to the Single Commissioning Board.

The Director of Quality and Safeguarding made reference to the Quality and Safeguarding monthly exception report, discussions at the Quality and Performance Assurance Group and her intentions for future reporting arrangements.

RESOLVED That the quality and performance update report be noted.

60. TAMESIDE AND GLOSSOP PROPOSAL FOR EFFECTIVE URGENT CARE: CASE FOR CHANGE (Dr Greenhough declared her prejudicial interest as a Director of Go-to-Doc but as this was a consultation and not an award of contract she was advised there was no need for her to leave as there was no prejudicial conflict of interest.)

Page 30 The Interim Director of Commissioning presented a report describing the vision for an enhanced offer of urgent care, i.e. support for conditions that needed prompt medical help to avoid a person deteriorating but were not life threatening. It set out the case for change summarising the national, Greater Manchester and local context, reflected the insights gained through previous pre- consultation engagement exercises and outlined the potential scenarios for the enhanced urgent care offer.

It was explained that key to the proposal was the simplification of access to urgent care whilst improving the level of service available. Multiple access points would be replaced by telephone access through a patient’s own GP practices to book appointments as well as a single location for urgent walk-in services. This would reduce the need for people to ‘self-triage’ and maximise the opportunities for people to receive the right care in the right place at the first appointment. In addition, neighbourhood support would be strengthened through increased evening and weekend appointments alongside advice and treatment available through local opticians and pharmacists.

Reference was made to the proposed consultation, the aim of which was to inform the public about two options for the delivery of the new urgent care service. Both options created an urgent treatment centre, open 12 hours a day, seven days a week from 9.00 am to 9.00 pm. This would offer bookable, same day / urgent and routine general practice appointments, Walk-in access for urgent care and be able to provide direct access to urgent diagnostics along with safe transfer to more specialist services when necessary. In both options this would replace the existing Walk-in services at Ashton Primary Care Centre which would relocate to the hospital site and be developed to deliver the Urgent Treatment Centre. The two options varied in the number of Neighbourhood Care hubs where bookable appointments could be made in addition to the Urgent Treatment Centre when those hubs would be open. In summary, the options detailed in the report were as follows:

Option 1 Neighbourhood Care Hub Weekdays Weekends North 6.30pm to 9.00pm 9.00am to 1.00pm South 6.30pm to 9.00pm 9.00am to 1.00pm Glossop 6.30pm to 9.00pm 9.00am to 1.00pm Option 2 Neighbourhood Care Hub Weekdays Weekends North 6.30pm to 9.00pm None* South 6.30pm to 9.00pm None* West 6.30pm to 9.00pm None* East 6.30pm to 9.00pm None* Glossop 6.30pm to 9.00pm 9.00am to 1.00pm * Able to book appointments at the Urgent Treatment Centre in Ashton or at Glossop Neighbourhood Care Hub.

The Single Commissioning Board heard that both options provided:

 Additional bookable appointments at the Urgent Treatment Centre;  The ability for practices to arrange appointments directly at the Urgent Treatment Centre for patients likely to need diagnostics or additional hospital based care ;  A single location for urgent walk in access that removes the need for the person attending to ‘self-triage’;  Improved patient safety as people with emergency/serious conditions currently attending the Walk In Centre and then are transferred to A&E will already be in the correct place;  Access to urgent diagnostics.

Page 31 Reference was made to the detailed impact of the proposed options analysed through the Equality Impact Assessment in Appendix 1 and the quality implications set out in the Quality Impact Assessment in Appendix 2 to the report.

It was further reported that pre-consultation discussions, detailed in Appendix 3 to the report, had highlighted the fact that members of the public wanted a simple trusted arrangement that was well communicated to avoid confusion when an urgent need arose.

In responding to questions raised by members of the Single Commissioning Board, the Interim Director of Commissioning advised that initial financial analysis of both options showed that they were affordable within the current funding envelope. It was expected that efficiencies could be made through the bringing together of these services and therefore value for money increased.

RESOLVED (i) That approval be given to consult on two options for the Tameside and Glossop urgent care offer as above and explained in detail in the report. (ii) That the Equality Impact Assessment and Quality Impact Assessment in Appendices 1 and 2 to the report be noted.

61. IMPROVING DEMENTIA SERVICES IN THE NEIGHBOURHOODS

The Director of Adults Services submitted a report explaining that there were an estimated 2,691 people in Tameside and Glossop with dementia. As part of the Care Together development, Tameside and Glossop committed to improving the lives of people living with dementia and, through this, reduce reactive costs associated with the high volume of activity in unscheduled and long term care. In 2016 in Tameside, the rate of emergency admissions, aged 65+ with dementia was 4,839 per 100,000 population compared to the rate for England of 3,046 per 100,000 population.

It was further explained that 10 days in a hospital bed (acute or community) led to the equivalent of 10 years ageing in the muscles of people over 80. Gill et al (2004) studied the association between bed rest and functional decline over 18 months. They found a relationship between the amount of time spent in bed rest and the magnitude of functional decline in instrumental activities of daily living, mobility, physical activity and social activity.

The overall vision for Tameside and Glossop was linked to the development of a rich, post diagnostic support offer to support people living with dementia and their carers to make informed choices, be empowered to take control of their lives and maintain their well-being and independence for as long as possible.

It was reported that the business case presented had three main objectives:

(i) Establish a pilot with Alzheimer’s Society for Dementia Support Workers in each Neighbourhood in Tameside. (ii) Establish Dementia Practitioners in each neighbourhood team by investing in three new roles to add to existing Pennine Care Foundation Trust Community Mental Health Team nurses, Willow Wood Dementia Nurse and Integrated Care Foundation Trust Admiral Nurse capacity. (iii) Appoint an Executive Lead for dementia. This individual would have delegated responsibility from the locally partnership to represent the locality in all regional discussions about the strategic direction and performance of dementia services.

It was proposed that Dementia expertise was embedded within the integrated Neighbourhood Teams by integrating a Dementia Practitioner into each Neighbourhood Team. Dementia support was increased in each of the Tameside Neighbourhoods by investing in a three-year Dementia Support Worker pilot from the Alzheimer’s Society through Adult Social Care Transformation Funding. Page 32

The business case detailed in the report, supported the Single Commission’s Quality Innovation, Productivity and Prevention agenda. It was anticipated that as the cost savings from reduced unscheduled admissions would ultimately allow movement of money within the system that ensured the implementation was sustainable in the first instance, and cost saving in the medium and long term.

RESOLVED (i) That the current position regarding unscheduled admissions related to dementia and the need for additional resources and actions to enable progression towards reducing a figure that was an outlier at a national level be recognised. (ii) That the development of a rich post-diagnostic community offer supported by the clinical delivery of Dementia Practitioners and the co-ordinating role of the Dementia Support Workers would be a significant step in improving dementia care in Tameside be agreed. (iii) That the investment of non-recurrent Adult Social Care Transformation budget to establish a pilot with the Alzheimer’s Society to embed Dementia Support Workers in the Tameside Neighbourhood Teams to support people living with dementia from diagnosis to end-of-life care be agreed. (iv) That compliance with procurement standing orders be waived to enable this pilot to be established from the Alzheimer’s Society, a specialist provider.

62. PERSONAL HEALTH BUDGETS

Consideration was given to a report of the Director of Quality and Safeguarding explaining that a personal health budget was an amount of money to support a person’s identified health and wellbeing needs, planned and agreed between the person and their local NHS team. The vision for personal health budges was to enable people who were frequent users of healthcare services to have greater choice, flexibility and control.

The expectation of Clinical Commissioning Groups to expand personal health budgets was outlined in the ‘Forward View to Action: Planning for 2015/16’ and the NHS England mandate was that by 2020 0.1-0.2% of the population would hold a personal health budget. In order to deliver the national mandate local trajectories had been set seeking to establish personal health budgets for 99 patients by March 2018 rising to 153 by April 2019.

It was reported that Greater Manchester was establishing a Personalisation Programme in which the locality would be actively engaged. It was hoped that this would expand from a health focus to encompass the national drive towards Integrated Personal Commissioning, a nationally led, locally delivered programme supporting healthcare empowerment and the better integration of services across health, social care and the voluntary and community sector. The programme aimed to ensure that services were tailored to people’s individual needs, building on learning from personal budgets in social care and progress with personal health budgets. Through Integrated Personal Commissioning, people carers and families with a range of long-term conditions and disabilities were supported to take a more active role in their health and wellbeing, with better information and access to support in their local community, and greater choice and control over their care.

The Single Commissioning Board was advised that despite having focused approaches to marketing personal health budgets with frontline staff, there had been very little take-up and currently only 13 personal health budgets awarded, the lowest rate in Greater Manchester. An analysis of the locality’s personal health budget approach and process had raised a series of actions that were now being taken forward.

It was recognised that if numbers were to be increased towards achieving the national target recurrent investment would be required, as well as the commitment to extract funding from block contracts to provide a viable budget to continue to expand personal health budget numbers in the Page 33 future. Due to the financial position, it was recommended that the economy worked within existing resources rather than increase investment at this time.

After assessing the risks, it was felt it would be better to delay the achievement of local trajectories and that a phased implementation plan for personal health budgets be agreed. This would align with the implementation of transformation plans including the move towards a more sophisticated contracting model and accountable care system.

RESOLVED (i) That a phased implementation plan for personal health budgets be agreed. (ii) That the associated impact on the ability of the Clinical Commissioning Group to meet the personal health budget target in 2017/18 and therefore the Improvement and Assessment Framework Standards, potentially resulting in reputational damage, be noted. (iii) That the risks associated with the delay in achieving personal health budget target be escalated to the Tameside and Glossop NHS Clinical Commissioning Group Governing Body. (iv) That the focus in 2017/18 would be to expand the offer of personal health budgets to patients already receiving individual packages of care, including Continuing Healthcare, Section 117 care and Transforming Care as this would be within existing resources. (v) That the Clinical Commissioning Group lead would continue to work with Greater Manchester on the personalisation agenda.

63. URGENT ITEMS

The Chair reported that there were no urgent items had been received for consideration at this meeting.

64. DATE OF NEXT MEETING

It was noted that the next meeting of the Single Commissioning Board would take place on Tuesday 14 November 2017 commencing at 2.00 pm at Dukinfield Town Hall.

CHAIR

Page 34 TAMESIDE AND GLOSSOP SINGLE COMMISSIONING BOARD

14 November 2017 Commenced: 2.00 pm Terminated: 2.40 pm Present: Dr Christina Greenhough (in the Chair) – NHS Tameside and Glossop CCG Councillor Brenda Warrington – Tameside MBC Councillor Jim Fitzpatrick – Tameside MBC Dr Alison Lea – NHS Tameside and Glossop CCG Dr Jamie Douglas – NHS Tameside and Glossop CCG Carol Prowse – NHS Tameside and Glossop CCG

In Attendance: Sandra Stewart – Director of Governance Kathy Roe – Director of Finance Stephanie Butterworth – Director of Adult Services Gideon Smith – Consultant in Public Health Medicine Alison Lewin – Deputy Director of Commissioning Trevor Tench – Service Unit Manager, Joint Commissioning & Performance Management

Apologies: Dr Alan Dow – NHS Tameside and Glossop CCG Councillor Gerald P Cooney – Tameside MBC Councillor Peter Robinson – Tameside MBC Steven Pleasant – Tameside Council Chief Executive & Accountable Officer for NHS Tameside and Glossop CCG

65. CHAIR’S OPENING REMARKS

In opening the meeting, the Chair made reference to a letter from the West Pennine Local Medical Committee congratulating Tameside and Glossop NHS Clinical Commissioning Group on the good news that all the practices in the Tameside and Glossop area had achieved Care Quality Commission ratings of Good or Outstanding.

66. DECLARATIONS OF INTEREST

There were no declarations of interest submitted by members of the Single Commissioning Board.

67. MINUTES OF THE PREVIOUS MEETING

The Minutes of the previous meeting held on 31 October 2017 were approved as a correct record.

68. WOMEN AND THEIR FAMILIES SERVICE PROCUREMENT

The Consultant in Public Health Medicine presented a report requesting permission to proceed with a procurement exercise to replace the existing grant arrangements with the Women and Their Families Centre from 1 October 2018 and extend the existing arrangement from 1 April 2018 to 30 September 2018 to allow time for the procurement to be completed.

The Single Commissioning Board agreed an extension of the grant arrangement for 2017/18 in order to align Public Health funding and provision to match that provided by the Office of the Police Crime Commissioner until 31 March 2018, which was secured to expand this service into two additional areas. At that time, it was noted that a form of market testing would be necessary to support consideration of continued support to Centre provision beyond 31 March 2018. Page 35

The current grant had enabled the delivery of an effective service that both achieved good value and had realised significant outcomes in the early intervention of women offenders and non- offenders. Continuing to provide the Women and Their Families Centre would enable the service to continue to embed and expand their work significantly to support women victims and offenders and their children to deal with the multiple issues and deprivation they faced.

The breadth of the work being provided, alongside the integration with major partners in Tameside detailing the number of clients and families seen, evidenced the clear necessity to continue with such vital provision.

The Centre had been supported by a grant since 2011. Initially, this was via the Tameside Council Community Safety Unit, Drug and Alcohol Action Team, moving to Public Health from 2013. Currently, accommodation was provided by New Charter Housing and in view of the success of the service on this site the preferred option for the future was to continue provision on this site.

The current grant was for £99,570 per annum and the proposal in the report requested funding over a 5 year period for a total investment of £497,850. The six month extension of £49,790 of the existing contract in 2018/19 to 30 September 2018 would be financed via the existing Population Health Service revenue budget as would the proposed contract from 1 October 2018.

It was noted that there were no inflationary costs included in the calculations as there was an assumption these would be offset by efficiencies. However, the Board felt it would be prudent to ensure the contract stipulated that there would be no inflationary costs for the duration of the contract.

RESOLVED (i) That agreement be given for a procurement exercise to be undertaken to replace the existing grant arrangement with the Women and Their Families Centre from 1 October 2018. (ii) That a total budget of £497,850 over five years for the procurement of this service be approved and that the contract specifies that there would be no inflationary costs for the duration of the contract. (iii) That the existing grant arrangements be extended from 1 April 2018 to 30 September 2018 to allow time for the procurement exercise to be completed.

69. TRANSFORMING MENTAL HEALTH SERVICES: MEETING POPULATION NEEDS AND DELIVERING NATIONAL REQUIREMENTS

Consideration was given to a report of the Director of Quality and Safeguarding explaining that the Five Year Forward View for Mental Health set ambitious plans to improve parity of esteem for people with mental health needs, ensuring the same access to healthcare as physical health needs. The Tameside and Glossop NHS Clinical Commissioning Group was currently investing 9.7% of its total allocation on mental health services / support. The national average was around 11% which would equate to an additional £5m.

In July 2017, the Single Commissioning Board agreed an integrated commissioning strategy to meet the national and Greater Manchester expectations regarding mental health by aligning four additional mental health funding streams, highlighted in the report, with existing mental health investment, to transform mental health provision in Tameside and Glossop.

The report was the second of three business cases regarding mental health services in 2017/18. The first, agreed on 1 March 2017, committed investment in adult Attention Deficit Hyperactivity Disorder services and increased capacity of RAID, mental health practitioners working in A&E. The second business case sought to improve mental health services in line with the Five Year Forward View for Mental Health and Transforming Care to enable more evidence based Page 36 interventions that had a proven return on investment to be delivered and focused on increasing capacity to meet demand and standards for three more priorities as follows.

 People with common mental health disorders (Improving Access to Psychological Therapies) – proposal to increase the capacity in the service by investing £27,250 in 5 whole time equivalent additional psychological therapists.  People with First Episode of Psychosis – proposal to extend the capacity of the Early Intervention Team to better meet the national standards of 53% of people receiving NICE compliant care within 2 weeks of referral by investing £249,795 in 5.5 whole time equivalent additional staff.  Children and Families where the child had a neurodevelopmental need, including Attention Deficit Hyperactivity Disorder and autism, and those who had behaviour that challenged – additional investment in two Band 6 posts £90,620 plus £16,000 non-recurrently was proposed.

The total value of the proposal was £123,337 in 2017/18 and £626,665 in 2018/19 and £610,665 recurrently thereafter and further details for the three schemes were detailed in the report. The report also included the national, strategic and local context, the evidence base and outcomes and benefits of the business case. Mental health resources had been aligned to the priorities over the next five years, showing the growth in investment through the Mental Health Investment Standard, the Greater Manchester Mental Health Transformation funding, the Care Together Transformation Funding and the Adult Social Care Transformation funding, with an indication of the expected costs.

The Board recognised that investment in mental health was a key priority for Tameside and Glossop as this impacted on so many other elements of health and social care. Evidence showed that intervention in mental health at an early stage resulted in significant benefits and financial efficiencies and particularly in relation to secondary care costs. The costs quoted in the report had not yet been signed-off by providers but there was an overall financial envelope for mental health reported and managed by Greater Manchester as part of the mental health assurance process. All costs must be maintained within this financial envelope with regular monitoring to ensure delivery of commissioned outcomes and the business case set out in the report.

RESOLVED (i) That the commitment of funding through the Clinical Commissioning Group Mental Health Investment Standard be approved in line with the business case to the value of £123,337 in 2017/18, £626,665 in 2018/19 and £610,665 in 2019/20 and recurrently thereafter. (ii) All costs to be maintained within this financial envelope for the delivery of commissioned outcomes and any funding shortfall managed across other mental health services as necessary.

70. ANGIOGRAPHY SERVICES

Dr Alison Lea introduced a report which explained that Stockport Clinical Commissioning Group was currently the lead commissioners for the angiography service and Tameside and Glossop Clinical Commissioning Group, East Cheshire Clinical Commissioning Group and North Derbyshire Clinical Commissioning Group co-commissioned this service.

Angiography, a type of x-ray used to check the blood vessels, was an invasive test used for people with chest pain to investigate the risk of a heart attack or stroke. As a result of the angiography test, some patients required angioplasty, a treatment to open up a narrowed artery.

For the period 1 July 2016 to 30 June 2017, 712 patients used the angiography service at Stockport Foundation Trust, 282 of these patients were registered with a Tameside and Glossop GP practice (39%). Approximately 35% of patients undergoing angiography would go on to have a Page 37 further procedure. Stockport Foundation Trust was accredited to provide angiography but not angioplasty services. This meant that currently patients requiring further procedures had to be transferred to a specialist centre and undergo a second invasive procedure.

The report outlined the proposal from Stockport Clinical Commissioning Group to decommission the angiography service at Stepping Hill Hospital and relocate services to Specialist Centres in Greater Manchester. The University Hospital of South Manchester would be the nearest specialist treatment centre for most Tameside and Glossop patients but they could be referred to other specialist centres, the Central Manchester Foundation Trust and Pennine Acute Hospital. The proposal would enable patients from Tameside and Glossop to be referred directly to one of the specialist centres where they would be seen by a specialist, diagnosed and, if necessary, treated immediately after diagnosis rather than being transferred to another hospital.

As the main provider of the Service, the University Hospital of South Manchester had confirmed, in Appendix A to the report, that they would be able to meet the demand following the decommissioning of services from Stockport Foundation Trust. They had further confirmed that they had developed plans to ensure there would be sufficient capacity within the Trust to enable the safe and effective transfer of this activity.

The Board heard that a four week engagement process had commenced on 11 August 2017 led by Stockport Clinical Commissioning as the lead commissioners. Tameside and Glossop Clinical Commissioning Group, along with other co-commissioners, had advertised the on-line survey which was also available in hard copy on request. Interviews with current service users had been carried out and communication with local patient groups was also initiated by Stockport Clinical Commissioning Group. The full copy of the engagement process was contained in Appendix B to the report.

Reference was also made to a review of travel times for Tameside and Glossop residents to support the proposal carried out by Stockport Clinical Commissioning Group detailed in Appendix C to the report and a completed Equality Impact Assessment at Appendix D which included Tameside and Glossop patients.

The Board was advised that as an organisation the Tameside and Glossop Integrated Care Foundation Trust was closely involved in this process and supportive of the relocation of service to specialist centres in Greater Manchester. In considering the views of the Tameside and Glossop Cardiology Consultant, the Board noted that these represented his personal opinion on the proposals.

Stockport Clinical Commissioning Group along with the other co-commissioners were in support of this proposal and had all sought approval to the proposal outline in this paper via their governance structures. The feedback from all the co-commissioners would be considered at the Stockport Clinical Commissioning Group Governing Body meeting to be held on 29 November 2017.

RESOLVED (i) That the proposal from Stockport Clinical Commissioning Group to decommission the angiography service at Stepping Hill Hospital (Stockport NHS Foundation Trust) and relocate services to Specialist Centres in Greater Manchester, as detailed in the report, be supported by the Single Commissioning Board. (ii) That Stockport Clinical Commissioning Group be notified of this decision for consideration at the Stockport Clinical Commissioning Group Governing Body meeting on 29 November 2017 along with feedback on the proposal from other co- commissioners.

Page 38 71. EXTENSION OF CURRENT CONTRACTUAL RELATIONSHIP (PRE-PLACEMENT AGREEMENT FOR PROVISION OF PERMANENT, TEMPORARY OR RESPITE CARE FOR OLDER PEOPLE IN A CARE HOME, WITH OR WITHOUT NURSING) TO 31 MARCH 2018

Consideration was given to a report of the Director of Adults Services seeking authorisation to extend the current congoing contractual agreement until 31 March 2018 to allow for continuing dialogue with the sector to ensure that future agreement was robust yet flexible enough to allow for changes based on the work of the Greater Manchester Health and Social Care Partnership. The extension would also allow time to continue dialogue with the contract and to explore the following proposals:

1) A change in policy to remove the off/on framework arrangement; 2) A different category of residential care; 3) To establish a new approved list using the Dynamic Purchasing System (whilst recognising service users’ rights to choose any care home provider that was registered with the Care Quality Commission and meeting the conditions as laid out in the Care Act Guidance 2017).

It was explained that the current contract commenced on 10 December 2012 for a 5 year period ending on 9 December 2017. The market had significantly changed during the course of this contract, with the loss of beds in the borough, specifically nursing beds. This was causing a major problem in Tameside and surrounding areas in facilitating timely discharges from hospital.

The placement profile for the Council and Tameside and Glossop Clinical Commissioning Group had reduced over the last 5 years. By way of example, in August 2012 the Commissioners purchased an average of 940 beds per week, while in July 2017 the Commissioners purchased approximately 747 beds per week. This reduction was a demonstration of the impact of the local policy for supporting people to remain living at home, in their local communities for as long as possible.

It was noted that the Care Quality Commission introduced a revised rating system approximately 3 years ago. The rating profile of homes in the borough as at September 2017 was detailed in the report and was further broken down into Off, On Framework and Enhanced Payment providers.

The fees in Tameside had increased in line with the agreed methodology which took account of the providers’ actual costs in delivery the service. The increase in the National Minimum Wage and the introduction of the National Living Wage were key factors that had driven the increase in the fees which were highlighted in the report. Providers had for some time noted that the recruitment and retention of competent nursing staff had been challenging. This was not just a local issue but was continually reported nationally. In addition, the providers had also stated that it was difficult to recruit and retain care workers due to other local providers, not in the care sector, paying more for staff for far less responsibility.

The Director of Adults Services reported that Tameside Council was leading the Care Home workstream on behalf of the Greater Manchester Health and Social Care Partnership, with the overall aim to develop a standardised contract / specification and costing model which would be used across the region, albeit with locally implemented elements to reflect local practice and price variations.

Discussions with the sector had been ongoing for some time regarding the future of the contract and the On/Off Framework structure. Unsurprisingly, those care homes Off Framework were keen for this to be removed and all homes to be treated the same. Those homes On Framework, and specifically those who received the Enhanced Payment, were keen to ensure that their fees would not be reduced should the Commissioners decide to have a single rate for all providers.

Following some of the more recent discussions, the providers had mooted the potential for an ‘enhanced residential’ model to provide for those service users presenting more challenges, Page 39 especially for the increased input required to meet the physical needs. Further work would be required to determine what this model would be, the criteria for people to be assessed for this, and the likely number of people who would be assessed to determine the cost.

The Council and the Clinical Commissioning Group had been working closely to build on current practice and to develop new processes and documentation to provide assurance that the service was being delivered in accordance with the contract and to support providers to be Care Quality Commission compliant. Further work was required to develop the process / documentation in consultation with the care sector.

Given the current agenda to fully integrate health and social care the Council and Clinical Commissioning Group had, for some time, been exploring the option of using the NHS Standard Terms and Conditions as the basis for contracting with the care sector. Work had been undertaken to compare both sets of conditions and, generally, the conditions were similar. However, there were elements of the NHS Standard terms that were more onerous than the current contract, which would put more pressure on the care sector. It was recently agreed that, as the fees were based on the current contract conditions and a new financial model had yet to be agreed, the existing terms and conditions would be reviewed and, where necessary, modified to better reflect the local requirements without putting additional undue pressure / burdens on the providers.

In conclusion, it was envisaged that providers who were currently on the Off Framework would object to the extension of the current contractual arrangements as they anticipated that from the 10 December the contract and fees would change. To help mitigate this risk the Council had discussions with the Off Framework providers to explain the rationale and to give assurance that, within the extension period, work would be undertaken for new arrangements, including discussions about feel levels, to be in place from 1 April 2018.

RESOLVED That approval be given to extend the current ongoing contractual relationship with the care home providers until 31 March 2018 to allow for further dialogue about the contract and exploration of the following proposals: (i) A change in policy to remove the Off / On Framework arrangement; (ii) A different category of enhanced residential care; (iii) To establish a new approved list using the Dynamic Purchasing System, whilst recognising service users’ rights to choose any care home provider registered with the Care Quality Commission as laid out in the Care Act Guidance 2017.

72. URGENT ITEMS

The Chair reported that there were no urgent items had been received for consideration at this meeting.

73. DATE OF NEXT MEETING

It was noted that the next meeting of the Single Commissioning Board would take place on Tuesday 14 November 2017 commencing at 2.00 pm at Dukinfield Town Hall.

CHAIR

Page 40 Agenda Item 3f

Report To: EXECUTIVE CABINET

Date: 30 August 2017

Executive Member/ Councillor Kieran Quinn, Executive Leader Reporting Officer: Steven Pleasant, Chief Executive

Subject: AGMA EXECUTIVE BOARD MEETINGS / GREATER MANCHESTER COMBINED AUTHORITY

Report Summary: To inform Members of the issues considered at the January and February meetings of the AGMA Executive Board and Greater Manchester Combined Authority meeting. Under the GMCA Constitution there are provisions to ensure that GMCA Executive deliberations and decisions are reported to the ten Greater Manchester Councils. In order to meet this requirement the minutes of AGMA Executive Board/Greater Manchester Combined Authority meetings are reported to Executive Cabinet on a regular basis. The minutes of the following meetings of the AGMA Executive Board and the Greater Manchester Combined Authority are appended for Members information: a) GM Combined Authority and AGMA Board on 24 November 2017. Also appended to the report is a copy of the GMCA Register of Key Decisions. Recommendations: That Members note and comment on the appended minutes.

Links to Community The Constitution and democratic framework provides an effective Strategy: framework for implementing the Community Strategy.

Policy Implications: In line with council policies.

Financial Implications: There are no budgetary implications other than any specific (Authorised by the Section references made in the AGMA Executive Board/Greater 151 Officer) Manchester Combined Authority minutes.

Legal Implications: Consideration of the AGMA Executive Board/Greater Manchester (Authorised by the Borough Combined Authority minutes helps meet the requirements of the Solicitor) AGMA Constitution and helps to keep Members informed on sub- regional issues and enables effective scrutiny.

Risk Management: There are no specific risks associated with consideration of the minutes. Access to Information: The background papers relating to this report can be inspected by contacting Robert Landon, Head of Democratic Services by: phone: 0161 342 2146 e-mail: [email protected]

Page 41 This page is intentionally left blank

KEY DECISIONS NOTICE: GMCA – 24 NOVEMBER 2017

PRESENT:

Greater Manchester Mayor Andy Burnham Deputy Mayor Baroness Beverley Hughes (Police and Crime) Bury Council Councillor Rishi Shori, (Deputy Mayor) Manchester CC Councillor Richard Leese, (Deputy Mayor) Oldham Council Councillor Jean Stretton Rochdale BC Councillor Allen Brett Salford CC City Mayor Paul Dennett Stockport MBC Councillor Alex Ganotis Tameside MBC Councillor Kieran Quinn Trafford Council Councillor Sean Anstee Wigan Council Councillor Peter Smith

OTHER MEMBERS IN ATTENDENCE:

Fire Committee, Chair Councillor David Acton GMWDA, Chair Councillor Nigel Murphy TfGM, Chair, Councillor Andrew Fender Bolton Council Councillor Linda Thomas Bury Council Councillor Jane Black Bury Council Councillor Andrea Simpson Manchester CC Councillor Angelicki Stogia Stockport MBC Councillor Wendy Wild Tameside MBC Councillor Lynn Travis Tameside MBC Councillor Brenda Warrington Trafford Council Councillor Dylan Butt Trafford Council Councillor Laura Evans Wigan Council Councillor Jennifer Bullen

OFFICERS IN ATTENDENCE:

GMCA Chief Executive Eamonn Boylan GMCA – Deputy Chief Executive Andrew Lightfoot GMCA – Monitoring Officer Liz Treacy GMCA – Treasurer Richard Paver Office of the GM Mayor Kevin Lee Bolton Council Margaret Asquith Bury MBC Pat Jones Greenhalgh Manchester CC Joanne Roney Oldham Council Maggie Kufeldt Rochdale BC Steve Rumbelow

Page 43

Salford CC Jim Taylor Stockport MBC Pam Smith Tameside MBC Kathy Roe Trafford Council Theresa Grant Wigan Council Alison McKenzie-Folan TfGM Simon Warburton GMFRS Tony Hunter Manchester Growth Co Mark Hughes GMCA Simon Nokes GMCA Julie Connor GMCA Sylvia Welsh GMCA Lindsay Dunn

ALSO IN ATTENDANCE:

GMCVO Alex Whinnon Patsy Hodsall

APOLOGIES:

Bolton Council Councillor Cliff Morris Oldham Council Carolyn Wilkins Rochdale BC Councillor Richard Farnell Tameside MBC Steven Pleasant Wigan Council Donna Hall GMP Ian Hopkins GMHSC Partnership Jon Rouse TfGM Jon Lamonte

Agenda Item No

9. GREATER MANCHESTER VOLUNTARY, COMMUNITY AND SOCIAL ENTERPRISE ACCORD

1. That the GM Voluntary, Community and Social Enterprise Accord and arrangements as detailed in the report be endorsed.

2. That the funding arrangements detailed in paragraph 4.4 be noted.

3. That the appointment of Councillor Kieran Quinn, as the Portfolio Lead for this area of work, so he becomes the Portfolio Lead for Voluntary, Community and Social Enterprise.

10. LOCAL GROWTH FUND 3 – GREATER MANCHESTER BUSINESS PRODUCTIVITY AND INCLUSIVE GROWTH PROGRAMME

That this item be deferred and considered at the next meeting of the GMCA to be held on 15 December 2017.

2

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13. WARM HOMES FUND

1. That the utilisation of c. £1.8m Warm Homes Funds to supplement delivery of the existing Local Energy Advice Programme be agreed.

2. That it be agreed that the installation of new systems needed to be user friendly as well as efficient.

15. GREATER MANCHESTER INVESTMENT FRAMEWORK – PROJECT UPDATES

1. That the funding application by Planixs GRP Limited (investment of £750k) be conditionally approved and progress to due diligence be agreed.

2. That authority be delegated to the GMCA Treasurer and GMCA Monitoring Officer to review the due diligence information and, subject to their satisfactory review and agreement of the due diligence information and the overall detailed commercial terms of the transactions, to sign off any outstanding conditions, issue final approvals and complete any necessary related documentation in respect of the loan at above.

16. GREATER MANCHESTER HOUSING INVESTMENT LOANS FUND – INVESTMENT APPROVAL RECOMMENDATION

1. That the GM Housing Investment Loans Fund loan in the table below, detailed further in this and the accompanying Part B report be approved;

BORROWER SCHEME DISTRICT LOAN Rowlinson Stagecoach Manchester £5,620,000 Developments site, Moss Ltd. SPV Side

2. That Manchester City Council be recommended to approve the above loan and prepares and effects the necessary legal agreements in accordance with its approved internal processes.

17. EXCLUSION OF PRESS AND PUBLIC

That, under section 100 (A) (4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items on business on the grounds that this involves the likely disclosure of exempt information, as set out in paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

PART B

18. GREATER MANCHESTER INVESTMENT FRAMEWORK AND CONDITIONAL PROJECT APPROVAL

3

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That the report be noted.

19. GREATER MANCHESTER HOUSING INVESTMENT LOANS FUND – INVESTMENT APPROVAL RECOMMENDATION

That the report be noted.

A link to the full agenda and papers can be found here https://www.greatermanchester- ca.gov.uk/meetings/meeting/475/greater_manchester_combined_authority This decision notice was issued on 28 November 2017 on behalf of Eamonn Boylan, Secretary to the Greater Manchester Combined Authority, Churchgate House, 56 Oxford Street, Manchester M1 6EU

4

Page 46 ASSOCIATION OF GREATER MANCHESTER AUTHORITIES

KEY DECISIONS: AGMA – 24 NOVEMBER 2017

PRESENT:

Greater Manchester Mayor Andy Burnham Deputy Mayor Baroness Beverley Hughes (Police and Crime) Bury Council Councillor Rishi Shori, (Deputy Mayor) Manchester CC Councillor Richard Leese, (Deputy Mayor) Oldham Council Councillor Jean Stretton Rochdale BC Councillor Allen Brett Salford CC City Mayor Paul Dennett Stockport MBC Councillor Alex Ganotis Tameside MBC Councillor Kieran Quinn Trafford Council Councillor Sean Anstee Wigan Council Councillor Peter Smith

OTHER MEMBERS IN ATTENDENCE:

Fire Committee, Chair Councillor David Acton GMWDA, Chair Councillor Nigel Murphy TfGM, Chair, Councillor Andrew Fender Bolton Council Councillor Linda Thomas Bury Council Councillor Jane Black Bury Council Councillor Andrea Simpson Manchester CC Councillor Angelicki Stogia Stockport MBC Councillor Wendy Wild Tameside MBC Councillor Lynn Travis Tameside MBC Councillor Brenda Warrington Trafford Council Councillor Dylan Butt Trafford Council Councillor Laura Evans Wigan Council Councillor Jennifer Bullen

OFFICERS IN ATTENDENCE:

GMCA Chief Executive Eamonn Boylan GMCA – Deputy Chief Executive Andrew Lightfoot GMCA – Monitoring Officer Liz Treacy GMCA – Treasurer Richard Paver Office of the GM Mayor Kevin Lee Bolton Council Margaret Asquith Bury MBC Pat Jones Greenhalgh Manchester CC Joanne Roney Oldham Council Maggie Kufeldt Rochdale BC Steve Rumbelow Salford CC Jim Taylor Stockport MBC Pam Smith Tameside MBC Kathy Roe Trafford Council Theresa Grant Wigan Council Alison McKenzie-Folan TfGM Simon Warbuton GMFRS Dave KeelanPage 47 Manchester Growth Co Mark Hughes GMCA Julie Connor GMCA Lindsay Dunn GMCA Simon Nokes GMCA Emma Stonier GMCA Sylvia Welsh

APOLOGIES:

Bolton Council Councillor Cliff Morris Oldham Council Carolyn Wilkins Rochdale BC Councillor Richard Farnell Tameside MBC Steven Pleasant Wigan Council Donna Hall GMP Ian Hopkins GMHSC Partnership Jon Rouse TfGM Jon Lamonte

Agenda Item No.

4. MINUTES OF THE AGMA EXECUTIVE BOARD MEETING HELD ON 27 OCTOBER 2017

i. That the minutes of the meeting of the AGMA Executive Board held on 27 October 2017 be approved.

ii. That the start date of AGMA Section 48 consultation was 9 August, not 30 August as recorded in para 2.1 of the report and be corrected.

5. BUSINESS RATES RESOURCES

1. That the outcome of the Business Rates pool and Growth pilot for 2016/17 be noted.

2. That it be noted that all GM Districts together with Cheshire East and Cheshire West and Chester have indicated that they are prepared to remain in the Business Rates Pool for 2018/19.

3. That authority be delegated to the GMCA & AGMA Treasurer, in consultation with the Portfolio Lead for Finance and Investment, to make the final decision on the continuation of the Pool, to be taken at the time of the Revenue Support Grant provisional settlement.

4. That it be agreed that any business rates retained under the:

a. Growth pilot for 16/17 be shared on the basis of 42% to individual districts and 58% retained centrally, subject to any unutilised centrally retained monies being considered for reallocation to all Districts once AGMA and GMCA budgets have been agreed by the District Leaders.

b. 100% pilot be shared with a minimum of 50% of any benefit being retained by Districts with any balance to be retained by GMCA/AGMA being subject to Page 48 annual review as part of the budget setting process and agreement by District Leaders.

A link to the full agenda and papers can be found here: https://www.greatermanchester- ca.gov.uk/meetings/meeting/484/agma_executive_board

This decision notice was issued on 28 November 2017 on behalf of Eamonn Boylan, Secretary to the Greater Manchester Combined Authority, Churchgate House, 56 Oxford Street, Manchester M1 6EU

Page 49 This page is intentionally left blank

REGISTER OF KEY DECISIONS: 1 NOVEMBER – 30 November 2017 Published on 31 October 2017

What is a Register of Key Decisions? What is a Key Decision? How to find out more on these proposed The Register is a published list of the key A key decision defined by ‘the Order’ is a decisions decisions which are due to be taken by the: decision which, in the view of the Greater The report (other than those which contain  Greater Manchester Combined Manchester Combined Authority’s Overview confidential or exempt information) relating Authority (GMCA) and Scrutiny Committee, would result in any to these decisions will published on the  Greater Manchester Elected Mayor of the decision makers listed: GMCA’s website five working days before the  Joint GMCA & AGMA Executive Board (i) incurring expenditure over decision is to be made see  Transport for Greater Manchester £500,000, or making significant www.greatermanchester-ca.gov.uk. Committee; and any savings of £500,000 or more relating For general information about the decision-  Key decisions delegated to officers to the budget for the service area to making process please contact: which the decision relates; or These decisions need to be published on the (ii) be significant in terms of its effects Page 51 Page Register at least 28 clear days before the on persons living or working in an GMCA Head of Governance and Scrutiny decision is to be taken, whether in public or area of more two or more wards or Julie Connor private. The Register is updated at least once electoral divisions of Greater [email protected] a month. Manchester. This Register of Key Decisions has been The GMCA’s has three thematic Scrutiny prepared in accordance with Combined Committees: Authorities (Overview and Scrutiny Committees, Access to Information and Audit  Corporate Issues and Reform Committees) Order 2017 (‘the Order’).  Economy, Business Growth and Skills The Register is published on the GMCA’s  Housing, Planning and Environment website www.greatermanchester-ca.gov.uk These Committees’ role is to contribute to and hard copies are available at the offices of: the development of GMCA’s strategies and The Greater Manchester Combined policies, to scrutinise decisions of the Authority decision-makers listed above and to consider & Greater Manchester Mayor any matter affecting those who live, work, Churchgate House study or run businesses in Greater Oxford Street Manchester. Manchester M1 6EU

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date Payments of the The Mayor of The Mayor will be asked to: Report with recommendations 15 November Steve Warrener Bus Service Greater i) Approve the remaining tranche of Background Papers 2017 Operator Grant Manchester Bus Service Operator Grant i) Greater Manchester Combined Director of Finance & (BSOG) to eligible payments proposed to be paid to Authority (Functions and Corporate Services Greater eligible bus operators for this Amendment Order) 2016 (Article Transport for Greater Manchester bus financial year for commercial 11) Manchester operators for services as set out in the schedule ii) Transport Act 2000 Section 154 2 Piccadilly Place, commercial which will accompany the report; http://www.legislation.gov.uk/uk Manchester M1 3BG services ii) Approve the administrative pga/2000/38/section/154 Steve.warrener@tfgm arrangements for these payments to .com be made.

Forthcoming 52 Page TfGMC Bus The Sub-Committee will be asked to: Report with recommendations 17 November Howard Hartley changes to the Network and 2017 Transport for Greater Bus Network TfGM Services Approve forthcoming changes to Background Papers Manchester Sub-Committee subsidised bus services due to be N/A 2 Piccadilly Place implemented on 28 January 2018. Manchester M1 3BG Howard.Hartley@tfg m.com Local Growth Fund GMCA & LEP GMCA will be asked to: Report with recommendations 24 November John Holden 3 2017 GMCA, Churchgate Approve a range of outline and final Background Papers House, 56 Oxford St, Local Growth Fund 3 projects and Growth Deal 3 report – 24th programme applications February 2017 Manchester, M1 6EU Growth Deal 3 report – 28th July John.Holden@greater 2017 manchester-ca.gov.uk

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date GM Voluntary, GMCA Report with recommendation 24 November David Rogerson Community and 2017 Social Enterprise GMCA, Churchgate Accord House, 56 Oxford St, Manchester, M1 6EU david.rogerson@gre atermanchester- ca.gov.uk

Business Funds GMCA The GMCA will be asked to: Report with recommendations 24 November Kirsteen Armitage Note the amendment to the Limited 2017 GMCA, Churchgate Partnership Agreement to the House, 56 Oxford St, Greater Manchester Loan Fund

Page 53 Page Manchester, M1 6EU Kirsteen.Armitage@gr eatermanchester- ca.gov.uk

Housing Funds GMCA The GMCA will be asked to: Report with recommendations 24 November Michael Walmsley Conditionally approve a housing 2017 GMCA, Churchgate investments to proceed to due House, 56 Oxford St, diligence and/or note commercial Manchester, M1 6EU changes to existing investments michael.walmsley@gr eatermanchester- ca.gov.uk

Property Funds GMCA The GMCA will be asked to: Report with recommendations 24 November Kirsteen Armitage Conditionally approve a property 2017 GMCA, Churchgate investments to proceed to due House, 56 Oxford St, diligence and/or note commercial Manchester, M1 6EU changes to existing investments

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date Kirsteen.Armitage@gr eatermanchester- ca.gov.uk

Environment/Low AGMA GMCA Approve acceptance of EU funded Report and Recommendation November/De Mark Atherton Carbon EU funded environment projects (subject to cember 2017 GMCA, Churchgate programmes successful bids) House, 56 Oxford St, (Synergise/Living Manchester, M1 6EU Labs/Scuba/Elena/ Mark.atherton@great Natural Course?) ermanchester- ca.gov.uk

Energy 54 Page Enterprise AGMA GMCA Consider next steps and/or agree Report and Recommendation November/De Mark Atherton and Energy Project recommendations for establishing cember 2017 GMCA, Churchgate Development Hub an energy enterprise and energy House, 56 Oxford St, project development hub Manchester, M1 6EU Mark.atherton@great ermanchester- ca.gov.uk

Warm Homes Fund AGMA GMCA Approve acceptance of Warm Report and Recommendation 24 November Mark Atherton Homes Funding (subject to 2017 GMCA, Churchgate successful bid) House, 56 Oxford St, Manchester, M1 6EU

Mark.atherton@great ermanchester- ca.gov.uk

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date Gas Maintenance Chief Fire Approval to award the contract for Contract Award Recommendation 27 November Anthony Hilton Services Officer & the provision of Gas Maintenance Report (internal) 2017 Head of Finance, GMFRS0074 Treasurer Services following open tender. Planning & Procurement hiltona@manchesterfi re.gov.uk Wide Area Network Chief Fire Approval to award the contract for Contract Award Recommendation 1 December Anthony Hilton Provision Officer & the provision of Wide Area Network Report (internal) 2017 Head of Finance, GMFRS0044 Treasurer circuit Provision & Support following Planning & mini-competition using Crown Procurement Commercial Services Framework for hiltona@manchesterfi Network Services (RM1045) re.gov.uk

Refurbishment 55 Page Chief Fire Approval to award the contract for Contract Award Recommendation 1 December Anthony Hilton Works: Fire Training Officer & works comprising of Refurbishment Report (internal) 2017 Head of Finance, Facility Treasurer work to provide training Planning & GMFRS0087 accommodation at Greater Procurement Manchester Fire & Rescue hiltona@manchesterfi Operational Training & Community re.gov.uk Safety Centre following open tender. Washroom Facility Chief Fire Approval to award the contract for Contract Award Recommendation 1 December Anthony Hilton Provision at Fire Officer & works comprising of Remodelling of Report (internal) 2017 Head of Finance, Stations Treasurer Washrooms Facilities at 12 Fire Planning & GMFRS0086 Stations following open tender. Procurement hiltona@manchesterfi re.gov.uk Littleborough Fire Chief Fire Approval to award the contract for Contract Award Recommendation 1 December Anthony Hilton Station Officer & works comprising of refurbishment Report (internal) 2017 Head of Finance, Refurbishment Treasurer work LIttleborough Fire Station Planning & GMFRS00083 following open tender Procurement

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date hiltona@manchesterfi re.gov.uk

Digital GMCA GMCA will be asked to: Report with recommendations 15 December John Steward Infrastructure 2017 Churchgate House Consider the Final Digital 56 Oxford St, Infrastructure Implementation Plan. Manchester, M1 6EU John.steward@greate rmanchester- ca.gov.uk; Forthcoming TfGMC Bus The Sub-Committee will be asked to: Report with recommendations 5 January 2018 Howard Hartley changes to the Network and Transport for Greater Page 56 Page Bus Network TfGM Services Approve forthcoming changes to Background Papers Manchester Sub-Committee subsidised bus services due to be N/A 2 Piccadilly Place implemented 28 January 2018. Manchester M1 3BG Howard.Hartley@tfg m.com Management of Chief Fire Approval to award the contract for Contract Award 15 January Anthony Hilton Fire-fighter Officer & the NW Regional Framework for Recommendation Report 2018 Head of Finance, Personal Treasurer the provision of Management of (internal) Planning & Protection Fire-fighter Personal Protection Procurement Equipment (PPE) Equipment (PPE) tendered via hiltona@manchesterfi OJEU advert. re.gov.uk GMFRS0020A

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date Management of Chief Fire Approval to award the contract for Contract Award Recommendation 15 January Anthony Hilton Fire-fighter Officer & the NW Regional Framework for the Report (internal) 2018 Head of Finance, Personal Protection Treasurer provision of Management of Fire- Planning & Equipment (PPE) fighter Personal Protection Procurement Equipment (PPE) tendered via OJEU GMFRS0020A advert.

Mayor’s Green AGMA GMCA Consider and approve the February 2018 Mark Atherton Summit recommendations for the Mayor’s GMCA Recommendations Green Summit GMCA, Churchgate House, 56 Oxford St, Manchester, M1 6EU

Page 57 Page Mark.atherton@great ermanchester- ca.gov.uk

Award of Skills GMCA Following full application stage: Appraisal submission March 2018 Gemma Marsh Capital GMCA will need to approve final GMCA, Churchgate award to applicants House, 56 Oxford St, Manchester, M1 6EU

Gemma.Marsh@gre atermanchester- ca.gov.uk

Transition Option GMCA Following detailed work Secretary Secretary of State Submission Dec 2018 Gemma Marsh for Adult of State will formally write to GMCA, Churchgate Education Budget GMCA on whether it wants to House, 56 Oxford St, Manchester, M1 6EU

Decision title & Decision Maker What is the decision? Documents to be considered Planned Officer Contact Reference No. Decision Date proceed with Adult Education Budget

Page 58 Page

Agenda Item 4

Report To: EXECUTIVE CABINET / AUDIT PANEL

Date: 13 December 2017

Reporting Officer: Councillor Jim Fitzpatrick – First Deputy (Performance and Finance) Tom Wilkinson – Assistant Director of Finance

Subject: ANNUAL AUDIT LETTER FOR 2016/17

Report Summary: To present to Members the annual audit letter for Tameside Metropolitan Borough Council and Greater Manchester Pension Fund from Grant Thornton for the external audit 2016/17.

Recommendations: To note the letter.

Links to Community Strategy: The Community Strategy helps determine priorities for Council spending; the spending is subject to external audit by Grant Thornton.

Policy Implications: There are no direct policy implications.

Financial Implications: These are the subject of the report. (Authorised by the Section 151 The Council’s external auditors gave an unqualified opinion on Officer) the Council’s 2016/17 financial statements, including the financial statements of the Greater Manchester Pension Fund.

Legal Implications: This is the annual letter prepared by our external auditors summarising the key findings arising for the work that they have (Authorised by the Borough carried out at Tameside Council for the year ending 31 March Solicitor) 2017. It is a key tool in assessing how well the Council is performing in respect of its finance and governance.

Risk Management: The external auditor provides an opinion on the financial statements of the Council, including the Greater Manchester Pension Fund, and an assessment of the Council’s arrangements for securing economy, efficiency and effectiveness in its use of resources (the value for money conclusion).

Access to Information: The background papers relating to this report can be inspected by contacting the report writer, Heather Green (Finance Business Partner): Telephone: 0161 342 2929

e-mail: [email protected]

Page 59 This page is intentionally left blank The Annual Audit Letter for Tameside Metropolitan Borough Council including Greater Manchester Pension Fund

Year 61 Page ended 31 March 2017 14 October 2017

Mike Thomas Engagement Lead T 0161 214 6368 E [email protected]

Stephen Nixon Senior Manager T 0161 234 6362 E [email protected]

Marianne Dixon Manager T 0113 200 2699 E [email protected]

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 Contents

Section Page 1. Executive summary 3 2. Audit of the accounts 5 3. Value for Money conclusion 9 Appendices A Fees and reports issued Page 62 Page

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 2 Executive summary

Purpose of this letter Our work Our Annual Audit Letter summarises the key findings arising from the work that Financial statements opinion we have carried out at Tameside Metropolitan Borough Council (the Council) for We gave an unqualified opinion on the Council’s financial statements on 11 the year ended 31 March 2017. September 2017.

This Letter is intended to provide a commentary on the results of our work to the Value for money conclusion Council and its external stakeholders, and to highlight issues that we wish to draw We were satisfied that the Council put in place proper arrangements to ensure to the attention of the public. In preparing this letter, we have followed the economy, efficiency and effectiveness in its use of resources during the year ended National Audit Office (NAO)'s Code of Audit Practice (the Code) and Auditor 31 March 2017 except for concerns raised by Ofsted published in the inspection

Guidance 63 Page Note (AGN) 07 – 'Auditor Reporting'. report on Children’s Services in Tameside in December 2016 which judged the service to be inadequate. Ofsted highlighted weaknesses in relation to service We reported the detailed findings from our audit work to the Council's Overview delivery, leadership, management and governance. (Audit) Panel as those charged with governance in our Audit Findings Report on 11 September 2017. We therefore qualified our value for money conclusion in our audit opinion on 11 September 2017. Our responsibilities We have carried out our audit in accordance with the NAO's Code of Audit Practice, which reflects the requirements of the Local Audit and Accountability Act 2014 (the Act). Our key responsibilities are to: • give an opinion on the Council's financial statements including Greater Manchester Pension Fund (section two) • assess the Council's arrangements for securing economy, efficiency and effectiveness in its use of resources (the value for money conclusion) (section three).

In our audit of the Council's financial statements, we comply with International Standards on Auditing (UK and Ireland) (ISAs) and other guidance issued by the NAO.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 3 Whole of government accounts We completed work on the Council consolidation return following guidance issued by the NAO and issued an unqualified report on 4 October 2017.

Certificate We certified that we had completed the audit of the accounts of Tameside Metropolitan Borough Council in accordance with the requirements of the Code on 4 October 2017 upon completion of the whole of government accounts audit.

Certification of grants We also carry out work to certify the Council's Housing Benefit subsidy claim on behalf of the Department for Work and Pensions. Our work on this claim is not yet complete and will be finalised by 30 November 2017. Once completed we will

report 64 Page the results of this work to the Council's Audit Panel in our Annual Certification Letter.

Working with the Council During the year we have met regularly with the Chief Executive and senior leadership team. We have continued to share the firm's national publications and provided thought leadership in emerging issues that impact on the public sector.

We would like to record our appreciation for the assistance and co-operation provided to us during our audit by the Council's staff.

Grant Thornton UK LLP 14 October 2017

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 4 Audit of the accounts

Our audit approach The scope of our audit Materiality Our audit involves obtaining enough evidence about the amounts and In our audit of the Council's accounts, we applied the concept of materiality to disclosures in the financial statements to give reasonable assurance they are free determine the nature, timing and extent of our work, and to evaluate the results of from material misstatement, whether caused by fraud or error. This includes our work. We define materiality as the size of the misstatement in the financial assessing whether: statements that would lead a reasonably knowledgeable person to change or • the Council's accounting policies are appropriate, have been consistently influence their economic decisions. applied and adequately disclosed; • significant accounting estimates made by Interim Director of Finance are We determined materiality for our audit of the Council’s accounts to be £9.83 reasonable; and million, which is approximately 2% of the Council's gross revenue expenditure. We • the overall presentation of the financial statements gives a true and fair view. Page 65 Page used this benchmark, as in our view, users of the Council's accounts are most interested in how it has spent the income it has raised from taxation and grants We also read the Narrative Report and Annual Governance Statement to check during the year. they are consistent with our understanding of the Council and with the accounts included in the Statement of Accounts on which we gave our opinion. We also set a lower level of specific materiality for related party transactions and senior officer remuneration. We carry out our audit in line with ISAs (UK and Ireland) and the NAO Code of Audit Practice. We believe the audit evidence we have obtained is sufficient We set a lower threshold of £250k, above which we reported errors to the and appropriate to provide a basis for our opinion. Overview (Audit) Panel in our Audit Findings Report. Our audit approach was based on a thorough understanding of the Council's Pension Fund – business and is risk based. For the audit of the Greater Manchester Pension Fund accounts, we determined materiality to be £212 million, which is 1% of the Fund's net assets. We used this We identified key risks and set out overleaf the work we performed in response benchmark, as in our view, users of the Pension Fund accounts are most interested to these risks and the results of this work. in the value of assets available to fund pension benefits.

We set a lower level of specific materiality for certain areas such as related party transactions. We set a threshold of £10.64 million above which we reported errors to the Overview (Audit) Panel.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 5 Audit of the accounts - Council These are the risks which had the greatest impact on our overall strategy and where we focused more of our work.

Risks identified in our audit plan How we responded to the risk

Valuation of pension fund net liability As part of our audit work we have: The Council's pension fund net liability, as  Identified the controls put in place by management to ensure that the pension fund net liability was not materially misstated and reflected in its balance sheet ,represents a assessed whether those controls were implemented as expected and whether they were sufficient to mitigate the risk of material significant estimate in the financial misstatement. statements.  Reviewed the competence, expertise and objectivity of the actuary who carried out the Council's pension fund valuation.  Gained an understanding of the basis on which the IAS 19 valuation was carried out, undertaking procedures to confirm the reasonableness of the actuarial assumptions made.  Reviewed the consistency of the pension fund net liability disclosures in notes to the financial statements with the actuarial Page 66 Page report from the Council’s actuary. We have no matters to report.

Valuation of property plant and As part of our audit work we have: equipment  Reviewed management's processes and assumptions for the calculation of the estimate. The Council revalues its assets on a rolling basis over a five year period. The Code  Reviewed the competence, expertise and objectivity of any management experts used. requires that the Council ensures that the  Reviewed the instructions issued to valuation experts and the scope of their work. carrying value at the balance sheet date is  Liaised with the Council's valuer about the basis on which the valuation was carried out, challenging the key assumptions. not materially different from the current value. This represents a significant estimate  Reviewed and challenged the information used by the valuer to ensure it was robust and consistent with our understanding. by management in the financial statements.  Tested revaluations made during the year to ensure they were input correctly into the Council's asset register.  Evaluated the assumptions made by management for those assets not revalued during the year to assess how management satisfied themselves that these were not materially different to current value. The following matters were reported to management: The initial set of draft accounts were not updated with all the valuations provided by the external valuer. Once the valuations were input this resulted in errors within the revaluation gains and losses calculations which impacted both Balance Sheet and the Comprehensive Income and Expenditure Statement (CIES). Management corrected the errors and this resulted in the net cost of services reducing by £3.84m. Property values reduced by £16.57m on the Balance Sheet, and the CIES incurred additional charges of £16.57m with corresponding entries to unusable reserves. The Council’s General Fund remained unchanged at £17.29m.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 6 Audit of the accounts – Pension Fund These are the risks which had the greatest impact on our overall strategy and where we focused more of our work on the audit of the pension fund.

Risks identified in our audit plan How we responded to the risk Findings and conclusions

Level 3 Investments (Valuation In response to the risk we: Our audit work has not identified any is incorrect)  updated our understanding of your process for valuing Level 3 investments. issues around the valuation of the Level 3 Under ISA 315 significant risks Investments reported at year end. often relate to significant non-  performed walkthrough tests of the controls identified in the investments process. routine transactions and  tested a sample of indirect property investments valuations to valuation reports and/or other judgemental matters. Level 3 supporting documentation. investments by their very nature Page 67 Page  tested a sample of private equity investments valuations to Fund Manager valuations and/or require a significant degree of obtained and reviewed the audited accounts at latest date for individual investments and judgement to reach an appropriate agreed these to the fund manager reports at that date and reconciled those values to the valuation at year end. values at 31st March with reference to known movements in the intervening period.  reviewed the qualifications of the fund managers as experts to value the level 3 investments at year end and gained an understanding of how the valuation of these investments has been reached.  reviewed the nature and basis of estimated values and consider what assurance management has over the year end valuations provided for these types of investments.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 7 Audit of the accounts

Audit opinion Annual Governance Statement and Narrative Report We gave an unqualified opinion on the Council’s accounts on 11 September 2017, We are required to review the Council’s Annual Governance Statement and in advance of the 30 September 2017 national deadline. Narrative Report. It published them on its website with the draft accounts in line with the national deadlines. The Council made the first draft version of the accounts available for audit in line with the agreed timetable, although subsequent iterations were required. The Both documents were prepared in line with the relevant guidance and were finance team responded promptly and efficiently to our queries during the audit. consistent with the supporting evidence provided by the Council and with our The draft accounts contained material errors within the Balance Sheet and knowledge of the Council. Comprehensive Income and Expenditure Statement (CIES) arising from property

revaluation 68 Page gains and losses. The errors were corrected in the audited accounts. Whole of Government Accounts (WGA) We carried out work on the Council’s consolidation schedule in line with Issues arising from the audit of the accounts instructions provided by the NAO. We issued a group assurance certificate We reported the key issues from our audit of the accounts of the Council to the which did not identify any issues for the group auditor to consider on 4 Council's Overview (Audit) Panel on 11 September 2017. The initial set of draft October. The 30 September 2017 deadline set by the NAO for the group accounts contained material errors arising from not being updated with all the assurance certificate was breached due to technical matters with the WGA valuations provided by the external valuer. Once the valuations were input this workbook which the Council needed to resolve before submission to audit. resulted in errors within the revaluation gains and losses calculations which impacted both Balance Sheet and the CIES. Management amended the draft Other statutory duties accounts to correct all the matters identified during the audit. We also have additional powers and duties under the Act, including powers to issue a public interest report, make written recommendations, apply to the Pension fund accounts Court for a declaration that an item of account is contrary to law, and to give We also reported the key issues from our audit of accounts of the Pension Fund electors the opportunity to raise questions about the Council’s accounts and to hosted by the Council to the Council's Overview (Audit) Panel on 31 July 2017. raise objections received in relation to the accounts.

There were no significant issues arising from our work. The draft pension fund We did not identify any issues that have required us to apply our statutory statements were of a high quality and supported by good working papers. The powers and duties under the Act. finance team responded promptly and knowledgably to audit requests and queries. We audit resulted in a very small number of adjustments to improve disclosure and the presentation of the pension fund statements.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 8 Value for Money conclusion

Background Overall VfM conclusion We carried out our review in accordance with the NAO Code of Audit Practice We are satisfied that, in all significant respects, except for the matter we (the Code), following the guidance issued by the NAO in November 2016 which identified below, the Council had proper arrangements to secure economy, specified the criterion for auditors to evaluate: efficiency and effectiveness in its use of resources for the year ending 31 March In all significant respects, the audited body takes properly informed decisions and deploys resources 2017. to achieve planned and sustainable outcomes for taxpayers and local people. Ofsted published its inspection report on Children’s Services in Tameside in Key findings December 2016 and judged the service to be inadequate. Ofsted highlighted Our first step in carrying out our work was to perform a risk assessment and weaknesses in relation to service delivery, leadership, management and

identify 69 Page the key risks where we concentrated our work. governance.

The key risks we identified and the work we performed are set out in table 2 The Council has responded promptly to the Ofsted Actions and has agreed a overleaf. multi-agency Improvement Plan which is monitored by an independently chaired Children’s Services Improvement Board. The Improvement Plan is backed by significant financial investment to address the issues. It is however too early to conclude that significant progress has been made to address the Ofsted concerns and restore the Council to a satisfactory rating. Failure to continually develop, adopt and implement the Improvement Plan would result in considerable risk to children and families requiring help.

Further detail of our work on Value for Money is set out overleaf.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 9 ValueValue for money for risk Money based work Risk identified Work carried out Findings and conclusions

Ofsted inspection of children's services We reviewed the arrangements the Council has in Ofsted published its inspection report on Tameside’s Children’s Services in Ofsted issued a report on the Council's place to respond to the Ofsted concerns. This December 2016 and judged the service to be inadequate. Ofsted highlighted children's services in December 2016 included a review of progress made by the weaknesses in relation to service delivery, leadership, management and which rated these as 'inadequate' and the Improvement Board and monitoring of the Ofsted governance. The Tameside Safeguarding Children Board was judged as “ Council is currently subject to a follow up action plan. requiring improvement”. review. Until such time as Ofsted has We have reviewed update reports from Ofsted as The Council was already aware of the pressures within the service stemming confirmed that adequate arrangements are they become available. from an unprecedented increase in service users. Children’s Services caseload in place this remains a significant risk to increased from 1,342 children and young people at 31 March 2016 to 2,753 at the Council's arrangements. We have met with the Director of Children’s Services and attended the monthly Children’s Services 31 March 2017. The 2016/17 budget allocation consequently overspent by Improvement Board to review progress in £2.8m which was largely to fund additional social workers and placements. responding to the Ofsted concerns. The Council has responded promptly to Ofsted’s concerns by developing an

Page 70 Page Improvement Plan (IP) and creating a Children’s Services Improvement Board to oversee progress. The IP sets out how a fully functioning Children’s Service can be delivered and goes beyond simply addressing the Ofsted concerns. Delivery of the IP is overseen by the multi-agency Children’s Services Improvement Board. A Terms of Reference for the Board was prepared and it has met monthly since February 2017. The Board has an independent chair and contains representatives from key stakeholders. The Council is keen to understand what good looks like for each partner agency and progress updates by the Children’s Services Improvement Board are presented quarterly to the Executive Cabinet of the Council. It is however too early to know when sufficient progress will be made to restore the Ofsted score to a satisfactory rating. The next full Ofsted inspection is not expected until late 2018 at which time overall progress and the quality of the Service will be formally rated again. We consider that the Council has responded appropriately to the issues identified by Ofsted and has created a comprehensive Improvement Plan underpinned by multi-agency independent scrutiny. Working with partners is key to improving the service and ensuring that services are sustainable and not delivered in silos. Whilst we recognise the swift response of the Council to the Ofsted findings we concluded that weaknesses remain in the Council's arrangements for managing risks effectively and maintaining a sound system of internal control, demonstrating and applying the principles and values of good governance, and planning, organising and developing the workforce effectively to deliver strategic priorities.

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 10 Appendix A: Fees and reports issued

We confirm below our final fees charged for the audit and provision of non-audit services.

Fees Fees for other services Proposed Service Fees £ Planned outputs fee Actual fees 2015/16 fees £ £ £ Audit related: Statutory audit of Council 105,017 105,017 105,017 Statutory audit of Pension Fund 56,341 56,341 56,341 Teachers’ Pension Return 4,200 Independent accountants’ certificate IAS 19 work for GMPF admitted 5,996 5,996 5,996 bodies George Frederick Byrom Trust 1,000 Independent examiners’ Housing 71 Page Benefit Grant Certification 24,323 TBC 38,773* independent examination statement Total fees (excluding VAT) 191,677 TBC 206,127 Non-audit related: CFO Insights software provision 10,000 Access to database and support The proposed fees for the year were in line with the scale fee set by Public Sector Audit Appointments Ltd (PSAA). Total 15,200 * £12,500 of the 2015/16 fee was rebated to the Council Reports issued

Report Date issued Non- audit services • For the purposes of our audit we have made enquiries of all Grant Audit Plan 8 March 2017 Thornton UK LLP teams providing services to the Council. The table across summarises all other services which were identified Audit Findings Report 11 September 2017 • We have considered whether other services might be perceived as a threat to our independence as the Council’s auditor and have ensured that Annual Audit Letter 14 October 2017 appropriate safeguards are put in place, as reported in our Audit Findings Report • The non-audit related services are consistent with the Council’s policy on the allotment of non-audit work to your auditor and have been approved by the Overview (Audit) Panel

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 11 Page 72 Page

© 2017 Grant Thornton UK LLP. All rights served. 'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International LTD (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL, and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. grant-thornton.co.uk

© 2017 Grant Thornton UK LLP | The Annual Audit Letter for Tameside Council | October 2017 Agenda Item 5a

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Member/ Cllr J M Fitzpatrick - First Deputy (Performance and Finance) Reporting Officer: Tom Wilkinson – Assistant Director of Finance

Subject: REVENUE MONITORING – QUARTER 2 2017/18

Report Summary: This report shows that at Quarter 2 the overall forecast outturn position for the Council is currently a net position of £0.738m under budget, as set out in Table 1. This overall position represents the fact that the Council is ahead of its savings target required to balance the 2018/19 budget, but also masks a number of pressures and savings challenges across the Directorates, including:  The Director of Children forecast outturn is £7.374m in excess of budget due to demand on service provision in Children’s Social Care. Specific mention of the management of this budget is included in section 4 the report.  The Director of Governance is forecasting expenditure will be within budget by £1.250m due to the effect of staff turnover, restrictions in spending and the bringing forward of savings in light of the service pressures being felt elsewhere within the Council. It should be noted that this underspend is the effect of achieving 3 year budget plan early.  The budget for corporate costs is currently forecast to be £6.249m under budget for 2017/18. This is due to a combination of the release of operational contingencies, which will be used to partially offset pressures in Children’s Services, and receipt of one off additional grant income in excess of budget. The pressures within Children’s Services in particular threaten the financial sustainability of future years budgets, and whilst these have been absorbed through prudent contingency planning and proactive restrictions on spending elsewhere, further funding cuts and inflationary pressures in 2018/19 and beyond erode the financial base and the Council’s ability to sustain pressures of this size. Given these significant pressures, that have been mitigated by some one-off measures, strong budget management is required across the Council to ensure that its financial plans are achieved, and to ensure that the Council is able to control budgetary pressures and deliver the required savings over the medium term.

Recommendations: 1) That the forecast revenue outturn position is noted (Table 1). 2) That the detail for each service area (Section 3) is noted and that Directors be required to identify measures to ensure expenditure is maintained with the approved budget for the

1 Page 73 year. 3) That the changes to revenue budgets as set out in Appendix 1 are approved. 4) That the position on the Integrated Commissioning Fund (Section 6) is noted, and that temporary support of up to £5.0m through the risk share agreement be met from the earmarked reserve for Care Together. 5) That the Executive Cabinet authorise the payment of a non- recurrent sum, to a maximum value of £1.0 million, to the Tameside & Glossop NHS Integrated Care Foundation Trust (T&G NHS ICFT) as detailed within section 6 of this report – any such amount to be agreed by the First Deputy.

Links to Community Budget is allocated in accordance with the Community Strategy. Strategy:

Policy Implications: Budget is allocated in accordance with Council Policy.

Financial Implications: This second monitoring report for the current financial year forecasts that service expenditure will continue to exceed the (Authorised by the approved budget. Services areas need to take action to address Borough Treasurer) the issues that are leading to these budget pressures. The overall forecast outturn of £0.738m under budget is due to a combination of one-off budget savings in some service areas, the release of corporate contingencies and additional grant income, all of which may not be available in future years. The Medium Term Financial Strategy (MTFS) for the period 2017- 2020 identifies significant savings requirements for 2018/19 and 2019/20. Budget pressures in service areas in 2017/18 will inevitably lead to an increase in the level of savings required in future years.

Legal Implications: It is a statutory requirement for the Council to set a balanced budget. It is important that the capital expenditure position is (Authorised by the regularly monitored to ensure we are maintaining a balanced Borough Solicitor) budget and to ensure that the priorities of the Council are being delivered.

Risk Management: Failure to properly manage and monitor the Council’s budgets will lead to service failure and a loss of public confidence. Expenditure in excess of budgeted resources is likely to result in a call on reserves, which will reduce the resources available for future investment.

Access to Information The background papers relating to this report can be inspected by contacting the report writer, Heather Green, Finance Business Partner by:

Telephone:0161 342 2929

e-mail: [email protected]

2 Page 74 REVENUE MONITORING 2017/18 - QUARTER 1

1 INTRODUCTION

1.1 This is the second revenue monitoring report of the 2017/18 financial year. The report summarises the projected revenue outturn position for service areas of the Council by 31 March 2018.

1.2 Details of the various sections and Appendices within the report are shown below:

 Section 2: Changes to the budget since February 2017.

 Section 3: A summary of the budget and revenue financial position for Service areas.

 Section 4: A summary of the budget pressures facing Children’s Social Care.

 Section 5: Council Tax, Business Rates collection performance and write offs.

 Section 6: Commentary about the financial challenges in the local health and social care economy.

 Section 7: Recommendations.

 Appendix 1: Details the changes to the Council’s in-year revenue budget since February 2017.

 Appendix 2: Details for each Directorate showing the revenue outturn position and explanations for significant budget variances.

 Appendix 3: Analysis of the Council Tax and Business Rates collection performance.

 Appendix 4: Business Rates, Council Tax and Sundry Debtor Accounts written off.

1.3 This report details the Council’s projected revenue outturn position for 2017/18 against the approved budget for the year and shows the net of income and expenditure as a variation to budget.

1.4 Also included within the report are details for those budgets that are held corporately and the projected outturn position. These budgets include the cost of capital financing, democracy and where service areas are unable to affect spend against budget e.g. Association of Greater Manchester Authority (AGMA) costs.

1.5 Separate tables, which break down the budget variations into elements of expenditure and income, are included in Appendix 2, to show how Directorates are utilising their allocated funding.

2 SUMMARY OF CHANGES TO THE BUDGET

2.1 The Council made changes to its Senior Management Structure in October 2017, to better reflect the challenges the Council is facing in bringing about significant reform.

3 Page 75 The table in Appendix 1 maps the budget under the previous structure, to the revised Director responsibilities.

3 SUMMARY OF THE FINANCIAL POSITION

3.1 This report shows that at Quarter 2 the overall projected net revenue expenditure for services for the 2017/18 financial year is expected to be £5.511m in excess of budgeted resources. The projected outturn revenue position by service area is summarised in Table 1.

3.2 The overall forecast position for the Director of Children is net expenditure of £7.374m in excess of budget, primarily due to the forecast outturn for Children’s Social Care. Further details are set out in section 4 of this report.

3.3 The Director of Governance is forecasting expenditure will be within budget by £1.250m due to the effect of staff turnover and restrictions in spending in light of the service pressures being felt elsewhere within the Council.

3.4 In addition to service budgets, there are corporate budgets which are held to pay for corporate costs such as levies, loan debt etc. as well as the means to cope with in- year volatility. It is currently forecast that this will be £6.249m under budget. This is primarily due to the release of corporate contingencies, which had been held to offset unforeseen expenditure or other risks, and receipt of additional grant income in excess of budget.

3.5 The overall forecast outturn position for the Council is currently a net position of £0.738m under budget, as set out in Table 1.

4 Page 76 Table 1 – Projected outturn revenue position for 2017/18

2017/18 Forecast Variation Directorate Service Budget Outturn to Budget £000 £000 £000

Children Children’s Social Care 35,192 42,387 7,195

Children Education 3,385 3,565 180

Director of Children’s Services 38,577 45,952 7,375

Adults Adult and Early Intervention Services1 44,184 44,002 (182)

Director of Adults Services 44,184 44,002 (182)

Population Health Population Health 16,707 16,523 (184)

Director of Population Health 16,707 16,523 (184)

Place Development Growth & Investment 2,231 2,166 (65)

Asset & Investment Partnership Place 6,184 6,754 570 Management Director of Place 8,415 8,920 505 Neighbourhood & Environmental Services 40,663 40,502 (161) Operations Neighbourhood & Stronger Communities 7,730 7,724 (6) Operations Director of Neighbourhoods and Operations 48,393 48,226 (167)

Governance Governance 7,186 5,936 (1,250)

Director of Governance 7,186 5,936 (1,250)

Finance & IT Finance 2,466 1,879 (587)

Finance & IT Digital Tameside 1,909 1,910 1

Director of Finance and IT 4,375 3,789 (586) Total Service Position 167,837 173,347 5,511 Corporate Costs, Capital and Financing 9,559 3,310 (6,249) and Other Cost Pressures Total 177,396 176,657 (738)

1 The budget is shown netNet of the £5.365m Adult Social Care Grant announced in the spring budget on 8 March 2017.

5 Page 77 3.6 The revenue position now reported needs to be considered in the context of the Council’s Medium Term Financial Strategy (MTFS). An updated MTFS was presented to Full Council on the 28 February 2017 and detailed the remaining gap to be addressed by 2019/20 as summarised in Table 2. Unless effective mitigating strategies can be put in place during this year then the forecast net service expenditure for 2017/18 will lead to an increase in the level of savings required in 2018/19 and 2019/20.

Table 2 - Medium Term Financial Strategy 2017- 20 (extract)

2017/18 2018/19 2019/20 £000 £000 £000 Total Resources (169,269) (163,485) (157,592) Total Spending Plans 177,396 182,718 185,043 Additional Council Tax Income (8,127) (10,983) (13,019) Remaining Gap to be addressed 0 8,250 14,432

4 CHILDREN’S SOCIAL CARE

4.1 The level of unprecedented demand within Children’s services continues to be a high risk budget issue for the Council. This has led to an increase of more than £1 million to the projected spend in excess of available budget since the quarter one revenue monitoring report was presented to the Executive Cabinet on 30 August 2017. This report also provided details of the supporting analysis of the additional independent sector placements at that reporting period when compared to the 2017/18 approved budget allocation.

4.2 The number of Looked after Children has gradually increased from 513 at April 2017 to 579 in November 2017. The current budget allocation will finance approximately 450 placements, assuming average weekly unit costs for placements.

4.3 The Council has recently appointed a new Director of Children’s Services. The Director has a number of key priorities to address to ensure the required improvements are delivered following Ofsted’s 2016 judgement of the service.

4.4 These priorities include the provision of a new improvement plan, approved by the Improvement Board on 30 November 2017 which will support the foundations for service provision over the next year thus leading to further improvements on an on- going basis thereafter.

4.5 Alongside the improvement plan there are other key area’s that will be addressed which include:

- A direct focus on Ofsted’s recommendations - The basics of practice standards - The recruitment and retention of the workforce - Reductions to caseload allocations - The effectiveness of leadership and management disciplines - Management of service demand and the associated financial implications - Clearer measurements of performance and quality of practice at team level

6 Page 78 - Working with partners to ensure the Local Safeguarding Children’s Board improvement plan is delivered – there will be a particular focus on the roles of Police and Health in frontline safeguarding operations, and upon a wider range of partners in order to support the delivery of early help

4.6 Of these the immediate priorities for the Director are the strengthening of service leadership, the stabilisation of the workforce, the implementation of strategies to reduce service demand and the implementation of a new framework to support performance and quality.

4.7 In addition the Director and service leadership team will be addressing the related implications on the service budget alongside the Finance directorate to ensure services are delivered within annual resource allocations over the medium term.

5 COUNCIL TAX AND BUSINESS RATES

5.1 The Business Rates Retention Scheme means that variations in the level of Business Rates income collected has a direct impact on Council resources. The level of Council Tax income collected remains an important area for the Council as any shortfall in the level of Council Tax income also has a direct impact on Council resources.

5.2 At Quarter 2 the level of Council Tax income is marginally under target collection rates and Business Rates are exceeding the target. Both areas will be closely monitored during the financial year and we continue to target income collection. Appendix 3 includes two tables that show how the Council is performing against target collection rates in both Business Rates and Council Tax. Appendix 4 provides a summary of irrecoverable debts written off in quarter 2.

6 CARE TOGETHER

6.1 Under Care Together a single body commissions health and social care services. The single commissioning function is made up from Tameside & Glossop Clinical Commissioning Group (CCG) and Tameside Council. The Care Together vision is to significantly raise healthy life expectancy by focussing on health and care needs of communities with a view to achieving better prosperity, health and wellbeing and to deliver a clinically and financially sustainable health and social care service with the next five years.

6.2 On the financial front the first step last year was to enter into a section 75 agreement with Tameside and Glossop CCG to pool resources. For the current financial year a risk sharing arrangement has been included in the agreement. Under this arrangement the Council has agreed to resource up to £5m in each of the next two years (2017/18 and 2018/19) in support of the CCG’s QIPP savings target; this is conditional upon the CCG agreeing to a reciprocal arrangement in 2019/20 and 2020/21. Thereafter, any variation from budget for both CCG and Council will be shared in the ratio 80:20 for CCG:Council. A cap is placed on the shared financial exposure for each organisation (after the use of £5m) in 2017/18.

6.3 The governance arrangements are that the Strategic Commissioning Management Team and the Strategic Commissioning Board receive regular budget monitoring reports and will agree mitigating actions as appropriate. The financial information in respect of council services provided to the single commissioning bodies is consistent with information included in the Council’s budget monitoring reports albeit there can be timing differences between the two.

7 Page 79 6.4 A single consolidated finance report for the whole health and social care economy will continue to be produced. The report is based on the latest available information and therefore shows updated forecasts to those that were reported to the Strategic Commissioning Board on 31 October 2017.

6.5 The Month 7 revenue position will be reported to the Strategic Commissioning Board on 12 December 2017. The full year forecast and risk share position is also summarised in table 5 below. This is showing a projected year end deficit across the health and social care economy of £11.1m in 2017/18. Table 5 also provides supporting analysis on the resourcing of this projected deficit. The non-recurrent Council contribution of up to £ 5m will be financed from the Care Together Reserve.

6.6 It should be noted that the forecast risk share financing arrangements are not currently reflected in the forecast outturn position for Adult Services, Children’s Services or Population Health within this report. However this will be reflected in the next monitoring report for the Council, as the final forecast outturn becomes more certain. Short and medium term options are being worked upon to minimise this position.

Table 5 – 2017/18 Whole Economy Forecast Outturn and Risk Share

2017/18

Budget Forecast Variance

£'000 £'000 £'000

Strategic Commission 484,816 495,988 (11,172) ICFT (23,344) (23,344) 0

Total Whole Economy 460,472 471,644 (11,172)

Strategic Commission - Risk Share £'000

TMBC - Non Recurrent Contribution (4,324) TMBC (6,348)

CCG (500) Total (11,172)

6.7 The full consolidated finance reports are considered by the Strategic Commissioning Board and can be found at: http://tameside.moderngov.co.uk/documents/s24632/ITEM%204a%20- %20Health%20Economy%20Finance%20Presentation%20- %20Finance%20Committee%20FINAL.pdf

6.8 During 2017/18 there has been significant investment in Adult Social Care services, including a number of transformational schemes which are intended to reduce pressures on the NHS due to Delayed Transfers of Care (DTOCs) from the ICFT into Adult social care services. These schemes are now beginning to take effect, but the ICFT continues to face pressures from DTOCs in respect of social care.

6.9 Recommendation five of this report requests that the Executive Cabinet agree the payment of a non-recurrent sum, to a maximum value of £1.0 million, to the Tameside

8 Page 80 & Glossop NHS Integrated Care Foundation Trust (T&G NHS ICFT), to fund the DTOC pressures faced by the Trust. It will be funded from the Better Care Fund phase 2 grant, which is non-recurrent three year funding announced in Spring 2017 budget, £5.365m of which has been received during 2017/18 financial year.

7 RECOMMENDATIONS

7.1 As stated on the report cover.

9 Page 81 APPENDIX 1: Council structure and budget changes Quarter 2 for approval

2017/18 Previous Directorate at New Directorate at Service Budget Quarter 1 Quarter 2

£000 Children’s Social Care & Strategy and Early Intervention 35,192 Children’s People Education 3,385 Adults Social Care & Adults Early Intervention 44,184 Adults Public Health Population Health 16,707 Population Health Development, Growth & Investment 2,231 Page 82 Page Place Asset and Investment Partnership Management 6,184

Place Environmental Services 40,663 Neighbourhood & Stronger Communities 7,730 Operations Digital Tameside 1,909 Finance & IT Resources 2,466 Governance & Resources Governance 7,186 Governance Corporate Costs 3,838 Corporate Capital Financing 9,760 Corporate Other Cost Pressures and Funding (4,039) Total 177,396

The only budget transfer between Quarter 1 and 2 was the transfer of the Routes to Work service (£0.123m) which transferred from Adult Social Care to the Development, Growth & Investment service. This transfer is included in the above table.

10

APPENDIX 2

DIRECTOR OF CHILDREN

2017/18 Variation to Outturn Budget Budget £000 £000 £000 A. Children’s Social Care 35,192 42,387 7,195 B. Education 3,385 3,565 180

TOTAL 38,577 45,952 7,375

A. CHILDREN’S SOCIAL CARE

Children’s Social Care £000

Employee Costs

The service continues to recruit to vacant posts (mainly Social Workers) within the original 874 budgeted establishment and to support the additional caseload demands since the 2017/18 budget was approved. The recruitment includes permanent positions within the structure alongside agency workers. The on-going strategy is to transition agency employees onto permanent contracts within the service as this is a lower cost alternative and also improves the quality and stability of service delivery.

Alongside the recruitment of agency Social Workers, there is also additional estimated expenditure to the approved budget on a number of additional senior positions as the Council and its partner’s takes action to make the required improvements to the service, including the appointment of a new Director of Children's Services. The annual cost of these additional posts is likely to lead to a cost pressure in 2018/19 of £600k.

Independent Sector and Internal Carer Placements

The quarter one revenue monitoring report provided supporting analysis of the additional 6,635 independent sector placements to the 2017/18 approved budget, including details of any associated placement price increases (£5.9m). This projected demand on the service budget remains at quarter two.

The number of Looked After Children has gradually increased from 513 at April 2017 to 579 in November 2017. The current budget allocation will finance approximately 450 placements, assuming average weekly unit costs for placements.

The annual cost of these additional placements including Special Guardianship Order, Residence Order payments is likely to lead to a cost pressure of approximately £7.7 million in 2018/19.

Other Minor Variances across the service (314)

CHILDREN’S SOCIAL CARE TOTAL 7,195

11 Page 83

B. EDUCATION

£000

Employee Costs Expenditure is below budget on employee costs due to a number of vacant posts and (465) other minor variations under £50k.

Special Education Transport The budget was set based on 2016-17 demand levels. Expenditure is projected to be 392 above budget due to an increase in the number of children eligible to receive home to school transport for the academic year. A review of the transport position has been undertaken and tenders have been awarded. The expected savings have not materialised. This is due to an increase in demand and routes needed and some price increases, despite a competitive tender. The service will continue to monitor spend in this area.

Other Expenditure Other Expenditure is above budget due to external provision being required to deliver 48 the statutory service for Education Psychology (£80k) as there is a vacancy in the service. The traded service for Education Psychology has seen a significant reduction in buy in from schools in this financial year. As a result of this spend will be below budget (£119k) due to a reduction in the use of associates and overheads which is offset against the reduction in income as stated below. There are one off costs associated with dilapidations that will be incurred in year (£59k) in relation to the exiting of a property lease. This rental saving will accrue in 2018/19. There are other minor variations under £50k.

Grants & Other Contributions There are a number of small increases in grant funding, individually under £50k. (66)

Non-Academy Schools Income Income is less than budgeted for Non Academy Schools due to a reduction in the buy 262 in from schools to the Education Psychology Traded Service (£106k); Behaviour for Learning & Inclusion Service (£53k); Equality, Multicultural and Access Team (£43k) and the Governor Clerking Service (£32k). There are other minor variations under £50k.

Academy Schools Income Income is less than budgeted for Academy Schools due to a reduction in the buy in 46 from schools to the Education Psychology Traded Service (£35k). There are other minor variations under £50k.

Other Income Minor Variations Under £50k (37)

EDUCATION TOTAL 180

12 Page 84

DIRECTOR OF ADULTS

2017/18 Variation to Outturn Budget Budget £000 £000 £000 C. Adult and Early Intervention Services 44,184 44,002 (182)

TOTAL 44,184 44,002 (182)

C. ADULT AND EARLY INTERVENTION SERVICES

£000

Employee Expenditure forecast to be less than budget due to vacant posts. (417) The number of hours required for the Council provided Learning Disabilities Homemaker Service are less than budgeted due to services being delivered by the independent sector.

The numbers of Nursing care home bed placements have increased from 201 at April 656 2017 to 220 at the end of September (the average net cost of a nursing placement excluding Funded Nursing Care (FNC) is £29k per year). There is a corresponding reduction in the delayed transfer of care (DTOC) at the hospital with current daily average at approximately 13 compared to 30+ in April 2017. The age of admission is also reducing which is leading to an increase in length of stay (average age of admission last year was 82 compared to 80 currently) which could have a future financial impact.

There has been £160k of Direct Payment (DP) claw backs in year following client finance (147) audits. These occur when clients no longer require the level of care originally stipulated in their DP agreement or where the allowance has not been used by the client in the agreed way. This reduction in spend is partially offset by a small increase in clients receiving DP's (increase from 284 to 290 since April 2017)

There has been an increase in Fairer Charging income received for community based (84) services, this is income based on the individual client financial assessments of approximately 1000 clients (this number varies slightly throughout the year).

Actual homecare hours purchased are lower than budgeted provision by an average of (74) 200 hours per week (Budgeted provision of 9,500 hours per week, actual hours purchased averaging approximately 9,300 p/w)

Transport related expenditure has reduced due to increased mobile working leading to (42) lower staff mileage claims

Other minor variations across the service, including an underspend in a legacy ICT (153) maintenance budget held within the Adults service.

Reduction in contributions and other income sources compared to previous year 79

Adults and Early Intervention Total (182)

13 Page 85

DIRECTOR OF POPULATION HEALTH

D. DIRECTOR OF POPULATION HEALTH

2017/18 Variation to Outturn Budget Budget £000 £000 £000 D. Population Health 16,707 16,523 (184)

TOTAL 16,707 16,523 (184)

£000

Cost reductions resulting from an in year service redesign which includes a part (40) year saving from the deletion of a management post. The full year effect of £74k will be realised in 2018/19.

Expenditure forecast to be less than budget as a result of delayed recruitment to (135) vacant posts.

Other Minor Variations (9)

PUBLIC HEALTH TOTAL (184)

14 Page 86

DIRECTOR OF PLACE

2017/18 Variation Outturn Budget to Budget £000 £000 £000 E. Development Growth and Investment 2,231 2,166 (65) F. Asset and Investment Partnership Management 6,184 6,754 570 TOTAL 8,415 8,920 505

E. DEVELOPMENT GROWTH AND INVESTMENT

£000

Expenditure Expenditure forecast to be less than budget as a result of delayed recruitment (269) to vacant posts.

Temporary agency support within the Planning service due to vacant posts 50

Other minor variations 26

Income Income less than budget for Building Control service as a result vacant posts. 160

Realisation of additional grant related income (60)

Other minor variations across the service 28

DEVELOPMENT GROWTH AND INVESTMENT (65)

F. ASSET AND INVESTMENT PARTNERSHIP MANAGEMENT

£000

Corporate Landlord Estates income in respect of rechargeable works is lower than estimated due to 128 reduced activity.

Advance payment discount to Carillion no longer being received 102

The Facilities Management Contract is being reviewed which should produce 75 savings in future years. The cost of this review has not been provided for within the current budget.

Dilapidation costs for the Learn at St Anne’s accommodation for the post 19 75 service following the vacation of the building which were not provided for within the current budget. Savings will be realised from the termination of the lease on this property and have been factored into the current service budget.

15 Page 87

Loss of Industrial estate income where units are vacant or used for Council 116 purposes.

Other minor variations. 5

Catering Anticipated discount of £55k in respect of the advanced payment that was made 55 will now no longer be received

Other minor variations. 14

ASSET AND INVESTMENT PARTNERSHIP MANAGEMENT 570

16 Page 88

DIRECTOR OF NEIGHBOURHOOD & OPERATIONS

2017/18 Variation Outturn Budget to Budget £000 £000 £000 G. Environmental Services 40,663 40,502 (161) H. Stronger Communities 7,730 7,724 (6) TOTAL 48,393 48,226 (167)

G. ENVIRONMENTAL SERVICES

£000

Expenditure (539) Expenditure forecast to be less than budget as a result of delayed recruitment to vacant posts.

Agency staffing and transport costs anticipated to be in excess of budget in 346 respect of waste services to enable the implementation of new collection rounds. No budget provision was made at the time as it was expected that corresponding savings to the waste levy would be achieved through reduced tonnages.

Other minor variations (35)

Income Income from sales, fees and charges anticipated to be less than budget in the 319 following areas across Environmental Services:

Highways - Utility Control Fee Income £71k - This is due to a reduction in defective works by Utility companies.

Ashton Market Ground £185k - The reduction in income is due to the redevelopment of the market. This is a transitional reduction in income; budgets are being reviewed to look for savings to offset this.

Income anticipated being in excess of budget for Trade Waste service - as a result of increased activity (£87k).

Other minor variations across Environmental Services below £0.050m (including reduction in income from car parks for contract passes £47k and reduction income from skips and scaffolding permits £35k due reduced demand) £169k.

Other income anticipated to be in excess of budget in Civil Engineering Service, (252) for works carried out on construction related projects.

ENVIRONMENTAL SERVICES TOTAL (161)

17 Page 89

H. STRONGER COMMUNITIES

£000

In 2017/18 the Council's CCTV budget has transferred from the People 106 Directorate to the Place Directorate. Based on current contract values and expected spend, there is a £56k funding gap. In addition to this the staffing costs are higher than budgeted and the income targets are not currently expected to be achieved leading to total gap of £106k

Expenditure forecast to be less than budget as a result of delayed recruitment to (44) vacant posts in the Neighbourhoods service.

Expenditure forecast to be less than budget as a result of delayed recruitment to (34) vacant posts in the Customer Contact service.

One-off efficiencies in year materialising from delays in progressing projects (50) within the Homelessness Service

Other minor variations 16

STRONGER COMMUNITIES TOTAL (6)

18 Page 90

DIRECTOR OF GOVERNANCE

I. DIRECTOR OF GOVERNANCE

2017/18 Variation to Outturn Budget Budget £000 £000 £000 I. Director of Governance 7,186 5,936 (1,250)

TOTAL 7,186 5,936 (1,250)

£000

On-going restrictions in recruitment, and delays in the implementation of Service (443) redesigns, have resulted in a projected expenditure level under budget in relation to employee costs across the service.

Continuing restrictions in expenditure, and efficiencies across the service, have (730) resulted in a projected expenditure level of £730k under budget relative to supplies and services expenditure.

Increased income generation as a result of an increase in summons fee costs (129)

Other minor income variations under £50k 52

Director of Governance and Resources Total (1,250)

19 Page 91

DIRECTOR OF FINANCE & IT

J. DIRECTOR OF FINANCE & IT

2017/18 Variation to Outturn Budget Budget £000 £000 £000 J. Finance 2,466 1,879 (587) K. Digital Tameside 1,909 1,910 1

TOTAL 4,375 3,789 (586)

J. FINANCE

£000

On-going restrictions in recruitment, and delays in the implementation of Service (588) redesigns, have resulted in a projected expenditure level of £588k under budget in relation to employee costs across the service.

Other minor variations under £50k 1

Finance Total (587)

K. DIGITAL TAMESIDE

£000

Employees Expenditure forecast to be less than budget as a result of delayed recruitment to (47) vacant posts. Agency costs are also expected to be less than budgeted for.

Supplies and Services Additional costs have been incurred as a result of an increased demand for the 80 backup of data.

Additional security software was required to all for IT patches and upgrades to 34 desktop systems.

Other minor variations under £50k (23)

Recharge Income Income from recharges of MFD to services is greater than anticipated. (41)

Other minor variations under £50k (2)

Digital Tameside Total 1

20 Page 92

CORPORATE BUDGETS

2017/18 Variation to Outturn Budget Budget £000 £000 £000 Corporate Costs, Capital and Financing and 9,559 3,310 6,249 Other Cost Pressures TOTAL 9,558 3,310 (6,249)

Corporate Budgets £000

Capital Financing The 2017/18 budget assumed additional borrowing of £30m from 1 April 2017. (624) No additional borrowing has yet been undertaken during 2017/18. Forecast outturn assumes this additional borrowing will be required from 1 January 2018.

Contingency The 2017/18 budget included operational contingencies to cover unforeseen (3,423) expenditure. It is proposed that this contingency is released to partially offset the forecast overspend in Children's services.

The council has received additional grant funding, some of which is one-off (1,996) (Business Rates Section 31 grant and Education Services Grant).

Corporate Costs On-going restrictions in expenditure and other minor variations in employee (206) costs and income have resulted in a projected outturn less than budget.

CORPORATE BUDGETS TOTAL (6,249)

21 Page 93

APPENDIX 3

The tables below detail how the Council is performing against target collection rates in both Business Rates and Council Tax for the first three months of 2017/18. Arrears are pursued and recovery of current year arrears will continue in future years.

Council Tax In-year Collection Performance 2017/18

Cash Collected Cash Collected Cash Target Variation £m % % % April 2017 10.077 10.36 10.45 -0.09 May 2017 18.884 19.39 19.30 +0.09 June 2017 27.470 28.16 28.30 -0.14 July 2017 36.010 36.87 37.00 -0.13 August 2017 44.642 45.66 46.00 -0.34 September 2017 53.240 54.41 54.90 -0.49

Business Rates In-year Collection Performance 2017/18

Cash Collected Cash Collected Cash Target Variation £m % % % April 2017 10.134 16.95 11.00 +5.95 May 2017 15.601 26.29 20.00 +6.29 June 2017 21.226 35.71 30.00 +5.71 July 2017 26.225 44.31 38.00 +6.31 August 2017 30.677 51.76 47.00 +4.76 September 2017 33.156 56.10 55.50 +0.60

22 Page 94

APPENDIX 4 Business Rates, Council Tax and Sundry Debtor write offs

IRRECOVERABLE DEBTS OVER £3000 1 July 2017 to 30 September 2017 Note individuals are anonymised

REF: DEBT: FINANCIAL YEAR(S) BALANCE REASON 65064735 Business 2015 – 2016 £2321.21 £39896.26 Bankruptcy Rates 2015 – 2016 £26255.61 Order Anonymised 2016 – 2017 £11319.44 granted as an 15/02/2017 individual BUSINESS RATES SUB TOTAL – Personal Bankruptcy £39,896.26 65500569 Business Go Taverns Ltd 2014 – 2015 £3346.72 Rates The Q Inn £94.00 Company 3-5 Market Street 2015 - 2016 Dissolved Stalybridge £2432.45 10/01/2017 SK15 2AL 2016 – 2017 £820.27 65495797 Business Temptations Bakery Ltd 2015 – 2016 £5692.86 Rates 25-29 Market Street £4000.00 Company Ashton under Lyne 2016 – 2017 Dissolved OL6 6AL £1692.86 17/01/2017 65535688 Business D M Raceway Ltd 2013 – 2014 £3819.67 Rates Unit E201 P1 £1153.42 Company Warmco Industrial Estate 2015 – 2015 Dissolved Manchester Road £1766.25 03/11/2015 Mossley 2015 – 2016 OL5 9XA £900.00 65540673 Business Alfa Traders UK Ltd 2014 – 2015 £5391.83 Rates Unit 11 £2404.29 Company Nelson Business Centre 2015 – 2016 Dissolved Nelson Street £2987.54 15/11/2016 Denton M34 3ET 65525162 Business Battlezone Splatball Ltd 2016 – 2017 £5069.45 Rates Unit 4A Ground Floor £5069.45 Company 2 Hertford Street Dissolved Ashton under Lyne 02/05/2017 OL7 0TB 65275016 Business PSL Scaffolding Ltd 2015 – 2015 £4095.69 Rates Furnace Street £313.00 Company Dukinfield 2015 – 2016 Dissolved SK16 4JA £2326.00 08/11/2016 2016 – 2017 £1456.69

23 Page 95

65542747 Business Tecc Haulage Ltd 2010 – 2011 £8995.91 Rates Unit E201 I £800.28 Company Warmco Industrial Estate 2011 – 2012 Dissolved Manchester Road £3420.70 02/06/2015 Mossley 2012 – 2013 OL5 9XA £3555.00 2013 – 2014 £1219.93 65474035 Business Steve Thomasson Mini Buses Ltd 2010 – 2011 £13716.82 Rates Unit 1 Park Mill £4483.09 Company Manchester Road 2011 – 2012 Dissolved Mossley £4490.38 21/03/2017 OL5 9BQ 2012 – 2013 £4743.35 65525001 Business O & J Inns Ltd 2016 – 2017 £8484.91 Rates Shepherds Call £7797.28 Company 216 Market Street 2017 – 2018 Dissolved Hyde £687.63 13/06/2017 SK14 1HB 65428735 Business Viva Leisure Ltd 2011 – 2012 £3296.45 Rates 58 Melbourne Street £3296.45 Company Stalybridge Dissolved SK15 2JJ 08/12/2015 65431403 Business DNA Hub Ltd 2013 – 2014 £3075.78 Rates 198 – 200 Stamford Street £2384.51 Company Ashton under Lyne 2014 – 2015 Dissolved OL6 7LR £691.27 14/07/2015 65518287 Business The Funky Pub Company Ltd 2015 – 2016 £4605.21 Rates Toll Point £812.00 Company 49 Stockport Road 2016 – 2017 Dissolved Denton £3793.21 04/07/2017 M34 6DB 65469460 Business Look Fabulous 2 Ltd 2014 – 2015 £31832.65 Rates Unit 6 £4989.12 Company Globe Lane Industrial Park 2015 – 2016 Dissolved Platt Street £19966.50 02/08/2016 Dukinfield 2016 – 2017 SK16 4QZ £6877.03 BUSINESS RATES SUB TOTAL – Company Dissolved £101,423.95 65534814 Business TCT Totalled Controlled Demolition 2015 – 2016 £4670.66 Rates Ashton & Manchester Waste £2271.88 Company in Executive 2016 – 2017 Liquidation Texas Street £2398.78 18/07/2016 Ashton under Lyne OL6 6UJ 65512661 Business Indian Ocean Cuisine GB Ltd 2016 - 2017 £10147.43 Rates 83 Stamford Street £10147.43 Company in Ashton under Lyne Liquidation OL6 6QQ 09/01/2017 65013690 Business Trace Deals Ltd 2016 – 2017 £11994.00 Rates Stamford Road £11994.00 Company in Audenshaw Liquidation M34 5AY 23/02/2017

24 Page 96

SUB TOTAL - Company in BUSINESS RATES £26,812.09 Liquidation 65443758 Business 2012 – 2013 £4278.97 £4278.97 Debt Relief Rates Order Anonymised granted as an 25/01/2017 individual BUSINESS RATES SUB TOTAL – Debt Relief Order £4278.97 65013409 Business Weston Castle Ltd 2016 – 2017 £3031.19 Rates Gardeners Arms £556.00 Company 98 Lumn Road 2017 – 2018 Voluntary Hyde £2475.19 Arrangement SK14 1PR 08/03/2017 SUB TOTAL – Company Voluntary BUSINESS RATES £3031.19 Arrangement 65482029 Business 2014 - 2015 £3993.29 £3993.29 £3993.29 Rates Individual Anonymised Voluntary as an Arrangement individual 27/11/2015 65442335 Business 2015 – 2016 £1062.30 £5665.23 £5665.23 Rates 2016 – 2017 £3920.40 Individual Anonymised 2017 – 2018 £382.53 Voluntary as an Arrangement individual 22/03/2017 65525285 Business 2016 – 2017 £4714.54 £4714.54 Individual Rates Voluntary Anonymised Arrangement as an 22/03/2017 individual SUB TOTAL – Individual Voluntary BUSINESS RATES £14,373.06 Arrangement BUSINESS RATES IRRECOVERABLE BY LAW £189,815.52

SUMMARY OF UNRECOVERABLE DEBT OVER £3000

IRRECOVERABLE by law Council Tax Nil Business Rates £189,815.52 Overpaid Housing Nil Benefit Sundry Nil TOTAL £189,815.52 DISCRETIONARY write off – meaning no Council Tax Nil further resources will be used to actively Business Rates Nil pursue Overpaid Housing Nil Benefit Sundry Nil TOTAL Nil

25 Page 97 This page is intentionally left blank Agenda Item 5b

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Councillor Jim Fitzpatrick – First Deputy (Performance and Member/Reporting Officer: Finance) Tom Wilkinson – Assistant Director of Finance

Subject: CAPITAL MONITORING QUARTER 2 2017/18

Report Summary: The Strategic Planning and Capital Monitoring Panel at its meeting on 9 October 2017 recommended to Cabinet a three year capital programme for the period 2017-2020 of over £174 million. This report summarises the 2017/18 capital expenditure monitoring position at 30 September 2017, based on information provided by project managers. The report shows projected capital investment in 2017/18 of £73.703m by March 2018. The three year capital programme includes earmarked schemes of over £16m in 2017/18 which have not yet been fully approved. If these schemes are delivered in 2017/18, then total capital investment in 2017/18 will exceed £89m. Members are asked to approve the following: Recommendations: (i) The reprofiling to reflect up to date investment profiles (ii) The changes to the Capital Programme (iii) The updated Prudential Indicator position

Members are asked to note: (i) The current capital budget monitoring position (ii) The resources currently available to fund the Capital Programme (iii) The updated capital receipts position (iv) The timescales for review of the Council’s three year capital programme Links to Community The Capital Programme ensures investment in the Council’s Strategy: infrastructure is in line with the Community Strategy.

Policy Implications: In line with Council Policies.

Financial Implications: These are the subject of the report. In summary: (Authorised by the Section  The forecast outturn for 2017/18 is £73.703m compared to 151 Officer) the 2017/18 budget of £79.735m  Re-profiling of £5.494m into future year(s) to match expected spending profile has been requested. Demand for capital resources exceeds availability and it is essential that those leading projects ensure that the management of each scheme is able to deliver them on plan and within the allocated budget. Close monitoring of capital expenditure on each scheme and the resources available to fund capital expenditure is essential and is an integral part of the financial planning process. There is very limited contingency funding set aside for capital schemes, and any Page 99 significant variation in capital expenditure and resources will have implications for future revenue budgets or the viability of future schemes.

Legal Implications: Failure to adhere to strict capital monitoring effectively rationalised in accordance with the Council’s corporate (Authorised by the Borough responsibilities and priorities exposes the Council to potential Solicitor) legal and ombudsman challenge in respect of its fiduciary duty and requirement to ensure value for money for the people of the Borough and the public purse. A comprehensive list of assets for sale not yet provided at time report published and this should be provided before or at the meeting.

Risk Management: The Capital Investment Programme proposes significant additional investment across the borough. Failure to properly manage and monitoring the Council’s Capital Investment Programme will lead to service failure, financial loss and a loss of public confidence. Funding of the Capital Programme assumes the realisation of some significant Capital Receipts from land and property sales which if not achieved may require reassessment of the programme.

Access to Information: The background papers relating to this report can be inspected by contacting Heather Green, Finance Business Partner by:

phone: 0161 342 2929

e-mail: [email protected]

Page 100 1. INTRODUCTION

1.1 This is the second capital monitoring report for 2017/18, summarising the position as at 30 September 2017. There will be two further monitoring statements in respect of the 2017/18 approved projects.

1.2 The Strategic Planning and Capital Monitoring Panel at its meeting on 9 October 2017 recommended to Cabinet a three year capital programme which earmarked resources for schemes totalling over £174 million for the period 2017-2020.

1.3 The detail of this monitoring report is focused on the budget and forecast expenditure for fully approved projects in the 2017/18 financial year. Additional schemes will be added to future detailed monitoring reports once fully approved by Executive Cabinet.

1.4 There have been changes to the 2017/18 Capital Programme to the value of £21.750m since the Quarter 1 report. These are largely due to the re-profiling of £15.584m into 2018/19 approved in Quarter 1, and several additions and reductions featured in the Three Year Capital Programme Report dated 9 October 2017. A full breakdown of the changes can be found in Appendix 1 of this report.

1.5 Appendix 1 provides a summary of changes to the 2017/18 programme budget since the quarter 1 monitoring report (table A1a). The three year capital programme approved in October has also been reviewed by officers and a revised profile of anticipated spend is set out in Appendix 1 (table A1b). The three year capital programme includes earmarked schemes of over £16m in 2017/18 which have not yet been fully approved. If these schemes are delivered in 2017/18, then total capital investment in 2017/18 will exceed £89m.

2. SUMMARY

2.1 The current forecast is for service areas to have spent £73.703m on capital investment in 2017/18, which is £6.033m less than the current capital budget for the year.

2.2 It is proposed that the capital investment programme is re-profiled to reflect current information. Proposed re-profiling of £5.494m into the next financial year is identified in Appendix 1 (table A1b) and within the individual service area tables in Appendices 2 to 7. Once re-profiling has been taken into account, the quarter 2 capital monitoring is forecasting that capital investment will be £0.539m less than the capital budget for this year. This resource is therefore no longer required to be allocated to specific schemes and will be held to mitigate risks around being able to fully achieve the forecast capital receipts.

2.3 Section 3 of this report summarises the key messages from the quarter 2 capital monitoring exercise. There are no significant variances where project spend is expected to exceed budgeted resources. A number of variations have arisen where projected outturn is less than budget due to slippage in the delivery of the capital programme, resulting in a number of requests for re-profiling into the 2018/19 financial year.

2.4 Table 1 below provides a high level summary of capital expenditure by service area.

Page 101

Table 1: Overall capital monitoring statement April-September 2017

CAPITAL MONITORING STATEMENT – 2017/18 Actual to Projected Projected 2017/18 30 2017/18 Outturn Budget September Outturn Variation 2017 £000 £000 £000 £000 Place Asset Investment Partnership Management 33,148 7,418 32,941 (207) Development & Investment 3,970 1,195 2,946 (1,024)

Neighbourhoods and Operations Engineering Services 13,802 1,433 12,508 (1,294) Transport 6,249 4,972 6,249 0 Environmental Services 1,012 276 628 (384) Stronger Communities 454 308 454 0

Children's Services Education 11,962 2,530 10,889 (1,074) Children 125 79 125 0

Finance & IT Digital Tameside 1,181 185 1,084 (97)

Population Health Active Tameside 6,070 92 4,117 (1,953)

Governance Exchequer 10 - 10 0

Total 77,983 18,488 71,951 (6,033)

2.5 Table 2 below shows the current proposed resources funding the 2017/18 approved projects.

Table 2: Funding statement for 2017/18 approved projects

Resources £000 Grants & Contributions 24,820 Revenue Contributions 692 Corporate: - Prudential Borrowing 12,320 - Reserves / Capital Receipts 40,151 Total 77,983

2.6 Table 3 below shows the current proposed resources to fund the three year capital programme 2017-2020, including both fully approved schemes and earmarked schemes.

Page 102 Table 3: Expected funding sources 2017 – 2020

2017/18 2018/19 2019/20 Total

£000 £000 £000 Grants and Contributions 24,820 1,600 1,600 28,020 Revenue Contributions 692 39 0 731 Forecast Capital Receipts 19,081 17,762 16,802 53,645 Reserves 32,458 22,923 13,829 69,210 Prudential Borrowing 12,320 10,627 0 22,947 Total 89,371 52,951 32,231 174,553

2.7 The resourcing structure, however, is not final and the Chief Finance Officer will make the best use of resources available at the end of the financial year as part of the year end financing decisions.

3. CAPITAL EXPENDITURE TO DATE AND PROJECTED OUTTURN 2017/18

3.1 This section of the report provides an update of capital expenditure to date in 2017/18, along with details of significant schemes and schemes with significant projected variations. A detailed breakdown of all schemes within each service area is included in Appendices 2 to 7 of this report.

Place 3.2 The table below outlines the projected 2017/18 investment for Place. A detailed breakdown of all schemes within Place, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 2.

Table 4: Detail of Place Capital Investment Programme

2017/18 2017/18 2017/18 2017/18 Projected Actual Projected Capital Scheme Budget Outturn to date Outturn £000 Variation £000 £000 £000

Asset Investment Partnership Management (AIPM) Capital Programme

Vision Tameside 23,837 7,238 23,837 0 Purchase of Freehold, Whitelands Road, 5,399 1 5,399 0 Ashton Public Realm 2,491 16 2,491 0 Other Schemes individually below £1m 1,421 163 1,214 (207) Total 33,148 7,418 32,941 (207)

Development and Investment Capital Programme

Disabled Facilities Grants 2,951 791 2,200 (751) Other Schemes below £1m 1,019 404 746 (273) Total 3,970 1,195 2,946 (1,024)

Page 103 3.3 The most significant capital project within the Place directorate is Vision Tameside. This project is currently forecasting that expenditure in 2017/18 will be within budget. Regular detailed reports on progress with the Vision Tameside project are considered by the Strategic Planning and Capital Monitoring Panel.

3.4 Projected outturn on Disabled Facilities Grants is £751k less than budget. Budgeted resources for Disabled Facilities Grants is based on the annual grant allocation, and as reported in the quarter 1 monitoring report, delivery of adaptations has been restricted by limited employee resources. An additional full time equivalent post has now commenced within the service and this is having a positive impact on the delivery of adaptations. Re- profiling of £751k of the Disabled Facilities Grants budget into 2018/19 has been requested.

3.5 Re-profiling of budget has been requested for each of the projected outturn variations identified in table 4 above. Further detail on all the schemes within Place, including prior year spend, future budgets and re-profiling is set out in Appendix 2.

Neighbourhoods and Operations 3.6 The table below outlines the projected 2017/18 investment for Neighbourhoods and Operations. A detailed breakdown of all schemes within Neighbourhoods and Operations, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 3.

Table 5: Detail of Neighbourhoods and Operations Capital Investment Programme

2017/18 2017/18 2017/18 2017/18 Projected Actual Projected Capital Scheme Budget Outturn to date Outturn £000 Variation £000 £000 £000

Engineers Capital Programme

Roads 4,326 258 4,326 0 Street Lighting 2,451 180 1,911 (540) Retaining Walls 1,509 573 1,509 0 Other Schemes individually below £1m 5,516 422 4,762 (754) Total 13,802 1,433 12,508 (1,294)

Transport Capital Programme

Refuse Collection Fleet 3,060 3,396 3,396 336 Other Fleet 3,189 1,576 2,853 (336) Total 6,249 4,972 6,249 0

Environmental Services Capital Programme

Various Schemes all individually below £1m 1,012 276 628 (384) Total 1,012 276 628 (384)

Community Services Capital Programme

Various Schemes all individually below £1m 454 308 454 0 Total 454 308 454 0

Page 104 3.7 The most significant element of the Neighbourhoods and Operations Capital Investment Programme is Engineers, which is currently forecasting projected spend in 2017/18 will be £1,294k less than budgeted resources. This variation has arisen due to delays on four key schemes (LED Street Lighting, Link to Velodrome, Ashton Canal Links and Car Parking). Re-profiling of budget of £1,294k has been requested in respect of these four schemes. Regular detailed reports on progress with the Engineers Capital Programme are considered by the Strategic Planning and Capital Monitoring Panel.

3.8 The variances on the transport capital programme have arisen due to a misalignment of budgets and there is no overall impact. Other variations in the Environmental Services Capital programme relate to minor slippage over a number of schemes. Re-profiling of £272k of budget into 2018/19 has been requested.

3.9 Further detail on all the schemes within Neighbourhoods and Operations, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 3.

Children’s Services 3.10 The table below outlines the projected 2017/18 investment for Children’s Services. A detailed breakdown of all schemes within Children’s services, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 4.

Table 6: Detail of Children’s Services Capital Investment Programme

2017/18 2017/18 2017/18 2017/18 Projected Actual to Projected Capital Scheme Budget Outturn date Outturn £000 Variation £000 £000 £000

Education Capital Programme

Cromwell Enhancements 1,636 1,590 1,636 0 Aldwyn Primary Additional Accommodation 1,420 97 1,420 0 Other Schemes individually below £1m and unallocated funding 8,906 843 7,833 (1,074) Total 11,962 2,530 10,889 (1,074)

Children’s Capital Programme

Purchase of two Children’s Homes 125 79 125 0 Total 125 79 125 0

3.11 Regular detailed reports on progress with the Education Capital Programme are considered by the Strategic Planning and Capital Monitoring Panel. The Education Capital Programme is currently forecasting that outturn will be £1,074k less than budgeted resources. This is due to a combination of delay on a number of schemes and some unallocated funding.

3.12 The delay on the Education capital schemes has arisen due to restrictions on when some works can take place, usually during the holiday periods, and the complexity of some schemes. There also remains some unallocated grant funding which has not been allocated to specific projects. These grants have restrictions which mean only certain types of works eligible for this funding, and the funds may not be fully utilised in 2017/18.

Page 105 3.13 Re-profiling of £1,074k of budget into 2018/19 has been requested. Further detail on all the schemes within Children’s Services, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 4.

Finance and IT 3.14 The table below outlines the projected 2017/18 investment for Finance and IT. A detailed breakdown of all schemes within Finance and IT, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 5.

Table 6: Detail of Finance and IT Capital Investment Programme

2017/18 2017/18 2017/18 2017/18 Projected Actual Projected Capital Scheme Budget Outturn to date Outturn £000 Variation £000 £000 £000

Digital Tameside Capital Programme

Schemes individually below £1m 1,181 185 1,084 (97) Total 1,181 185 1,084 (97) Schemes awaiting governance: 0 206 1,752 1,752 - Tameside Digital Infrastructure

3.15 The three year capital programme recommended for approval on 9 October 2017, earmarked £1,752k for Tameside Digital Infrastructure. A full business case for this project will be considered by Executive Cabinet at its meeting on 5 December 2017. Some preliminary costs of £206k have been incurred in advance of full approval for this project due to works that needed to take place alongside other planned works, to minimise disruption.

3.16 There are no other significant variances on the Digital Tameside Capital programme and re- profiling of £90k has been requested. A detailed breakdown of all schemes within Finance and IT, including prior year spend on significant projects, future budgets and re-profiling is set out in Appendix 5.

Population Health 3.17 The table below outlines the projected 2017/18 investment for Population Health, under the banner ‘Active Tameside’. A detailed breakdown of Active Tameside programme, including prior year spend, future budgets and re-profiling is set out in Appendix 6.

Table 6: Detail of Population Health Capital Investment Programme

2017/18 2017/18 2017/18 2017/18 Projected Actual Projected Capital Scheme Budget Outturn to date Outturn £000 Variation £000 £000 £000

Active Tameside Capital Programme Active Tameside Wellness Centre and 6,070 92 4,117 (1,953) Wider Investment Total 6,070 92 4,117 (1,953) 3.18 Regular detailed reports on progress with the Active Tameside Capital Programme are considered by the Strategic Planning and Capital Monitoring Panel. The project is currently

Page 106 forecasting that expenditure in 2017/18 will be £1,953k less than budgeted resources due to delays in the start dates for the Denton Wellness Centre and Hyde Pool.

3.19 Re-profiling of £1,953k of budget into 2018/19 has been requested. A detailed breakdown of Active Tameside programme, including prior year spend, future budgets and re-profiling is set out in Appendix 6.

Governance 3.20 A breakdown of the Exchequer Capital Programme is provided in Appendix 7. The project is currently forecasting that the project will be delivered on budget.

4. CAPITAL RECEIPTS

4.1 With the exception of capital receipts earmarked as specific scheme funding, all other capital receipts are retained in the Capital Receipts Reserve and utilised as funding for the Council’s corporately funded capital expenditure, together with any other available resources identified in the medium term financial strategy.

4.2 Capital receipts to date are £1.099m, with a further £17.982m anticipated before the end of the financial year. In addition to this a further £3.6m is available from receipts realised in 2016/17 that were not applied to fund that year’s capital investment programme.

5. PRUDENTIAL INDICATORS

5.1 The CIPFA Prudential Code for Finance in Local Authorities was introduced as a result of the Local Government Act (2003) and was effective from 1 April 2004. The Code sets out indicators that must be monitored to demonstrate that the objectives of the Code are being fulfilled.

5.2 The initial Prudential Indicators for 2017/18 and the following two years were agreed by the Council in February 2017. The Capital Expenditure indicator has been updated to reflect the latest position.

5.3 The latest Prudential Indicators are shown in Appendix 8.

Page 107

Page 108 APPENDIX 1 – Changes to the Capital Programme

Table A1a – Changes to the 2017/18 Fully Approved Projects

A1a: Changes to the 2017/18 Fully Approved Projects 2017/18 £000

Quarter 1 Capital Programme 99,733 Changes in the 3 year Capital Programme Report - 9 October 2017: - Schemes Removed (13,986) - Schemes Added 4,940 Re-profiling into 2018/19 per Q1 Capital Monitoring (15,584) Disabled Facilities Grant – 17/18 Allocation 2,178 Ashton Town Hall – new scheme 350 Education minor changes 163 Engineers minor changes 195 Other Minor Changes (6)

Quarter 2 Capital Programme before re-profiling 77,983

Table A1b – Changes to the Three Year Capital Programme

A1b: Changes to the Three Year Capital Programme 2017/18 2018/19 2019/20 TOTAL £000s £000s £000s £000s 1) Total programme recommended for approval on 128,514 36,509 9,530 174,553 9th October 2017 Which consists of:

Fully approved projects (Table A1a) 77,983 19,309 97,292

Earmarked schemes 50,531 17,200 9,530 77,261 Total 128,514 36,509 9,530 174,553 2) Changes to fully approved projects

Fully approved projects (before re-profiling) 77,983 19,309 97,292

Re-profiling of 2017/18 budgets at Q2 -5,494 5,494 0

Revised profile for fully approved projects 72,489 24,803 0 97,292 3) Changes to earmarked schemes awaiting

approval Earmarked schemes approved 9th October 2017 50,531 17,200 9,530 77,261 Re-profiling of earmarked schemes (33,649) 31,035 2,614 0 Revised profile for earmarked schemes 16,882 48,235 12,144 77,261

Revised total three year programme 89,371 73,038 12,144 174,553

Page 109 A1c: Revised Three Year Capital Programme Re-profiled Budgets 2017/18 2018/19 2019/20 Total £000s £000s £000s £000s Place Asset Investment Partnership Management 32,940 4,948 0 37,888 (AIPM) Development and Investment 2,949 2,391 0 5,340 Neighbourhoods and Operations Engineering Services 12,508 1,344 0 13,852 Transport 6,249 0 0 6,249 Environmental Services 740 272 0 1,012 Stronger Communities 454 0 0 454 Children's Services Education 11,306 1,483 0 12,789 Children's 125 0 0 125 Finance and IT Digital Tameside 1,091 688 0 1,779 Population Health Active Tameside 4,117 13,677 0 17,794 Governance Exchequer 10 0 0 10

Total - Fully approved projects 72,489 24,803 0 97,292

Earmarked Schemes awaiting full approval 16,882 48,235 12,144 77,261

Total three year programme 89,371 73,038 12,144 174,553

Page 110 Page 111 APPENDIX 2 – Place Capital Programme

A2a: Asset Investment Partnership Management (AIPM) Capital Programme Re-profiled Budgets Projec 2017/18 Re- t 2017/1 2018/1 2019/2 2017/1 20171/8 Projecte profiling spend 8 9 0 8 Projecte d 2017/1 2018/1 2019/2 to be Capital Scheme in Budge Budge Budge Actual d Outturn 8 9 0 approve prior t t t to date Outturn Variatio £000 £000 £000 d years £000 £000 £000 £000 £000 n £000 £000 £000 Vision Tameside 19,206 23,837 4,240 0 7,238 23,837 0 0 23,837 4,240 0 Purchase of Freehold, Page 112 Page 5,399 0 0 1 5,399 0 0 5,399 0 0 Whitelands Road Ashton Public Realm 2,491 0 0 16 2,491 0 0 2,491 0 0 Refurbishment of Concord Suite 550 0 0 0 500 (50) (50) 500 50 0 Ashton Town Hall 350 0 0 54 300 (50) (50) 300 50 0 Mottram Showground (OPF) 159 0 0 45 159 0 0 159 0 0 Document Scanning 158 0 0 0 50 (108) (108) 50 108 0 Prep of Outline Planning Applications/Review of Playing 116 0 0 0 116 0 0 116 0 0 Field Provision Dukinfield Crematoria Clock 54 0 0 34 54 0 0 54 0 0 Tower Building Fabric Works 25 0 0 26 26 1 0 25 0 0 Tame Street Emergency 9 0 0 4 9 0 0 9 0 0 Generators Opportunity Purchase Fund 0 500 0 0 0 0 0 0 500 0 (Individual Approval Required) Total 19,206 33,148 4,740 0 7,418 32,941 (207) (208) 32,940 4,948 0

A2b: AIPM Re-profiling requests £000s

Document Scanning Expenditure has been delayed until the recant strategy has been formalised (108) Refurbishment of Concord Suite The start of this scheme has been delayed (50) Ashton Town Hall The start of this scheme has been delayed (50) (208)

A2c: Development and Investment Capital Programme Re-profiled Budgets

Project 2017/18 Re- spend 2017/18 20171/8 2017/18 2018/19 2019/20 Projected profiling Page 113 Page in Actual Projected 2017/18 2018/19 2019/20 Capital Scheme Budget Budget Budget Outturn to be prior to date Outturn £000 £000 £000 £000 £000 £000 Variation approved years £000 £000 £000 £000 £000 Disabled Facilities Grants 2,951 0 0 791 2,200 (751) (751) 2,200 751 0 Ashton Old Baths 3,671 379 0 0 357 357 (22) (22) 357 22 0 Ashton Town Centre 300 1260 0 35 300 0 0 300 1,260 0 and Civic Square St Petersfield 193 0 0 6 6 (187) (187) 6 187 0 Godley Garden Village 100 0 0 0 60 (40) (40) 60 40 0 Hyde Town Centre 23 0 0 6 23 0 0 23 0 0 Longlands Mill 21 0 0 0 0 (21) (21) 0 21 0 Ashton Market Hall Incubator 3 0 0 0 0 (3) 0 3 0 0 Units Godley Hill Development and 0 110 0 0 0 0 0 0 110 0 Access Road Total 3,671 3,970 1,370 0 1,195 2,946 (1,024) (1,021) 2,949 2,391 0

A2d: Development & Investment Re-profiling requests £000s An additional FTE staff resource has now commenced within the service and this is beginning to have a positive effect on grant approvals. Proposals to amend and update the Council's Financial Assistance Policy are under way and should be approved during the current calendar year. This will make a positive change for the Disabled Facilities Grants delivery of all adaptations (751) Due to changes in personnel and staff turnover, there have been delays in completing St Petersfield this project. The remaining works are now expected to be concluded in 2018/19 (187) Other Minor Variations Minor slippage across a number of schemes (83) (1,021)

Page 114 Page

APPENDIX 3 – Neighbourhoods and Operations Capital Programme

A3a: Engineers Capital Programme Re-profiled Budgets 2017/18 Re- 2017/18 20171/8 2017/18 2018/19 2019/20 Projected profiling Actual Projected 2017/18 2018/19 2019/20 Capital Scheme Budget Budget Budget Outturn to be to date Outturn £000 £000 £000 £000 £000 £000 Variation approved £000 £000 £000 £000 Street Lighting 2,451 0 0 180 1,911 (540) (540) 1,911 540 0 Retaining walls/Mottram 1,509 0 0 573 1,509 0 0 1,509 0 0 & Hollingworth Car Parking 950 0 0 18 550 (400) (400) 550 400 0 Bridges & Structures 862 0 0 264 862 0 0 862 0 0 Page 115 Page Principal/Nonprincipal 843 0 0 9 843 0 0 843 0 0 Roads- Ashton Principal/Nonprincipal 700 0 0 2 700 0 0 700 0 0 Roads- Droylsden Principal/Nonprincipal 470 0 0 10 470 0 0 470 0 0 Roads- Denton Principal/Nonprincipal 445 0 0 6 445 0 0 445 0 0 Roads- Stalybridge Principal/Nonprincipal 400 0 0 5 400 0 0 400 0 0 Roads- Dukinfield Principal/Nonprincipal 400 0 0 3 400 0 0 400 0 0 Roads- Hyde Principal/Nonprincipal 300 0 0 3 300 0 0 300 0 0 Roads- Mossley Principal/Nonprincipal 270 0 0 78 270 0 0 270 0 0 Roads- Longdendale Principal/Nonprincipal 250 0 0 10 250 0 0 250 0 0 Roads- Audenshaw Roads - Borough Wide 248 0 0 132 248 0 0 248 0 0 Other Schemes 3,704 50 0 140 3,350 (354) (354) 3,350 404 0

Total 13,802 50 0 1,433 12,508 (1,294) (1,294) 12,508 1,344 0 A3b: Engineers Re-profiling requests £000s After all the LED designs have been completed it became apparent that certain areas Street Lighting will not be achieved due to various complex including the removal of wooden poles, subway lighting, and heritage lanterns. (540) There have been delays in signing the agreement with Transport for Greater Link to Velodrome Manchester (TFGM) meaning this scheme is now unlikely to be completed in year (260) There have been delays in signing the agreement with Transport for Greater Ashton Canal Links Manchester (TFGM) meaning this scheme is now unlikely to be completed in year (94) There have been delays in securing planning approval for schemes because of consultation with external bodies (Historic England); ongoing formalisation of agreements between TMBC/Hospital Authorities has delayed starts on some car Car Parking Spaces parks. (400) (1,294) Page 116 Page

A3c: Transport Capital Programme Re-profiled Budgets

2017/18 Re- 2017/18 20171/8 2017/18 2018/19 2019/20 Projected profiling Actual Projected 2017/18 2018/19 2019/20 Capital Scheme Budget Budget Budget Outturn to be to date Outturn £000 £000 £000 £000 £000 £000 Variation approved £000 £000 £000 £000 Refuse Collection Fleet 3,060 0 0 3,396 3,396 336 0 3,060 0 0 Fleet Replacement 17/18 2,256 0 0 1,142 1,920 (336) 0 2,256 0 0 Procurement of 58 Fleet Vehicles 933 0 0 434 933 0 0 933 0 0 Total 6,249 0 0 4,972 6,249 0 0 6,249 0 0

A3d: Environmental Services Capital Programme Re-profiled Budgets Projec 2017/18 Re- t 2017/1 20171/8 2018/1 2019/2 Projecte profiling spend 2017/18 8 Projecte 2017/1 2018/1 2019/2 9 0 d to be Capital Scheme in Budget Actual d 8 9 0 Budget Budget Outturn approve prior £000 to date Outturn £000 £000 £000 £000 £000 Variation d years £000 £000 £000 £000 £000 Guide Lane Former Landfill 1,378 441 0 0 247 441 0 0 441 0 0 Site Retrofit (Basic Measures) 322 0 0 0 50 (272) (272) 50 272 0 Allotment Railings & 63 0 0 14 32 (31) 0 63 0 0 Infrastructure Improvement Infrastructure 60 0 0 0 20 (40) 0 60 0 0 Improvements Page 117 Page Tree Planting Programme 30 0 0 0 15 (15) 0 30 0 0 Dukinfield Park 25 0 0 0 8 (17) 0 25 0 0 Improvements Childrens Play 20 0 0 14 20 0 0 20 0 0 Egmont St Fencing 14 0 0 0 14 0 0 14 0 0 War Memorials 11 0 0 1 11 0 0 11 0 0 Rocher Vale & Hulmes 10 0 0 0 5 (5) 0 10 0 0 and Harry Wood Audenshaw Environmental 9 0 0 0 5 (4) 0 9 0 0 Improvements Highway Replacement Tree 3 0 0 0 3 0 0 3 0 0 Planting Access Works Sunnybank Park- 2 0 0 0 2 0 0 2 0 0 Landscaping Silver Springs Infrastructure 2 0 0 0 2 0 0 2 0 0 Improvements Total 1,378 1,012 0 0 276 628 (384) (272) 740 272 0

A3e: Environmental Services Re-profiling requests £000s This budget is used to match domestic retrofit measures that are primarily funded by grants from the Department of Energy and Climate Change (DECC). The supply of central funding available has been sporadic and will continue to be for the foreseeable Retrofit Basic Measures future, making it difficult to profile spend. (272) (272)

A3f: Community Services Capital Programme Re-profiled Budgets

2017/18 20171/8 Re- 2017/18 Projecte 2017/18 2018/19 2019/20 Projecte profiling 2017/1 2018/1 2019/ Actual to d Capital Scheme Budget Budget Budget d to be 8 9 20

Page 118 Page date Outturn £000 £000 £000 Outturn approved £000 £000 £000 £000 Variation £000 £000 £000 Libraries In The 21st Century 445 0 0 304 445 0 0 445 0 0 Street Art In The Community 8 0 0 4 8 0 0 8 0 0 Supporting Customer 1 0 0 0 1 0 0 1 0 0 Experience And Contact Total 454 0 0 308 454 0 0 454 0 0

APPENDIX 4 – Children’s Services Capital Programme

A4a: Education Capital Programme Re-profiled Budgets Projec 2017/18 Re- t 2017/1 20171/8 2018/1 2019/2 Projecte profiling spend 2017/18 8 Projecte 2017/1 2018/1 2019/2 9 0 d to be Capital Scheme in Budget Actual d 8 9 0 Budget Budget Outturn approve prior £000 to date Outturn £000 £000 £000 £000 £000 Variation d years £000 £000 £000 £000 £000 Unallocated Funding 3,183 0 0 15 2,794 (389) (381) 2,802 381 0 Streams Cromwell Enhancements 829 1,636 0 0 1,590 1,636 0 0 1,636 0 0 Page 119 Page Aldwyn Primary Additional 281 1,420 0 0 97 1,420 0 0 1,420 0 0 Accommodation Alder Buy Out Fitness 1,000 0 0 0 1,000 0 0 1,000 0 0 Centre Devolved Schools Capital 432 0 0 0 432 0 0 432 0 0 Primary Capital Programme 256 0 0 9 256 0 0 256 0 0 Hollingworth Primary School Flat Roof 200 827 0 0 200 (100) (100) 100 927 0 Replacement St Anne’s Primary School 200 0 0 0 100 0 0 200 0 0 Denton Roof Replacement St Georges CE Primary 197 0 0 0 197 0 0 197 0 0 School Hollingworth Kitchen & 180 0 0 0 180 0 0 180 0 0 Dining Refurbishment Contingency (Cromwell) 171 0 0 9 171 0 0 171 0 0 Minor Schemes (under 3,087 0 0 810 2,503 (585) (175) 2,912 175 0 £150k) Total 1,110 11,962 827 0 2,530 10,889 (1,074) (656) 11,306 1,483 0

A4b: Education Re-profiling requests £000s

A number of funding streams have not yet been allocated to specific projects and are Unallocated Funding Streams therefore unlikely to be spent in 2017/18 (381) Delays in resolving the design of the scheme meant that the bulk of the work planned for summer 2017 has had to be put back to next year. The scheme is remarkably complex given the site restrictions and the fact that the work will have to be carried St Anne's Primary, Denton - Roof out when the school is “live”. Work is now scheduled to begin Easter 2018 with some Replacement preparation works to be carried out in 2017/18 (100) Other minor variations Minor slippage on a number of schemes (175) (1,074)

Page 120 Page A4c: Children’s Capital Programme Re-profiled Budgets 2017/18 Re- Project 2017/1 2017/18 Projecte 2017/1 2019/2 profiling spend 2018/19 8 Projecte d 2017/1 2018/1 8 0 to be 2019/20 Capital Scheme in prior Budget Actual d Outturn 8 9 Budget Budget approve £000 years £000 to date Outturn Variatio £000 £000 £000 £000 d £000 £000 £000 n £000 £000 Purchase Of Two 533 125 0 0 79 125 0 0 125 0 0 Children's Homes Total 533 125 0 0 79 125 0 0 125 0 0

APPENDIX 5 – Finance and IT Capital Programme

A5a: Digital Tameside Capital Programme Re-profiled Budgets Projec 2017/18 Re- t 2017/1 20171/8 2018/1 2019/2 Projecte profiling spend 2017/18 8 Projecte 2017/1 2018/1 2019/2 9 0 d to be Capital Scheme in Budget Actual d 8 9 0 Budget Budget Outturn approve prior £000 to date Outturn £000 £000 £000 £000 £000 Variation d years £000 £000 £000 £000 £000 ICT- Vision Tameside 202 822 440 0 25 820 (2) 0 822 440 0 Working Differently - ICT 271 0 0 67 171 (100) (100) 171 100 0 Hardware & Software Page 121 Page Digital By Design 60 0 0 34 60 0 0 60 0 0 CCTV Fibre 20 158 0 25 25 5 10 30 148 0 Disaster Recovery Site 8 0 0 34 8 0 0 8 0 0 Total 202 1,181 598 0 185 1,084 (97) (90) 1,091 688 0 Tameside Digital 0 0 0 206 1,752 1,752 0 1,752 0 0 Infrastructure*

* The three year capital programme recommended for approval on 9 October 2017, earmarked £1,752k for Tameside Digital Infrastructure. A full business case for this project will be considered by Executive Cabinet at its meeting on 5 December 2017. Some preliminary costs of £206k have been incurred in advance of full approval for this project due to works that needed to take place alongside other planned works, to minimise disruption.

A5b: Digital Tameside Re-profiling requests £000s Working Differently - ICT Balance is focused on Paperless Solutions. Newly available resource will allow Hardware & Software progress to be made now. However investment will inevitably be over the next two (100) financial years.

The CCTV Fibre work is dependent on other fibre infrastructure work which is CCTV Fibre expected to be completed in early 2018. 10 (90)

APPENDIX 6 – Population Health Capital Programme

A6a: Active Tameside Capital Programme Re-profiled Budgets 2017/18 Re- Project 2017/1 2017/18 Projecte 2017/1 2019/2 profiling spend 2018/19 8 Projecte d 2017/1 2018/1 8 0 to be 2019/20 Capital Scheme in prior Budget Actual d Outturn 8 9 Budget Budget approve £000 years £000 to date Outturn Variatio £000 £000 £000 £000 d £000 £000 £000 n £000 £000 Active Tameside Wellness 5,441 6,070 11,724 0 92 4117 (1,953) (1,953) 4,117 13,677 0 Page 122 Page Centre & Wider Investment Total 5,441 6,070 11,724 0 92 4,117 (1,953) (1,953) 4,117 13,677 0

A6b: Active Tameside Re-profiling requests £000s The current programme indicates an anticipated start on site during Summer 2018 with projected expenditure of £2m in 2017/18. The projected expenditure will include land acquisition and related scheme enabling expenditure. The scheme phasing will be confirmed once the contract has been agreed with Network Space. It is currently Denton Wellness Centre envisaged that £1m will need to be re-phased to 2018/19. (1,000) The revised start on site for the scheme is November 2017 with projected expenditure Hyde Pool of £2m in 2017/18. It is envisaged that £0.953 will need to be re-phased to 2018/19. (953) (1,953)

APPENDIX 7 – Governance Capital Programme

A7a: Exchequer Capital Programme Re-profiled Budgets

2017/18 Re- 20171/8 2017/18 Projecte profiling 2017/18 2018/19 2019/20 Projecte 2017/1 2018/1 2019/2 Actual to d to be Capital Scheme Budget Budget Budget d 8 9 0 date Outturn approve £000 £000 £000 Outturn £000 £000 £000 £000 Variation d £000 £000 £000 Online Forms 10 0 0 0 10 0 0 10 0 0 Total 10 0 0 0 10 0 0 10 0 0

Page 123 Page

Page 124 Page

APPENDIX 8 – Prudential Indicators

Actuals v limits as at 4th October 2017

Limit Actual Amount within limit £000s £000s £000s Operational Boundary for External Debt 212,528 118,184 (94,343) Authorised Limit for External Debt 232,528 118,184 (114,344)

 The Authorised Limit for External Debt sets the maximum level of external borrowing on a gross basis (i.e. excluding investments) for the Council.  The operational boundary for External Debt comprises the Council’s existing debt plus the most likely estimate of capital expenditure/financing for the year. It excludes any projections for cash flow movements. Unlike the authorised limit breaches of the operational boundary (due to cash flow movements) are allowed during the year as long as they are not sustained over a period of time.  These limits include provision for borrowing in advance of the Council's requirement for future capital expenditure. This may be carried out if it is thought to be financially advantageous to the Council.

Limit Actual Amount within limit £000s £000s £000s Upper Limit for fixed 185,335 17,765 (167,570) Upper Limit for variable 61,785 (88,505) (150,290)

 These limits are in respect of the Council's exposure to the effects of changes in interest rates.  The limits reflect the net amounts of fixed/variable rate debt (i.e. fixed/variable loans less fixed/variable investments). These indicators allow the Council to manage the extent to which it is exposed to changes in interest rates.

Limit Actual Amount within limit £000s £000s £000s Capital Financing Requirement 185,355 185,355 -

 The Capital Financing Requirement (CFR) measures the Council’s underlining need to borrow for capital purpose, i.e. its borrowing requirement. The CFR is the amount of capital expenditure that has not yet been financed by capital receipts, capital grants or contributions from revenue.  The CFR increases by the value of capital expenditure not immediately financed, (i.e. borrowing) and is reduced by the annual Minimum Revenue Provision for the repayment of debt.

Limit Actual Amount within limit £000s £000s £000s Capital expenditure 128,514 71,951 (56,563)

This is the estimate of the total capital expenditure to be incurred.

Page 125

Gross borrowing and CFR @ 31/03/17 the capital financing + increase years Gross requirement 1,2,3 borrowing Amount within limit £000s £000s £000s 185,355 118,184 (67,171)

 To ensure that medium term debt will only be for capital purposes, the Council will ensure that the gross external borrowing does not, except in the short term, exceed the total of the capital financing requirement (CFR).

Maturity structure for borrowing 2017/18 Fixed rate Duration Limit Actual Under 12 months 0% to 15% 5.25% 12 months and within 24 0% to 15% 0.27% months 24 months and within 5 years 0% to 30% 0.75%

5 years and within 10 years 0% to 40% 6.92%

10 years and above 50% to 100% 86.81%

 These limits set out the amount of fixed rate borrowing maturing in each period expressed as a percentage of total fixed rate borrowing. Future borrowing will normally be for periods in excess of 10 years, although if longer term interest rates become excessive, shorter term borrowing may be used. Given the low current long term interest rates, it is felt it is acceptable to have a long maturity debt profile.

Page 126 Agenda Item 5c

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Member Councillor J. Fitzpatrick - First Deputy (Performance & Finance); /Reporting Officer: Tom Wilkinson – Assistant Director of Finance

Subject: TREASURY MANAGEMENT ACTIVITIES

Report Summary: This report provides a mid-year review of the Council’s Treasury Management activities for 2017/18, including the borrowing strategy and the investment strategy.

Recommendations: That the reported treasury activity and performance be noted.

Links to Community The Treasury Management function of the Council underpins the Strategy: ability to deliver the Council’s priorities.

Policy Implications: In line with Council Policies.

Financial Implications: The achievement of savings on the cost of financing the Council's (Authorised by the Section debt through repayment, conversion and rescheduling, together 151 Officer) with interest earned by investing short term cash surpluses, is a crucial part of the Council's medium term financial strategy. This has to be carefully balanced against the level of risk incurred.

The Council held £116.20m of investments as at 30 September 2017 (£164.450m at 31 March 2017) and the investment portfolio yield to date is 0.39% against LIBID of 0.13%. The reduction in cash balances is due primarily to the pensions advance payment of £43m in April 2017.

The investment return has largely been earned due to an increased number of longer-duration investments. The average fixed term investment placed by the Council in 2017/18 to date has been 229 days, compared to 179 days in 2016/17

Legal Implications: The achievement of savings on the cost of financing the Council's (Authorised by the Borough debt through repayment, conversion and rescheduling, together Solicitor) with interest earned by investing short term cash surpluses, is a crucial part of the Council's medium term financial strategy. This has to be carefully balanced against the level of risk incurred.

Risk Management: Failure to properly manage and monitor the Council's loans and investments could lead to service failure and loss of public confidence.

Access to Information: The background papers relating to this report can be inspected by contacting Heather Green, Finance Business Partner by:

phone: 0161 342 2929

e-mail: [email protected]

Page 127 1. BACKGROUND

1.1 Cash-flow management is a core element of the Council’s financial management activities. The Council operates a balanced budget, which broadly means cash raised during the year will meet cash expenditure. Treasury Management operations firstly ensure that cash flow is adequately planned, with short term surplus funds being invested. The investment strategy priorities are security (i.e. there is a low risk that the counterparty will default on the Council’s investment), then liquidity (cash flow needs), and lastly, yield – providing adequate liquidity initially before considering maximising investment return.

1.2 The second main function of the treasury management service is the funding of the Council’s capital investment plans, agreed as part of the annual budget setting process and updated throughout the financial year. These capital plans provide a guide to the borrowing need of the Council, essentially this is the long term cash flow planning to ensure the Council can meet its capital spending requirements. This management of longer term cash may involve arranging long or short term loans, or using longer term cash flow surpluses, and on occasion any debt previously drawn may be restructured to meet Council risk management or cost reduction objectives.

1.3 Accordingly, treasury management is defined as:

“The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks. ”

2. INTRODUCTION

2.1 The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (revised November 2011) was adopted by this Council on 8 February 2012. The primary requirements of the Code are as follows:

i. Creation and maintenance of a Treasury Management Policy Statement which sets out the policies and objectives of the Council’s treasury management activities. ii. Creation and maintenance of Treasury Management Practices which set out the manner in which the Council will seek to achieve those policies and objectives. iii. Receipt by the full council of an annual Treasury Management Strategy Statement - including the Annual Investment Strategy and Minimum Revenue Provision Policy - for the year ahead, a Mid-year Review Report and an Annual Report (stewardship report) covering activities during the previous year. iv. Delegation by the Council of responsibilities for implementing and monitoring treasury management policies and practices and for the execution and administration of treasury management decisions. v. Delegation by the Council of the role of scrutiny of treasury management strategy and policies to a specific named body. For this Council the delegated body is Overview (Audit) Panel. 2.2 This mid-year report has been prepared in compliance with CIPFA’s Code of Practice, and covers the following:  An economic update for the first six months of 2017/18;  A review of the Treasury Management Strategy Statement and Annual Investment Strategy;  The Council’s capital expenditure (prudential indicators);  A review of the Council’s investment portfolio for 2017/18;  A review of the Council’s borrowing strategy for 2017/18; Page 128  A review of any debt rescheduling undertaken during 2017/18;  A review of compliance with Treasury and Prudential Limits for 2017/18;

3. ECONOMIC UPDATE

3.1 The following economic update is provided by the Council’s treasury management advisors, Link Asset Services (formally known as Capita Asset Services):

After the UK economy surprised on the upside with strong growth in 2016, growth in 2017 has been disappointingly weak; quarter 1 came in at only +0.3% (+1.7% y/y) and quarter 2 was +0.3% (+1.5% y/y) which meant that growth in the first half of 2017 was the slowest for the first half of any year since 2012. The main reason for this has been the sharp increase in inflation, caused by the devaluation of sterling after the referendum, feeding increases in the cost of imports into the economy. This has caused, in turn, a reduction in consumer disposable income and spending power and so the services sector of the economy, accounting for around 75% of GDP, has seen weak growth as consumers cut back on their expenditure. However, more recently there have been encouraging statistics from the manufacturing sector which is seeing strong growth, particularly as a result of increased demand for exports. It has helped that growth in the EU, our main trading partner, has improved significantly over the last year. However, this sector only accounts for around 11% of GDP so expansion in this sector will have a much more muted effect on the average total GDP growth figure for the UK economy as a whole.

On 2 November, the MPC voted 7-2 to increase Bank rate from 0.25% to 0.50%, reversing the emergency cut in Bank Rate implemented in August 2016. In view of the robust rate of growth in the second half of 2016, which confounded the Bank’s August 2016 forecasts for a sharp slowdown, many commentators subsequently held the view that this emergency action was unnecessary. The MPC also gave forward guidance that they expected to increase Bank Rate only twice more in the next three years to reach 1.0% by 2020. This is, therefore, not quite the ‘one and done’ scenario but is, nevertheless, a very relaxed rate of increase prediction in Bank Rate in line with previous statements that Bank Rate would only go up very gradually and to a limited extent.

Economic growth in the EU, (the UK’s biggest trading partner), has been lack lustre for several years after the financial crisis despite the ECB eventually cutting its main rate to - 0.4% and embarking on a massive programme of QE. However, growth picked up in 2016 and now looks to have gathered ongoing substantial strength and momentum thanks to this stimulus. GDP growth was 0.5% in quarter 1 (2.0% y/y) and 0.6% in quarter (2.3% y/y). However, despite providing massive monetary stimulus, the European Central Bank is still struggling to get inflation up to its 2% target and in August inflation was 1.5%. It is therefore unlikely to start on an upswing in rates until possibly 2019.

Growth in the American economy has been volatile in 2015 and 2016. 2017 is following that path again with quarter 1 coming in at only 1.2% but quarter 2 rebounding to 3.1%, resulting in an overall annualised figure of 2.1% for the first half year. Unemployment in the US has also fallen to the lowest level for many years, reaching 4.4%, while wage inflation pressures, and inflationary pressures in general, have been building. The Fed has started on a gradual upswing in rates with three increases since December 2016; and there could be one more rate rise in 2017 which would then lift the central rate to 1.25 – 1.50%. There could then be another four more increases in 2018. At its June meeting, the Fed strongly hinted that it would soon begin to unwind its $4.5 trillion balance sheet holdings of bonds and mortgage backed securities by reducing its reinvestment of maturing holdings.

Chinese economic growth has been weakening over successive years, despite repeated rounds of central bank stimulus; medium term risks are increasing. Major progress still needs to be made to eliminate excess industrial capacity and the stock of unsold property, and to address the level of non-performing loans in the banking and credit systems. Page 129 Japan is struggling to stimulate consistent significant growth and to get inflation up to its target of 2%, despite huge monetary and fiscal stimulus. It is also making little progress on fundamental reform of the economy.

3.2 Link Asset Service’s view on the outlook for the remainder of 2017/18 is as follows:- The overall longer run trend is for gilt yields and PWLB rates to rise, albeit gently. A world economic recovery will likely see investors switching from the safe haven of bonds to equities. We have pointed out consistently that the Fed. Rate is likely to go up more quickly and more strongly than Bank Rate in the UK. While there is normally a high degree of correlation between the two yields, we would expect to see a growing decoupling of yields between the two i.e. we would expect US yields to go up faster than UK yields. We will need to monitor this area closely and any resulting effect on PWLB rates. The overall balance of risks to economic recovery in the UK is probably to the downside, particularly with the current level of uncertainty over the final terms of Brexit. The balance of risks to increases in Bank Rate and shorter term PWLB rates are probably to the upside and are dependent on how strong GDP growth turns out, how quickly inflation pressures rise and how quickly the Brexit negotiations move forward positively. Our forecasts are predicated on an assumption that there is no break-up of the Eurozone or EU, (apart from the departure of the UK), within our forecasting time period, despite the major challenges that are looming up, and that there are no major ructions in international relations, especially between the US and China / North Korea, which have a major impact on international trade and world GDP growth. We would, as always, remind clients of the view that we have expressed in our previous interest rate revision newsflashes of just how unpredictable PWLB rates and bond yields are at present. Our revised forecasts are based on the Certainty Rate (minus 20 bps) which has been accessible to most authorities since 1st November 2012. Downside risks to current forecasts for UK gilt yields and PWLB rates currently include: • Bank of England monetary policy takes action too quickly over the next three years to raise Bank Rate and causes UK economic growth, and increases in inflation, to be weaker than we currently anticipate. • Geopolitical risks, especially North Korea, but also in Europe and the Middle East, which could lead to increasing safe haven flows. • A resurgence of the Eurozone sovereign debt crisis, possibly Italy, due to its high level of government debt, low rate of economic growth and vulnerable banking system. • Weak capitalisation of some European banks. • Rising protectionism under President Trump • A sharp Chinese downturn and its impact on emerging market countries The potential for upside risks to current forecasts for UK gilt yields and PWLB rates, especially for longer term PWLB rates include: - • The Bank of England is too slow in its pace and strength of increases in Bank Rate and, therefore, allows inflation pressures to build up too strongly within the UK economy, which then necessitates a later rapid series of increases in Bank Rate faster than we currently expect. • UK inflation returning to sustained significantly higher levels causing an increase in the inflation premium inherent to gilt yields. • The Fed causing a sudden shock in financial markets through misjudging the pace and strength of increases in its Fed. Funds Rate and in the pace and strength of Page 130 reversal of QE, which then leads to a fundamental reassessment by investors of the relative risks of holding bonds, as opposed to equities. This could lead to a major flight from bonds to equities and a sharp increase in bond yields in the US, which could then spill over into impacting bond yields around the world.

3.3 Link Asset Service’s view on the anticipated future movement in interest rates is shown below.

4. TREASURY MANAGEMENT STRATEGY AND ANNUAL INVESTMENT STRATEGY UPDATE 4.1 The Treasury Management Strategy Statement (TMSS) for 2017/18 was approved by the Council on 8 February 2017.

4.2 There are no required policy changes to the TMSS; the details in this report update the position in the light of the current economic position and budgetary changes already approved.

4.3 The Council has moved to a more diverse portfolio involving more foreign banks and more longer-duration investments in order to achieve an enhanced return in the current low interest rate environment. All counterparties used have been selected on the basis that they are highly rated and meet the criteria set out in the Council’s Treasury Management Strategy.

5. THE COUNCIL’S CAPITAL POSITION (PRUDENTIAL INDICATORS)

5.1 The Prudential Indicators are reported on a quarterly basis as part of the Capital Monitoring process. The Prudential Indicators show the current position against the Prudential Indicator limits initially set as part of the 2017/18 Budget Report.

5.2 The indicators are updated from the Capital Programme as at 30 September 2017, showing the Council’s capital expenditure plans and how these plans are being financed. Any changes in the capital expenditure plans will impact of the on the prudential indicators and the underlying need to borrow.

5.3 The current prudential indicator position is shown as Appendix 1 of this report. All the indicators are within the set limits showing that the Council’s borrowing strategy remains a prudent one.

Page 131 6. INVESTMENT PORTFOLIO 2017/18

6.1 In accordance with the Code, it is the Council’s priority to ensure security of capital and liquidity, and to obtain an appropriate level of return which is consistent with the Council’s risk appetite. As set out in Section 3, it is a very difficult investment market in terms of earning the level of interest rates commonly seen in previous decades as rates are very low and in line with the Bank of England Base Rate. The continuing potential for a re- emergence of a Eurozone sovereign debt crisis, and its impact on banks, prompts a low risk strategy. Given this risk environment, investment returns are likely to remain low.

6.2 The Council held £116.260m of investments as at 30 September 2017 (£164.450m at 31 March 2017) and the investment portfolio yield to date is 0.39% against LIBID of 0.13%. These balances always fluctuate in year; however, the reason for the large change in balance this year is the £43m advanced payment made to Greater Manchester Pension Fund in April.

6.3 As outlined in paragraph 4.3, above, this return has largely been earned due to an increased number of longer-duration investments. The average fixed term investment placed by the Council in 2017/18 to date has been 229 days, compared to 179 days in 2016/17

6.4 The Assistant Director of Finance confirms that the approved limits within the Annual Investment Strategy were not breached during the first six months of 2017/18.

6.5 The Council’s 2017/18 budget shows that external loans will incur interest charges of £5.977 and £0.130m will be paid to various Council funds such as the Insurance Fund. Investment income to be earned during the year is estimated to be £1.520m, which will reduce these costs to give a net interest charge budget of £4.587m.

6.6 As outlined in the Treasury Management Strategy, the Council uses the Link Asset Services creditworthiness service to inform counterparty selection.

6.7 The Link Asset Services’ creditworthiness service uses a wider array of information than just primary ratings. Furthermore, by using a risk weighted scoring system, it does not give undue preponderance to just one agency’s ratings.

6.8 Typically the minimum credit ratings criteria the Council use will be a Short Term rating (Fitch or equivalents) of F1 and a Long Term rating of A-. There may be occasions when the counterparty ratings from one rating agency are marginally lower than these ratings but may still be used. In these instances consideration will be given to the whole range of ratings available, or other topical market information, to support their use.

6.9 All credit ratings will be monitored regularly. The Council is alerted to changes to ratings of all three agencies through its use of the Link Asset Services’ creditworthiness service.

 if a downgrade results in the counterparty / investment scheme no longer meeting the Council’s minimum criteria, its further use as a new investment will be withdrawn immediately.  in addition to the use of credit ratings the Council will be advised of information in movements in credit default swap spreads against the iTraxx benchmark and other market data on a daily basis via its Passport website, provided exclusively to it by Link Asset Services. Extreme market movements may result in downgrade of an institution or removal from the Council’s lending list. 6.10 Sole reliance will not be placed on the use of this external service. In addition the Council will also use market data and market information, and information on any external support for banks to help support its decision making process. Page 132 7. BORROWING 7.1 The Council’s capital financing requirement (CFR) at 31 March 2017 is £185.355m. The CFR denotes the Council’s underlying need to borrow for capital purposes. If the CFR is positive the Council may borrow from the Public Works Loan Board or the market (external borrowing) or from internal balances on a temporary basis (internal borrowing). The balance of external and internal borrowing is generally driven by market conditions.

7.2 The Council had an outstanding borrowing requirement of £66.141m at 31 March 2017 which is estimated to increase to £81.029m at 31 March 2018. This outstanding borrowing requirement has been funded from internal balances on a temporary basis and has the impact of reducing the level of the Council’s investment balances. This continues to be a prudent and cost effective approach in the current economic climate.

7.3 The table above shows the movement in Public Works Loan Board borrowing rates for the first half of 2017/18. No borrowing has been taken up in year from the Public Works Loan Board or financial institutions.

7.4 The Council may take up some of the outstanding borrowing requirement in the second half of the year, should an opportune moment occur. All borrowing decisions will be taken in consultation with the Council’s treasury management advisors.

8. MINIMUM REVENUE PROVISION

8.1 The amount of long-term debt that the Council may have is governed by the Prudential Limits set by the Council at the start of the financial year. This is based on the amount of borrowing which the Council has deemed to be prudent. It also allows for advance borrowing for future years’ capital expenditure.

8.2 The Council must also allow for repayment of the debt, by way of the Minimum Revenue Provision (MRP). This is the minimum amount that the Council must set aside annually. Page 133 The Local Authority (Capital Finance and Accounting) Regulations 2008 revised the previous detailed regulations and introduced a duty that an authority calculates an amount of MRP which it considered prudent, although the 2008 Regulations do not define “prudent provision”, they provide guidance to authorities on how they should interpret this.

8.3 In 2015/16 the Council’s MRP policy was revised from the previous practice (4% of the capital finance requirement on a reducing balance basis) to a straight line method of 2% of the 2015/16 capital financing requirement over a period of 50 years.

8.4 Any new prudential borrowing taken up will be provided for within the MRP calculation based upon the expected useful life of the asset or by an alternative approach deemed appropriate to the expenditure in question. This will continue to be reviewed on an ongoing basis.

8.5 For any finance leases and any on-balance sheet public finance initiative (PFI) schemes, the MRP charge will be equal to the principal repayment during the year, calculated in accordance with proper practices.

8.6 There will be no MRP charge for any cash backed Local Authority Mortgage Scheme (LAMS) that the Council operates. As for this type of scheme, any future debt liability would be met from the capital receipt arising from the deposit maturing after a 5 year period. Any repossession losses for this type of scheme would be charged to a LAMS reserve.

8.7 A review of the MRP policy will be undertaken as part of the preparation of the 2018/19 strategy.

9. DEBT RESCHEDULING

9.1 Debt rescheduling opportunities have been limited in the current economic climate and consequent structure of interest rates. No debt rescheduling was undertaken during the first six months of 2017/18.

10. REVISED CODES AND GUIDANCE

10.1 The Chartered Institute of Public Finance and Accountancy, (CIPFA), has recently conducted an exercise to consult local authorities on revising the Treasury Management Code and Cross Sectoral Guidance Notes, and the Prudential Code. CIPFA is aiming to issue the revised codes in December 2017.

10.2 A particular focus of this exercise is how to deal with local authority investments which are not treasury type investments e.g. by investing in purchasing property in order to generate income for the authority at a much higher level than can be attained by treasury investments. One recommendation is that local authorities should produce a new report to members to give a high level summary of the overall capital strategy and to enable members to see how the cash resources of the authority have been apportioned between treasury and non-treasury investments. Officers are monitoring developments and will report to members when the new codes have been agreed and issued.

10.3 The Department for Communities and Local Government is also currently consulting on updating the guidance on Local Authority Investments and the guidance on Minimum Revenue Provision. This consultation proposes widening the scope of ‘Investments’ to reflect the broader scope of Local Government Investment activity, and the introduction of additional reporting requirements intended to improve the transparency and openness of investment activity.

Page 134 11. MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE (MiFID) II

11.1 The EU has now set a deadline of 3 January 2018 for the introduction of regulations under MiFID II. These regulations will govern the relationship that financial institutions conducting lending and borrowing transactions will have with local authorities from that date. This will have minimal impact on the Council as we meet the minimum requirements for volume and value of transactions, but does require us to confirm our skills and competence to each institution.

12. GREATER MANCHESTER METROPOLITAN DEBT ADMINISTRATION FUND (GMMDAF)

12.1 Tameside Council is the lead council responsible for the administration of the debt of the former Greater Manchester County Council, on behalf of all ten Greater Manchester Metropolitan Authorities. All expenditure of the fund is shared by the authorities on a population basis.

12.2 Unlike Tameside the GMMDAF incurs no capital expenditure, and therefore the total debt outstanding reduces annually by the amount of debt repaid by the constituent authorities. However, loans are raised to replace those maturing during the year, and for cashflow purposes.

12.3 At 31 March 2017 the fund had the following outstanding debt. £m

Public Works Loan Board 67.963 Pre 1974 Transferred Debt 0.191 Temporary Loans / (Investments) 24.356 Other Balances 1.057

Total Debt 93.567

12.4 The fund's borrowing requirement for 2017/18 is estimated to be:-

£m Long term debt maturing Public Works loan Board 3.000 Other 0.041 3.041 Less principal repayments (16.966) Deficit/ (Surplus) in year (13.925)

12.5 The surplus in year is a result in timing differences between PWLB repayments and the principal repayments from the districts. It will be used to offset an existing deficit from prior years.

12.6 During 2017/18 it is estimated that the total interest payments will be £4.587m at an average interest rate of 4.90%. This compares with 5.09% in 2016/17.

12.7 No borrowing has been taken up in the first six months of 2017/18. However, loans may be taken up for either re-scheduling or borrowing early for future years, if prevailing rates are considered attractive.

Page 135 13. RECOMMENDATIONS

13.1 As set out on the front of the report.

Page 136 Appendix 1 Prudential Indicators

Actuals v limits as at 4th October 2017 Limit Actual Amount within limit £000s £000s £000s Operational Boundary for External Debt 212,528 118,184 (94,343) Authorised Limit for External Debt 232,528 118,184 (114,344)

These limits include provision for borrowing in advance of the Council's requirement for future capital expenditure. This may be carried out if it is thought to be financially advantageous to the Council.

Limit Actual Amount within limit £000s £000s £000s Upper Limit for fixed 185,335 17,765 (167,570) Upper Limit for variable 61,785 (88,505) (150,290)

These limits are in respect of the Council's exposure to the effects of changes in interest rates. The limits reflect the net amounts of fixed/variable rate debt (i.e. fixed/variable loans less fixed/variable investments).

Limit Actual Amount within limit £000s £000s £000s Capital Financing Requirement 185,355 185,355 -

The Capital Financing Requirement (CFR) is aimed to represent the underlying need to borrow for a capital purpose and is calculated from the aggregate of specified items on the balance sheet. The CFR increases by the value of capital expenditure not immediately financed (i.e. borrowing) and is reduced by the annual MRP repayment.

Limit Actual Amount within limit £000s £000s £000s Capital expenditure 128,514 71,951 (56,563)

This is the estimate of the total capital expenditure to be incurred.

Gross borrowing and CFR @ 31/03/17 the capital financing + increase years Gross requirement 1,2,3 borrowing Amount within limit £000s £000s £000s 185,355 118,184 (67,171)

To ensure that medium term debt will only be for capital purposes, the Council will ensure that the gross external borrowing does not, except in the short term, exceed the total of the capital financing requirement (CFR).

Page 137

Maturity structure for borrowing 2017/18 Fixed rate Duration Limit Actual Under 12 months 0% to 15% 5.25% 12 months and within 24 months 0% to 15% 0.27% 24 months and within 5 years 0% to 30% 0.75% 5 years and within 10 years 0% to 40% 6.92% 10 years and above 50% to 100% 86.81%

These limits set out the amount of fixed rate borrowing maturing in each period expressed as a percentage of total fixed rate borrowing. Future borrowing will normally be for periods in excess of 10 years, although if longer term interest rates become excessive, shorter term borrowing may be used. Given the low current long term interest rates, it’s felt it is acceptable to have a long maturity debt profile.

Page 138 Agenda Item 6a

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Member Councillor Jim Fitzpatrick – First Deputy (Performance and /Reporting Officer: Finance) Emma Varnam – Assistant Director, Operations & Neighbourhoods

Subject: COMMUNITY LOANS POLICY

Report Summary: The report details the conditions, circumstances and value of community loans that will be available from Council reserves for capital schemes undertaken by Tameside charities, community groups and town councils.

Recommendations: Cabinet recommends Council approve the community loans policy at appendix 1 to this report to be reviewed after 12 months.

Links to Community Supporting small charitable organisations with loans for capital Strategy: projects will support a number of Community Strategy priorities including supportive communities, a prosperous society and attractive borough.

Policy Implications: By making loans available to community organisations, town councils and parish councils, the Council will add to the list of actions it is already taking to deliver its objective of providing support for communities.

Financial Implications: The Community Loans Scheme, will be underwritten by creating an earmarked reserve of £250k for the purpose of funding (Authorised by the Section successful loans. The reserve will be topped up with the 151 Officer) repayments of principle and the associated debt will be held on the Council’s balance sheet. There are inherent risks with lending to community groups. This policy is designed to mitigate these risks as far as possible by restricting the capital amounts to a maximum of £50,000 and 20% of the projects total cost. This is to both reduce exposure to loss and improve certainty that the other funding sources are secure and the other backers also have committed to the scheme. The policy and its performance should be kept under review and any loses or defaults will be reported to Executive Cabinet as part of the regular budget monitoring reports to facilitate transparency. Failure of any community group to repay the loan will result in less funding for other causes.

Legal Implications: The Council can grant loans under its well being powers provided able to demonstrate that it is in the interest of the (Authorised by the Borough borough and represents value for money. Each application will Solicitor) need to be assessed on its merits including robust processes to consider whether the organisation or group is of sound financial standing in that they do not owe money to yhthe Council – Page 139 unpaid rent or business rates etc and are able to provide necessary guarantors and/or assurance/security for the Loan.

Risk Management: As detailed in the report

Access to Information: The background papers can be obtained from the author of the report, Emma Varnam by:

Telephone:0161 342 3337

e-mail:[email protected]

Page 140 1.0 INTRODUCTION

1.1 Community organisations cannot always raise all the funding they require from donations or grants. Most sources of grant funding are heavily over-subscribed and have a maximum amount that can be awarded. Often there lies a good business case behind many community schemes that lever in external funding into the locality and allow community groups to generate income streams, which they can then use to plough back into the community.

1.2 It is not unusual for grant giving bodies to require match funding when providing grants and despite community groups having sound and sustainable business plans in place they cannot always raise the match funding. Commercial banks do not tend to lend to the voluntary and community sector, even if a project will generate an on going revenue stream, as it does not fit with their risk profiles.

1.3 In order to support community groups to access funding and lever investment into the Tameside community, the Council, in specific circumstances may wish to grant a community loan to facilitate grant investment if it aligns with the Council’s own policies.

1.4 Currently the Council does not have a policy that allows such advances, which fall outside the Council’s treasury management strategy which is focused on managing its cashflows and balances for operational and strategic reasons, rather than wider policy reasons.

2.0 BENEFITS OF A COMMUNITY LOANS SCHEME

2.1 Loans allow an organisation to spread the cost of a scheme over a longer period. However the charitable purpose, not for profit principle and voluntary nature of community organisations means that there is an inherent risk in providing loan finance. Many commercial lenders will not provide affordable finance and the council’s own treasury management strategy would not allow us to lend to these kind of organisations.

3.0 DETAILS OF THE POLICY

3.1 Cabinet is being asked to recommend to Council the establishment of a pilot community loans policy, attached at appendix one to this report. The policy sets the framework within which the scheme will operate.

The policy states; • Who we will provide loans to • What we will provide loans for • The minimum and maximum amounts we will lend • The interest rate chargeable and the loan term

3.2 The Community Loan Scheme will only fund capital expenditure (the purchase of land and buildings, new build or building refurbishments) and will not support revenue expenditure or the purchase of vehicles.

3.3 All loans must result in a community benefit to the area and residents of Tameside, with a demonstrable level of community use of any facility or asset supported. The organisation must be able to demonstrate its ability to service the debt. Should the demand for loans be high we may introduce specific selection criteria. Loans will not available for bridging or forward funding organisations that are awaiting payment of a grant claim.

Page 141 3.4 The loan must represent no more than 20% of total project/purchase costs and all other funding must be confirmed before the loan is advanced, along with evidence that all other sources of funding have been investigated.

3.5 The total amount available for lending will initially be £250k in total. As loans are repaid the principal element will be made available for further lending. The recycling of the principal in this way will mean the scheme has long term sustainability.

3.6 Loans of between £20,000 and £50,000 will be made available to qualifying organisations.

3.7 The maximum repayment period for loans is 5 years and interest is charged on all loans. There will be no penalty for early repayment.

3.8 Loans will lent at the Public Works Loan Board (PWLB) five year equal instalment payment (EIP) fixed rate plus a premium of (2.5%). (N.B. The PWLB five year EIP fixed rate on 17 November 2017 was 1.56%). In this example the rate charged would be 4.06%. Cumulative interest will be charged therefore late repayments will result in additional interest becoming due.

3.9 Application for loans will be made through by way of application form and will only be progressed when accompanied with copies of constitution, accounts, indemnity insurance policy, three quotations of work and medium term financial plan.

3.10 The decision on loan awards will be made by the Executive Cabinet and decisions will be noted and recorded at Cabinet

3.11 Once the Council has approved the policy, officers will consider how the awarding and monitoring of loan repayments will be administered.

4 FINANCE

4.1 As part of the Council’s day to day operations, there are a number of cashflows and investments held, which are invested in accordance with the council’s treasury management strategy. The establishment of a Community Loans scheme could funded by reallocating £250k of the Council’s existing reserves.

4.2 The interest rate charged will be at a market level and so this should not have a detrimental impact on the council’s income from investments.

5 RISKS

5.1 There are a variety of legal powers under which the council can advance loans under this scheme, currently main one being section two of the Local Government Act 2000, more commonly known as the power of wellbeing.

5.2 Loans to some charitable organisations will carry greater risk of default than loans to institutions with high credit ratings. The policy confirms that the council will pursue any non- payment in accordance with the council’s corporate debt recovery policy

5.3 Advances to charitable organisations will only be made where a charge can be made against the charity’s assets.

5.4 There is a risk of loan repayment default but the council will insist on a charge against a charity’s asset in order to mitigate this risk.

Page 142 5.5 The council will assess the financial robustness of any organisation and its ability to service a loan. The council will reserve the right to refuse an application if it considers the risk of financial default to be too great. Furthermore, the council will reserve the right to refuse an application if it considers the community benefit is insufficient to justify the loan.

6 CONCLUSION

6.1 In order to support the Council objective of providing support for communities it is proposed Council introduces a community loans scheme. To do this Council must first approve a community loans policy.

Page 143 APPENDIX 1 DRAFT Tameside Community Loan Application Guidance notes for applicants

Contents

Section 1 – General information

1. Why do we offer community loans? 2. How to apply for a loan? 3. Who do we provide loans to? 4. What do we provide loans for? 5. How much can you apply for? 6. Can the council refuse a loan application? 7. What is the loan term? 8. Is interest charged? 9. What is the interest rate? 10. Are there any penalties for early repayment? 11. Who approves the loan? 12. How is the money paid out and paid back? 13. What security is required? 14. What is the size of the loans budget? 15. When can organisations apply for a loan? 16. Non-payment recovery policy 17. What are the chances of success? 18. What happens once I have submitted my application? 19. If a loan is awarded what happens next? 20. Sharing information 21. Equalities 22. Contact us

Section 2 – Step-by-Step application guide Are you able to apply? A. Contact/organisation details B. About your project/purchase C. Financial details D. Documentation requirements

Page 144 Section 1 – General Information 1. Why do we offer community loans?

Community organisations cannot always raise all the funding they require from donations or grants. Most sources of grant funding are heavily oversubscribed and have a maximum amount that can be awarded. Loans allow an organisation to spread the cost of a scheme over a longer period. However the charitable purpose, not for profit principle and voluntary nature of community organisations means that there is an inherent risk in providing loan finance. Many commercial lenders will not provide affordable finance and the council’s own treasury management strategy would not allow us to lend to these kind of organisations.

This policy allows the council to offer loans to these organisations.

2. How to apply for a loan? From 2 January 2018 you can apply for a community

3. Who do we provide loans to? The council provide loans to registered charities and town and parish councils. The applicant needs to show that a regular source of income is available to repay the loan. Loans are not provided to individuals on behalf of an organisation and trustees that act prudently are not personally liable for the loan. However a condition of any loan to a registered charity or mutual is that the organisation maintains trustee indemnity1 insurance throughout the loan period.

4. What do we provide loans for? We only make loans to fund capital expenditure (the purchase of land and buildings, new build or building refurbishments). We do not provide loans to support revenue expenditure or the purchase of vehicles

Loans must result in a community benefit to the area of Tameside. An organisation must demonstrate its ability to service the debt. Should the demand for loans be high we may introduce specific selection criteria. Loans are not available for bridging or forward funding organisations that are awaiting payment of a grant claim.

5. How much can we apply for? Loans of between £20,000 and £50,000 are available. The loan must represent no more than 20% of total project/purchase costs and all other funding must be confirmed before the loan is advanced.

6. Can the council refuse a loan application? The council will assess the financial robustness of any organisation and its ability to service a loan. The council reserves the right to refuse an application if it considers the risk of financial default to be too great. Furthermore, the council reserves the right to refuse an application if it considers the community benefit is insufficient to justify the loan.

7. What is the loan term? The maximum repayment period for loans is 5 years.

8. Is interest charged? Interest is charged on all loans.

9. What is the interest rate? Loans are lent at the Public Works Loan Board (PWLB) five year equal instalment payment (EIP) fixed rate plus a premium of [ to be agreed (2.5%)]. (N.B. The PWLB five year EIP fixed rate on 17

1 The trustees of a charity take unlimited personal liability for their actions in managing the charity’s affairs. Trustee Indemnity Insurance protects trustees from losing their personal assets as a result of their duties made whilst acting as trustees. The indemnity is provided for wrongful (but not reckless) acts committed by a trustee. Page 145 November 2017 was 1.56%). In this example the rate charged would be 4.06%. Cumulative interest will be charged therefore late repayments will result in additional interest becoming due.

The initial rate charged is the above rate on the day the loan is agreed or the first advance is made

Interest will be calculated from the date of the first advance and will accrue until the date of the first repayment and thereafter calculated on the loan balance outstanding after each monthly repayment.

10. Are there any penalties for early repayment? There are no penalties for early repayment.

11. Who approves the loan? All loans to a value of £50,000 will be approved by the council’s cabinet.

12. How is the money paid out and paid back? Loan money is advanced via BACs payment. Repayments of capital and interest must be made monthly by direct debit

13. What security is required? A loan will not be made if the organisation does not have land or buildings on which a charge (of the value of the loan) can be made. The constitution of participating charities must allow the organisation to borrow. Parish and town councils must have authority from the Secretary of State to borrow.

14. What is the size of the loans budget? The maximum budget available (i.e. amounts lent after taking into account principal repayment received) for lending is £50,000. All loans will be for capital spend only and will be funded from reserves.

15. When can organisations apply for a loan? Applications for loans can be made at anytime. The only limiting factors are the availability of funds, an organisations ability to service its debts and the requirement for all advances to be used for capital expenditure purposes only.

16. What is the non-payment recovery policy? All debts will be pursued in accordance with the council’s corporate debt recovery policy. The policy is rigorous and results in legal action including debtors being taken to court where all other means to secure payment have failed.

17. What happens once I have submitted my application? Once you have submitted your application form you will receive an email informing you that your application has been received. We will aim to contact you within 28 days of submission of your application to confirm it is being processed and if we have the correct supporting documentation. If you do not hear from us within 28 days please contact us. We aim to provide a decision on your application within 12 weeks from the submission date, depending on the complexity of the application.

18. If a loan is awarded what happens next? If your loan application is successful you will be sent a formal loan offer which must be signed and returned within 28 days. You must complete a form to ‘draw down’ the loan. The form will be supplied with the formal loan offer. Loans will be paid no sooner than four weeks before the commencement date of your project/purchase.

Page 146

19. Equalities The council is committed to promoting equality and diversity and welcomes applications from all sectors of the community, regardless of race, gender, disability, sexual orientation, age, status, religion or belief.

We encourage applications from minority groups. Should you need advice or assistance to complete an application, please contact us on xxxxxxxxx.

20. Contact us If you have any queries about the application form or would like further advice on applying for a community loan please contact XXXXX

Section 2 – Step-by-Step Guide to making an application

Are you able to apply? To enable us to determine if your project/purchase is eligible for a community loan, you will need to complete the following checklist. If you do not meet our criteria you will not be able to proceed with your application. If your project/purchase has met our criteria you will be asked to begin your application.

1. Is your organisation a registered charity or a town or parish council? (Only these types of organisation are able to apply). Registered charities will need to supply a copy of their constitution.

2. Do you have authority to take out a loan? Parish and town council’s need authority from the Secretary of State to borrow. The registered charity’s constitution must allow you to borrow and place a charge on the land or property concerned.

3. Can you provide evidence of ownership of land or property of sufficient value to secure the loan? The organisation must either own or have a lease on the land or property for a minimum of the duration of the loan, against which a charge to the value of the loan can be applied. You will need to supply an independent valuation of the asset.

4. If required, has your project obtained all appropriate planning or listed building consent? Please supply a copy of the planning consent for the project, if required. You should not apply without it.

5. Can you provide your organisations last two years audited accounts? Please supply the last two years audited accounts of the organisation applying for a loan (audited if they are available).

6. Do you have a minimum of three quotes for all work, equipment and fees relating to your project/purchase, unless you are purchasing an existing building? Three up-to-date quotations for all aspects of the project/purchase costs or details of a tender process must be supplied. If you are purchasing an existing building a statement detailing why this property has been selected for purchase over any other must be submitted. Your application will not be accepted without this evidence.

7. Do you have a medium term financial plan including profit and loss projections for a minimum of five years? You need to explain how you can afford to pay back the loan based on your profit and loss each year. The onus is on you to clearly demonstrate your ability to repay the loan.

8. Can you confirm that the loan will be used to fund a capital purchase? Capital purchases include but are not limited to: Page 147  purchase of buildings/land  new build projects  extensive renovations  purchase of plant machinery  Non-capital purchases include but are not limited to:  building maintenance  organisation running costs  staff salaries This scheme does not allow for the purchase of vehicles.

9. Do you have or will your organisation take out indemnity insurance that will cover the value of the loan? Full details of the insurance cover held by the organisation’s trustees or a copy of a formal quotation for cover must be submitted. We will need to examine the original documents at a later stage.

A Contact details

A1 Name of organisation Give the full name of the body applying for the loan. This name must also be shown on all quotations for the project/purchase.

A2 Name of project/purchase The project name should be a brief description of your project/purchase that you need a loan towards.

A3 Organisations address Full address details of the organisation applying for the loan.

A4 Main contact for this application The main contact person for this application must be someone from your organisation that knows about the project/purchase and can be contacted during office hours.

A5 Address for main contact The full address of the contact person.

A6 Telephone no. Daytime telephone number for the contact.

A7 Mobile no. Mobile telephone number for the contact.

A8 Email address for the contact. If completed, all correspondence will be sent via email.

A9 Indemnity insurance details Full details of the insurance cover held the organisation’s trustees or a valid quotation for such cover should be submitted. We will need to examine the original documents at a later stage.

B Project details

B1 Give a brief description of the project The ‘project’ is everything included in the total project/purchase costs. Be very specific and only describe the work that you require to be funded.

B2 Do you own or lease land or buildings on which a charge (of the value of the loan) can be made? The organisation applying for the loan must own or lease the land/property for a minimum of the duration of the loan. A copy of the lease or title deed must be provided.

B4 Which ward does your project/purchase fall within? The geographical area that your project/purchase is situated in.

Page 148 B5 What type of organisation is applying? Please specify what type of organisation is applying for a grant.

B6 Charity number (if applicable) Please specify the organisations charity number (if applicable).

C Community Benefit

How well does your project benefit the local community?

C1 Who will benefit from the project? Please give details of how the project will benefit people within Tameside area, specifying particular groups where possible.

D Financial Details

D1 How much would you like to borrow? Loans are available up to £50,000. No more than 20 per cent of the total costs of your project/purchase can be borrowed.

D2 Over how many years do you wish to repay the loan? The maximum repayment period for any loan is 5 years.

D3 When would you like the loan to be advanced to your organisation? Loans will not be paid earlier than four weeks before the commencement date of the project or purchase.

D4 What is the total cost of your project/purchase? (including VAT if you cannot reclaim it) The total project/purchase costs including VAT (only include VAT if you are unable to reclaim it).

D5 Does your organisation have any outstanding loans? Please list the details any outstanding loans that your organisation has.

D6 Please detail all costs for your project/purchase using the table below:

Please list all costs that are relevant to your project/purchase, to the nearest pound. It is important this section is completed accurately listing the names of the expected contractors/suppliers. All quotes should be submitted with the application form.

D7 How will you fund the remaining balance of your project/purchase costs? Please list all sources of funding that you already have or will be applying for, including your own.

Submission of documents You will need to provide the following documents before you can apply for a loan:  constitution  accounts  planning consent (if applicable)  three quotations for all aspects of work (if not purchasing a building)  evidence of ownership  a medium term financial plan (5 years)  a copy of your organisation’s indemnity insurance policy or a formal quotation for such insurance  additional documents, for example consultation evidence and a business plan

Page 149 This page is intentionally left blank Agenda Item 6b

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Member/ Councillor John Taylor, Deputy Executive Leader Reporting Officer: Robin Monk, Executive Director – Place COMMUNITY LOAN APPLICATION BY CURZON ASHTON Subject: FOOTBALL CLUB FOR NEW SYNTHETIC TURF PITCH Report Summary: This report sets out details of an application from Curzon Ashton Football Club for a £50,000 loan under the Council’s Community Loans Policy. The loan is towards project funding to replace the club’s synthetic turf pitch. Recommendations: Cabinet Members are invited to confirm that they would support an application in principle by Curzon Ashton Football Club for a loan of £50,000 subject to the necessary application being received under the terms of the Council’s Community Loans Policy to be approved by executive decision by Cllr Fitzpatrick. Policy Implications: This proposal supports the Tameside Health and Wellbeing Strategy and, specifically the strategic priority pertaining to reducing physical inactivity and improved physical activity levels across Tameside. Financial Implications: The financial aspects of the proposal are covered in Sections 4, 5 (Authorised by the Section and 6. However, in summary, the club are planning to invest 151 Officer) £486k towards the refurbishment of the 3G pitch and its environs. The club are currently £50k short and have requested a loan to make up the shortfall (10.3% of the total investment). In terms of financial stability of the club and their ability to repay, like with many football clubs, income can be volatile. The accounts show an overall deficit position that has been financed by creditors lending money to the club. As at August 2017, the club had a deficit reserves position of £50k that was financed by creditors. The club have just over £70k in the bank which they are planning on using as their contribution to the proposed works. The requested repayment period is over 5 years, which would require annual repayments of £11.5k, assuming a 5% rate of interest. The club have stated that if they have a good cup run then they would repay sooner. The business case assumes that third parties would be charged for the use of the pitch, which is currently well used. This income prudently assumed in the business case is £49k per annum, however, it is already received by the club and will not be an additional income stream. In addition the terms of the Football Foundation arrangement is that the club establish a sinking fund to allow replacement to be funded without additional future support. This will act as a further drain on the clubs finances. Any failure to repay would request in a debt write off that would be charged to the Council’s Income and Expenditure account and therefore become a revenue expenditure. Legal Implications: To ensure the Council is protected from successful challenge it (Authorised by the Borough must be able to demonstrate that it has acted reasonably and Solicitor) rationally, without bias or prejudice, taking all its public law duties Page 151 into account, including those under the best value and equalities legislation, and at all times acting in the public interest. To ensure such decisions are lawful, Members will need to be satisfied that the assessment of any loan requested complies with the requirements of the Council’s Community Loans Policy. The Policy sets out what criteria will be applied to any case where an organisation or person comes to the Council requesting monies to support them in their venture so any decision can be clearly made and referenced to be in accordance with those public law duties and responsibilities. Members must have regard to the Policy when making this decision. It will be necessary for an application to be received in a form to be provided by Ade Alao, Head of Investment and Development to meet the requirements of the policy for an expedient decision

Risk Management: The primary risks associated with scheme are; The projected business case isn’t achieved, capital funding is not realised, other

Tameside based football clubs require financial support from the Council on the same or similar basis.

Access to Information: The background papers relating to this report can be inspected by contacting the report writer: Ade Alao, Head of Investment and Development.

Telephone: 0161 342 2795

e-mail: [email protected]

Page 152 1.0 BACKGROUND

1.1 Curzon Ashton Football Club (the Club) is based at the Tameside Stadium which is part of the Roy Oldham Sports Village located off Richmond Street in Ashton. The club was relocated from its National Park home to the purpose-built facility in 2005. The ground, owned by the Council and leased to the club under a 99-year lease, was funded by the Council from the Council’s Capital Programme and a grant from the Football Foundation.

1.2 The 2005 the Tameside Stadium development included the provision of a full sized synthetic turf pitch (STP) available for community use. The life expectancy of synthetic turf is between 8 and 10 years based on the intensity of use and adequacy of the maintenance regime. The existing synthetic turf pitch is now 12 years old and although very well maintained has now reached the end of its serviceable life.

1.3 The Football Foundation now requires, as a condition of grant, organisations to establish a sinking fund for the replacement of STP’s to ensure that installations are sustainable in the long term. In 2005 a sinking fund was encouraged by the Football Foundation but it wasn’t a specific condition of grant.

1.4 The club has not maintained a sinking fund to replace the synthetic turf carpet and as a consequence it is now seeking grant and partnership funding to deliver the replacement scheme at a total cost of £486,000. The scheme also includes upgrades to the existing floodlight and fencing installations

1.5 The club proposes to fund the scheme as follow:

Table 1 Funder Type of funding Value The Football Foundation Grant £366,000 Curzon Ashton Football Income received from 2016/17 FA £70,000 Club Cup run Curzon Ashton Football Community Loan from Tameside £50,000 Club Council Total £486,000

1.5 This report sets out the strategic need for the development and the club’s application for a £50,000 community loan from the Council.

2.0 STRATEGIC NEED

2.1 This proposal supports the Tameside Health and Wellbeing Strategy, specifically the strategic priority pertaining to reducing physical inactivity and improved physical activity levels across Tameside. The development will also support the Council to deliver the Playing Pitch Strategy.

2.2 The Football Association (FA’s) considers high quality third generation artificial grass pitches as an essential tool in promoting coach and player development. The pitches can support intensive use and as such are great assets for both playing and training. Primarily, such facilities have been installed for community use and training, however, they are increasingly used for competition – something that The FA wholly supports. Getting access to good quality, affordable training facilities is a problem for many clubs throughout the country. In the winter months, midweek training is only possible at floodlit facilities. The FA’s long-term ambition is to provide every affiliated team in England the opportunity to train once per week on a floodlit 3G surface, together with priority access for every Charter Standard Community Club through a partnership agreement. The FA Standard is calculated by using the latest Sport England research "AGPs State of the Nation March Page 153 2012". Improving pitch quality is one way to increase the capacity at sites but given the cost of doing such work and the continued maintenance required (and associated costs) alternatives need to be considered that can offer a more sustainable model for the future of football.

Current Usage:

2.3 The STP is heavily used during peak periods within the weekday (5.00pm – 10.00pm) currently there is only two hours available during peak periods. The pitch is used from 9.00am – 5.00pm during week days, walking football, homeless sports programme, Tameside school games programme, Tameside College. At weekends the pitch is used from 8.00am – 2.00pm every weekend by the East Manchester Junior League, following the league, the pitch is used for match play by Curzon Ashton Teams and other users including a 5-a-side league.

2.4 The Club has over 48 teams which include:  A development squad starting at age five  Women and girls pathway from under-7 through to a Women’s team playing within the North West Women’s League, only four divisions from the Women’s Super league  A disability programme that will include a number of new initiatives by July 2017 including a dedicated officer.  Two walking football development teams.  A men’s youth development programme that has an under-17 and under-18 teams playing in the North West Alliance, which is also linked to the Tameside College football programme that aims to recruit players and provide coaching opportunities.  The club hosts one of the country’s largest junior football leagues with 550 teams starting at under-7s; the East Manchester Junior League is housed at the stadium playing its fixtures on the 3G Football Turf Pitch.  The men’s team have finished a second season within the National League North, only two divisions from the Football League

2.5 The STP hosts the following community programmes:  Working with Infinity Initiatives and Greystones charities dedicated to supporting the homeless in Tameside, a sports programme for adult men takes place at the Football club each week.  Working with Trinity Church the 3G FTP is home to a Friday night project working with young adult males that are not in education and from the local Ashton neighbourhood of Ashton St Michael.  Working directly with Tameside Council, Safer Stronger communities department the 3G FTP is home to a programme for Looked After Children.  Throughout the season the Club is host to a number of events including; Community fun day, NHS health awareness, Believe and Achieve Trust family day, Black History month awareness event, Child Sex Exploitation sports week, and Non-League fun day – all of these take place during the season with many of the events hosted on the 3G FTP. Partners include: Tameside NHS, Tameside Police, Royal British Legion, Ashton Cricket Club, Tameside Lacrosse Club, Ashton Rugby Club etc.

Page 154 3.0 DELIVERY

3.1 The scheme will be managed, procured and delivered by the Football Foundation and their framework contractors. The cost of the scheme has been developed by the Football Foundation’s nominated Quantity Surveyor.

3.2 Once complete, the club will establish a sinking fund of £25,000 per annum to replace the pitch in the future.

4.0 BUSINESS CASE

4.1 The club has prepared a comprehensive business case including a financial plan and programme of use for the redevelopment. In addition, the club has provided its most recent set of accounts for consideration.

4.2 The unaudited accounts show the club in a relatively healthy position, having made a surplus of £50k in the year to August 2017. There was a significant amount of income generated from the FA cup including TV income of £81k. This suggests that the positive financial results were largely due to good performance in the FA cup and other competitions which are not guaranteed on an annual basis. The club currently sit 8th in the National League North (a division below the football conference, or 6th tier in the football league hierarchy). The club are registered under the Industrial and Providence Society Act 1965, and operate as a community football club with no one member having a personal financial interest in the club of more than £10.

4.3 We still await a copy of the audited accounts from August 2016.

5.0 COMMUNITY LOAN APPLICATION

5.1 The club has made an application for a loan of £50,000 towards the cost of the scheme repayable over 5 years with repayments commencing at practical completion which is estimated to be September 2018. The repayments will be met from income generated by the redevelopment and interest will be set in line with the Council’s Community Loan Policy.

5.2 The application has been assessed to be in compliance with the requirements of the Council’s Community Loans Policy.

5.3 The final terms of the loan will be subject to due diligence undertaken by the Director of Finance.

5.4 Subject to the completion of the loan agreement, the Council can confirm to the Football Foundation that it will underwrite up to £50,000 of the club’s contribution towards the project.

6.0 RISK

6.1 There are a number of risks associated with this scheme that should be considered:

Table 2 Risk Mitigation Comments The projected Business The club has operated the There is a risk that any Case isn’t achieved and existing facility for the last further competition in the the loan cannot be 12 years and has based its STP market could reduce the repaid business plan assumptions viability of the pitch. Page 155 on actual performance. However, there are currently no known development plans for the area. Funding not realised The club has developed a If funding isn’t realised then comprehensive case for the the pitch will deteriorate to a scheme and it appears to point where it will close. This have in principle support would have a negative impact from the Football on the sustainability of the Foundation. club and the current positive health outcomes. It will decrease the number of such facilities that are available to the local community. Other Tameside-based None Tameside hosts a number of clubs may require competitive football clubs that financial support on the operate with limited funds. same or a similar basis. Other clubs may expect the Council’s financial support for ground developments. Any loan application from other community football clubs will be considered in line with the Community Loan Policy.

7.0 RECOMMENDATION

7.1 As set out at the front of this report.

Page 156 Agenda Item 7

Report To: EXECUTIVE CABINET

Date Of Report: 13 December 2017

Executive Member/Reporting Councillor Jim Fitzpatrick, First Deputy (Performance and Officer Finance) Tim Rainey, Assistant Director, Digital Services.

Subject TAMESIDE DIGITAL INFRASTRUCTURE

Report Summary: This report provides an update on progress with Tameside’s new digital infrastructure. It outlines the business case for further £1,725k capital investment in networking equipment, ducting and fibre optic cable, and £840k for a new Data Centre located in Ashton Old Baths, which are all required to provide the services, speeds and connectivity that the Council and our partners will require for the next 5 years.

The report also seeks approval to sign and seal the Project Agreement with TfGM for the lease of ducting and operation of fibre optic along the route of the Metrolink for phase 1 (Ashton to Droylsden), and phase 2 (Droylsden to Piccadilly) when complete in early 2018.

The report also provides details of a £2.2m grant from the Department of Culture, Media and Sport (DCMS) Local Full Fibre Programme that will help accelerate and expand the Tameside Digital Infrastructure programme.

Linked to this investment the report outlines details of the Tameside Digital Infrastructure Cooperative (TDIC) operating vehicle which is being used to commercialize the spare capacity on the network with the aim of supporting and growing the digital and high end engineering economy in the borough.

Finally it also seeks approval for an “in principle” agreement to provide financial support to the Cooperative to help with start-up and early running costs, approval to sell spare fibre pairs to the Cooperative and agreement that the Council should become a founder member.

It should be noted that whilst this report recommends that Tameside Council should become a founder member of the TDIC it not a prerequisite that the Council does. The Council could choose to allow the Cooperative to be setup by other organisations and simply enter into a commercial agreement with the Cooperative for the use of council ducting and sale of spare fibre pairs. Recommendations: 1) Prospective members of the Tameside Digital Infrastructure Cooperative (TDIC) have been invited to declare their mutual intent in support of the formation of the cooperative on the terms outlined in section 2 and Appendices 1, 2 and 3 of this report. 4 organisations have now confirmed as founder members and it is therefore recommended that the registration process proceeds and that the Council is one of the Founder Members.

Page1 157 2) That the Council will underwrite start-up funding for the fledgling Cooperative with the guarantee of a share based equity loan of up to £120k over a 5 year period based on 5% interest repayment rate as set out in paragraph 2.19. 3) That the Council will sell its spare fibre capacity to the Cooperative for £100k and will agree to purchase par value shares in the Cooperative to make this purchase possible as set in paragraph 2.19. 4) That the Council has discussions with other public sector investors in regard to the sale of their spare fibre capacity to the Cooperative on the same basis as above. 5) That approval is given to £1,725K capital investment set out in section 3 of the report:  £1,366k to fund the installation of ducting and fibre optic cable associated with the expansion and development of the Tameside Digital Infrastructure  £359k to fund the replacement of network perimeter security equipment and dark fibre switches. It should be noted that some preliminary costs of £206k have been incurred in advance of full approval for this project due to works that needed to take place alongside other planned works, to minimise disruption. 6) That approval is given to £840k capital investment on the construction of a new purpose built Data Centre in Ashton Old Baths as detailed in section 4. 7) The Borough Solicitor is authorised to sign and seal the Project Agreement with TfGM for use of tram-side ducting to install and light fibre optic cable for phase 1 (Ashton to Droylsden) and phase 2 (Droylsden to Piccadilly) on behalf on the Council as detailed in section 5 and Appendix 7. 8) That before the project progresses the Director of Finance must satisfied that the proposals and business case for this project have been properly assessed and represent value for money. 9) That any further proposals which involve the Council in the setting up or running of the Co-operative as opposed to being a founding member will require further Cabinet approval subject to a business case setting out a cost benefit analysis Links To Sustainable The initiative supports the delivery of the Sustainable Community Community Strategy: Strategy Prosperous Tameside aim.

Policy Implications: The initiative supports the delivery of the Council’s Corporate Plan by supporting economic growth and opportunity.

Financial Implications: Tameside Digital Infrastructure Cooperative (TDIC) (Authorised By Section 151 The Council has already invested in dark fibre and has the Officer) infrastructure in place. The financing of the mutual will be done through a loan and sale agreement to the mutual, whereby the Council loan £120k to the new mutual, which then uses £100k of

Page 2158 the loan to buy the Council’s fibre cabling. The remaining £20k of the loan remains in the mutual as start up capital. The net cash outlay for the Council is therefore £20k. The full loan of £120k will attract interest of 5% per annum (£6k per annum). Renting of the ducting to the Co-op would net the Council up to £34k per annum. The exact terms of this arrangement have yet to be finalised and the loan will only be made as part of the establishment of the mutual. The hosting of the mutual has yet to be finalised, but this is something that the Council does not have the expertise or capacity to undertake at this stage. In addition there may be some requirement for working capital of up to £125k from the founder members, which has been based on very prudent assumptions. The exact working capital requirements will be known when the mutual is established and if any further funding input is required from the Council it will be subject to a further report to Cabinet setting out the full details of the proposed arrangement. Capital Investment The Council’s Three Year Capital Programme for 2017-2020 earmarked capital resources of £1,725k for Digital Infrastructure Investment and £840k for investment in a new Data Centre. It is expected that this investment will be funded from the Council’s Capital Investment Reserve. This report summarises the expected costs for the installation of ducting and cable (£1,366k) and equipment (£359k) for Digital Infrastructure, and £840k for the purpose built Data Centre. These costs are estimates and it is essential that monitoring of actual expenditure is undertaken to ensure the project is contained within the approved sum. Section 3 of the report identifies the anticipated cost avoidance and savings resulting from the digital infrastructure investment over a five year period. It should be noted that most of these figures are cost avoidance. The investment in Digital Infrastructure is anticipated to deliver revenue budget savings for CCTV of £39k per annum (£195k over five years). The remaining figures quoted are costs that would be incurred if a different approach was taken to invest in Digital Infrastructure. The proposed investment is not expected to result in any additional revenue costs. The ongoing maintenance of the digital infrastructure and Data Centre will be met from within existing FM and ICT budgets. Section 5 of the report identifies that the Council has successfully bid for £2.2m of grant funding from the Department of Culture, Media and Sport. Plans are in place to use £1.2m of this grant to fund other additional investment in Digital Infrastructure and £300k for the creation of a Digital Exchange within Ashton Old Baths. The service will need to ensure that the proposals for the use of this grant are consistent with the grant terms and conditions and that any reporting requirements can be met, to ensure all grant funding can be obtained. Page3 159

Legal Implications: In order for this project to progress The Director of Finance must (Authorised By Borough be satisfied with the proposals and business case for this project. Solicitor) Alternative options have not been included in this report which would assist in the assessment of the business case. For example, how could this project develop if the Council was not a founding member of the Cooperative but allowed its land to be leased to the Cooperative. There is nothing in principle to prevent the Council becoming a founding member of the Cooperative, subject as ever to the detail in the set up documents, and a clear understanding of the financial, legal and reputational risks involved.. The Council does not have currently either the resources, or more importantly the expertise to set up and administer a Cooperative, so this would need to be led by another founding member. The Council going forward needs to understand precisely what DCMS now expect the Council to deliver and the reputational risk to the Council versus the option the Council should follow.

Risk Management: The risk register for the delivery of the project is attached at Appendix 5.

Access To Information: The background papers relating to this report can be inspected by contacting Tim Rainey, Assistant Director, Digital Services by: Telephone:0161 342 3299 e-mail: [email protected]

Page 4160 1. BACKGROUND AND INTRODUCTION

1.1. The Council has a both a responsibility and a vested interest in the economic wellbeing of the borough and in promoting and supporting digital inclusion, both of residents and local businesses. Digital technologies are becoming more and more vital to all forms of business and in all areas of life. Tameside is fortunate to be part of a city region where the digital sector is strong and growing. The Manchester city region is particularly strong in areas like creative, media and marketing – and Tameside can build on that strength by providing both strategic and practical support, thus nurturing and actively developing a thriving digital economy. .

1.2. The Council aims to use digital technology to transform public services, offering new and superior service at lower cost. It also sees digital technology as a driver for economic growth, directly through the development of the digital sector and related businesses, and indirectly through the impact on productivity in the wider economy. Tameside has a strong technical, manufacturing and industrial heritage, and linking in with the Vision Tameside programme, it can develop its own special role as a centre for the industrial application of digital technology in areas such as software, digital networks and high end engineering.

1.3. The UK as a whole, let alone Tameside, is not particularly well served with the kind of digital infrastructure that would allow real and rapid progress in pursuit of these objectives. Just 3% of residential and business properties in the UK are currently within economical connection distance from fibre infrastructure. Upgrades to current internet access services from the main suppliers, while welcome, offer only incremental change and create few opportunities for local business to innovate and add value.

2. FIBRE INFRASTRUCTURE EXPANSION AND CORE NETWORK EQUIPMENT REFRESH

2.1. For the last 4 years the Council has been installing a fibre optic digital infrastructure in and around Ashton Town Centre. To date much of the investment in the digital infrastructure has been ad-hoc and opportunistic with new ducting and fibre being installed on an “as and when required” basis. At present this network provides data and telecommunications connectivity to 20 different buildings supporting the Council, Tameside College, Tameside General Hospital, Pennine Care Mental Health Trust services and New Charter Housing Trust with work ongoing to connect Greater Manchester Pension Fund.

2.2. There is now an opportunity to be more strategic and to begin to plan and install the infrastructure on a borough wide scale. The Council is in the process of switching providers for its Wide Area and Local Area Network connectivity. The existing supplier has been in place for 5 years and will be replaced in December 17 by a new supplier procured in conjunction with Rochdale, Oldham and Bury MBC.

2.3. This switch in suppliers will also coincide with the need for a technical refresh of the networking equipment, which is coming to end of life. This refresh is essential to maintain network security as well as avoid poor network and telephony performance. Failure to replace this equipment would leave the council’s network vulnerable to cyber and virus attacks as equipment suppliers stop providing patches and security updates.

2.4. To ensure the Council (and partners) have a fit for purpose network linking the various buildings across Tameside we must refresh the networking equipment for newer faster models and to increase the capacity of the core network link speeds from 1GB per link to at least 10GB. This will then provide the speed and bandwidth that we will need for the next 5 years. This increase in speeds and capacity is required for a number of reasons including:  The advent of joint working with Health colleagues means NHS traffic will be securely transferred across our infrastructure.

Page5 161  Town Centre Wi-Fi will increase the demand for Internet access across the board.  CCTV cameras will use the network to connect back to Dukinfield Town Hall.  The new MFD printers and scanners now use the network for all printing and scanning.  The introduction of new technology such as SKYPE for business and increased scanning and electronic storage and retrieval of documents will increase traffic. 2.5. This 10 fold increase is network speed and capacity can be achieved by either renting high speed fibre links from the Councils new network supplier (British Telecom) or alternatively they can be provided by expanding the Council’s own existing Dark Fibre Network to cover the key buildings which require high speed connectivity.

2.6. This next stage of investment will see the infrastructure extended by a further 23km and in so doing link other main towns across Tameside (using a resilient figure of eight route). This will then mean that the network will provide connectivity to over 100 key council and health buildings and over 80 CCTV camera locations.

2.7. In additional, as a result of successful bid to the DCMS Full Fibre Programme Tameside Council has been awarded £2.2m of which part will be used to extend ducting and install fibre in to main economic /employment development zones around the borough.

Expansion of the Tameside Digital Infrastructure (1,366k Capital Investment) 2.8. To replace our existing network links, which are provided by Updata,on a like for like basis albeit with higher speed/capacity links from British Telecom would cost £1,864k over a 5 year period. A list of the Council buildings with their connection speeds is included at Appendix 5. 2.9. Installing our own links as opposed to renting from BT will cost £1,366k a saving of £498k over the first 5 years of operation. Alongside the cost saving this approach will also bring many additional benefits. When we install fibre we will be installing up to 144 pairs at the same time. The Council will need only a few pairs for its high speed WAN connections and so this creates spare capacity for other partners and commercial use along with future expansion at little or no additional cost. 2.10. The majority of the estimated costs (£1,200k) relate to the installation of ducting into the roadway and footpaths which is being undertaken by the Civil Engineering Service. There are up to 5 gangs working on this project at any one time with each able to complete around 100m of ducting per week. 2.11. Once each section of ducting is completed the fibre optic cables can be installed, terminated and tested and this element of works will cost £166k. The map below shows the routes for the ducting/fibre. The full details of installation including distances, costs and premises passed are included in Appendix 6.

Page 6162

2.12. The commercialisation of the spare ducting and fibre capacity is being delivered using the formation of Cooperative operating vehicle and is the subject or other Cabinet reports and decisions but in essence it is expected that the Council will receive income of up to £34k per year. 2.13. Once installed there is little or no on-going maintenance or revenue costs. Estimates received for maintaining the fibre network indicate an annual charge of £20k which would be found from within existing ICT budgets. 2.14. The Tameside Health Economy and ICFT is also benefiting from the Dark Fibre work. The network already provides connectivity between the council, CCG and hospital networks. Alongside providing the Council with access to NHS systems for things such as CP-IS (Child Protection Information Sharing) and PDS (NHS number matching service) it has also provided the connectivity that has allows NHS and CCG staff working in Council buildings to securely access NHS systems. 2.15. Tameside Hospital have also commissioned and funded £350k of dark fibre connectivity to link an initial 18 Medical Centre’s and GP practices which are located in close proximity to the original T8 Core route. A further £400k of ICFT Digital Transformation funding is also being invested to extend connectivity to more GP Practices and Medical Centres in 2018/19. 2.16. The proposed new fibre infrastructure with increased speed and capacity will also mean that many of the Town Centre CCTV camera’s currently operating using BT and Metronet lines can now be moved onto the fibre network. The CCTV control room at Dukinfield is already linked to the fibre network and planning to migrating CCTV cameras from around the borough on to the fibre is underway. Initial estimates indicate annual saving on renting circuits of £39k per year (£195k over 5 years). This work and upgrading the CCTV camera’s is the subject of a separate Capital funding bid/project. 2.17. The dark fibre network links into Libraries -which means that the CCTV camera’s supporting self-service libraries can also be operated and monitored over the fibre network as opposed to renting circuits from BT equates to a cost avoidance of £52k over 5 years. Core network equipment replacement (£359k capital investment) 2.18. Regardless of how we provide the high speed core network links (through BT or by installing our own dark fibre) we will need to replace our existing Core Network Switches which are approaching end of life. This equipment sits at the heart of the Council’s Wide and Local Area network and is responsible for all the routing and security that enables us to operate Page7 163 multiple “virtual networks” so Health, telephony, Wi-Fi, CCTV, Video conferencing can all run together over one common infrastructure. This refresh is essential to maintain network security as well as avoid poor network and telephony performance. Failure to replace this equipment would leave the Council’s network vulnerable to cyber and virus attacks as equipment suppliers stop providing security updates. 2.19. The table below details the equipment and services that need to be purchased to maintain our network security and to provide the connectivity that the Council will require for the next 5 years. Ref Description Unit £ Quant Cost £ 1 HP Fibre 40gb Switches for sites listed in Appendix 1 6,800 16 109,000 2 HP Fibre 10gb Switches for sites listed in Appendix 2 2,130 15 32,000 3 Fortinet Security Perimeter Fire Walls and VPN 38,250 4 153,000 4 HP 40gb Core Switch for Data Centre and DR Site 9,250 4 37,000 5 Fortinet Wi-Fi Controller 14,000 2 28,000 Total 359,000 2.20. The costs of replacing this equipment is £359k, the revenue costs associated with the ongoing maintenance and support will be found from within existing ICT budgets.

3. TAMESIDE DIGITAL INFRASTRUCTURE COOPERATIVE (TDIC)

3.1. An Executive Decision taken in March 2013 supported the principle of Digital Infrastructure in Tameside being operated and developed by a Cooperative of public and private sector organisations. To identify options for operating the Tameside Digital Infrastructure a soft market testing exercise was undertaken in 2016 via the North West Chest, which sought responses from the Market on potential operation models/vehicles.

3.2. The market testing sought proposals from parties interested in creating a collaborative framework that would both enable the linking of separately owned infrastructure assets to create a coherent whole network (providing a mechanism for the ongoing maintenance and technical administration of the fibre and any shared duct assets needed to create the network), and provide a mechanism to administer access to, and use of, the dark fibre by public and private sector partners (for mutual benefit).

3.3. Dialogue has since taken place with all three respondents from the soft market testing undertaken in 2016 with the aim of creating an operating model based on a mutual (Cooperative) framework.

3.4. A series of meetings and discussions have now been undertaken with both private sector telecommunications companies and public sector stakes holders/investors outlining the proposed operating vehicle structure as detailed later in this report. The table below details the organisations involved in this process. All confirmed that subject to their own internal governance process they were happy with the proposals and keen to become members

Public Sector Investors/Asset Owners Private Sector Telecommunications Companies New Charter Housing ITS Technology Group Tameside College Mid-Net (M247) Ashton 6th Form College The Loop Tameside and Glossop Integrated Care NHS SSE Enterprise Telecomms Foundation Trust & Tameside and Glossop CCG Page 8164 Manchester City Council Telecom.io Ashton Pioneer Homes SimplyIP City Fibre HyperOptics

3.5. The application to the Financial Conduct Authority (FCA) will be submitted in early New Year. There needs to be a minimum of 4 founding members who will sign up to the application, with each nominating company directors and a company secretary. The intention being that the Cooperative will be operational in April 18.

3.6. To date 4 organisations, Tameside College, Telcom.io, SimplyIP and ITS Technology Group have now officially confirmed their intent to become founder members of the Cooperative and have nominated individuals to become directors.

3.7. The Internet is based on an agreement in that the owners and operators of many thousands of different networks agree to allow traffic to pass freely between them using a simple shared protocol. This exchange of traffic often happens in neutral exchange points, co-owned by the networks that use them. (e.g. Linx (London Internet Exchange) and IX Manchester (Northern Internet Exchange).

3.8. TDIC is also designed to do something similar with local fibre infrastructure. The owners of valuable assets - principally fibre duct - agree to provide space for shared fibre, so that traffic can pass freely through a shared, integrated passive network. That fibre is owned and maintained by a neutral Cooperative, co-owned by those that use it and those that contribute to it.

3.9. What this creates is an infrastructure that, like the Internet, is much more than the sum of its parts. Like the Internet it is not owned by any one of those that contribute or benefit from it. Like the Internet it can simultaneously serve users with many different needs, sometimes competing with each other.

3.10. Full details of the principles behind the Cooperative along with details of how it will be governed and operated are included in Appendix 1.

Cooperative Governance and Legal Form 3.11. TDIC will be incorporated as a Cooperative Society, under the Cooperative and Community Benefit Societies Act 2014. This is broadly equivalent to the form previously known as an Industrial and Provident Society (I&PS). This form is widely used as the legal form for cooperatives in the UK1 and is also the form used by the London Internet Exchange (LINX).

3.12. The society will be constituted as a ‘Cooperative consortium’. This form of cooperative has members that are corporate bodies that use the cooperative for mutual trading. The rules will be based on the standard Cooperative consortium rules provided by Cooperatives UK2, This legal and governance form will allow:  A governing board elected by members.  One vote for each member making a specified minimum investment.  Investment by voting members in par value, withdrawable, non-tradable shares to a maximum of £100,000 per member, but without limit for local authorities and other cooperative societies. Such investments can be made at any time3. They can also be withdrawn (bought back by the Cooperative), by approval of the governing board.

1 http://www.legislation.gov.uk/ukpga/2014/14/contents/enacted 2 https://www.uk.coop/sites/default/files/uploads/attachments/2014_Cooperative_consortium_0.pdf 3 Withdrawable shares in Societies are not defined as securities for the purposes of FSMA 2000 and Public Offers of Securities regulations. Page9 165  Unlimited investment in tradable, non-withdrawable shares without associated voting rights. Such investments would be subject to stricter rules on issuance.  Distribution of profits to members, and on dissolution, in proportion to their trade with the Cooperative.  Payment of limited compensation in the form of interest on investments.

3.13. Under the standard rules (See Appendix 3), the cooperative is required to hold 4 general meetings each year. While membership remains small it makes sense for principal decisions to be taken at general meetings where each member can send a nominated deputy (and other deputies). A board can be elected to take care of any matters arising between general meetings, however the members of the board are named individuals. When the cooperative grows it would make sense to shift more decision making to the board.

Startup and early costs for TDIC 3.14. The costs for setting up the Cooperative are relatively modest. £1000 has already been spent with Cooperative and Mutual Solutions Limited who provided specialist assistance/advice on options for the mutual. There is also a £300 for the Cooperatives UK registration service (This also includes the FCA fee).

3.15. Further time/effort will be needed from the founding members to setup general business processes, open bank accounts and administer things such as the board meetings. There may also some costs associated with brand design and website setup and domain registration. These costs should not exceed £3k.

3.16. There will also be costs associated with legal services which the founding members will commission. This work will include the development of a Duct usage agreement, Fibre rental agreements and 3rd party easement/wayleave agreements. This work is estimated at £15k and funding for this is being sought from the DCMS.

Requirements for Capital 3.17. TDIC will have two principal requirements for capital:  Working capital: Working capital will be needed to help cover fixed operational costs until revenues ramp up to the point where they cover all costs. In TDIC projections (See Appendix 2) the most pessimistic scenarios show a requirement of £125k before break- even point is reached within 5 years. More optimistic (but not unrealistic) scenarios show a requirement of around £66k. The Cooperative could of course out-perform the projections and require less or nothing at all in terms of financial support.  Fibre capital expenditure: For State Aids reasons TDIC will need to own its own fibre if it’s to provide competitive prices for dark fibre to private sector telecommunications companies. It will need a source of capital to pay for this. This could either be used to pay for fibre install, or to buy fibre from public sector organisations that have already installed more than they need. To buy all the spare public sector fibre would cost approximately £120k. 3.18. It is expected that TDIC is likely to need up to £125k working capital and £120k for fibre. TDIC can raise capital in two ways:  Cooperative equity: This is a special form of equity that is easy to administer under FCA rules. Shares are par value and receive interest at a rate determined by TDIC. This is likely to be around 5% and is unlikely to change unless base rates rise significantly. Cooperative equity can be transferrable (from one member to another) at par value, or ‘withdrawable’, where TDIC buys the equity back if asked to and if funds allow.  Loans or bonds: TDIC can borrow money. If it borrows money from a public sector body, it needs to be at a commercial rate to ensure state aid compliance.

Page 10166 3.19. TDIC may look to its private members to source some of this capital. However, it would be helpful if public sector members can assist because it would free up private sector funds to invest in new network capacity. The Council can engage with TDIC on its capital requirements as follows:  Working capital: An investment in shares to fund the working capital requirement of TDIC. Such an investment would be at risk but would attract a good rate of return (5%)  Fibre Capital Expenditure: TMBC has already bought and installed more fibre than it needs. Two options are: a) TDIC pays to install new fibre alongside TMBC fibre using funds it has raised. b) TDIC buys all of the spare fibre from TMBC using funds that TMBC has invested via par value shares. Again, no cash changes hands, but TMBC receives interest on the value of the fibre. Under this arrangement TMBC pays standard TDIC dark fibre rental fees to TDIC and TDIC covers all maintenance costs. 3.20. Option b) is more appropriate as it can be demonstrated that Council is receiving interest on spare capacity and could retain a charge over the fibre asset sold to TDIC so that, should TDIC fail, the fibre would revert to the Council. TDIC would also take over the operational responsibilities for the fibre making ongoing maintenance arrangements simpler.

4. ASHTON OLD BATHS DATA CENTRE

4.1. In 2013 An Executive Decision was taken which set out the process and costs associated with the temporary move of the Council’s Computer Systems from TAC to Rochdale MBC Data Centre. The report detailed a 2 stage approach whereby Rochdale would be used as an interim facility whilst work to identify and construct a new purpose built Data Centre in Tameside was undertaken. The report also acknowledged the requirement for the Council to have a Disaster Recovery facility where key “life and limb” systems could be quickly recovered in the event of a major disaster affecting the main Data Centre.

4.2. With over 100 different systems being used, ICT underpins and supports the strategic objectives of the Council and its partners. The Council’s computer systems are currently temporarily hosted in Rochdale MBC’s Data Centre, whilst Tameside hospital has 2 Data Centre’s on its main site, and the Pennine Care NHS Trust have 1 centre in St Petersfield and a second DR Site on Globe Lane Industrial Estate.

4.3. Following an evaluation of sites around Tameside the Ashton Old Baths development has been identified as the most appropriate for the new Data Centre facility. It has excellent connectivity being directly linked to the Tameside Digital Infrastructure. Floor plans and structural surveys indicate that the centre of the Annex building would be large enough, and floors strong enough, for an appropriately sized Data Centre.

4.4. Building a new joint use Data Centre that would house Council, NHS and commercial systems is the most cost effective approach. Continuing with the current hosting arrangements at Rochdale or moving our systems to a commercial data centre would be significantly more expensive in the long run.

Ashton Old Baths Capital Investment (£840k) 4.5. The council currently pays around £70k a year to Rochdale MBC for hosting its systems. This agreement with Rochdale MBC ended in September 2017 but is currently being rolled forward on a monthly basis. In addition there are 2 high speed data links connecting the Tameside Network to the Rochdale Data Centre. The combined cost of these circuits is £35,330 per year (£16,290 for BT and £19,040 for Virgin).

Page11 167 4.6. Whilst the interim arrangement with Rochdale has worked relatively well for the last few years the distance from Tameside has caused significant problems in terms of support and maintenance of the systems hosted there.Two separate flooding incidents in Rochdale, which affected their Data Centre operation have highlighted a significant risk to the Council’s systems that is beyond our management and control.

4.7. Remaining at Rochdale for 5 further years would require significant additional investments, including upgrading the 2 x 1GB resilient data circuits that connect the Rochdale Data Centre to the Tameside Network. These would need replacing with higher speed/higher capacity links matching the rest of the new Tameside wide area network. In addition the Council and Tameside Hospital have agreed a reciprocal arrangement to provide rack space in each other’s Data Centre’s for Disaster Recovery. This would double the number of racks and electricity usage required in the Rochdale DC.

5 year Link Location One Off Annual Costs Speed BT Link Rochdale to Tameside £19k £38k £209k 10gb Virgin Link Rochdale to Tameside £24k £42k £234k 10gb Rochdale DC hosting £0 £70k £350k Rochdale DC DR hosting £0 £70k £350k £43k £220k £1,143k

4.8. Quotes from commercial Data Centre providers have already been obtained and considered as part of the original Key Decision on the interim Data Centre move. Costs to commercially host our system compared to other options are shown in the table below. This option does not include any DR provision. Company Setup costs 5 Year costs 10 year costs Telecity Group UK Ltd £103k £3,100k £6,100k Vodaphone Group Services Ltd £179k £2,204k £4,230k

4.9. In essence the Data Centre would be a separate structure built within the Annex complex. The Data Centre capital funding is in addition to the funding required for the wider refurbishment of the AOB Annex, which is the subject of a separate capital bid and report.

4.10. The Data Centre would be a TIER 3 facility. This means it is equipped to provide a high level of resilience with no single point of failure in any of its systems. A new electricity sub-station Page 12168 would be required to service the Data Centre and phase 2 offices and 2 x generators, 2 x UPS and 2 x Air Conditioning systems would provide resilient operation. 4.11. This standard is a requirement for data centres which host government and NHS systems and information. It would be a single storey modular room with capacity for 36 racks. These racks would be used by the Council as its primary Data Centre facility and the NHS as their Disaster Recovery site. The remaining capacity would be used for commercial use by businesses located within AOB and across Tameside, as well as the Tameside Digital Exchange (DX). 4.12. This facility has the potential to raise significant income for the council as well as delivering cost benefits based on co-locating computer systems and servers for public sector partners. Bringing together the Councils computer systems into a joint centre, which also hosts the Pennine Care and Hospital systems, will not only save the economy significant amounts in operating costs it will also make the process of sharing information and systems much easier and would represent a significant step in both the development of a single cross economy ICT service. 4.13. The Hospital is currently refurbishing 1 of their 2 Data Centres, and once complete have offered to provide hosting space within it for the Council to use as a DR site. The Hospital would then use the AOB facility as their DR site, allowing them to decommission their second Data Centre. 4.14. The capital investment required for the new data centre is £840,000. The annual running costs are estimated at £50,000 (£250,000 over 5 years). The running costs for the centre would be found from existing budgets. 4.15. As set out in section 3 above, Tameside has successfully bid for £2.2m wave one funding from DCMS to enhance and accelerate the implementation of the Tameside Digital Infrastructure. In addition to the £840k capital investment by the Council a further £300k of DCMS money is to be used to build a Digital Exchange in the Ashton Old Baths Data Centre.

5. USE OF TFGM TRAMSIDE DUCTING FROM ASHTON TO PICCADILLY VIA DROYLSDEN 5.1. The route of the Metrolink runs from Ashton Town Centre to Piccadilly via Droylsden Town Centre. Work to extend the Tameside Digital Infrastructure down the track side to Droylsden was approved in Procurement Standing Order Waiver dated 2 October 2015. Once complete, the Pension Fund, Droylsden Library, Concorde Suite and the Council’s wide areas Network link between Droylsden BT Exchange and Ashton BT Exchange will be delivered over the new fibre instead of via our current network provider. 5.2. At the same time as installing dark fibre cables from Ashton to Droylsden it is also intended to install fibre cables along the entire route of the 3B extension to Piccadilly in the City Centre. From there the Tameside Digital Infrastructure will be linked into the Northern Internet Peering point in Williams House, and in doing so, will provide the Tameside Digital Infrastructure with a direct route onto the internet. 5.3. Work to install the fibre optic cable along the entire route is nearing completion and phase one of the installation from Ashton to Droylsden is ready to be lit. All the easement issues along this stretch have been dealt with and the final step before the link can be made live is to sign the Project Agreement with TfGM. The project agreement (Attached as Appendix 7) leases duct access to the Council and allows us to install and operate the fibre optic cable for 20 years. The cost for using this ducting is the same rental figure as the Council will charge the Cooperative for using its ducting and is based on the OFCOM Passive Infrastructure Access (PIA) charges. 5.4. Phase 2 of the cable installation, to take the fibre to Piccadilly, should be complete before Christmas 2017. Work to deal with the easement and wayleave issues on this section are underway with Manchester City Council taking the lead on the estates and legal work. The

Page13 169 current Project Agreement with TfGM will need amending at a later date to reflect this additional stretch of connectivity before the fibre can be used.

6. DCMS LOCAL FULL FIBRE PROGRAMME 6.1. In August the Council was successful in bidding to become one the DCMS national exemplar projects. £2.2m funding was requested to help enhance and accelerate the Council’s plans to use the public sector investment in fibre infrastructure to attract private sector investment from telecommunications companies, and thereby develop and deliver enhanced digital services to Tameside businesses and homes. 6.2. £1.2m will be used to increase capacity on the resilient figure of eight route and to extend connectivity into key economic/employment Zones around the borough as well as provide fibre to premises for a number of new and existing high density residential housing development including Summers Quay, Longlands Mill and Mosscare and Cavendish Mill. 6.3. £300k will also be used to establish a Digital Exchange. Operated by the Tameside Digital Infrastructure Cooperative (TDIC) the exchange will provide open access to vendor independent rack space in the new Ashton Old Baths Data Centre. This will enable private sector telecommunications companies that are members of the Cooperative to locate equipment at the facility and deliver services to businesses and residents. Eight smaller “Mini Exchanges” will also be installed around the borough to ensure that these new digital services are widely available across the borough.

7. RECOMMENDATIONS 7.1. See report front page.

Page 14170

APPENDIX 1 – TAMESIDE DIGITAL INFRASTRUCTURE COOPERATIVE OPERATING PRINCIPLES.

The thin layer model: TDIC is based on a new concept: the ‘thin layer model’. In common with other models the shared infrastructure is passive only. Wholesale access to dark fibre is available to anyone as long as they become a member of the Cooperative. They can then use it to provide retail services, or to create wholesale active services for others to resell.

Unlike other models however, there is no one owner of the shared infrastructure, rather it is made up of separately-owned assets. In general those assets are ducts. The thin layer installs fibre in those ducts, jointly owned and shared by the members of TDIC.

The asset owners retain full rights over their ducts to use as required, but agree to make space available to TDIC for a fee. They may also make duct space (for example a subduct) available to TDIC members that want to install their own fibre. In some cases TDIC will owns small sections of duct.

The same principles apply to the nodes and exchange points that provide access to the network and are a vital component of the infrastructure. In general the rooms and facilities where these are located are separately owned. The racks and frames are provided by TDIC. TDIC does not own or operate any active equipment - switches, routers and servers, neither does it provide any active services. This is entirely the responsibility of members.

A neutral cooperative: TDIC is a shared endeavour for the mutual interest of its members. That is why it is set up as a cooperative, owned and controlled by the members that contribute assets and use the infrastructure. Membership is open to anyone willing to abide by the rules and pay the fees. Only members can use the infrastructure. Asset holders are also encouraged to become members.

The members of the cooperative each have one vote. This ensures that it remains neutral, serving the interests of all members equally. It collects fees from members that use the infrastructure and it pays fees to the asset holders. Asset holders and investors may also receive a share of any surplus generated by the contribution they have made. Otherwise any surplus is re-invested. The purpose of TDIC is to create a shared infrastructure, not to make a profit.

How members contribute to and use the infrastructure: Members can contribute to the infrastructure by providing TDIC with right of access to assets such as ducts and rooms in return for a fee and for a defined period. Members can also invest funds in cooperative4 equity for an interest-style return.

Members can also rent access to dark fibre, rack space and power for a fee and a defined period5. In many cases members will interact with TDIC in more than one way, often both as users and as contributors. The table below summarises the various ways that members can interact with TDIC.

Transaction Member Description Financial Examples

Duct access Contributor TDIC installs cable or TDIC pays rent to TMBC-owned for rent subduct duct owner duct Other public duct Room space Contributor TDIC installs racks or TDIC pays rent to TMBC owns room for rent frames room owner

4 Par-value, non-tradable (“withdrawable”), non-voting shares 5 TDIC may also provide a mechanism for members to rent access to ducting where it is made available by duct owners. Page15 171 Transaction Member Description Financial Examples

Invest for Investor Member provides Member earns Any member with return cooperative equity to interest on sum available funds fund shared invested infrastructure. Invest for Investor Group of end-users Investors earn Owner and/or service and/or property owner interest tenants of multi- invest to fund new unit building or connection through business park. special mechanism Rent dark User Member rents dark fibre Member pays dark Public sector IT fibre route from TDIC fibre rental fee dept Service provider Rent rack User Member rents rack Member pays per Service provider space space and power from U and per Amp. TDIC

What TDIC will be and do?: TDIC is a means to an end, not an end in itself. The organisation will be light. To the greatest extent possible, tasks and responsibilities will be delegated to competent members or outsourced. A limited range of products will be made available to members on equal transparent terms and at rates designed to cover costs and ensure sustainability. What is available to one member is available to any member.

Revenues will be used to cover costs, reinvest and to provide rewards designed to attract investment and contribution of assets and effort. TDIC will be incorporated as a cooperative society with limited liability, regulated by the FCA. Members will pay a small membership fee and will each have one vote. The management of the cooperative will be the responsibility of members who will elect a board.

Members investing in the cooperative will receive interest at a rate designed to attract adequate funding and in accordance with FCA rules. Profit may be shared among members according to their trade with the cooperative (as contributors or as members), on terms agreed by the board.

The infrastructure will be transformative, creating new opportunities for members. Thus members should be able to create and provide products and service specifications and terms that are otherwise unavailable, both wholesale and retail. Products will be offered to members on equitable terms and there will be no state aid. We are building a shared infrastructure not a subsidised infrastructure.

Operations: The thin layer is so called because the value added by the cooperative is small: its role is to create a whole from parts contributed by members, adding few parts itself. TDIC will make arrangements for its efficient and effective operation following agreed principles:

 Unless a function is best performed at the network level to avoid unnecessary duplication or conflicts, that function will be performed by members. This includes all active service operation and management, and generally all end-user support and billing.  Functions that are needed to support the whole infrastructure for the mutual benefit of members will be outsourced for an appropriate fee, ideally to a member that has the necessary competence. These include fibre maintenance and repairs, changes, member billing, administration and accounts.  Functions that are specific to meeting requirements of a particular member should be funded by that member. This might include for example additional security for active equipment, or special SLA on fibre maintenance. Page 16172  A competent fibre contractor is engaged to maintain the optical fibre and effect repairs. This will require appropriate access agreements with duct owners.  Competent contractors are engaged to maintain the DX and DX-PoP infrastructure. The DX maintenance is likely to be shared with other tenants of the Ashton Old Baths data centre. DX-PoP and related maintenance might be performed by the fibre maintainer.  Finance functions including billing and accounts are outsourced to a competent firm.  Administrative support functions will be provided by Tameside Council for a fee.  Agencies are engaged to perform communications and marketing functions as considered necessary.

The cost of all of the above functions will be covered from fees charged to members. Capital funds may be used to fund business and technical development and design when required and TDIC itself will not have any staff of its own.

Customer relationships, communications and marketing: TDIC serves the interests of its members and trades only with members. In general members either use the infrastructure to create products and services that are then sold on (retail or wholesale); or members have the resources and competencies to be able to benefit from access to passive infrastructure. TDIC engagement with members and non-members is governed by principles:

All TDIC customers are members. TDIC has no relationship with end users or with the wholesale customers of members (unless they are also members). It is the responsibility of members to market their products and services, and members are free to do so in any way, including in competition with other members. Members are treated equitably, products and services are made available to all members on the same terms and prices.

TDIC shall avoid competing with its own members. Products and prices are designed for members to adapt and resell, including reselling with little or no added value. For example, members may resell dark fibre or colocation.

The terms and prices available to members are known to all members but are not made public. TDIC shall make known the prices it charges members only in response to genuine enquiries from prospective members.

These principles being observed, TDIC:  May engage in activities aiming to recruit new members, providing information as required.  May engage in activities designed to raise awareness of the project in the wider business community, including opportunities for members to promote their services.  Will refer enquiries from interested non-members to members, except when specifically concerning prospective membership.

Membership: There are three categories of membership: user members, contributor members and investor members. Many members will be included in more than one category.

User members

 User members pay to access the TDIC infrastructure. They agree to abide by the rules of TDIC, based on key principles:  Members agree to act in the mutual interest of the cooperative. New members should not be admitted if there is or is likely to be a major conflict of interest with the aims and objectives of the cooperative. If a conflict of interest arises after a member has been admitted, it may be more appropriate for that member to resign and procure any necessary services from another member.

Page17 173  Members agree not to use the privilege of membership to act against the interests of other members. Members agree to take care for example, not to interfere with other members’ systems, including accidentally.  Membership is intended for those intending to make significant and sustained use of passive infrastructure, not for small scale or intermittent use. Members are therefore required to pay membership fees and meet minimum requirements set by the cooperative for spend, contribution or investment.

Contributor members

 Asset holders that wish to make assets available for use by the cooperative may do so by joining and becoming contributor members. Contractual relations with contributor members are based on agreed principles:  Assets are made available to TDIC for a defined minimum period so that user members and investor members can plan ahead.  Fees paid to contributor members are generally based on standard fees. Contributor members are for example asked to provide duct for a standard fee benchmarked to Ofcom DPA rates. In some circumstances TDIC may agree a different fee to take account of special circumstances.  TDIC may or may not elect to take up assets made available, however members agree not to withdraw assets once made available for a term.  Contributor members are expected to grant relevant permissions allowing TDIC maintenance contractors to maintain infrastructure and effect repairs. In special circumstances, contributor members may have their own arrangements for repair of larger assets, and these need to be agreed with TDIC.  TDIC does not expect exclusive access to assets. Thus for example, duct owners may have their own fibre in duct used by TDIC, or may make space available to others.

Investor members

 Investor members are invited to provide investment funds for a specified return. Investor members will generally also be user members or contributor members.  Relations with investor members are governed by agreed principles: o Investor members can subscribe for “withdrawable” cooperative (non-tradable, par value) equity in return for interest. The interest rate is set by the board. o When sufficient funds are available, TDIC will repurchase cooperative equity from members wishing to sell, at the discretion of the board. o TDIC will pay a rate of interest sufficient to attract the necessary capital, subject to maximum levels set by FCA. An initial proposed rate is given in Appendix 1. o TDIC may also make tradable non-voting shares available to investors at some stage.  Investor members may provide capital: o Enabling TDIC to invest in infrastructure of mutual benefit to members. For example to populate a new spine route with duct. o Enabling TDIC to invest in new infrastructure to reach a new market opportunity. For example a new section of access duct to enable a multi tenant building where members could access customers. o Enabling TDIC to invest in new infrastructure to meet the needs of the investor. For example where a property owner would benefit from connecting a building. o Where investment is made to create new duct infrastructure that is then owned by TDIC, investing members will be able to earn a revenue share. A suggested rate is given in Appendix 1.

Page 18174 Products and prices The table below summarises the proposed product set to be offered to members with suggested prices and terms. This is provided as an illustration: the final product set will be determined by the board according to a set of limits and principles.

Product Terms (minimum) Suggested fee

Tail pair PoP-premises 1 year £50/month

Spine pair DX-PoP 2 years £150/month

Spine pair IX-DX 2 years £400/month

DX Quarter rack 3 months £150/month

DX-PoP 2U 1 year £80/month

Power 1 Amp average 1 month £35/month

Contributor and investor member rewards The table below gives suggested fees paid to duct contributors, and interest on “withdrawable” shares. This is provided as an illustration.

Contribution Reward Term

Subduct £0.60 - £0.85/m/year 10 years

Equity (par value) 5% 1 year

Member fees The table below gives suggested member fees and minimum membership requirements. This is provided as an illustration. Members are required to meet at least one of the minimum criteria.

Amount Terms

Joining fee £1,000 Waived for founders

Minimum spend £500/month For wholesale users One year delay Minimum investment £5,000 For investors

Minimum contribution 50m duct For asset owners

Page19 175

APPENDIX 2

Modelling The table below gives results from a very simple model for different numbers of tails and providers over a 5-year period.  Max DX tails: number of pairs direct to the DX at the end of the period (actually 97% - see notes).  Max DX-POP tails: total number of tail pairs connected to all 6 DX-POPs  Max providers: number of providers using these tails  Max DX Providers: total providers including those just in DX

Scenario 1 Scenario 2 Scenario 3 Scenario 4

Max DX tails 30 20 15 10 Max DXPOP 90 60 41 32 tails Max providers 5 3 3 3 Max DX 8 5 5 5 providers Max popped 13 10 3 0 DXPOPs

Duct rent £0.85 £0.85 £0.85 £0.60

Maintenance £0.50 £0.50 £0.50 £0.50 Fibre cable £16 £16 £16 £16 install Interest 6% 6% 6% 6%

Revenue at £20,690 £12,800 £11,040 £9,400 month 60 Net profit at £5,831 £1,097 £41 £98 month 60 Operating B/E at 17 24 31 31

B/E at 21 31 53 58 Capital £66,772 £104,021 £134,021 £113,547 requirement

Notes This very simple model uses the following assumptions:  The number of buildings connected - tails - grows on an s-curve pattern starting at 10% max level on month 1, reach 50% month 24, 90% on month 48. Different max levels are then tested.  The number of providers using the fibre grows similarly.  Providers will pop a DX-POP once they have 3 tails or more. The number of tails each provider has in each DX-POP follows a very roughly normal distribution. Page 20176  DX providers include additional providers in DX only. Each takes one IX-DX pair and 1 quarter rack.  Total fibre is 50km  Half the public sector fibre is purchased at install cost - ie half install cost using the same amount of capital provided by the public sector (ie zero cash transaction) - and interest is then paid on that capital.  TDIC pays half the maintenance cost.  Additional direct costs estimated at 20% revenue  Additional indirect costs estimated at 20% revenue

Page21 177

APPENDIX 3

Rules

Cooperative and Community Benefit Societies Act 2014

Rules of

TAMESIDE DIGITAL INFRASTRUCTURE COOPERATIVE LIMITED

NAME 1. The name of the society shall be Tameside Digital Infrastructure Cooperative Limited. REGISTERED OFFICE 2. The registered office of the society shall be at…………………………………….. INTERPRETATIONS 3. In these rules: "Address" means a postal address or, for the purposes of electronic communication, a fax number, email address or telephone number for receiving text messages; "the Act" refers to the Cooperative and Community Benefit Societies Act 2014 or any Act or Acts amending or in substitution of it or them for the time being in force;

"Auditor" means a person eligible for appointment as a company auditor under Part 42 of the Companies Act 2006; "The Board of Directors" or "Board" means all those persons appointed to perform the duties of directors of the society; "Board Meeting" includes, except where inconsistent with any legal obligation a physical meeting, a meeting held by electronic means and a meeting held by telephone; "Clear Days" in relation to the period of notice does not include the day on which the meeting is to be held and the day on which the notice is handed to someone or left at their Address, or the day on which it is sent, is in the process of being sent and is assumed to be delivered; "Cooperative" means the above-named society; "Cooperative Principles" are the principles defined in the International Cooperative Alliance Statement of Cooperative Identity. The principles are those of voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, co-operation among Cooperatives and concern for the community; "Director" means a director of the Cooperative and includes any person occupying the position of director, by whatever name called; "Document" includes, unless otherwise stated, any document sent or supplied in electronic form;

"Electronic Means" shall include, for example, email, video links and secure authenticated website transactions; "Employee" means anyone over the age of 16 holding a contract of employment with the Cooperative to perform at least eight hours of work per week for the Cooperative; "Extraordinary Resolution" means, unless the context requires otherwise, those decisions requiring an Extraordinary Resolution as detailed under ‘Resolutions’ in these rules; "Founder Member" means a subscriber to these rules for the purposes of registration; "Member" has the meaning as detailed under ‘Membership’ in these rules;

"Office Holder" means a receiver, administrative receiver, liquidator, provisional liquidator or administrator of a Member of all or substantially all of the Member's assets; "Officer" has the meaning as detailed under ‘Officers’ in these rules;

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"Person" means, unless the context requires otherwise, a natural person, unincorporated body, firm, partnership, corporate body or the nominee of an unincorporated body, firm, partnership or corporate body;

"Registrar" means the Financial Conduct Authority (FCA) or any body that succeeds its function; "Regulations" has the meaning as detailed under ‘Regulations’ in these rules; "Rules" means these Rules; "Secretary" means any person appointed to perform the duties of the Secretary of the Cooperative; "Transferable" means shares that are transferable to another Person who also qualifies for membership of the Cooperative in accordance with these Rules;

"User" means those persons admitted into membership under these Rules that wish to use the services of the Cooperative and have agreed to pay any subscription or other sum due in respect of membership for the use of the Cooperative's services for a continuous period as decided by the Board from time to time;

"Withdrawable" means shares with the associated right for the Member to withdraw and receive in return the value of their shares from the Cooperative in accordance with the provisions of these Rules; "Writing" means the representation or reproduction of words, symbols or other information in a visible form by any method or combination of methods, whether sent or supplied by Electronic Means or otherwise. Purpose 4. The purpose of the Cooperative is to carry out its function as a Cooperative and to abide by the internationally recognised Cooperative values and principles of Cooperative identity as defined by the International Cooperative Alliance. This rule may only be amended by an Extraordinary Resolution.

OBJECTS 5. The objects of the Cooperative shall be to carry on the business as a Cooperative and to carry on any other trade, business or service and in particular to enable members to contribute to and use shared digital infrastructure in Tameside and surrounding areas. Digital infrastructure may include optical fibre, server colocation and wireless facilities, and such other equipment that may be required to maintain and operate these effectively POWERS 6. The Cooperative may do all such lawful things as may further the Cooperative's objects and, in particular, may borrow or raise funds for any purpose and on behalf of its Members. BORROWING 7. The Cooperative shall have the power to borrow money from its Members and others in order to further its objects providing that the amount outstanding at any one time shall not exceed £10,000,000. 8. The Cooperative shall have the power to mortgage or charge any of its property, including the assets and undertakings of the Cooperative, present and future, and to issue loan stock, debentures and other securities for money borrowed or for the performance of any contracts of the Cooperative or its customers or Persons having dealings with the Cooperative. 9. The rate of interest on money borrowed, except on money borrowed by way of bank loan or overdraft or from a finance house or on mortgage from a building society or local authority, shall not exceed 5% per annum or 2% above the Bank of England base rate at the commencement of the loan, whichever is the greater. 10. The Cooperative may receive from any Person donations or loans free of interest in order to further its objects but shall not receive money on deposit. Borrowing from Members 11. In accordance with the Cooperative Principle of member economic participation the interest paid by the Cooperative on money borrowed from Members shall not exceed such rate as is

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necessary to attract and retain the capital required to further the Cooperative’s objects and purpose. Financial Services and Markets Act 2000 ACTIVITY 12. For the avoidance of doubt the Cooperative shall not engage in any activity by virtue of any of these Rules that would require a permission from the Registrar to carry on that activity without first having applied for and obtained such permission. INVESTMENT OF FUNDS 13. The Cooperative may invest any part of its funds in the manner set out in Section 27 of the Act. MEMBERS 14. The first Members of the Cooperative will be the Founder Members. The Cooperative may admit to membership any individual, corporate body or nominee of an unincorporated body, firm or partnership that wishes to use the services of the Cooperative and has paid or agreed to pay any subscription or other sum due in respect of membership or the use of the Cooperative’s services. 15. In accordance with the Cooperative Principle of voluntary and open membership, whilst the Cooperative shall undertake to encourage its users to become Members membership must be voluntary. 16. In accordance with the Cooperative Principle of voluntary and open membership, whilst the Cooperative shall undertake to encourage its stakeholders to become Members, membership must be voluntary and as a result cannot be a condition of employment. Applications for Membership 17. No natural person shall be admitted into membership of the Cooperative unless they have attained the age of 16. All those wishing to become a Member must support the objects of the Cooperative and complete an application for membership which shall include an application for at least one share in the Cooperative. Such an application form must be approved by the Directors and the Directors must approve each application for membership. 18. A corporate body which is a Member shall by resolution of its governing body appoint a representative who may during the continuance of her/his appointment be entitled to exercise all such rights and powers as the corporate body would exercise if it were an individual person. Each such corporate body Member shall supply notification in Writing to the Cooperative of its choice of representative. Member Commitment 19. All Members agree to attend general meetings and take an active interest in the operation and development of the Cooperative and its business. Members have a duty to respect the confidential nature of the business decisions of the Cooperative. 20. In accordance with the Cooperative Principle of education, training and information, the Cooperative shall provide potential Members with information about what the role of a Member is within the Cooperative and will provide training in the skills required to be a Member and to participate in the operation of the Cooperative. 21. The Cooperative shall provide ongoing education and training in Cooperative values and principles and associated topics. The Cooperative shall support its Members by ensuring that general meetings are accessible and encourage participation. Termination of Membership 22. A Member shall cease to be a Member of the Cooperative immediately that they: (a) Are no longer eligible for membership; or (b) Fail to pay the annual subscription (if any) within 3 months of it falling due; or (c) Fail to hold the minimum shareholding; or (d) Resign in Writing to the Secretary; or (e) Are expelled from membership in accordance with these Rules; or (f) Die, are wound up or go into liquidation. Expulsion from Membership 23. A Member may be expelled for conduct prejudicial to the Cooperative by an Extraordinary Resolution, provided that the grounds for expulsion have been specified in the notices calling the meeting and that the Member whose expulsion is to be considered shall be given the opportunity to make representations to the meeting or, at the option of the Member, an

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individual who is there to represent them (who need not be a Member of the Cooperative) has been allowed to make representations to the general meeting. 24. If on due notice having been served the Member fails to attend the meeting the meeting may proceed in the Member's absence. (a) An expelled Member shall be paid the nominal value of shares held by them at the time of expulsion. (b) No Member expelled from membership shall be re-admitted except by an Extraordinary Resolution. PROCEEDINGS ON DEATH OR BANKRUPTCY OF A MEMBER 25. Upon a claim being made by: (a) The personal representative of a deceased Member; or (b) The trustee in bankruptcy of a Member who is bankrupt; or (c) The Office Holder to any property in the Cooperative belonging to such a Member, the Cooperative shall transfer or pay property to which the Office Holder has become entitled as the Office Holder may direct them. 26. A Member may in accordance with the Act nominate any individual or individuals to whom any of her/his property in the Cooperative at the time of her/his death shall be transferred, but such nomination shall only be valid to the extent of the amount for the time being allowed in the Act. On receiving a satisfactory proof of death of a Member who has made a nomination the Cooperative shall, in accordance with the Act, either transfer or pay the full value of the property comprised in the nomination to the individual or individuals entitled thereunder. Share Capital 27. The shares of the Cooperative shall be of the nominal value of £1. The minimum shareholding required of a Member shall be defined as such number of fully paid shares as the Board may determine subject to the Act, or as may be required by a particular offer of shares, or, failing such determination or requirement, shall be one share. The Society may issue two classes of shares, Class A Shares and Class B Shares. 28. A Member may apply for shares in tranches of shares which are smaller in number than the minimum shareholding, provided that any Member who does not achieve the minimum shareholding within 12 months of their first payment may, at the discretion of the Board, cease to be a Member. Any person ceasing to be a Member under this rule shall have the value of their shares as at the date on which they ceased to be a Member returned to them and the relevant shares shall be cancelled. 29. Applications for shares shall be made to the Board of the Cooperative who shall allot to Members, upon their admission, the share or shares for which they have applied provided that the total number of shares allotted to any Member shall not exceed the maximum shareholding permitted by law. Shares shall be paid for in full on allotment. 30. If a Member who is required to withdraw from membership under these Rules is unable to transfer their shares and the right to withdraw shares has been suspended, then the nominal value of their share capital shall be converted into loan stock upon such terms as may be agreed between the Board and the Member, or their personal representative or trustee in bankruptcy, or Office Holder provided that such agreement shall require the repayment of the loan within a period not exceeding three years. 31. Class A shares shall be Withdrawable only in accordance with the provisions of these Rules. Class A shares shall be non-Transferable except: (a)on death or bankruptcy; or (b) (in the case of an unincorporated organisation or partnership), on a change of nominee(s) and only to the new nominee(s). Withdrawal of share capital 32. Shares may be withdrawn by Members upon giving three months’ notice to the Cooperative (though the Board retain sole discretion to return money paid for them) provided that: (a) All withdrawals shall be paid in the order in which the notices were received by the Cooperative. (b) A Member shall not be entitled to withdraw shares which would leave them with less than the minimum shareholding, unless they intend to terminate their membership of the Cooperative.

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(c) The Board may waive the notice required for a withdrawal and may direct payment to be made without notice or on such shorter notice as they consider fit. (d) The Board may, at their sole discretion, suspend the right to withdraw either wholly or partially, and either indefinitely or for a fixed period. The suspension shall extend and apply to all notices of withdrawal which have been received and remain unpaid at the time the Board suspends the right to withdraw. Where the suspension is for a fixed period, such period may be extended from time to time by the Board. (e) During any period when the right of withdrawal has been suspended under the provision immediately above, the shares of deceased Members may, if the Board agree, be withdrawn by their personal representatives upon giving such notice as the Board may require. (f) The amount to be paid to a Member on withdrawal shall be the amount paid up or credited on the shares to be withdrawn, except where the shares are subject to a reduction in their value in accordance with the provisions of these Rules. (g) Interest shall be payable on any share in respect of which a notice of repayment has been given until the date of repayment. 33. Any share withdrawn in accordance with these Rules shall be cancelled. 34. Members may withdraw from the Cooperative by withdrawing all their shares in the Cooperative in accordance with these Rules or, if the right to withdraw has been suspended, by surrendering all their shares to the Cooperative. Upon such surrender the Board may at their discretion pay to the withdrawing Member the amount paid up or credited on the shares surrendered. 35. The Cooperative may deduct such reasonable sum to cover any administrative costs of withdrawal from the monies payable to a Member on the withdrawal of shares in the Cooperative. Transfer of Share Capital 36. Subject to the restrictions imposed by this Rule, any member may transfer all or any of his Class B shares by written instrument in any form approved by the Committee executed by and on behalf of the transferor and the transferee but the transfer shall not be effective until the transferee is entered in the register of members as the holder of the shares transferred.

37. The committee at its absolute discretion may decline to register a transfer of shares to a person who is not already a member but if the committee registers the transfer then that person shall be entered into the register of members.

38. It shall be possible to convert shares from one class to another class at the absolute discretion of the board.

39. Where a member holds shares in more than one class the member shall have one vote

Reduction in Share Values 40. If the Cooperative’s Auditors (or any independent qualified accountants appointed for this purpose by the Board) certify at any time that the aggregate of the Cooperative's liabilities plus the amount of its issued share capital exceeds its assets, then (unless in the meantime the excess has been removed) the Board may determine that the amount of this excess, or part of it, shall be apportioned among the Members in proportion to (but not beyond) the amount of the nominal value of the shares paid up and held by each Member. This apportionment shall be based on the value of the shares paid up and held by each Member at the close of business on the date of such determination. The value of shares held by each Member shall be reduced accordingly for the purposes of withdrawal of shares, provided that the value of shares held by any Member shall not be reduced below the minimum shareholding as specified in these Rules. Lien on Shares and Right of Offset 41. The Cooperative shall have a lien on the shares of a Member for any debt due to it by the Member and may offset any sum standing to the Member's credit with the Cooperative in or towards payment of such debt.

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GENERAL MEETINGS 42. The Cooperative shall, within six months of the end of the financial year, hold a general meeting of the Members as its annual general meeting and shall specify the meeting as such in the notices calling it. 43. The business of an annual general meeting shall comprise, where appropriate: (a) The receipt of the accounts and balance sheet and of the reports of the Board and Auditor (if any). (b) The appointment of an Auditor, if required. (c) The election of the Board or the results of the election if held previously by ballot. (d) The application of profits. (e) The transaction of any other business included in the notice convening the meeting. Calling a General Meeting 44. The Secretary, at the request of the Board of Directors may convene a general meeting of the Cooperative. The purpose of the general meeting shall be stated in the notice of the meeting. 45. The Board of Directors upon an application signed by one-tenth of the total number of Members, or 100 Members, whichever is the lesser, delivered to the registered office of the Cooperative, shall convene a general meeting. The purpose of the general meeting shall be stated in the application for and notice of the meeting. No business other than that stated in the notice of the meeting shall be conducted at the meeting. 46. If within one month from the date of the receipt of the application the Board have not convened a general meeting to be held within six weeks of the application, any three Members of the Cooperative acting on behalf of the signatories to the application may convene a general meeting, and shall be reimbursed by the Cooperative for any costs incurred in convening such a meeting. Notices 47. The Directors shall call the annual general meeting giving 14 Clear Days’ notice to all Members. All other general meetings shall be convened with at least 14 Clear Days’ notice but may be held at shorter notice if so agreed in Writing by 90% of the Members. 48. Notices of meetings shall either be given to Members personally or sent to them at their Address or alternatively, if so agreed by the Cooperative in general meeting, notices of general meetings may be displayed conspicuously at the registered office and in all other places of business of the Cooperative to which Members have access. Notices shall specify the date, time and place at which the meeting is to be held, and the business which is to be transacted at that meeting. A general meeting shall not transact any business other than that specified in the notices calling the meeting. 49. A notice sent to a Member's Address shall be deemed to have been duly served 48 hours after its posting. The accidental omission to send any notice to or the non-receipt of any notice by any Person entitled to receive notice shall not invalidate the proceedings at the meeting. 50. All notices shall specify the date, time and place of the meeting along with the general nature of business to be conducted and any proposed resolutions. 51. If the Cooperative has appointed an Auditor in accordance with these Rules they shall be entitled to attend general meetings of the Cooperative and to receive all notices of and communications relating to any general meeting which any Member of the Cooperative is entitled to receive. The Auditor shall be entitled to be heard at any meeting on any part of the business of the meeting which is of proper concern to an Auditor. Quorum 52. No business shall be transacted at a general meeting unless a quorum of Members is present, including those not present in Person. Unless amended by Extraordinary Resolution, a quorum shall be 3 Members or 25% of the membership, whichever is the greater. Chairing General Meetings 53. The chairperson of the Cooperative shall facilitate general meetings. If s/he is absent or unwilling to act at the time any meeting proceeds to business then the Members present shall choose one of their number to be the chairperson for that meeting. Attendance and Speaking at General Meetings

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54. A Member is able to exercise the right to speak at a general meeting and is deemed to be in attendance when that Person is in a position to communicate to all those attending the meeting. The Directors may make whatever arrangements they consider appropriate to enable those attending a general meeting to exercise their rights to speak or vote at it including by Electronic Means. In determining attendance at a general meeting, it is immaterial whether any two or more Members attending are in the same place as each other, provided that they are able to communicate with each other. 55. The chairperson of the meeting may permit other persons who are not Members of the Cooperative to attend and speak at general meetings, without granting any voting rights. Adjournment 56. If a quorum is not present within half an hour of the time the general meeting was due to commence, or if during a meeting a quorum ceases to be present, the chairperson must adjourn the meeting. If within half an hour of the time the adjourned meeting was due to commence a quorum is not present, the Members present shall constitute a quorum. 57. The chairperson of a general meeting may adjourn the meeting whilst a quorum is present if: (a) The meeting consents to that adjournment; or (b) It appears to the chairperson that an adjournment is necessary to protect the safety of any persons attending the meeting or to ensure that the business of the meeting is conducted in an orderly manner. 58. The chairperson must adjourn the meeting if directed to do so by the meeting. 59. When adjourning a meeting the chairperson must specify the date, time and place to which it will stand adjourned or that the meeting is to continue at a date, time and place to be fixed by the Directors. 60. If the meeting is adjourned for 14 days or more, at least 7 Clear Days’ notice of the adjourned meeting shall be given in the same manner as the notice of the original meeting. 61. No business shall be transacted at an adjourned meeting other than business which could properly have been transacted at the meeting if the adjournment had not taken place. Voting 62. In accordance with the Cooperative Principle of democratic member control, each Member shall have one vote on any question to be decided in general meeting. 63. A resolution put to the vote at a general meeting shall be decided on a show of hands unless a paper ballot is demanded in accordance with these Rules. A declaration by the chair that a resolution has on a show of hands been carried or lost with an entry to that effect recorded in the minutes of the general meeting shall be conclusive evidence of the result. Proportions or numbers of votes in favour for or against need not be recorded. 64. In the case of an equality of votes, whether on a show of hands or a poll, the chairperson shall not have a second or casting vote and the resolution shall be deemed to have been lost. Paper Ballot 65. A paper ballot on a resolution may be demanded before or on the declaration of the result of the show of hands by three Members at a general meeting. 66. If a paper ballot is duly demanded it shall be taken in such a manner as the chairperson directs, provided that no Member shall have more than one vote, and the result of the ballot shall be deemed to be the resolution of the meeting at which the ballot was demanded. 67. The demand for a paper ballot shall not prevent the continuance of a meeting for the transaction of any other business than the question upon which a ballot has been demanded. The demand for a paper ballot may be withdrawn. Resolutions 68. Decisions at general meetings shall be made by passing resolutions: (a) The following decisions must be made by Extraordinary Resolution: (i) Decisions to expel Members; (ii) Decisions to dispose of assets of the Cooperative equivalent in value to one-third of the Cooperative’s last published balance sheet, as detailed in these Rules; (iii) Any amendment to the Cooperative's Rules; (iv) The decision to wind up the Cooperative. (b) All other decisions shall be made by ordinary resolution.

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69. An Extraordinary Resolution is one passed by a majority of not less than 75% of votes cast at a general meeting and an ordinary resolution is one passed by a simple majority (51%) of votes cast. 70. Resolutions may be passed at general meetings or by written resolution. A written resolution may consist of several identical Documents signed by one or more Members. DIRECTORS 71. The Cooperative shall have a Board of Directors comprising not less than three Directors. 72. The initial Directors of the Cooperative from registration until the first annual general meeting shall be appointed by the Founder Members. 73. Only Members of the Cooperative who are aged 18 years or more may serve on the Board of Directors. 74. The Board of Directors shall be elected by and from the Cooperative’s Members. The maximum number of Directors serving on the Board shall be determined by a general meeting of the Cooperative from time to time. Retirement Cycle 75. At the first annual general meeting all Directors shall stand down. At every subsequent annual general meeting one-third of the Board of Directors, or if their number is not a multiple of three then the number nearest to one-third, shall retire from office. The Directors to retire shall be the Directors who have been longest in office since their last election. Where Directors have held office for the same amount of time the Director to retire shall be decided by lot. A retiring Director shall be eligible for re-election. Co-option of Directors 76. In addition the Board of Directors may co-opt up to two external independent Directors who need not be Members and are selected for their particular skills and/or experience. Such external independent Directors shall serve a fixed period determined by the Board of Directors at the time of the co-option, subject to a review at least every 12 months. External independent Directors may be removed from office at any time by a resolution of the Board of Directors. 77. The Board of Directors may at any time fill a casual vacancy on the Board by co-option. Co-opted individuals must be Members of the Cooperative and will hold office as Director only until the next annual general meeting. Board Education and Training 78. In accordance with the Cooperative Principle of education, training and information, before accepting a position as Director an individual must agree to undertake training during their first year of office as deemed appropriate by the Cooperative. This training will include information on the roles and responsibilities of being a Director of a society which is also a Cooperative. Powers and Duties of the Board of Directors 79. The business of the Cooperative shall be managed by the Board who may exercise all such powers of the Cooperative as may be exercised and done by the Cooperative and as are not by statute or by these Rules required to be exercised or done by the Cooperative in general meeting. 80. All decisions made by a meeting of the Board of Directors or by any person acting as a Director shall remain valid even if it is later discovered that there was some defect in the Director’s appointment or that the individual had previously been disqualified from acting as a Director. 81. All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments, and all receipts for monies paid to the Cooperative shall be signed, drawn, accepted, endorsed, or otherwise executed in such manner as the Board shall from time to time direct. 82. Without prejudice to its general powers, the Board may exercise all the powers of the Cooperative to borrow money and to mortgage or charge its undertaking and property or any part of it and to issue debentures and other securities whether outright or as security for any debt, liability or obligation of the Cooperative or of any third party. 83. No Regulation made by the Cooperative in general meeting shall invalidate any prior act of the Board which would have been valid had that Regulation not been made.

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84. In accordance with the Cooperative Principles of democratic member control and member economic participation, the Board of Directors shall not be entitled to sell or otherwise dispose of assets (in a single transaction or series of transactions) equivalent in value to one- third or more of the total value of the last published balance sheet of the Cooperative without the approval of the Members by Extraordinary Resolution. Delegation 85. Subject to these Rules, the Directors may delegate any of the powers which are conferred on them under these Rules to any Person or committee consisting of Members of the Cooperative, by such means, to such an extent, in relation to such matters and on such terms and conditions as they think fit. 86. The Directors may specify that any such delegation may authorise further delegation of the powers by any Person to whom they are delegated. 87. The Directors may revoke any delegation in whole or in part or alter any terms and conditions. Sub-Committees 88. A sub-committee to which the Directors delegate any of their powers must follow procedures which are based as far as they are applicable on those provisions of these Rules which govern the taking of decisions by Directors. 89. The Directors may make Regulations for all or any sub-committees, provided that such Regulations are not inconsistent with these Rules. 90. All acts and proceedings of any sub-committee must be fully and promptly reported to the Directors. PROCEEDINGS OF THE BOARD OF DIRECTORS Calling a Meeting of the Board of Directors 91. Any Director may, and the Secretary on the requisition of a Director shall, call a meeting of the Board of Directors by giving reasonable notice of the meeting to all Directors. Notice of any meeting of the Board of Directors must indicate the date, time and place of the meeting and, if the Directors participating in the meeting will not be in the same place, how they will communicate with each other. Proceedings of a Meeting of the Board of Directors 92. The Board of Directors may meet together for the despatch of business, adjourn and otherwise regulate their meetings as they think fit. 93. A Director is able to exercise the right to speak at a meeting of the Board of Directors and is deemed to be in attendance when that person is in a position to communicate to all those attending the meeting. The Directors may make whatever arrangements they consider appropriate to enable those attending a meeting of the Board of Directors to exercise their rights to speak or vote at it including by Electronic Means. In determining attendance at a meeting of the Board of Directors, it is immaterial whether any two or more Directors attending are in the same place as each other. 94. Questions arising at any meetings of the Board shall be decided by a majority of votes. In the case of an equality of votes the status quo shall be maintained and the Board of Directors may choose to refer the matter to a general meeting of the Cooperative. 95. A written resolution, circulated to all Directors and signed by a simple majority (51%) of Directors, shall be valid and effective as if it had been passed at a Board meeting duly convened and held. A written resolution may consist of several identical Documents signed by one or more Directors. 96. The Board of Directors may, at its discretion, invite other persons to attend its meetings with or without speaking rights and without voting rights. Such attendees will not count toward the quorum. Quorum 97. The quorum necessary for the transaction of business at a meeting of the Board of Directors shall be 50% of the Directors or 3 Directors, including those not present in person, whichever is the greater. 98. If at any time the total number of Directors in office is less than the quorum required, the Directors are unable to take any decisions other than to appoint further Directors or to call a general meeting so as to enable the Members to appoint further Directors. Chairing Board Meetings

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99. The chairperson shall facilitate meetings of the Board of Directors. If s/he is absent or unwilling to act at the time any meeting proceeds to business then the Directors present shall choose one of their number to be the chairperson for that meeting. Declaration of Interest 100. A Director shall declare an interest in any contract or matter in which s/he has a personal, material or financial interest, whether directly or indirectly, and shall not vote in respect of such contract or matter, provided that nothing shall prevent a Director voting in respect of her/his terms and conditions of employment or any associated matter. Expenses 101. The Cooperative may pay any reasonable expenses which the Directors properly incur in connection with their attendance at meetings or otherwise in connection with the exercise of their powers and the discharge of their responsibilities in relation to the Cooperative. Termination of a Director’s Appointment 102. A person ceases to be a Director of the Cooperative as soon as: (a) That person ceases to be a Member of the Cooperative (unless they are a co-opted external independent Director); (b) Where the individual is the representative of a Member organisation, that Member organisation removes their endorsement of that representative; (c) Where the person is the representative of a Member organisation that Member organisation ceases to exist; (d) That person resigns from office in Writing to the Secretary of the Cooperative, and such resignation has taken effect in accordance with its terms; (e) That person is removed from office by an ordinary resolution of the Cooperative in general meeting, the notices for which specified that the question of the Director's removal was to be considered; (f) That person is prohibited from being a Director by law; (g) That person is disqualified from acting as a trustee by virtue of sections 178 and 179 of the Charities Act 2011 (or any statutory re-enactment or modification of those provisions);

(h) in the written opinion, given to the Society, of a registered medical practitioner treating that person, has become physically or mentally incapable of acting as a Director and may remain so for more than three months;

(i) A bankruptcy order is made against that person; (j) A registered medical practitioner who is treating that person gives a written opinion to the Cooperative stating that the person has become mentally incapable of acting as a Director and may remain so for more than three months; (k) By reason of that person’s mental health, a court makes an order which wholly or partly prevents that person from personally exercising any powers or rights which that person would otherwise have. OFFICERS 103. The Board shall elect from among their own number a chairperson and Secretary and such other Officers as they may from time to time decide. These Officers shall have such duties and rights as may be bestowed on them by the Board or by law and any Officer appointed may be removed by the Board. A serving Officer who is not re-elected to the Board at the annual general meeting shall nevertheless continue in office until the first Board meeting following the annual general meeting. DISPUTES 104. In the event of a dispute between the Cooperative or its Board and a Member of the Cooperative or a former Member, such dispute shall be referred to an independent arbitrator whose appointment is acceptable to both parties to the dispute or in the absence of agreement to be nominated by the Secretary General of Cooperatives UK (or any role or body that succeeds to its function). The decision of such an arbitrator shall be binding. In the event that a dispute cannot, for whatever reason, be concluded by reference to an arbitrator, the matter may be referred to the county court (or in Scotland, to the sheriff). Any Person bringing a dispute must, if so required, deposit with the Cooperative a reasonable sum (not

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exceeding £100) to be determined by the Board. The arbitrator will decide how the costs of the arbitration will be paid and what should be done with the deposit. REGULATIONS 105. The Cooperative in a general meeting, or the Board of Directors, may from time to time make, adopt and amend such Regulations in the form of bye-laws, standing orders, secondary rules or otherwise as they think fit for the management, conduct and regulation of the affairs of the Cooperative and the proceedings and powers of the Board of Directors and sub-committees. Such Regulations (if any) shall be made available to all Members. No Regulation shall be made which is inconsistent with these Rules or the Act. All Members of the Cooperative and the Board of Directors shall be bound by such Regulations whether or not they have received a copy of them. LIABILITY OF MEMBERS 106. The liability of a Member is limited to the amount of their shareholding. PAYMENT OF INTEREST ON SHARE CAPITAL 107. To paying interest on issued share capital at such rate or rates as determined by the Board from time to time, but not exceeding 6 per cent per annum or 2 per cent above the Bank of England base rate, whichever is the greater; APPLICATION OF PROFITS 108. Any profits of the Cooperative shall be applied as follows in such proportions and in such manner as may be decided by the Cooperative at the annual general meeting: (a) To a general reserve for the continuation and development of the Cooperative; (b) To paying dividends to Members, either equally or in accordance with some other equitable formula which recognises the relative contribution made by each Member to the business of the Cooperative; (c) In accordance with the Cooperative Principle of concern for community, to make payment for social, Cooperative and community purposes. AMALGAMATION, TRANSFER OF ENGAGEMENTS AND CONVERSION 109. The Society may, by special resolution passed in the way required by section 111 of the Act, amalgamate with, or transfer its engagements to another registered society subject to at least the same degree of restriction on the distribution of profits and assets as imposed on this Society by virtue of these Rules. The Society may also accept a transfer of engagements and assets by a resolution of the Board or by general meeting. 110. The Society may, by a special resolution passed in a way required by section 113 of the Act, amalgamate with, or transfer its engagements to, or convert to a company, subject to at least the same degree of restriction on the distribution of profits and assets as imposed on this Society by virtue of these Rules. In relation to calling a general meeting for the purpose of such resolution, the following provisions shall apply: (a) The Cooperative shall give to Members not less than two months’ notice of the meeting. (b) Notice of the meeting shall be posted in a prominent place at the registered office and at all trading premises of the Cooperative to which Members have access. (c) The notice shall be accompanied by a separate statement setting out for Members: (i) the reasons for the proposal; (ii) whether the proposal has the support of the Board of the Cooperative; (iii) what alternative proposals have been considered, and whether they are viable; (iv) details of the number of shares in the Cooperative held by Members of the Board, and persons connected with them; (v) a recommendation by reputable independent financial advisors that the Members should support the proposal rather than any alternative proposal. (d) Where the separate statement is contained in another Document, information shall be provided in the notice specifying where Members can obtain a copy of the Document. DISSOLUTION 111. The Society may be dissolved: (a) in accordance with section 119 of the Act by an instrument of dissolution; (b) in accordance with section 123 of the Act in pursuance of a winding up order or by a resolution made or passed as directed in regard to companies by the insolvency Act 1986; or

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(c) in accordance with section 125 of the Act, after administration and administrator issues a notice to dissolve the society without prior winding-up. 112. The Cooperative is a co-ownership enterprise. If on the winding up or dissolution of the Cooperative any of its assets remain to be disposed of after its liabilities are satisfied, these assets may be distributed among the Members and those persons who were Members at any time during the six years prior to the date on which the Cooperative decides to wind up. Such assets shall be distributed either equally or in accordance with some other equitable formula which recognises the relative contribution made by each Member and past Members to the business of the Cooperative during the six years prior to the winding up or dissolution of the Cooperative. If such residual assets cannot be distributed in this manner they shall be transferred to a common ownership Cooperative or to Cooperatives UK (or any body that succeeds to its function). ADMINISTRATIVE ARRANGEMENTS Means of Communication 113. A Member may provide their consent to receive communications from the Cooperative by Electronic Means. 114. A notice sent to a Director’s Address shall be deemed to have been duly served 48 hours after its posting. A Director may agree with the Cooperative that notices or Documents sent to her/him in a particular way are to be deemed to have been received within a specified time of their being sent, and for the specified time to be less than 48 hours. Seal 115. If the Cooperative has a seal, it shall only be used by the authority of the Board of Directors acting on behalf of the Cooperative. Every instrument to which the seal shall be attached shall be signed by a Director and countersigned by a second Director or the Secretary. Registers 116. The Board of Directors shall ensure accurate registers are maintained which shall include a register of Members, a register of Directors and a register of Officers. Register of Members 117. The Board shall ensure that the register is maintained in accordance with the Act and that the particulars required by the Act are available for inspection and accessible without the need to disclose other particulars contained in the register. Register of Directors and Officers 118. The Cooperative shall maintain a register of Directors and Officers which shall include the following particulars: (a) Name of the Director; (b) Address of the Director; (c) The date on which they assumed office; (d) The date on which they vacated office; and (e) The position held by a Director if s/he is also an Officer and the date on which the Director assumed and vacated his/her Officer position. Amendments to Rules 119. Any of these Rules may be rescinded or amended or a new rule made by an Extraordinary Resolution at a general meeting of which 14 Clear Days' notice has been given, such notice to include details of the change(s) to be proposed at that meeting. No amendment of Rules is valid until registered by the Registrar. When submitting the rule amendments for registration the Secretary may at their sole discretion accept any alterations required or suggested by the Registrar without reference back to a further general meeting of the Cooperative. Copies of the Cooperative's Rules 120. A copy of these Rules and any amendments made to them shall be given free of charge to every Member upon admission to membership and shall be provided to any other person on demand and on payment of the statutory fee chargeable for the time being in force. Minutes 121. The Cooperative shall ensure that minutes are kept of all: (a) Proceedings at general meetings of the Cooperative; and (b) Proceedings at meetings of the Board of Directors and its sub-committees which include names of the Directors present, decisions made and the reasons for those decisions.

Page33 189

Annual Return 122. Every year and within the period prescribed by the Act, the Secretary shall send the annual return in the prescribed form to the Registrar. The annual return shall be accompanied by: (a) A copy of the Auditor’s report on the Cooperative's accounts for the period covered by the annual return or a copy of such other report (if any) as is required by statute for such a period; and (b) A copy of each balance sheet made during that period and report of the Auditor or other appropriate person as required by statute on that balance sheet. 123. The Cooperative shall on demand supply free of charge to any Member or any person with an interest in the funds of the Cooperative a copy of the latest annual return together with a copy of the Auditor's report on the accounts and balance sheet contained in the annual return and the Auditor’s report (if any). 124. The Cooperative shall at all times keep a copy of the latest balance sheet of the Cooperative together with a copy of the corresponding Auditor's report (if any) hung up in a conspicuous place at the registered office and displayed on the Cooperative's website (if any). Audit 125. Unless the Society meets the criteria set out in section 83(2) of the Act or may disapply the audit requirement in accordance with section 84 of the Act, the Board shall in each financial year appoint an Auditor as required by section 83(1) of the Act , to audit the Society’s accounts and balance sheet for the year. This provision also applies if the Society is in its first financial year. 126. The following persons shall not be appointed as Auditor of the Cooperative: (a) An Officer or Employee of the Cooperative; (b) A person who is a partner or employee of, or who employs, an Officer of the Cooperative. 127. The Board may appoint an Auditor to fill a casual vacancy occurring between general meetings. 128. An Auditor for the preceding financial year shall be re-appointed as Auditor of the Cooperative for the current financial year unless: (a) A decision has been made by the Board to appoint a different Auditor or expressly decided that s/he shall not be re-appointed; or (b) S/he has given notice in writing to the Secretary of her/his unwillingness to be re-appointed; or (c) S/he is ineligible for appointment as Auditor of the Cooperative for the current financial year; or (d) S/he has ceased to act as Auditor of the Cooperative by reason of incapacity. 129. Any ordinary resolution of a general meeting of the Cooperative either to remove an Auditor from office or to appoint another person as Auditor shall not be effective unless notice of the proposed resolution has been given to the Cooperative at least 28 days prior to the meeting at which the resolution is to be considered. At least 14 days' notice of such resolution must then be given to Members of the Cooperative in the manner prescribed in these Rules and in Writing to the Auditor(s). Social Accounting and Reporting 130. In addition to any financial accounts required by the Act, the Members may resolve to undertake an account of the activities of the Cooperative which will endeavour to measure its Cooperative, social and environmental performance using whatever methodology the Members deem appropriate. Following the completion of such an account the Cooperative shall report any findings to its Members and other stakeholders. Indemnity and Insurance 131. Subject to the following rule, any Director or former Director of the Cooperative may be indemnified out of the Cooperative’s assets against: (a) Any liability incurred by that Director in connection with any negligence, default, breach of duty or breach of trust in relation to the Cooperative; (b) Any liability incurred by that Director in connection with the activities of the Cooperative in its capacity as a trustee of an occupational pension scheme; (c) Any other liability incurred by that Director as an Officer of the Cooperative.

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132. The above rule does not authorise any indemnity which would be prohibited or rendered void by any provision of law. 133. The Directors may decide to purchase and maintain insurance, at the expense of the Cooperative, for the benefit of any Director or former Director of the Cooperative in respect of any loss or liability which has been or may be incurred by such a Director in connection with their duties or powers in relation to the Cooperative or any pension fund or employees’ share scheme of the Cooperative.

Full Names of Founder Members in Signatures of Founder Members BLOCK CAPITALS (no initials) 1. 2. 3. Full Name of Secretary in BLOCK Signature of Secretary CAPITALS (no initials) 1.

Page35 191

APPENDIX 4 – RISK REGISTER

Target Evaluation Proposed Actions - include Responsible Date for Risk Description Description of Impact Controls in Place to Mitigate Risk of Risk Owner resulting benefit and costs Officer Proposed

Controls score ihood

Action

Risk Rating Risk Rating

Impactscore

Likel (ImpactxLikelihood) Lack of fibre to Droylsden will mean TMBC staff Fibre installation along Tramside to Droylsden is Fortnightly meetings with TFGM, Telent (TFGM cannot move into the refurbished Concord Suite effective 3 2 6 Tim Rainey delayed beyond October 17 fibre installer), and Tameside legal in place. offices in jan 18 An alternative option involving road dig and new ducting from Clayton Hall Tram stop to a Loop chamber at the Eithad Stadium has been developed and Connection to IX Manchester by march 18 is If the direct fibre connection from the Tameside Digital costed. This will provide a more straight delayed because easement and wayleave issues Infrastructure to IX Manchester is not in place ISP ad forward road based route which avoids Regular meetings with TFGM, Eddie Smith on fibre route in tramside ducting from Clayton to telco's popping the Tameside network will not be able Ineffective 5 5 25 Tim Rainey the using tramside ducting around the TR 11/01/17 (Strategic Director at Manchester City Council). New Islington are not resolved by Manchester City to access competative internet transit/back haul complex third party land situated around Council services. the Veladrome and Eithad area. This additional work would cost circa £120k but would mitigate having to pay easement charges to third party land owners. Options for getting fibre across M67 Existing ducting across M67 road bridge at Hyde The fibre network ring will not be complete and will not TMBC Engineers discussing options with roadbridge at Hyde using external is owned by Open Reach. Delays in identifying an effective 5 3 15 John Taylor TR 12/01/17 be resilliant. Highways England. containment being discussed with appropriate alternative fibre route across M67 Highways England. Page 192 Page A brief has been issued to PWC to undertake a review of the project with a A legal challenge is launched on the basis that the Specialist external advice on state aid implications view to confirming that the project does A state aid challenge would delay the fibre investment made by the public sector State is of the proiject are being updated and revised to not contravene State Aid regulations on commercialisation of the Tameside Digital effective 5 3 15 Tim rainey TR 11/01/17 actually state aid which the Cooperative operating refect the increased levels of public sector the MEOP basis. This work once Infrastructure. vehicle benefits from. investment. complete will be available to others looking to undertake similar works. The costs of the review are circa £50k

Soft Market testing has already been undertaken DCMS funding is being used to The Cooperative operating vehicle is not a A lack of buy-in from private sector telco's and ISP's to test the proposition with the market. A series of accelerate the delivery of the DX and commercially attractive proposition and doesn’t would reduce the both the competitiveness of the meeting with a number of alternative ISP and effective 5 2 10 Tim Rainey Mino DX's across the network and to TR 12/01/17 attract private sector Telco's and ISP's as services being delivered across the network and Telco's has also taken place to ensure the extend ducting and fibre into business members would lead to less private sector investment. proposed operating vehicle is fit for purpose. areas. A delay in completing the fibre ring beyond March 18 would have significant financial implications in terms The completion of the ducting and fibre installation Weekly progress meeting with Engineers on 5 teams working on different sections of of having to extending the existing WAN services effective 5 2 10 John Taylor TR 04/01/18 for the figure of 8 ring is delayed progress. the network at the same time. being delivered by Updata for a further 6 month minimum period. Tameside Engineers have already met with New electricity sub station for Ashton Old Baths Without a new sub station there is not sufficient power Roger Electricity North West to request the new sub effective 5 1 5 Data Centre is delayed to operate the Data Centre Greenwood station. A bid to the Cultural Regeneration fund has been submitted for complete the refurbishment of the phase The phase 2 refurbishment works will be Construction of Data Centre at AOB is delayed 2 office space. A decision on this application will not Discussions ongoing with the LEP and Architects undertaken in 2 phases using the same Roger due to funding delays for the phase 2 office be known until March 18. If construction of the DC is to ensure the DC element of the project can be effective 5 2 10 architects and contractors. This means TR 01/01/18 Greenwood refurbishment. linked to the office refurbishment scheme it would delivered in advance of the office refurbishment. the DC works can progress ahead of the cause a significant delay to the DC completion date office refurbishment. which is Sept 18.

36

Appendix 5 Site List

40GB Ring Primary Sites Dukinfield Town Hall King Street, Dukinfield SK16 4LA Tameside Met Boro Council, Town Hall, King St ,Dukinfield Hyde Town Hall Market Street, Hyde SK14 1AL Town Hall, Market Street ,Hyde Tame Street Depot Tame Street, Stalybridge SK15 1ST Transport And Cleansing Dept, Tame St ,Stalybridge Denton Town Hall Market Street, Denton M34 2AP Town Hall, Market Street Denton, Manchester Tameside Central Library Ashton Under Lyne OL6 7SG Tameside Central Library, Old Street , Ashton Under Lyne Concorde Suite Droylsden M43 6SF Concord Suite, Manchester Rd Droylsden, Manchester Tameside General Hospital Ashton Under Lyne OL6 9RW Comms Room, Tameside General Hospital, Fountain St , Ashton GMPF Droylsden M43 6SF Guardsman Tony Downes House, 5 Manchester Road, Droylsden AOB Ashton Under Lyne OL6 7TW Stamford St W, Ashton-under-Lyne OL6 7TW VT2 (New TMBC Admin Ashton Under Lyne OL6 6DL TBC Building) Page 193 Page 10GB connections Clarence Arcade Stamford Street, Ashton OL6 7PT Creative Training Ltd, Clarence Arcade Stamford St , Ashton Under Lyne Ashton Market Hall Ashton Under Lyne OL6 6BZ Market Hall, Bow Street , Ashton-Under-Lyne Ryecroft Hall Manchester Road, Audenshaw M34 5ZJ 5, Kershaw Grove Audenshaw, Manchester Hyde Market Hall Market Hall, Hyde SK14 2QT Tameside Mbc, Market Hall, 20, The Mall, Hyde Dukinfield Crematorium Hall Green Road, Dunkinfield SK16 4EP Cemetery House, Hall Green Rd , Dukinfield MSCP ASHTON BROOKDALE AVE OL6 7UD 4, Brookdale Avenue , Ashton Under Lyne Droylsden Library Manchester Road, Droylsden M43 6EP Droylsden Library, Manchester Road Droylsden, Manchester Dukinfield Library Concord Way, Dukinfield SK16 4DB Dukinfield Library, Concord Way , Dukinfield Stalybridge Library Trinity Street, Stalybridge SK15 2BN Stalybridge Public Library, Trinity St , Stalybridge Denton Library/Festival Hall Peel Street, Denton M34 3JX Festival Hall, Peel Street, Denton, Manchester, Lancashire, Patterson and Rothwell Ashton Under Lyne OL7 0QQ Margaret Street, Ashton-under-Lyne, Tameside, OL7 0QQ Ashton Old Town Hall Ashton Under Lyne OL6 6DL Market Place, Ashton-under-Lyne, Tameside OL6 6DL Denton Centre Acre Street, Denton M34 2BW Services For Children & Young, Acre Street , Manchester Stalybridge Civic Hall Trinity Street, Stalybridge SK15 2BN Stalybridge Civic Hall, Trinity Street , Stalybridge

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Appendix 6 Dark Fibre Details

Total DCMS TMBC Fibre Access Description Status Metrolink Ducting Prems Passed on completion =<200m Funding Funding Laid Points Available Completion Ref Date KMs Public & Build Phase Ongoing £1,179,000 £1,366,000 £120,000 Pairs Number Residential Business Educ ducting medical

Page 194 Page Pink Route - Tameside General Hospital to Stalybride Ongoing £179,839 2320 144 91 2239 1 199 26 1 Nov-17 2 Blue Route - Ashton Town Centre to TGH Ongoing £103,097 1330 144 24 8493 691 67 10 Oct-17 3 Red Route - Stalybride to Dukinfield Ongoing £318,594 4110 144 52 3177 253 34 4 Dec-17 4 Light Blue Route - Hyde to Denton Ongoing £242,472 3128 144 50 2070 190 18 4 Feb-18 5 Green Route - Dukinfield Globe Lane to Hyde Ongoing £240,534 3103 144 139 2343 467 30 3 Dec-17 6 Orange Route - Denton to Audenshaw Ongoing £281,463 3631 144 50 3134 50 9 6 Apr-18 7 TMBC funded - Ashton to Droylsden (Metrolink) Complete £64,000 4500 96 3 3668 101 17 4 Oct-17 TMBC funded - Droylsden to Piccadilly Ongoing £56,000 5900 48 2 0 0 0 0 Nov-17 8 DCMS funded Park Road Ongoing £63,850 628 96 19 181 118 0 0 Dec-17 9 DCMS funded Whitelands Road Ongoing £152,597 1700 96 23 568 121 0 1 Dec-17 10 DCMS funded Fifth Ave Ongoing £114,097 1300 96 21 106 143 2 1 Jan-18 11 DCMS funded Spur to Shepley Ongoing £57,175 523 96 16 54 46 0 0 Mar-18 12 DCMS funded Newton Business Park Ongoing £212,228 2277 96 41 2252 271 3 2 Mar-18 13 DCMS funded Northend Road Ongoing £98,014 1056 96 24 726 100 0 0 Jan-18 14 DCMS funded St. Pauls Trading Estate Ongoing £95,494 1090 96 19 1524 94 15 2 Dec-17 15 DCMS funded Turner Lane Ongoing £35,103 340 96 10 567 99 1 0 Jan-18 16 DCMS funded Windmill Lane Ongoing £44,789 439 96 14 552 434 0 0 Apr-18 17 DCMS funded Oldham Street Ongoing £80,635 786 96 22 139 307 0 0 Jan-18

38

DCMS Funded Cavendish Mill Ongoing £5,700 35 8 2 52 0 0 0 Jan-18 DCMS funded Summers Quay Ongoing £27,200 270 8 4 67 0 0 0 Dec-17 DCMS funded MossCare Ongoing £9,320 70 8 4 40 0 0 0 Dec-17 18 DCMS Funding Clarendon Trading Estate Ongoing £74,715 628 96 23 267 28 1 1 Feb-18 19 DCMS Funding Stockport Road / Guide Bridge Ongoing £230,366 2360 96 57 1741 114 9 3 Mar-18

£1,301,284 £1,366,000 £120,000 41524 710 33960 3826 232 42

Page 195 Page

39

APPENDIX 7 – TfGM Project Agreement

Dated November 2017 ------

PROJECT AGREEMENT

relating to

Phase 1 of Tameside Digital Infrastructure Project

between

TRANSPORT FOR GREATER MANCHESTER

and

TAMESIDE METROPOLITAN BOROUGH COUNCIL

TfGM Legal Department 2 Piccadilly Place Manchester M1 3BG

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THIS AGREEMENT is dated the day of November 2017

PARTIES (1) TRANSPORT FOR GREATER MANCHESTER of 2 Piccadilly Place Manchester M1 3BG (TfGM). (2) TAMESIDE METROPOLITAN BOROUGH COUNCIL of Dukinfield Town Hall King Street Dukinfield Tameside SK16 4LA (TMBC).

BACKGROUND (A) TfGM is a Transport Executive within the meaning of the Transport Act 1968 and pursuant to The Greater Manchester Combined Authority Order 2011 (S.I. 2011 No.908) is an executive body of the Greater Manchester Combined Authority. (B) TfGM is the owner of the light rapid transit system known as Metrolink (Metrolink) and owns certain freehold and leasehold property and other interests in land forming part of the Metrolink system. (C) TMBC are the metropolitan district council for the local government area of Tameside through which that part of the Metrolink system between Ashton-under-Lyne and Droylsden is situated. (D) TMBC are desirous of utilising spare capacity within a Metrolink track side duct in connection with its digital infrastructure project known as the Tameside Digital Infrastructure Project (Project). (E) TfGM has therefore agreed where possible to grant TMBC a lease of a Metrolink trackside Duct running through its Transport Land on the terms contained in this Agreement. Further where the Metrolink track side ducts runs through the public highway or through land owned by third parties or through the Ashton Moss Easement Area in which TfGM only have the benefit of a freehold easement then TfGM has agreed to grant a licence or a deed of grant for a term of years (as appropriate). (F) TMBC have proposed the creation of a co-operative organisation (Tameside Digital Infrastructure Co-operative TDIC) to allow sharing of assets between the TMBC and its partners as part of the Project but for the avoidance of doubt TfGM will not be a part of any such co-operative. (G) The parties to this Agreement (Parties) have agreed to enter into this Project Agreement to document their respective rights and obligations in relation to the Project the terms of which are set out below. (H) In so doing the Parties hereby agree to adhere to the Project Principles. (I) The Parties acknowledge that TfGM is in the process of acquiring certain areas of land on which the Metrolink track side ducts are situated and in respect of these plots it will not be possible to grant a lease of a Duct until such point in time as TfGM has acquired these areas. (J) Each lease granted by TfGM to TMBC shall contain an agreement between the TfGM and TMBC that the provisions of sections 24-28 of the Landlord and Tenant Act 1954 will be excluded in relation to the tenancy to be created by the lease. (K) The obligation on TfGM to grant leases or deeds of grant or licences (as appropriate) is conditional upon TMBC obtaining the Consent in a form satisfactory to TfGM.

AGREED TERMS 1. Interpretation

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The following definitions and rules of interpretation apply in this agreement Act of Insolvency (a) the taking of any step in connection with any voluntary arrangement or any other compromise or arrangement for the benefit of any creditors of TMBC or any guarantor;

(b) the making of an application for an administration order or the making of an administration order in relation to TMBC or any guarantor;

(c) the giving of any notice of intention to appoint an administrator, or the filing at court of the prescribed documents in connection with the appointment of an administrator, or the appointment of an administrator, in any case in relation to TMBC or any guarantor;

(d) the appointment of a receiver or manager or an administrative receiver in relation to any Transport Land or income of TMBC or any guarantor;

(e) the commencement of a voluntary winding-up in respect of TMBC or any guarantor, except a winding-up for the purpose of amalgamation or reconstruction of a solvent company in respect of which a statutory declaration of solvency has been filed with the Registrar of Companies;

(f) the making of a petition for a winding-up order or a winding-up order in respect of TMBC or any guarantor;

(g) the striking-off of TMBC or any guarantor from the Register of Companies or the making of an application for the Tenant or any guarantor to be struck-off;

(h) TMBC or any guarantor otherwise ceasing to exist (but excluding where TMBC or any guarantor dies); or

(i) the presentation of a petition for a bankruptcy order or the making of a bankruptcy order against TMBC or any guarantor.

Ashton Moss Consent: the consent of Stayley to the Project in so far the Project relates to the Ashton Moss Easement Areas Ashton Moss Easement Areas: the two areas over which easements were granted to TfGM by Stayley and being Plots 1001 and Pond 2 dated 1 August 2013 and made between (1) Stayley Developments Limited and (2) Transport for Greater Manchester Assets: all assets and rights to enable the TMBC to own operate and maintain the Digital Infrastructure Network including the Fibre Cable and breakout chambers but excluding the Metrolink and the Metrolink Apparatus Break-Out Chambers: the chambers at Ashton Tram Terminus, New Charter Trust Head Quarters, Droylsden Concorde Suite, Droylsden Greater Manchester Pension Head Quarters all being situate on land owned by TMBC.

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Cable Installation Fee: £95,000 (ninety five thousand pounds) plus VAT plus any increased costs imposed by Telent in respect of the Cable Installation Fee Cable Plan: a plan showing the Fibre Cable route edged red CDM Regulations: the Construction (Design and Management) Regulations 2015 (SI 2015/51). Charge: the base charge exclusive of VAT payable under a Deed of Grant and calculated in accordance with a Deed of Grant. Charge Commencement Date: the Effective Date Commercially Sensitive Information: the information (if any) listed in schedule 10 comprising the information of a commercially sensitive nature relating to TfGM or TMBC , its intellectual property rights or its business or which the TfGM and TMBC has indicated to the each other that, if disclosed by the Authority, would cause the Supplier significant commercial disadvantage or material financial loss. Conditions: part 2 of the Standard Commercial Property Conditions (Second Edition). Confidential Information: information that ought to be considered as confidential (however it is conveyed on whatever media it is stored) and may include information whose disclosure would, or would be likely to, prejudice the commercial interests of any person, trade secrets, Intellectual Property Rights and know-how of either Party and all personal data and sensitive personal data within the meaning of the Data Protection Act 1998; and Commercially Sensitive Information Connection: a connection of the Fibre Cable within the Duct between a Break-Out Chamber and a Pre-Approved Building Connection Point: the point on the Duct and Fibre Cable at which a Connection is made as agreed between the Parties Connection Route: the route of a Connection Core–IS: TMBC’s fibre installation contractor being Core Integrated Solutions of 6 Legrams Terrace Field head Business Centre Bradford BD7 1LN Deeds of Grant: deeds of grant for a term of years in the agreed form annexed to this Agreement at Schedule 7B Deeds of Grant Completion Date: the date of this Agreement Deed of Grant Period: a period of twenty (20) years from and including the Effective Date Duct: the Duct demised by the relevant Lease, and/or Licence Agreement and/or Deed of Grant and shown by a red line on the Plans Effective Date: [ ] October 2017 Environmental Information Regulations: the Environmental Information Regulations 2004 together with any guidance and/or codes of practice issued by the Information Commissioner or relevant government department in relation to such regulations Expiry Date: the date being twenty years from and including the Effective Date Event of Default: any of the events set out in clause 11. Fibre Cable: the external 96 fibre optic cable to be laid in the Duct

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FOIA: the Freedom of Information Act 2000, and any subordinate legislation made under the Act from time to time, together with any guidance and/or codes of practice issued by the Information Commissioner or relevant government department in relation to such legislation. Force Majeure Event: the occurrence after the Effective Date of war, civil war, armed conflict or terrorism, nuclear, chemical or biological contamination unless the source of the contamination is as a result of any act by TMBC or any breach by TMBC of the terms of this Agreement; pressure waves caused by devices travelling at supersonic speeds which directly causes either Party (the Affected Party) to be unable to comply with all or a material part of its obligations under this Agreement Future Lease: A lease to be granted by TfGM to Tameside in respect of any land acquired by TfGM which becomes part of the Transport Land which is currently the subject of a Licence Agreement Future Leases Completion Date: the actual date of completion of the Future Lease Highway Land: the areas of the Metrolink line which run along the publicly adopted highway as identified on the Plans Independent Surveyor: the surveyor appointed under clause 27.

Information: has the meaning given under section 84 of FOIA. Insurance Term: any terms and/or conditions required to be in a policy of insurance by clauses 14 to 18 and/or Schedule 5 (Insurances) but excluding any risk Leases: leases in the agreed form annexed to this Agreement at Schedule 7A Leases Completion Date: the date of this Agreement Lease Period: a period of twenty (20) years from and including the Effective Date Licence Agreements: the Licence Agreements in the form attached at Schedule 7C of this Agreement Licence Agreements Completion Date: the date of this Agreement Licence Agreement Fee: the annual payment payable under a Licence Agreement and calculated in accordance with a Licence Agreement Licence Agreement Period: a period of twenty (20) years from and including the Effective Date Licence Fee Commencement Date: the Effective Date Material: all designs, drawings, models, plans, specifications, design details, photographs, brochures, reports, notes of meetings, CAD materials, calculations, schedules, programmes, bills of quantities, budgets and any other materials provided in connection with TMBC’s Works and TfGM’s Works and all updates, amendments, additions and revisions to them and any works, designs, or inventions incorporated or referred to in them for any purpose relating to TMBC’s Works and TfGM’s Works. Metrolink: The light rapid passenger transit system owned by but operated on behalf of TfGM including without limitation all running tracks stops depots and other associated infrastructure. Metrolink Apparatus: brackets, cables, wires, fixings and other apparatus required for the purpose of operating Metrolink. Metrolink Hazard Zone: the area as illustrated from time to time in the “Working Safely near Metrolink” brochure a copy of the current version of which is attached at Schedule 2

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Metrolink Services: the light rapid transit service operated on behalf of TfGM from Ashton-under- Lyne to Manchester Piccadilly station Operator: a provider of telecommunications or digital network and or a provider of an infrastructure system for the purposes of s.106 of the Telecommunications Act 1984 as modified or amended by the Electronic Communications Code (Conditions and Restrictions) Regulations 2003 Part 1 Commercial Conditions: part 1 of the Standard Commercial Property Conditions (Second Edition). Phase 1: Phase 1 of Tameside Digital Infrastructure Project meaning the installation of a Fibre Cable within a Duct from point [x] at Ashton Under Lyne to point [y] at Droylsden. Phase 2: Phase 2 of the Tameside Digital Infrastructure Project meaning the Installation of a Fibre Cable within a Duct running alongside the part of the Metrolink alignment running from point [a] at Droylsden to point [b] at Sheffield Street in Manchester City Centre Phase 2 Project Agreement: the Project Agreement substantially in the same form as this Project Agreement containing such amendments as required to give effect to Phase 2 Physical Damage Policies: all insurance proceeds received under any policy referred to in clauses 14 to 18 inclusive and Schedule 5 Plans: plans 1- [ ] attached hereto at Schedule 1. Pre-approved Building: the old Greater Manchester Pension Funding building at Concord Suite Manchester Road Droylsden M43 6SF; the new Greater Manchester Pension Fund building at Guardsman Tony Downes House 5 Manchester Road Droylsden M43 6SF New Charter Housing Head Quarters at 249 Cavendish Street, Ashton-under-Lyne OL6 7AT the new Audenshaw Tram Stop and any other building occupied by a Public Sector Body which TMBC wishes to make a Connection to the Fibre Cable and which has been notified to and approved by the TfGM in writing subject to the provisions of clause 10 of this Agreement President: the president for the time being of the RICS. Project Liaison Group: has the meaning ascribed to it in Schedule 8 of this Agreement Project Period: subject to earlier termination in accordance with this Agreement, the period from the Effective Date until the Expiry Date Project Principles: to increase digital connectivity in the borough of Tameside through the use of spare capacity within the ducts which are part of Metrolink by connecting key public buildings to an enhanced digital network service and to explore further opportunities to increase broadband capability and digital connectivity throughout the borough of Tameside Project Request: a request by TMBC that a Pre-approved Building be connected to the Fibre Cable at a Connection Point Relevant Training: the mandatory safety training to be undertaken by a relevant member of TMBC’s Project Team prior to the commencement of TMBC’s Works Rent: the annual rent exclusive of VAT payable under a Lease and calculated in accordance with a Lease Rent Commencement Date: the Effective Date Request for Information: a request for information or an apparent request under the Code of Practice on Access to Government Information, FOIA or the Environmental Information Regulations. Required Insurances: the insurances specified in Schedule 5 (Insurances)

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Requisite Consents: building regulation approvals, by-law approvals, and any other consents, licences and authorisations required from any competent authority, statutory undertaker or person for the carrying out of the TMBC’s Works and/or TfGM’s Works Review Procedure: means the procedure set out at Schedule 9 RICS: Royal Institution of Chartered Surveyors. Stayley: Stayley Developments Limited (registered number 01269120) whose registered office is at Estates Office, Enville near Stourbridge West Midlands BY7 5HD Site: the area edged in red on the Cable Plan Site Conditions: the conditions of the Site including (but not limited to) climatic, hydrological, hydrogeological, ecological, environmental, geotechnical and archaeological State Aid: any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU) Telecoms Conditions means the matters set out in Schedule 3 Telent: Telent Technology Services Limited (company number 703317) whose registered office is situate at Point 3 Haywood Road, Warwick, CV34 5AH. Telent Contract: means the call-off contract under the PSN Services Framework Agreement entered into on or about 15 July 2015 between (1) TfGM and (2) Telent TfGM's Conveyancer: The Head of Legal Services for the time being of Transport for Greater Manchester 2 Piccadilly Place Manchester M1 3GB or any other conveyancer whose details may be notified in writing from time to time by TfGM to TMBC. TfGM’s Works: the works for the installation by TfGM (but at the expense of TMBC) of the Fibre Cable within a Duct in accordance with the terms of Part 1 of Schedule 4 to the extent (if any) that such Works have not already been completed. TMBC’s Conveyancer: the Borough Solicitor of Tameside Metropolitan Borough Council or any other conveyancer whose details may be notified in writing from time to time by the Tameside to the TfGM. TMBC’s Civils Team: TMBC’s Engineering Services Department of Dukinfield Town Hall, King Street Dukinfield Tameside SK16 4LA TMBC’s Project Team: a relevant employee of TMBC and/or any of its contractors or subcontractors engaged in working on the Project including but not limited to TMBC’s Civils Team and Core-IS. TMBC’s Surveyor: Ian Saxon, Assistant Executive Director Environmental Services Dukinfield Town Hall King Street Dukinfield Tameside SK16 4LA or any other surveyor whose details may be notified in writing from time to time by the Tameside to TfGM. TMBC’s Works: the works for making a Connection to be carried out by TMBC’s Project Team at its own expense but subject to provisions of clause 2.2 in accordance with the provisions of Part 2 of Schedule 4. Transport Land: those parts of the land comprised in the title numbers listed in Schedule11 and as are shown coloured pink, yellow and blue on the Plans Telecoms Conditions: the New Code Provisions and the Old Code Provisions set out in Schedule 3 of this Agreement and described when referred to together as the Telecoms Conditions

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Uninsurable: in relation to a risk, either that: (a) insurance is not available to TMBC in respect of the Project in the worldwide insurance market with reputable insurers of good standing in respect of that risk; or (b) the insurance premium payable for insuring that risk is at such a level that the risk is not generally being insured against in the worldwide insurance market with reputable insurers of good standing by contractors in the United Kingdom; VAT: value added tax chargeable under the Value Added Tax Act 1994 and any similar replacement tax and any similar additional tax. Working Day: A working day is any day which is not a Saturday, a Sunday, a bank holiday or a public holiday in England and Wales. Works Package: the plans, specifications, drawings and other data in respect of the installation of the Fibre Cable to be carried out on the Transport Land in the form annexed to this Agreement at Schedule 6

Clause, Schedule and paragraph headings shall not affect the interpretation of this agreement. 1.2 A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

1.3 The Schedules form part of this agreement and shall have effect as if set out in full in the body of this agreement. Any reference to this agreement includes the Schedules.

1.4 A reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or established.

1.5 Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.

1.6 Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.

1.7 A reference to a statute or statutory provision is a reference to it as amended, extended or re- enacted from time to time.

1.8 A reference to a statute or statutory provision shall include all subordinate legislation made from time to time under that statute or statutory provision.

1.9 A reference to writing or written includes fax but not email.

1.10 References to a document in agreed form are to that document in the form agreed by the parties.

1.11 A reference to this agreement or to any other agreement or document referred to in this agreement is a reference to this agreement or such other agreement or document as varied or novated (in each case, other than in breach of the provisions of this agreement) from time to time.

1.12 Unless the content otherwise requires, references to clauses, Schedules and Annexes are to the clauses, Schedules and Annexes of this agreement and references to paragraphs are to paragraphs of the relevant Schedule.

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1.13 Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.

1.14 Any obligation on a party not to do something includes an obligation not to allow that thing to be done.

1.15 Unless this agreement otherwise expressly provides, a reference to TfGM’s Works or TMBC’s Works is to the whole and any part of them.

1.16 Any reference to TfGM's consent or approval being required is to a consent or approval in writing which must be obtained before the relevant act is taken or event occurs.

2. Term of this Agreement

2.1 Subject to clause 4 of this Agreement the Parties agree that their respective rights and obligations of the Parties shall commence on the Effective Date and shall continue until the Expiry Date (subject to the provisions for early termination set out in this Agreement)

3. Collaboration and co-operation

3.1 The parties agree to co-operate with each other to follow the Project Principles and to act in good faith in complying with the terms of this Agreement and the Schedules and giving effect to the spirit and intent of the Project Principles

3.2 Each Party agrees to co-operate, at its own expense with the other Party in the fulfilment of the purposes and the intent of this Agreement. Neither Party shall be under any obligation to perform any of the others obligations under this Agreement and the parties agree to comply with the provisions set out in Schedule 8 of this Agreement with regard to collaboration and co- operation in relation to the Project

4. Leases, Licences and Deeds of Grant

4.1 TfGM agrees to grant and TMBC agrees to accept the grant of Leases in accordance with this Agreement on the Leases Completion Date PROVIDED THAT TfGM will not be compelled under any circumstances to grant a Lease except in accordance with the provisions set out at Schedule 7

4.2 TfGM agrees to grant and TMBC agrees to accept the grant of Deeds of Grant in accordance with this Agreement on the Deed of Grant Completion Date PROVIDED THAT TfGM will not be compelled under any circumstances to grant a Deed of Grant except in accordance with the provisions set out at Schedule 7.

4.3 TfGM agrees to grant and TMBC agrees to accept the grant of a Licence Agreement in accordance with the Agreement on the Licence Agreements Completion Date PROVIDED THAT TfGM will not be compelled under any circumstances to grant a Licence Agreement except in accordance with the provisions set out at Schedule 7

5. No Agreement for lease

5.1 The Parties agree and acknowledge that this Agreement does not take effect or constitute an agreement for lease for the demise of the whole or any part of the Transport Land.

5.2 The Parties agree and acknowledge that each tenancy to be created by each Lease or Future Lease will be excluded from the provisions of section 24 to 28 of the Landlord and Tenant Act

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1954. The Parties will take all steps necessary to ensure that the procedure set out in paragraph 7 of Schedule 7 has been followed in relation to each Lease.

5.3 The Parties agree and acknowledge that they will comply with the provisions of Schedule 2 and Schedule 7 prior to the grant of each Lease or Future Lease.

6. Access

6.1 If at any time TMBC require access to any land adjoining or neighbouring the Transport Land which is not owned by TfGM and does not form part of the Transport Land or requires any additional rights beyond those which TMBC require for the purposes of making any Connection or for any other matter connected with this Project the responsibility and cost of securing or acquiring such access or interest shall be entirely the responsibility of TMBC.

7. Site Matters

7.1 Subject to the other terms of this Agreement, the Site Conditions shall be the sole responsibility of TMBC and accordingly (but without prejudice to any other obligation of TMBC under this Agreement) TMBC shall be deemed to have:

7.2 Carried out all ground physical and geophysical investigation and to have inspected and examined the Transport Land

7.3 Satisfied itself as to the nature of the Site Conditions, the ground and the subsoil, the form and nature of the Transport Land, the load bearing capacity and other relevant properties of the Transport Land the risk of injury or damage to any third party Transport Land, or Metrolink, the nature of the materials (whether natural or otherwise) to be excavated and the nature of the design, works and materials necessary for the execution of TfGM’s Works and TMBC’s Works.

7.4 Satisfied itself as to the adequacy of the means and rights of access to and through the Transport Land which it may require for the purposes of fulfilling its obligations under this Agreement such as additional land outside the Transport Land.

7.5 Satisfied itself as to the possibility of interference by persons of any description whatsoever (other than TfGM) with access to or use of, or rights in respect of, the Transport Land, with particular regard to the owners of any land adjacent to the Transport Land.

7.6 Satisfied itself as to the precautions, times and methods of working necessary to prevent any nuisance or interference, whether public or private being caused to third parties and to the Metrolink Services and the Metrolink Apparatus and the relevant personnel having undertaken the Relevant Training

8. Selection of an Operator

8.1 TMBC will not appoint an Operator in respect of the Fibre Cable without the approval of TfGM whose consent will not be unreasonably withheld or delayed. For the avoidance of doubt consent to appoint an Operator for Phase 1 shall not be granted until the Consent has been obtained and any relevant documentation required to document such Consent having been completed and it will be reasonable for TfGM to refuse consent to the appointment of an Operator where consent to appoint an Operator is requested prior to this date.

8.2 TMBC will not enter into any agreement with an Operator in respect of the Fibre Cable without the approval of TfGM to the form of Agreement whose consent will not be unreasonably withheld or delayed

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8.3 Any agreement entered into between TMBC and their selected Operator shall contain the Telecoms Conditions and shall comply with the provisions set out in Schedule 3 of this Agreement.

9. TMBC Undertakings

9.1 TMBC undertakes and covenants with TfGM that for so long as this Agreement remains in full force:

9.1.1 It will upon becoming aware that any litigation, arbitration, administrative or adjudication or mediation proceedings before or of any court, arbitrator or relevant authority may be threatened or pending and immediately after the commencement thereof (or within twenty (20) Working Days of becoming aware that the same may be threatened or pending or within twenty (20) Working Days where the litigation or arbitration or administrative or adjudication or mediation proceedings is against an Operator give TfGM notice of such litigation, arbitration, administrative or adjudication or mediation proceedings which would adversely affect to an extent which is material in the context of the Project or in any way affects Metrolink and Tameside’s ability to perform its obligations under this Agreement

9.1.2 It will perform its obligations under and observe all of the provisions of this Agreement and shall not terminate or agree to the termination of all or part of this Agreement; make or agree any material variation to any ancillary document or enter into or permit entry into by any other person of any agreement replacing all or part of (otherwise materially and adversely affecting the interpretation of) this Agreement unless the proposed course of action (and any relevant documentation) has been submitted to TfGM for review under the Review Procedure and there has been no objection in accordance with paragraph 1.3 of the Review Procedure within 20 Working Days of receipt by TfGM of the submission of the proposed course of action (and any relevant documentation) or such shorter period as may be agreed by the Parties.

9.1.3 It shall not take any action or fail to take any action (in so far as it is reasonably within its power) to permit anything to occur which would cause TfGM and/or Metrolink to be in breach of the Metrolink Contracts;

9.1.4 It shall not take any action or fail to take any action (in so far as it is reasonably within its power) permit anything to occur which would cause Metrolink Services delays or disruption;

9.1.5 It shall have an absolute obligation to comply with TfGM’s health and safety requirements and the Working Safely near the Metrolink Guidelines as located on www.metrolink.co.uk/safety but not to undertake any Works or alterations to the Transport Land within the designated Metrolink Hazard Zone (as illustrated from time to time in the ‘Working safely near Metrolink’ brochure) without the prior written authorisation of TfGM or its operator from time to time of the Metrolink (such authorisation not to be unreasonably withheld or delayed where such method statements and risk assessments for any such works or alterations comply with and observe at all times any operational and safety requirements of TfGM or its operator from time to time as issued from time to time) and in either case causing no damage disturbance or interference to the Metrolink Apparatus or

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Metrolink Operations and to indemnify and to pay compensation for loss and damage to TfGM together with reasonable legal and valuation expenses for any diminution in the value of the Transport Land, business interruption and the cost of re-instatement and to fully indemnify TfGM against all liabilities costs expenses damages and losses including but not limited to any direct indirect or consequential losses loss of profit loss of reputation and all interests penalties and legal costs (calculated on a full indemnity basis) and all other professional costs and expenses suffered or incurred by the indemnified party. This indemnity shall apply whether or not negligence or fault on the part of TMBC has been proved and nothing in this clause shall restrict or limit the indemnified party’s general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under this indemnity;

9.1.6 Where TMBC enters into any joint enterprise or third party venture for the purposes of this agreement TMBC will maintain a controlling interest in any such venture or resulting entity;

9.1.7 Upon every anniversary of the date of this Agreement to provide TfGM with the identity of any person with whom TMBC and any Operator shares occupation of the Transport Land

10. Termination

10.1 An Event of Default is any of the following:

10.1.1 a subsisting material breach of this Agreement relating to the condition of the Fibre Cable

10.1.2 any Rent, Charge or Licence Agreement Fee (as appropriate) is unpaid 21 days after becoming payable whether it has been formally demanded or not; or

10.1.3 A material breach of the terms of any Lease, Deed of Grant or Licence Agreement granted pursuant to this Agreement

10.2 If an Event of Default occurs, TfGM may, at any time, determine this Agreement by giving four weeks written notice to TMBC.

10.3 If at any time there is any material non-compliance by TMBC with any of its obligations under this Agreement and such default is either:

10.3.1 not capable of being remedied; or

10.3.2 is capable of remedy but TMBC has not remedied the default within 10 Working Days (or such longer or shorter period as may be reasonable in the circumstances) after service on TMBC by TfGM of a notice specifying the default;

TfGM may, at any time determine this Agreement by giving four weeks written notice to TMBC. 10.4 If at any time a Force Majeure Event occurs either TfGM or TMBC may terminate this Agreement at any time by giving four weeks written notice to the other party.

10.5 If at any time an Act of Insolvency occurs either TfGM or TMBC may terminate this Agreement at any time by giving four weeks written notice to the other party.

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10.6 if it can be demonstrated at any time that the presence of the Fibre Cable in the Duct is causing interference with the operation of any other equipment of TfGM now or at any time after the date of this Agreement installed on TfGM’s Transport Land and the same cannot be rectified within one month of being switched off pursuant to clause 32 of the Lease or clause 1.21 of the Deed of Grant or clause 8 of the Licence (as appropriate) TfGM may terminate this Agreement at any time by giving two weeks written notice to TMBC.

11. Consequences of termination

11.1 If TfGM or TMBC gives notice to terminate this Agreement under clause 10,

11.2 subject to clause 10 this Agreement shall be terminated with immediate effect from the date stated in the relevant notice to terminate and none of the parties shall have any further rights or obligations under this agreement save for:

11.2.1 the rights of any party in respect of any earlier breach of this agreement; and

11.2.2 the obligations in the clauses referred to in clause 11(b) ;

11.3 Paragraph 3 of Schedule 4, Clauses 13 to 17 (Insurance), Clause 26 (Freedom of Information), clause 28 (Disputes), Clause 29 (Confidentiality), Clause 34 (Governing Law), Clause 34 (Jurisdiction), Clause 39 (Tameside’s Records), shall continue in force notwithstanding the termination of this Agreement under clause 10 ;

11.4 TMBC shall immediately cancel all entries relating to this agreement registered against TfGM's title; and

11.5 TMBC shall immediately:

11.5.1 vacate the Transport Land ;

11.5.2 remove all of its chattels from the Transport Land;

11.5.3 (to the extent required by the TfGM) remove TMBC’s Works or any other fixtures constructed by or for Tameside; and

11.5.4 make good all damage caused by TMBC as a result of such removal.

11.5.5 All leases or licences granted at the date of termination shall also determine forthwith

11.5.6 Make payment of any monies due from it to TfGM

12. TFGM Step-in

12.1 TfGM may at its absolute discretion but without any obligation so to do step-in and take any action in connection with TMBC’s obligations in connection with this Agreement where in its opinion:

12.1.1 a serious risk exists to the health and safety of persons or Transport Land or to the environment; and/or

12.1.2 it believes it is necessary for it to do so in order to discharge a statutory duty; and/or

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12.1.3 an emergency has arisen.

12.2 In the event that TfGM exercises its discretion under this clause 12 .1 it shall be entitled to take action in accordance with clauses 13.3 to 13.5 (inclusive).

12.3 If TfGM exercises its discretion to step in under clause12.1 and wishes to take action (save in cases of emergency where no notice shall be given) TfGM shall notify TMBC in writing of the following:

12.3.1 The action it intends to take;

12.3.2 the reason for such action

12.3.3 the date it intends to commence such action

12.3.4 the time period it believes will be necessary for carrying out such action; and

12.3.5 (to the extent practicable) the effect of such intended action on TMBC on and the TIDC.

12.4 Following service of such notice TfGM shall take such action as notified under clause 12.3 and any consequential additional action which it reasonably believes is necessary (together the Required Action) and TMBC shall give all reasonable assistance to TfGM while it is taking the Required Action. TfGM shall provide TMBC with notice of completion of the Required Action and shall use reasonable endeavours to provide such advance notice as is reasonably practicable of its anticipated completion.

12.5 Where the Required Action has been taken otherwise than as a result of breach by TMBC, TfGM shall undertake the Required Action in accordance with Good Industry Practice and shall indemnify TMBC against all Direct Losses where it fails to do so.

13. Insurance

13.1 The Parties agree to comply with the provisions set out in Schedule 5 in relation to Insurance.

13.2 Tameside shall take out and maintain or procure the maintenance of third party liability insurance for a limit of indemnity of not less than £20,000,00.00 (twenty million pounds) any one occurrence, in the aggregate for pollution liability and any other insurances as may be required by law. These insurances must be effective in each case not later than the date on which the relevant risk commences and shall include an Indemnity to Principals provision in favour of TfGM.

13.3 With the exception of the insurances required by law the insurances shall provide for thirty (30) days prior written notice of their cancellation, non-renewal or amendment.

14. Evidence of Policies

14.1 TMBC shall provide to TfGM:

14.1.1 On reasonable written request a written summary of TMBC’s insurance policy specifically relating to Phase 1 and evidence the same is in force;

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14.1.2 Evidence that the premiums payable under all insurance policies have been paid and that the insurances are in full force and effect in accordance with clause 13 and Schedule 5

14.1.3 On or before the date of expiry of any insurance required by this clause satisfactory evidence that the relevant insurance has been or is being renewed

14.2 Renewal certificates in relation to any insurances required by clause 13 shall be obtained as and when necessary and copies (certified in a manner acceptable to TfGM) shall be forwarded to TfGM as soon as possible but in any event on or before the renewal date.

14.3 If TMBC is in breach of its obligations in clauses 13, 14 and Schedule 5 TfGM may, subject to prior notification, pay any premiums, fees, broker’s costs or other expenses required to keep such insurance in force or itself procure such insurance and may, in either case, recover such amounts from TMBC on written demand

14.4 TMBC shall give TfGM notification within ten (10) Working Days after becoming aware of any claim in excess of £100,000.00 on any of the Required Insurances or which, but for the application of the applicable policy excess, would be made on any of the Required Insurances and (if required by TfGM) give full details of the incident giving rise to the claim.

14.5 Neither failure to comply nor full compliance with the insurance provisions of this Agreement shall limit or relieve TMBC of its other liabilities and obligations under this Agreement

14.6 Save where expressly set out in this Agreement the insurance premiums for the Required Insurances shall at all times be responsibility of TMBC.

14.7 The Required Insurances shall be effected with insurers approved by TfGM, such approval not to be unreasonably withheld or delayed

15. Claims

15.1 TMBC shall where it is obliged to effect insurance under clauses 13 to and including 16 of this Agreement not bring any claim or action against TfGM in respect of any loss or damage in circumstances where TMBC is able to recover such loss or damage under such insurance (or where it would have been able to recover such loss had it been complying with its obligations under this Agreement)

16. Uninsured Risks

16.1 Nothing in clause 13 or clause 14 or this clause 16 shall oblige TMBC to take out insurance in respect of a risk which is Uninsurable save where the predominant cause of the risk be Uninsurable is any act(s) or omission(s) of TMBC.

16.2 If a risk usually covered by the Required Insurances in each case required under this Agreement, becomes Uninsurable then:

16.2.1 TMBC will notify TfGM within five (5) Working Days of becoming aware of the risk becoming Uninsurable; and

16.2.2 If both Parties agree, or it is determined in accordance with the dispute resolution procedure set out in clause 27, that the risk is Uninsurable and that:

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(a) The risk being Uninsurable is not caused by the actions, breaches, omissions or defaults of TMBC; and

(b) TMBC has demonstrated to TfGM that it and a prudent board operating the same or substantially similar business in the United Kingdom to that operated by TMBC would in similar circumstances be acting reasonably and in the best interests of the party if they resolved to cease to operate such businesses as a result of that risk becoming Uninsurable, taking into account inter alia (and without limitation) the likelihood of the Uninsurable risk occurring (if it has not already occurred), the financial consequences for such company if such Uninsurable risk did occur (or has occurred) and other mitigations against such consequences which may be available to such company

Then the parties shall meet to discuss the means by which the riskshould be managed or shared (including the issue of self-insurance by either Party)

16.3 If, upon renewal of any insurance which TMBC is required to maintain or to procure the maintenance of pursuant to this Agreement:

16.3.1 Any Insurance Term is not available to TMBC in the worldwide insurance market with reputable insurers of good standing; and/or

16.3.2 The insurance premium payable for insurance incorporating such Insurance Term is not generally being incorporated in insurance procured in the worldwide insurance market with reputable insurers of good standing by TMBC in the United Kingdom

(other than, in each case, by reason of one or more actions of TMBC then clause 16.4 shall apply. 16.4 If it is agreed that clause 16.3 applies then TMBC shall waive TMBC’s obligations in clause 14 and Schedule 5 (Insurances) in respect of that particular Insurance Term and TMBC shall not be considered in breach of its obligations regarding the maintenance of insurance pursuant to this Agreement as a result of the failure to maintain insurance incorporating such Insurance Term for so long as the relevant circumstances described in clause16.3 continue to apply to such Insurance Term.

16.5 To the extent that the Parties agree (acting reasonably), or it is determined pursuant to the dispute resolution procedure in clause 27 that an alternative or replacement term and/or condition of insurance is available to TMBC in the worldwide insurance market with reputable insurers of good standing which if included in the relevant insurance policy would fully or partially address TMBC’s inability to maintain or procure the maintenance of insurance with the relevant Insurance Term , at a cost which Tenant’s in the UK are (at such time) generally prepared to pay, TMBC shall maintain or procure the maintenance of insurance including such alternative or replacement term and/or condition.

16.6 TMBC shall notify TfGM as soon as reasonably practicable and in any event within five days of becoming aware that clauses 16.3 and 16.4 are likely to apply or (on expiry of the relevant insurance is then in place) do apply in respect of an Insurance Term (irrespective of the reason for the same). TMBC shall provide TfGM with such information as TfGM reasonably requests regarding the unavailability of the Insurance term and the parties shall meet to discuss the means by which such unavailability should be managed as soon as reasonably practicable.

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16.7 In the event that clauses 16.3 and 16.4 apply in respect of an Insurance Term (irrespective of the reasons for the same) TMBC shall approach the insurance market at least every 4 months to establish whether clause 16.3 and/or 16.4 remain applicable to the Insurance Term. As soon as TMBC is aware that clauses 16.3 and 16.4 has ceased to apply to the Insurance Term TMBC shall take out and maintain or procure the taking out and maintenance of insurance (to be incepted as soon as reasonably practicable) incorporating such Insurance Term in accordance with this Agreement.

17. TfGM’s and TMBC’s Works obligations

17.1 TfGM’s Works and TMBC’s Works will be carried out in accordance with the provisions set out in Schedule 4 of this Agreement.

17.2 TMBC’s obligations in Schedule 4 of this Agreement are personal and binding only on TMBC.

17.3 TMBC shall be released from all liability in respect of its obligations referred to in clause 17.2 after a period of twelve months after the Practical Completion Date, except in relation to any claim made against or notified to it prior to the end of that period.

18. Development of TfGM's Transport Land

18.1 TMBC:

18.1.1 acknowledge and accept that TfGM may develop the whole of TfGM's Transport Land and that works at TfGM's Transport Land may continue for the whole of the Project Period; and

18.1.2 waive any right against TfGM under the Lease or otherwise to claim damages, compensation or any other remedy arising from the disturbance, nuisance or inconvenience caused by such continuing works.

19. VAT

19.1 Each amount stated to be payable under or pursuant to this agreement is exclusive of VAT (if any).

19.2 If any VAT is chargeable on any supply made by one party to the other party under or pursuant to this agreement, the paying party shall pay to the other party an amount equal to that VAT.

19.3 Condition 1.4 does not apply to this agreement.

20. Joint and several liability

20.1 Where TMBC comprises more than one person, those persons shall be jointly and severally liable for the obligations and liabilities of the TMBC arising under this agreement. TfGM may take action against, or release or compromise the liability of, or grant time or other indulgence to, any one of those persons without affecting the liability of any other of them.

20.2 Condition 1.2 does not apply to this agreement.

21. Notices

21.1 Any notice or other communication required to be given under this agreement shall be in writing and shall be delivered personally, or sent by pre-paid first class post or recorded delivery or by commercial courier, to each party required to receive the notice or communication as set out below:

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21.1.1 TfGM: The Head of Legal Services Transport for Greater Manchester, 2 Piccadilly Place, Manchester M1 3BG

21.1.2 TMBC: The Assistant Director Digital Services, Tameside MBC, Ashton Market Hall, Market Street, Ashton-under-Lyne OL6 7JU

or as otherwise specified by the relevant party by notice in writing to each other party. 21.2 Any notice or other communication shall be deemed to have been duly received:

21.2.1 if delivered personally, when left at the address and for the contact referred to in this clause;

21.2.2 if sent by pre-paid first class post or recorded delivery, at 9.00 am on the [second] working day after posting; or

21.2.3 if delivered by commercial courier, on the date and at the time that the courier's delivery receipt is signed.

21.3 A notice or other communication required to be given under this agreement shall not be validly given if sent by e-mail.

21.4 The provisions of this clause shall not apply to the service of any proceedings or other documents in any legal action.

21.5 Condition 1.3 does not apply to this agreement.

22. Indemnity

22.1 TMBC shall indemnify TfGM against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs (calculated on a full indemnity basis) and all other professional costs and expenses) suffered or incurred by the indemnified party arising out of or in connection with:

22.1.1 State Aid Matters

22.1.2 Title Matters

22.1.3 Any claim made against TfGM in connection with this Agreement

22.1.4 The presence of the of TMBC’s infrastructure and the Fibre Cable in the Duct

This indemnity shall apply whether or not TfGM has been negligent or at fault 22.2 Nothing in this clause shall restrict or limit the indemnified party's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under this indemnity.

23. Anti-bribery

23.1 The Parties shall in relation to this Agreement, the Project and each Project Request:

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23.1.1 comply with all applicable laws, statutes, regulations, and codes relating to anti-bribery and anti-corruption including but not limited to the Bribery Act 2010 (Relevant Requirements);

23.1.2 not engage in any activity, practice or conduct which would constitute an offence under sections 1, 2 or 6 of the Bribery Act 2010 if such activity, practice or conduct had been carried out in the UK;

23.1.3 comply with the other party's Ethics, Anti-bribery and Anti-corruption Policies;

23.1.4 have and shall maintain in place throughout the term of this agreement its own policies and procedures, including but not limited to adequate procedures under the Bribery Act 2010, to ensure compliance with the Relevant Requirements, ‘the Relevant Policies’ and clause 23.1.2, and will enforce them where appropriate;

23.1.5 promptly report to the other party any request or demand for any undue financial or other advantage of any kind received by it in connection with the performance of this agreement;

23.1.6 immediately notify the other party (in writing) if a foreign public official becomes an officer or employee of it and warrants that it has no foreign public officials as officers or employees at the Commencement Date);

23.1.7 within 3 months of the Commencement Date, and annually thereafter, certify to the other party in writing signed by one of its officers, compliance with this clause 24 by it and all persons associated with it under clause24.2. Each party shall provide such supporting evidence of compliance as the other party may reasonably request.

23.2 The Parties shall ensure that any person associated with it who is performing obligations in connection with this agreement does so only on the basis of a written contract which imposes on and secures from such person terms equivalent to those imposed on that party in this clause 23 (Relevant Terms). Such party shall be responsible for the observance and performance by such persons of the Relevant Terms, and shall be directly liable to the other party for any breach by such persons of any of the Relevant Terms.

23.3 Breach of this clause 23 shall be deemed a material breach under clause 10.3.

23.4 For the purpose of this clause 23 the meaning of adequate procedures and foreign public official and whether a person is associated with another person shall be determined in accordance with section 7(2) of the Bribery Act 2010 (and any guidance issued under section 9 of that Act), sections 6(5) and 6(6) of that Act and section 8 of that Act respectively. For the purposes of this clause 25, a person associated with a party includes but is not limited to any subcontractor of that party.

24. Data protection

24.1 The Parties shall each ensure that they comply with the requirements of all legislation and regulatory requirements in force from time to time relating to the use of personal data, including, without limitation, the Data Protection Act 1998.

25. Freedom of information

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25.1 The Parties acknowledge that they are subject to the requirements of the FOIA and the EIRs. Therefore they shall:

25.1.1 provide all necessary assistance and cooperation as reasonably requested by each other to enable each other to comply with their respective obligations under the FOIA and EIRs;

25.1.2 transfer to the each other all Requests for Information relating to this Agreement that it receives as soon as practicable and in any event within 2 Working Days of receipt;

25.1.3 provide each other with a copy of all Information belonging to the each other requested in the Request For Information which is in its possession or control in the form that the other party requires within 5 Working Days (or such other period as the other party may reasonably specify) of the other parties request for such Information; and

25.1.4 not respond directly to a Request for Information unless authorised in writing to do so by the other party.

25.2 Each party acknowledges that the other party may be required under the FOIA and EIRs to disclose Information (including Commercially Sensitive Information) without consulting or obtaining consent from the other party. Each party shall take reasonable steps to notify the other of a Request For Information (in accordance with the Secretary of State's section 45 Code of Practice on the Discharge of the Functions of Public Authorities under Part 1 of the FOIA) to the extent that it is permissible and reasonably practical for it to do so but (notwithstanding any other provision in this Agreement) the relevant party shall be responsible for determining in its absolute discretion whether any Commercially Sensitive Information and/or any other information is exempt from disclosure in accordance with the FOIA and/or the EIRs.

26. Human Rights

26.1 The Parties shall (and shall use their reasonable endeavours to procure that its staff shall) at all times comply with the provisions of the Human Rights Act 1998 in the performance of this Agreement.

26.2 The Parties shall undertake, or refrain from undertaking, such acts as each other requests so as to enable each other to comply with its respective obligations under the Human Rights Act 1998.

27. Disputes

27.1 In the event of any dispute arising between TfGM and TMBC in relation to any clause of this Agreement, TfGM and TMBC shall use all reasonable endeavours to seek to settle the dispute as amicably and as quickly as possible. If the dispute has not been settled within a period of 21 Working Days of the dispute arising then it shall be referred to an Independent Surveyor to determine.

27.2 An Independent Surveyor shall be appointed by agreement between TfGM and TMBC or, if TfGM and TMBC are unable to agree an appointment, either of them may request the appointment to be made by the President.

27.3 An Independent Surveyor must be a Fellow of the RICS, with at least ten years' post qualification experience including experience in projects of the same type as the Project.

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27.4 If an Independent Surveyor appointed dies or becomes unwilling or incapable of acting, or does not deliver the decision within the time required by this clause, then:

27.4.1 either TfGM or Tameside may apply to the President to discharge the appointed Independent Surveyor and to appoint a replacement Independent Surveyor; and

27.4.2 this clause shall apply in relation to the replacement Independent Surveyor as if the first appointed Independent Surveyor.

27.4.3 The Independent Surveyor shall act as an expert and shall be required to:

27.4.4 Decide on matter of the dispute; and

27.4.5 prepare a written note of the decision and give a copy of the decision to both TfGM and Tameside within 10 Working Days of the date of the Independent Surveyor's appointment.

27.5 TfGM and TMBC shall each be entitled to make submissions to the Independent Surveyor and shall provide (or procure that others provide) the Independent Surveyor with the assistance and documents that the Independent Surveyor reasonably requires to reach a decision.

27.6 The Independent Surveyor's written decision shall not be final and binding.

27.7 The costs of the Independent Surveyor shall be borne equally by TfGM and TMBC or in such different proportion as the Independent Surveyor shall direct.

28. Confidentiality

28.1 The Parties agree that the terms of this Agreement and each Project document shall, not be treated as Confidential Information and may be disclosed without restriction and the Parties acknowledge that the other Party may wish to publish, the Agreement and some of the Project documents on a website

28.2 This Clause 28 shall not apply to the terms of this Agreement a Project document designated as Commercially Sensitive Information and listed in Schedule 10 to this Agreement which shall subject to clause [29.5] be kept confidential for the relevant periods specified in the Schedule

28.3 The Parties shall keep confidential all Confidential Information received by one Party from the other Party relating to this Agreement and the Project Documents and Ancillary Documents or the Project and shall use all reasonable endeavours to prevent their employees and agents from making any disclosure to any person of any such Confidential Information

28.4 Clauses 28.1 and 28.3 shall not apply to:

28.4.1 Any disclosure of information that is reasonably required by any persons engaged in the performance of their obligations under this Agreement for the performance of those obligations

28.4.2 Any matter which a party can demonstrate is already or becomes generally available and in the public domain otherwise than a breach of this clause 28;

28.4.3 Any disclosure to enable a determination to be made under the dispute resolution procedure;

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28.4.4 Any disclosure which is required pursuant to any statutory, legal (including any order of a court of competent jurisdiction) or parliamentary obligation placed upon the party making the disclosure or the rules of any stock exchange or governmental or regulatory authority having the force of law or if not having the force of law, compliance with which is in accordance with the general practice of persons subject to the stock exchange or governmental or regulatory authority concerned

28.4.5 Any disclosure of information which is already lawfully in the possession of the receiving party, prior to its disclosure by the disclosing party

28.4.6 Any provision of information to the Parties’ own professional advisers or insurance advisers in connection with carrying out its obligations under this Agreement

28.4.7 any application for registration or recording of the Necessary Consents and Transport Land registration required

28.4.8 Any disclosure of information by the either party to any other department, office or agency of the Government or their respective advisers or to any person engaged in providing services to the relevant party for any purpose related to or ancillary to this Agreement

28.5 Where disclosure is permitted under this clause 28 (other than clauses 28.4.2, 28.4.4, 28.4.5, 28.4.7) the party providing the information shall procure that the recipient of the information shall be subject to the same obligation of confidentiality as that contained in this Agreement.

29. Public relations and publicity

29.1 TMBC shall not by itself, its employees or agents, and shall procure that its subcontractors shall not communicate with representatives of the press, television, radio or other communications media on any matter concerning this Agreement or the Project without the prior written approval of TfGM

30. Advertisements

30.1 Tameside shall not exhibit or attach to any part of the Transport Land any notice or advertisement without the prior written approval of TfGM, save where otherwise required to comply with Legislation

31. Third party rights

31.1 A person who is not a party to this agreement shall not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement.

32. Governing law

32.1 This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

33. Jurisdiction

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33.1 Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims).

34. Phase 2 Project Agreement

34.1 Prior to the commencement of Phase 2 the Parties will enter into the Phase 2 Project Agreement

35. Reinstatement

35.1 Unless notified otherwise by TFGM in writing that such obligation is waived the reinstatement obligations imposed on TMBC at the end of the Project Period shall be in accordance with clause 29 of the relevant Lease or Schedule 1 clause 1.8 of the Deed of Grant or clause 4.2 of the Licence.

36. Severability

36.1 If any term, condition or provision of this Agreement shall be held to be invalid, unlawful or unenforceable to any extent, such term, condition or provision shall not affect the validity, legality and enforceability of the other provisions of or any other documents referred to in this Agreement

37. Waiver

37.1 No term of provision of this Agreement shall be considered as waived by any party unless a waiver is given in writing by that Party

37.2 No waiver given under clause 37.1 shall be a waiver of a past of future default or breach, nor shall it amend, delete or add to the terms, conditions or provisions of this Agreement unless (and then only to the extent) expressly stated in that waiver.

38. Records to be kept by TMBC

38.1 TMBC shall (and shall procure that each sub-contractor shall) at all times:

38.1.1 Maintain a full record of the particulars of the TIDC and the Project including details of any costs involved and any rent, charge or licence fee being paid by a sub-lessee under a lease, a grantee under a deed of grant and a sub-licencee under a licence agreement (as appropriate) in respect of the Duct to demonstrate compliance with State Aid rules and regulations

38.1.2 Upon request by TfGM provide details of any of the costs referred to in including details of any funds held by TMBC specifically to cover such costs, in such form and details as TfGM may require

38.1.3 Provide such facilities as TfGM may reasonably require for its representatives to visit any place where the records are held and examine the records maintained under this clause

38.2 TMBC shall keep books of account in accordance with best accountancy practices with respect to the TIDC and the Project showing in detail

38.2.1 Administrative overheads

38.2.2 Payments to and by Subtenants and Sub-licencees

38.2.3 Capital and revenue expenditure

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38.2.4 Other items as TfGM may require from time to time to conduct costs audits for verification of cost expenditure or estimated expenditure for the purpose of this Agreement

38.3 And TMBC shall have the books of account evidencing the items listed in clauses 38.2 1 to 38.2.4 inclusive, available for inspection by TfGM (and its advisers) upon reasonable notice, and shall provide a copy of these to the Authority as and when requested from time to time

38.4 TMBC shall maintain or procure that detailed records relating to the performance of the TIDC in each case in accordance with Good Industry Practice and any applicable Legislation.

38.5 Without prejudice to clause 38.4 TMBC shall procure that the following are maintained

38.5.1 The records required in Schedule 8 and Schedule 9

38.5.2 A full record of all incidents relating to health, safety and security which occur during the term of this Agreement

38.5.3 Full records of all maintenance procedures carried out during the term of this Agreement

38.6 And TMBC shall have all of the records referred to in this clause 38 available for inspection by TfGM and its advisers upon reasonable notice and shall provide copies of these to TfGM as and when requested from time to time

38.7 The records referred to in this clause 38 shall be retained for a period of at least 5 five years after TMBC’s obligations under this Agreement have come to an end

38.8 Upon termination or expiry of this Agreement and in the event that TfGM wishes to enter into another Agreement for the operation and management of a project the same as or similar to the Project, TMBC shall comply with all requests of TfGM to provide information relating to TMBC’s costs of operating and maintaining the TIDC.

39. TfGM Right to Audit

39.1 TfGM may either itself or via or in conjunction with its nominated independent auditors, conduct an audit any documentation practices systems and procedures in respect of the Project for the following purposes:

39.1.1 To verify the accuracy of any charges (and proposed or actual variations to them) in accordance with this Agreement;

39.1.2 To review and verify TMBC’s compliance with its obligations under this Agreement;

39.1.3 To carry out the audit and certification of TfGM’s accounts;

39.1.4 to carry out any examination pursuant to section 6(1) of the National Audit Act 1983 of the economy, efficiency and effectiveness with which TfGM has used its resources;

39.1.5 for any other purpose required by a regulatory body or pursuant to law

39.2 Subject to clause 39.3.2 TfGM shall use its reasonable endeavours to ensure that audits shall be conducted during normal working hours and TfGM shall also use its reasonable endeavours to ensure that the conduct of an audit does not cause material disruption to TMBC. TfGM shall

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procure that any third party (other than where the third party is a regulatory party) engaged by TfGM to conduct any audit executes a confidentiality undertaking in favour of the Tameside in such a form as is reasonable.

39.3 TfGM shall not be entitled to exercise its audit rights pursuant to clause 39.1 more frequently than once in any twelve (12) month period save that:

39.3.1 TfGM may exercise its Audit rights pursuant to clause 39.1 notwithstanding that it last exercised such rights within the previous twelve (12) months should TfGM acting reasonably be aware of, or have reasonable grounds to suspect fraud, a material defect in the relevant records or a material Default by TMBC; and

39.3.2 Any audit may be performed at any time and at any frequency where it is required by a Regulatory Body

39.4 Without prejudice to the provisions of clause 39.6 subject to TfGM’s obligations of confidentiality, TMBC shall on demand (other than where TMBC can demonstrate that TfGM’s demand is unreasonable in all applicable circumstances) provide (and where required by TfGM shall on demand (other than where TMBC can demonstrate that TfGM’s demand is unreasonable in all applicable circumstances) and procure that material third parties provide) TfGM (and its nominated independent auditors) with access to the relevant records (or such of them as TfGM shall require) and all reasonable co-operation and assistance in relation to each Audit, including access to TMBC personnel, TMBC’s offices and relevant material third party personnel.

39.5 TfGM shall provide at least 10 Working Days’ notice of its intention to conduct an audit it being acknowledged and agreed that TfGM shall have the right to exercise its audit rights immediately or on shorter notice where an audit is to be performed by a Regulatory Body (or otherwise pursuant to a direction from a Regulatory) or where TfGM consider acting reasonably that exceptional circumstances apply including those referred to in clause40.3(a)

39.6 For the purpose of:

39.6.1 The examination of the affairs of TfGM and/or the examination and certification of TfGM’s account by any Regulatory Body; or

39.6.2 Any examination pursuant to section 6(1) of the National Audit Act 1983 (as amended) of the economy, efficiency and effectiveness with which TfGM has used its resources,

39.6.3 Then the applicable Regulatory Body may examine such documents, as may be reasonably be required which are owned, held or otherwise within the control of TMBC or any material third party and may require TMBC to produce and/or procure that a material third party produces such oral and/or written explanation as considered necessary by such Regulatory Body for the purposes of that examination or certification.

39.7 The parties agree that they shall bear their own respective costs and expenses incurred in respect of compliance with their obligations under this clause 39, unless that Audit identifies fraud, a material TMBC Default, a material defect in Relevant Records or a miscalculation by Tameside of any sums due to or from TMBC under this Agreement (other than a miscalculation of an immaterial nature) in which case TMBC shall reimburse TfGM for all TfGM’s reasonable costs incurred in the course of the Audit.

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39.8 Without prejudice to any other rights or remedies available under this Agreement, if an Audit identifies that TfGM has overpaid any sums of money due under the Agreement and/or TMBC has under paid any sums due to TfGM, TMBC shall pay to TfGM the amount overpaid and/or amount underpaid together with interest, calculated within 10 Working Days. TfGM may deduct the relevant amount from the charges if Tameside fails to make this payment together with interest

39.9 Without prejudice to any other rights or remedies available under this Agreement, if an audit identifies that TfGM has underpaid any sums of money due under this Agreement and/or TMBC has overpaid any sums due to TfGM, TfGM shall pay to TMBC the amount underpaid by TfGM or overpaid by TMBC within 30 days.

40. TfGM’s Costs

40.1 TMBC agree to indemnify TfGM in respect of all legal and other costs incurred by TfGM in connection with the Project and this Agreement and any other supplemental or associated documentation that the parties are required to enter into for the purposes of the Project.

41. Fairness Clause

41.1 If any circumstances arise during the term of this Agreement that were not within the contemplation of the Parties at the date of this Agreement and not expressly or impliedly provided for in this Agreement, each Party agrees with the other that such circumstances are to be dealt with and resolved in such a manner as operates between them for fairness and, so far as possible, without detriment to the interests of any of them.

42. Assignment

42.1 This Agreement shall be binding on the Parties and their statutory successors and assigns

42.2 No party to this Agreement may assign, transfer, delegate or otherwise dispose of any of its rights or obligations under this Agreement

43. Exercise of Powers

43.1 Nothing expressly or impliedly contained in this Agreement shall prejudice, limit all assets, rights, discretions, powers, duties and/or obligations of any of the Parties in the exercise of any of their functions as public bodies including as a local planning authority, highway authority, transport authority or as an authority possessing compulsory purchase powers and each party shall be entitled to exercise its rights, discretions, powers, duties and obligations and other functions as a public body as if it were not a party to this Agreement

43.2 Any express or any implied obligations in this Agreement shall be deemed to be expressly subject to clause 43.1

44. No Agency

44.1 The Parties are not and will not at any time hold themselves or permit themselves to be held out as the agent of any other Party and no Party has authority to bind the other or hold itself out to a Third Party as having such authority

44.2 All contracts and agreements entered into by any Party with a Third Party pursuant to this Agreement will be contracts and agreements between the relevant party as principal and the relevant Third Party and the other Parties to this Agreement will have no obligation or liability in respect of such contracts and agreements (save as may be expressly provided in this Agreement)

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45. Personal Obligations

45.1 The obligations of the Parties in this Agreement are personal to them but without prejudice to the provisions of clause 42 (Assignment) and the liability of any other Person in respect of the obligations under the Agreement from time to time

46. No Partnership

46.1 Nothing in this Agreement is intended to or shall operate to create a partnership between the parties or any of them

47. Non-merger

47.1 The provisions of this Agreement shall not merge on completion of any Lease, Deed of Grant or Licence so far as they remain to be observed and performed by either Party.

48. No Set Off

48.1 Any sum payable by any Party to another Party under this Agreement or to any Third Party shall be paid without any legal or equitable set off, counterclaim or deduction

49. Counterparts

49.1 This deed may be executed in any number of counterparts, each of which is an original and all of which together evidence the same deed.

49.2 This deed shall not come into effect until each party has executed a least one counterpart

This Agreement has been executed as a Deed and entered into on the date stated at the beginning of it.

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SCHEDULE 1 PLANS

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SCHEDULE 2 WORKING SAFELY NEAR METROLINK

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SCHEDULE 3 CODE AGREEMENTS

1. Definitions

The parties agree to comply with their respective obligations in this Schedule and for the purposes of this Schedule 3 the following definitions will have the following meanings:

Metrolink Safety Compliant: To have completed and had approved a work request form available from www.metrolink.co.uk/safety and to be in compliance with the same.

New Code Agreement: An agreement entered into with an Operator which is subject to the New Code

New Code Provisions: The Telecoms Conditions set out in Part B of this Schedule 3

New Code Rights: All those rights and powers given to an Operator pursuant to the Electronic Communication Code 2017

OFCOM Notice: a Notice in the OFCOM model form or in compliance with the OFCOM standard notices

Old Code Agreement: An agreement entered into with an Operator which is subject to the Old Code

Old Code Provisions: The Telecoms Conditions set out in Part A of this Schedule 3

Old Code Rights: All those rights and powers given to an Operator pursuant to the Electronic Communication Code 2003

Operator: a provider of a telecommunications or digital network and or a provider of an infrastructure system for the purposes of s 106 of the Telecommunications Act 1984 as modified or amended by the Electronic Communications Code (Conditions and Restrictions) Regulations 2003 2. Part 3A - The Old Code

2.1 Any Old Code Agreement entered into with an Operator shall contain unless otherwise agreed by the parties in writing the Old Code Provisions dealing with the following matters:

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2.1.1 All correspondence with the Operator prior to any agreement being concluded to be marked subject to contract

2.1.2 Any new Code Agreement shall be in writing and approved by TfGM prior to its completion and shall include provisions :

(a) for the payment of TfGM’s reasonable costs and expenses in connection with the preparation of same;

(b) imposing an absolute obligation to comply with TfGM’s health and safety requirements and the Working Safely near the Metrolink Guidelines as located on www.metrolink.co.uk/safety but not to undertake any Works or alterations to the Transport Land within the designated Metrolink Hazard Zone (as illustrated from time to time in the ‘Working safely near Metrolink’ brochure) without the prior written authorisation of TfGM or its operator from time to time of the Metrolink (such authorisation not to be unreasonably withheld or delayed where such method statements and risk assessments for any such works or alterations comply with and observe at all times any operational and safety requirements of TfGM or its operator from time to time as issued from time to time) and in either case causing no damage disturbance or interference to the Metrolink Apparatus or Metrolink Operations;

(c) a requirement for 28 days’ notice to be given to TfGM and TMBC of any works which are being undertaken except in an emergency when the notice given may be a lesser period;

(d) the exclusion of ss 24-28 inclusive of the Landlord and Tenant Act 1954;

(e) permitting TMBC’s shared use of the Transport Land and Fibre Cable and any ancillary rights granted in respect thereof with an Operator or Operators provided that at least 28 working days before such sharing commences TMBC gives Notice to TfGM of the identity of the proposed Operator and the terms and conditions for the sharing of occupation of the Transport Land and the Fibre Cable are agreed with the Operator;

(f) prohibiting any further equipment in addition to Fibre Cable being installed in the Transport Land;

(g) ensuring no relationship of Landlord and Tenant is established by that arrangement;

(h) the giving of a covenant by TMBC or itself and any Operator not to interfere with Metrolink operations;

(i) the provision of lift and shift provisions;

(j) that TMBC enters into an agreement not to serve a counter-notice on TfGM upon a Paragraph 20 Notice being served upon TMBC or TMBC itself and an Operator;

(k) the provision of Break Rights for the benefit of TfGM;

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(l) requiring reinstatement obligations on the Operator in the event of termination of the Old Code Agreement or earlier removal of equipment by agreement; and

(m) requiring termination of the Old Code Agreement and the removal of the Fibre Cable in the event that it interferes with Metrolink operations and equipment;

(kn requiring automatic termination in the event that this Agreement is terminated or any Leases or Licences granted pursuant to this Agreement are terminated;

(o) a covenant to pay compensation for any loss and or damage suffered by TfGM where there has been a breach by TMBC or any Operator of any covenant in this paragraph 2 together with reasonable legal and valuation expenses, the cost of business interruption and the cost of any re-instatement and to fully indemnify TfGM as Transport Land owner against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs (calculated on a full indemnity basis) and all other professional costs and expenses) suffered or incurred by the indemnified party This indemnity shall apply whether or not negligence or fault on the part of the Operator has been proved and nothing in this clause shall restrict or limit the indemnified party's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under this indemnity.

3. Part 3B - The New Code

3.1 Any New Code Agreement entered into with an Operator shall contain unless agreed otherwise by the parties in writing the following provisions:

3.1.1 a requirement that all correspondence with the Operator prior to any New Code Agreement being concluded in accordance with this Schedule shall be marked subject to contract;

3.1.2 a requirement that OFCOM standard terms from time to time are to be contained in the Code Agreement;

3.1.3 a requirement for it to be in writing and approved by the TfGM prior to its completion and with provision for the payment of TfGM’s reasonable costs and expenses in connection with the same;

3.1.4 an absolute obligation to comply with TfGM’s health and safety requirements and the Working Safely near the Metrolink Guidelines as located on www.metrolink.co.uk/safety but not to undertake any Works or alterations to the Transport Land within the designated Metrolink Hazard Zone (as illustrated from time to time in the ‘Working safely near Metrolink’ brochure) without the prior written authorisation of TfGM or its operator from time to time of the Metrolink (such authorisation not to be unreasonably withheld or delayed where such method statements and risk assessments for any such works or alterations comply with and observe at all times any operational and safety requirements of TfGM or its operator from time to time as issued from time to time) and in either case causing no damage disturbance or interference to the Metrolink Apparatus;

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3.1.5 a requirement to give 28 days’ notice to TfGM and TMBC of any works which are to be undertaken except in an emergency when the notice given may be a lesser period and any such notice shall be an OFCOM Notice

3.1.6 a requirement that it states that the New Code Agreement shall be entered into solely for the creation of Code Rights;

3.1.7 a requirement for TMBC to have a guarantee from an assignee of any New Code Agreement and the obligation to enter into an authorised guarantee agreement with the Operator in respect of the Transport Land;

3.1.8 a right of termination of the New Code Agreement and a right for the removal of the Fibre Cable pursuant to Parts 5 and Part 6 of the New Code or any other relevant statutory provision from time to time in place in the event that there is material interference with Metrolink Apparatus or Metrolink Operations or in the event of any other material breach of the New Code Agreement;

3.1.9 a provision that where a New Code Agreement is imposed by an Operator compensation for diminution in land value at the Transport Land is payable;

3.1.10 a requirement for the removal of the Fibre Cable in the event that it interferes with Metrolink operations and equipment and where Fibre Cable or apparatus is removed not to cause any loss or damage to the Transport Land ;

3.1.11 a provision for the variation of the terms of a New Code Agreement by way of a break clause for the benefit of TfGM to enable termination of the New Code Agreement and service of Notice of the variation of terms or for a further New Code Agreement ;

3.1.12 a covenant from the Operator that it shall not serve a Counter-Notice to Notices served under paragraphs 5 or 6 or paragraph 53 of the New Code;

3.1.13 the provision of Break Rights for the benefit of TfGM;

3.1.14 requiring reinstatement obligations on the Operator in the event of termination of the Old Code Agreement or earlier removal of equipment by agreement;

3.1.15 requiring the removal of the Fibre Cable in the event that it interferes with Metrolink operations and equipment;

3.1.15 requiring automatic termination in the event that this Agreement is terminated or any Leases or Licences or Deeds of Grant granted pursuant to this Agreement are terminated;

3.1.18 a covenant to pay compensation for any loss and or damage suffered by TfGM Where there has been a breach of any of the clauses in this paragraph 3 by TMBC or any Operator together with reasonable legal and valuation expenses, the cost of business interruption and the cost of any re- instatement and to fully indemnify TfGM as Transport Land owner against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs (calculated on a full

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indemnity basis) and all other professional costs and expenses) suffered or incurred by the indemnified party This indemnity shall apply whether or not negligence or fault on the part of the Operator has been proved and nothing in this clause shall restrict or limit the indemnified party's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under this indemnity

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SCHEDULE 4 THE WORKS

Part 1 TfGM’s Works

1. Carrying Out of TfGM’s Works

1.1 Prior to the date of this Agreement TMBC shall have paid the Cable Installation Fee to TfGM together with any VAT thereon.

1.1.1 .

1.2 TfGM shall use all reasonable endeavours to procure that Telent performs and observes the terms of the Telent Contract.

1.3 TfGM shall not terminate the employment of Telent or treat the Telent Contract as repudiated without first notifying TMBC of its intention to do so and discussing with TMBC the appointment of a suitable substitute contractor approved by TMBC (such approval not to be unreasonably withheld or delayed).

1.4 TfGM shall maintain, or procure that Telent maintains, insurance in respect of injury to or death of any person or loss or damage to any real or personal Transport Land for an indemnity of not less than £5,000,000 (five million) for any one occurrence or series of occurrences arising out of the same event. TfGM shall require Telent, as a condition of its appointment or contract, to maintain professional indemnity insurance cover with a reputable insurer for an amount not less than that stated in this paragraph 1.9. The insurance cover must be maintained for a minimum of 12 years following the date that TfGM’s Works are practically completed, provided that the insurance is available at commercially reasonable rates and terms.

PART 2 TMBC’s WORKS

2. Carrying out of TMBC’s work

2.1 TMBC shall not commence TMBC’s Works until TMBC has:

2.1.1 obtained TfGM's approval to TfGM’s Works in accordance with paragraph 1.6 ;

2.1.2 obtained all Requisite Consents and the Ashton Moss Consent required for TBMC’s Works;

2.1.3 provided details of TMBC’s Works to the insurers of the Transport Land and obtained their consent to carrying out TMBC’s Works;

2.1.4 produced all Requisite Consents and the Ashton Moss Consent required for TMBC’s Works to TfGM and obtained TfGM’s confirmation that they are satisfactory to TfGM;

2.1.5 given TfGM 4 copies of the plans and specifications for TMBC’s Works;

2.1.6 notified TfGM and the insurers of the Transport Land of the date on which it intends to start carrying out TMBC's Works; and

2.1.7 (if applicable) complied with paragraph 1.1

2.1.8 Undertaken the Relevant Training.

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3. TMBC shall:

3.1 Carry out TMBC’s Works:

3.1.1 using good quality, new materials which are fit for the purpose for which they shall be used;

3.1.2 in a good and workmanlike manner; and

3.1.3 to the reasonable satisfaction of TfGM.

3.1.4 in respect of TMBC's Works comply with:

(a) all statutory and other legal requirements;

(b) the terms of all Requisite Consents and the Ashton Moss Consent;

(c) requirements and recommendations of all relevant utility suppliers and the insurers of the Transport Land.

3.2 Observe all the requirements and recommendations of Metrolink and TfGM including but not limited to the requirement to only make a Connection. The Connection is to be to the Fibre Cable in the purple Duct and to ensure that no Fibre Cable or part of a Fibre Cable is installed within any orange ducts.

3.3 Ensure that the TMBC project team engaged in carrying out TMBC’s Works as part of the Project have the following accreditations which are satisfactory to both TfGM and Metrolink: Personal Trackside Safety, Organisation Rail Safety Case, at least one person to have Person In Charge accreditation (PIC) and 2 persons to have Lookout training

3.4 Take all proper steps to ensure that carrying out TMBC’s Works does not make any of the following unsafe:

3.4.1 the structure of the Transport Land; and

3.4.2 any plant or machinery at the Transport Land; and

3.4.3 any neighbouring land or buildings;

3.5 In carrying out TMBC’s Works cause as little disturbance and inconvenience as possible to TfGM, the Metrolink and the owners and occupiers of TfGM Transport Land and of any neighbouring land and not infringe any of their rights nor the rights of any other person in relation to the Transport Land;

3.6 Immediately make good (to the reasonable satisfaction of TfGM) any damage (including decorative damage) to any land or building or any plant and machinery (other than the Transport Land) which is caused by carrying out TMBC’s Works;

3.7 Allow TfGM and its surveyors access to the Transport Land to inspect the progress and quality of TMBC’s Works (both while TMBC’s Works are being carried out and afterwards) at reasonable times and on reasonable prior notice;

3.8 Give TfGM the information it reasonably requests to establish that TMBC’s Works are being and have been carried out in accordance with this Agreement;

3.9 Notify TfGM as soon as TMBC’s Works have been completed; and

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3.10 If the CDM Regulations apply to TMBC’s Works, TMBC shall:

3.10.1 agree in writing with TfGM that TMBC is to be treated as the only client in respect of TMBC’s Works for the purposes of the CDM Regulations and the parties agree that this clause is such an agreement;

3.10.2 comply with its obligations as a client for the purposes of the CDM Regulations;

3.10.3 ensure that the principal designer and the principal contractor that it appoints in relation to TMBC’s Works comply with their respective obligations under the CDM Regulations completion of the construction phase of TMBC’s Works, in accordance with the CDM Regulations, ensure either that:

3.11 TMBC's principal designer or principal contractor gives TfGM all documents relating to TMBC’s Works that are required under the CDM Regulations to be kept in the health and safety file for the Transport Land and that TMBC's principal designer or principal contractor checks that the documents are kept in the health and safety file; or

3.12 that TMBC's principal designer or principal contractor updates the health and safety file for the Transport Land.

3.13 and, in either event, TMBC must comply with its obligations in the Lease relating to the documents and the file.

3.14 TfGM shall co-operate with TMBC's principal designer or principal contractor to the extent necessary to allow TMBC's principal designer or principal contractor either to check that the documents relating to TMBC’s Works are kept in the health and safety file for the Transport Land or to update the health and safety file for the Transport Land.

3.15 TfGM shall not be obliged to insure TMBC’s Works.

3.16 TMBC’s Works shall be at the sole risk of the TMBC

3.17 Any effect on the rental value of the Transport Land arising in connection with TMBC’s Works shall be disregarded on any rent review under a Lease or any charge review under a Deed of Grant or any licence fee review under a Licence Agreement.

3.18 TMBC shall:

3.18.1 pay all fees, rates, levies and taxes that arise by reason of TMBC’s Works (including any arising under any laws applying to TMBC’s Works) whether imposed on TfGM or TMBC; and

3.18.2 indemnify TfGM from all liability in relation to such fees, rates, levies and taxes and against all costs and claims arising from any breach of the terms of this paragraph 1.16.

3.19 TfGM and TfGM’s Surveyor may at any time after the commencement of TMBC’s Works, upon reasonable notice to TMBC, inspect progress of TMBC’s Works and the materials used. In entering the Transport Land, TfGM and TfGM’s Surveyor shall not obstruct progress of TMBC’s Works and shall:

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3.19.1 not give any instructions or make any representations directly to Telent; and

3.19.2 comply with Telent’s health and safety and site rules.

3.20 Procure that any instructions or representations made to TMBC by TMBC or TMBC’s Surveyor that comply with the terms of this Agreement are promptly dealt with to TMBC’s reasonable satisfaction.

3.21 On completion of TMBC’s Works produce to TfGM photographic evidence of the connections made by within TfGM’s Urban Traffic Control Chambers adjacent to the Break out Chambers.

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SCHEDULE 5 INSURANCE

1. GENERAL

1.1 The Parties shall comply with their respective insurance obligations in connection with the Works as set out in clauses 14 through to and including 18 of this Agreement and contained in this Schedule 5 of the Agreement and in accordance with the Telent Contract.

1.2 The Parties mutually agree not knowingly to do or permit anything to be done that may render any insurance policy void or voidable.

1.3 In accordance with its obligations in these paragraphs and its obligations in clause 13.1 of this Agreement TMBC agrees to take out the insurances listed in paragraphs 2 and 3 of this Schedule and on the terms set out in this Schedule and the Agreement.

2. Third Party Liability Insurance

To indemnify the Insured in respect of all sums that they may become legally liable to pay (including claimant's costs and expenses) as damages in respect of accidental:

2.1.1 death, or bodily injury, illness, death, disease contracted by any person;

2.1.2 loss or damage to property;

2.1.3 interference to property or any easement right of air, light, water or way or the enjoyment or use thereof by obstruction, trespass, nuisance, loss of amenities, or any like cause.

happening during the period of insurance and arising out of or in connection with this Agreement.

2.2 Limit of Indemnity

Not less than £20,000,000 (twenty million pounds) in respect of any one occurrence, the number of occurrences being unlimited, but in the annual aggregate in respect of pollution liability.

2.3 Territorial Limits

United Kingdom.

2.4 Jurisdiction

England.

2.5 Period of Insurance

During the term of the Agreement.

2.6 Cover Features & Extensions

2.6.1 Contractual liability.

2.6.2 Terrorism (in so far as is available).

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2.6.3 Indemnity to principals.

3. Employers Liability Insurance

To indemnify the Insured for legal liability to employees for death, injury, illness or disease acting out of and in the course of their employment.

3.1 Limit of Indemnity

£10 million for any one occurrence.

3.2 Maximum Deductibles

£NIL

3.3 Territorial Limits

United Kingdom.

3.4 Jurisdiction

England.

3.5 Period of Insurance

During the term of the Agreement.

3.6 Cover Features & Extensions

3.6.1 Contractual Liability.

3.6.2 Indemnity to Principal.

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SCHEDULE 6 WORKS PACKAGE

As per the attached Cable specification and bundle of schematics illustrating TfGM’s Metrolink ducting infrastructure.

SCHEDULE 7

PROVISIONS TO APPLY TO THE GRANT OF THE LEASES, THE LICENCE AGREEMENTS, THE DEEDS OF GRANT AND THE FUTURE LEASES 1. Defined terms

In this Schedule the following words and expressions have the following meanings:

Actual Completion actual completion of the Leases and/or the Deeds of Grant and/or the Licence Agreements by the TfGM to TMBC and for the purposes of this Schedule only the ‘Date of Actual Completion’ is to be interpreted accordingly

Commercial Conditions the Standard Commercial Transport Land Conditions (Second Edition)

Contract Rate 4% per annum above the base lending rate from time to time of Barclays bank plc

Title Matters: the agreements, covenants, declarations, easements, exceptions, provisions, reservations, stipulations and other matters, if any, set out in paragraph 5 of this Schedule

2. Conditions

2.1 The Part 1 Conditions are incorporated in this agreement, in so far as they:

2.1.1 are applicable to the grant of a Lease and/or a Deed of Grant and/or a Licence Agreement;

2.1.2 are not inconsistent with the other clauses in this Agreement; and

2.1.3 have not been modified or excluded by any of the other clauses in this agreement.

2.2 The Part 2 Conditions are not incorporated in this Agreement.

2.3 Condition 1.1.1(d) is amended so that "completion date" means the "Leases Completion Date" “Future Leases Completion Date” or “Deeds of Grant Completion Date”; and/or “Licence Agreements Completion Date” as defined in this Agreement.

2.4 Condition 1.1.1(e) is amended so that reference to the contract rate in Condition 1.1.1(e) refers instead to the Contract Rate as defined in this agreement.

2.5 Commercial Conditions 1.5, 2.2, 3.1.2, 4.2, 5, 6.3.1, 6.4.2, 7, 8.3.6, 8.3.7, 8.3.8, 10.4.2 and 11 are excluded

2.6 Commercial Condition 1.4.1 reads “An obligation to pay any value added tax chargeable in respect of that payment

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2.7 In Commercial Condition 8.3.1, the words “Subject to Condition 8.3.6” are deleted

2.8 Commercial Condition 8.3.2 reads “Apportionment is to be made with effect from the date of actual completion

2.9 In consideration of TMBC’s obligations under this Agreement, TfGM shall grant to TMBC and TMBC shall accept from TfGM:-

2.9.1 a Lease or Leases; or

2.9.2 a Licence Agreement or Licence Agreements; or

2.9.3 a Deed of Grant or Deeds of Grant,

2.9.4 Future Leases

as appropriate under the circumstances 2.10 Completion of the grant of the Leases and/or the Deeds of Grant and/or the Licence Agreements and/or the Future Leases (as appropriate) is to take place on the Leases Completion Date or the Deeds of Grant Completion Date or the Licence Agreements Completion Date or the Future Leases Completion Date (as appropriate)

2.11 On the terms set out in this Schedule 7. No purchase price, premium, or deposit is payable.

2.12 TMBC cannot require TfGM to grant the Leases and/or the Deeds of Grant and/or the Licence Agreements or the Future Leases to any person other than TMBC

2.13 TMBC cannot assign, sublet, charge, or otherwise share or part with the benefit of this Agreement whether in relation to the whole or any part of the Transport Land.

2.14 Neither party will be under any obligation to complete the grant of the Leases and/or the Deeds of Grant and/or the Licence Agreements and/or the Future Leases (as appropriate) on a day that is not a working day or before 9.30 am or after 4.00pm on a working day, even where time is of the essence for completion.

2.15 The Duct is let with vacant possession

3. Deducing title

3.1 TfGM is not obliged to provide any evidence of the freehold title to the Transport Land or of TfGM's capacity to grant Leases, and/or Deeds of Grant, and/or Licence Agreements and/or Future Leases (as appropriate) and TMBC will take the Duct in the state and condition it is in as at the date of this Agreement and nothing in this Agreement shall constitute or imply a warranty by or on the part of TfGM as to the fitness and/or suitability of the Duct or any part thereof for TMBC’s intended use or for any other purpose

3.2 TMBC is not entitled to raise any objection, enquiry or requisition in relation to it.

3.3 Commercial Conditions 6.1, 6.2, 10.2.4, 10.2.5, and 10.3 do not apply to this agreement.

4. Title guarantee

4.1 Subject to the other provisions of this clause, TfGM shall grant the Leases and/or the Deeds of Grant and/or the Future Leases with full title guarantee and the Licence Agreements with no title guarantee

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4.2 The implied covenants for title are modified so that:

4.2.1 the covenant set out in section 2(1)(b) of the Law of Transport Land (Miscellaneous Provisions) Act 1994 (LP(MP)A 1994) shall not extend to costs arising from the Tameside's failure to:

(a) make proper searches; or

(b) raise requisitions on title or on the results of the Tameside's searches before the date of this agreement (or by completion in the case of searches referred to in paragraph 4.2 (a) (i)

4.3 the covenant set out in section 3(3) of the LP(MP)A 1994 shall extend only to charges or encumbrances created by the TfGM.]

4.4 Condition 6.6.2 does not apply to this agreement.

5. Matters affecting the Transport Land

5.1 TfGM shall grant the Leases and/or the Deeds of Grant and/or the Future Leases to TMBC free from encumbrances other than:

5.1.1 any matters, other than financial charges, contained or referred to in the entries or records made in registers maintained by HM Land Registry

5.1.2 all matters contained or referred to in the Lease;

5.1.3 any matters discoverable by inspection of the Transport Land before the date of this agreement;

5.1.4 any matters which TfGM does not and could not reasonably know about;

5.1.5 any matters, other than financial charges, disclosed or which would have been disclosed by the searches and enquiries that a prudent Tameside would have made before entering into this agreement;

5.1.6 public requirements;

5.1.7 any matters which are, or (where the Lease will not be registered) would be, unregistered interests which override first registration under Schedule 1 to the Land Registration Act 2002; and

5.1.8 any Planning Agreement.

5.2 TMBC is deemed to have full knowledge of the matters referred to in and shall not raise any enquiry, objection, requisition or claim in respect of any of them.

5.3 Conditions 3.1.3, 3.2.1, 3.3 and 6.6.3 do not apply to this agreement.

6. Exclusion of Security of Tenure

6.1 The parties confirm that:

6.1.1 TfGM served a notice on TMBC, as required by section 38A(3)(a) of the LTA 1954 and which applies to the tenancy to be created by the Lease or any

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Future Lease, not less than 14 days before this agreement was entered into (a certified copy of which notice is annexed to this agreement); and

6.1.2 who was duly authorised by Tameside to do so, made a statutory declaration in accordance with the requirements of section 38A(3)(b) of the LTA 1954 (a certified copy of which statutory declaration is annexed to this agreement).

7. Completion of the Grant of the Leases and/or the Deeds of Grant and/or the Licence Agreements and/or the Future Leases

7.1 Completion of the grant of the Leases and/or the Deeds of Grant and/or the Licence Agreements and/or the Future Leases (as appropriate) shall take place on the Leases Completion Date or the Deeds of Grant Completion Date or the Licence Agreements Completion Date or the Future Leases Completion Date (as appropriate).

7.2 On the Leases Completion Date and/ or the Deeds of Grant Completion Date and/or the Licence Agreements Completion Date (as appropriate), TMBC shall pay to TfGM the Rent and/or the Charge and/or the Licence Agreement Fee (as appropriate) due for the period from the Rent Commencement Date or the Charge Commencement Date or the Licence Agreement Fee Commencement Date (as appropriate) to the day before the next Rent Payment Day (as provided for in the Lease) or the next Charge Payment Date or the next Licence Agreement Fee Payment Date , apportioned as follows at TfGM’s discretion:

EITHER:

[A x B

365

where:

A is the Rent or the Charge or the Licence Agreement Fee (as appropriate), and

B is the number of days from and including the Rent Commencement Date or the Charge Commencement Date or the Licence Agreement Fee Commencement Date to but excluding the next payment date (as provided for in the Lease or the Deed of Grant or the Licence Agreement).

OR:

A x C

B

where:

A is the amount of the quarterly instalment of the Rent or the Charge or the Licence Agreement Fee (as appropriate) that would have been payable on the quarter day immediately preceding the Rent Commencement Date or the Charge Commencement Date or the Licence Fee Commencement Date, had that quarter day been the Rent Commencement Date or the Charge Commencement Date or the Licence Fee Commencement Date (as appropriate),

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B is the number of days from and including that quarter day immediately preceding the Rent Commencement Date or the Charge Commencement Date or the Licence Fee Commencement Date to but excluding the next quarter day, and

C is the number of days from and including the Rent Commencement Date or the Charge Commencement Date or the Licence Fee Commencement Date to but excluding the next quarter day. 7.3 If completion is delayed due to TMBC's default or TMBC fails to pay any sum due under this agreement in full on completion, TMBC shall pay interest in addition to damages for losses incurred by TfGM as a result of the delayed completion. The interest shall be payable at the Contract Rate on any unpaid amount for the period from the Lease Completion Date to the date of actual payment.

7.4 Commercial Condition 8.7 is amended to read: "TMBC is to pay the money due on completion to TfGM's Conveyancer by a method that gives immediately available funds".

7.5 Commercial Condition 9.3 does not apply to this agreement.

8. Title to the Fibre Cable

8.1 No rights title and interest to the relevant part of the Fibre Cable shall pass from TfGM to Tameside and no energisation of the of the Fibre Cable shall take place until the relevant Lease Completion Date or the Deed of Grant Completion Date or the Licence Agreement Completion Date (as appropriate)

8.2 Subject to any reinstatement obligations having arisen under clause 36 on termination TfGM shall have the option to require Tameside to transfer all of its rights, title and interest in the Fibre Cable to TfGM.

9. Land Registry Applications

9.1 TMBC will not send this Agreement or a copy of it to the Land Registry and is not to protect the benefit of this Agreement at the Land Registry other than by means of a Unilateral Notice.

9.2 TMBC enters in to this Agreement with notice of the actual state of repair and condition of the Transport Land in its actual physical state

10. Entire Agreement

10.1 This agreement and the documents annexed to it constitute the whole agreement between the parties and supersede all previous discussions, correspondence, negotiations, arrangements, understandings and agreements between them relating to their subject matter.

10.2 TMBC acknowledges that:

10.2.1 in entering into this agreement and any documents annexed to it the TMBC does not rely on, and shall have no remedies in respect of, any representation or warranty (whether made innocently or negligently) other than those:

(a) set out in this Agreement or the documents annexed to it; or

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(b) contained in any written replies that TfGM's Conveyancer has given to any written enquiries raised by TMBC’s Conveyancer before the date of this agreement and

10.2.2 no representation or warranty is given or is to be implied by:

(a) TfGM entering into this agreement; or

(b) any step taken by or on behalf of TfGM in connection with this agreement;

(c) as to the suitability of the Transport Land [or the building of which it forms part] for TfGM’s Works.

10.3 For the purposes of paragraph 10.2.1(b) written enquiries and written replies include:

10.4 Any pre-contract enquiries and any replies to pre-contract enquiries that are requested or given by reference to the CPSE 2.1 and

10.5 Nothing in this clause shall limit or exclude any liability for fraud.

10.6 Commercial Condition 9.1.1 is varied to read "If any plan or statement in the agreement or in written replies [which TfGM's Conveyancer has given to any written enquiries raised by TMBC’s Conveyancer before the date of the agreement OR to written enquiries given by TfGM's Conveyancer to Tameside's Conveyancer before the date of the agreement] is or was misleading or inaccurate due to an error or omission, the remedies available are as follows."

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SCHEDULE 7A FORM OF LEASE

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SCHEDULE 7B FORM OF DEED OF GRANT

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SCHEDULE 7 C FORM OF LICENCE AGREEMENT

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SCHEDULE 8A PROJECT COLLABORATION

1. Project Liaison Group

1.1 Within 2 weeks of the date of this Agreement the parties shall notify each other of their representatives for the purposes of this Agreement and provide contact details for them and thereafter shall provide details of any changes to such representatives. Each party shall provide a minimum of 3 Representatives each for the purposes of this Agreement.

1.2 As soon as reasonably practicable and in any event within 4 weeks of the date of this Agreement unless otherwise agreed in writing by the Parties, the Parties will establish and engage in a liaison group the Project Liaison Group which shall have meetings held no less frequently than monthly, but more frequently if the Parties agree in writing, and which shall (amongst other things but not limited to) deal with the following matters:

1.2.1 The parties keeping each other updated and informed with regard to progress in relation to the obtaining of the Consents

1.2.2 TMBC keeping TfGM informed with regard to the formation and establishment of the TDIC and the subsequent operation of the TDIC

1.2.3 TMBC keeping TfGM informed with regard to potential Connections which TMBC will require are to be made to the Duct and the identity of any potential sub-lessees

1.2.4 TMBC keeping TfGM informed with regard to the appointment of an Operator

1.2.5 TMBC keeping TfGM informed with regard to any repair or maintenance works which need to be carried out to the fibre cable

1.2.6 To provide a means for the joint review of all aspects of the performance of this Agreement

1.2.7 To provide a forum for joint strategic discussion and consideration of all aspects with regard to this Agreement including ensuring dissemination of information and consideration of the views of all stakeholders connected with the Project

1.2.8 The parties shall co-operate within the Scope in relation to Project Requests.

1.2.9 To maintain and monitor a forward plan in respect of Project Requests under paragraph 12

1.2.10 Keeping the parties up to date with the Review Procedure and the progress of any Submitted Items that are in the process of being reviewed as set out in Schedule 9 of this Agreement

2. Role

2.1 The role of the Project Liaison Group is to make recommendations to TfGM and TMBC which TfGM and TMBC may accept or reject at their complete discretion. Neither the Project Liaison Group itself, not its members acting in that capacity, shall have any authority to vary any of the

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provisions of this Agreement or make any decision binding on the Parties. TfGM and TMBC shall not rely on any act or omission of the Project Liaison Group, or any members of the Project Liaison Group acting in that capacity, so as to give rise to any waiver or personal bar in respect of any right, benefit or obligation of TfGM or TMBC under this Agreement. No discussion, review or recommendation by the Project Liaison Group shall relieve TfGM or TMBC of any liability or vary any such liability or any right or benefit.

3. Representatives

3.1 TfGM and TMBC may appoint their representatives on the Project Liaison Group and remove those representatives on the Project Liaison Group, by written notice delivered to the other at any time. A representative on the Project Liaison Group may appoint and remove an alternate (who may be another representative of that party) in the same manner. If a representative is unavailable (and the other Parties’ representative may rely on the alternate’s statement that the representative is unavailable) his alternate shall have the same rights and powers as the representative

4. Practices and procedures

4.1 Subject to the provisions of this Schedule, the members of the Project Liaison Group may adopt such procedures and practices for the conduct of the activities of the Project Liaison Group as they consider appropriate, from time to time, provided that the quorum for a meeting of the Project Liaison Group shall be 4 (four) (with at least two 2 members from TfGM and 2 members from TMBC present).

5. Recommendations

5.1 Recommendations and other decisions of the Project Liaison Group must have the affirmative vote of all those voting on the matter, which must include not less than one (1) representative from TfGM and not less than one (1) representative from TMBC

6. Voting

6.1 Each member of the Project Liaison Group shall have one (1) vote

7. Chairman

7.1 The Chairman of the Project Liaison Group shall be nominated by TfGM and TMBC alternately every six (6) months during the Project Period (commencing with TfGM). The Chairman shall be in addition to each party’s representatives on the Project Liaison Group. The Chairman shall not have a vote.

8. Notices of Meetings

8.1 Not less than ten (10) Working Days notice (identifying the agenda items to be discussed at the meeting) shall be given to convene a meeting of the Project Liaison Group except that in emergencies, a meeting may be called at any time on such notice as may be reasonable in the circumstances

9. Attendance at meetings

9.1 Meetings of the Project Liaison Group should normally involve the attendance (in person or by alternative) of the representatives at the meeting. Where the representatives of the Project Liaison Group consider it appropriate (by affirmative vote of all those voting on the matter which must include not less than one (1) representative from TfGM and one (1) representative from

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TMBC) meetings may also be held by telephone or another form of telecommunication by which each participant can hear or speak to all other participants at the same time.

10. Minutes

10.1 Minutes of all decisions (including those made by telephone or other telecommunication form) and meetings of the Project Liaison Group shall be kept by TMBC and copies circulated promptly to TfGM and TMBC, normally within ten (10) Working Days of making of the decision or the holding of the meeting. A full set of minutes shall be kept by TMBC and shall be open to inspection by TfGM and TMBC at any time, upon request.

11. Existing arrangements

11.1 Nothing in this agreement shall restrict either party's right to continue to conduct its business activities or arrangements that existed on the Effective Date or that otherwise come into being outside the scope of this agreement.

12. Proposals and Projects

12.1 The parties agree that the terms of this paragraph 12 shall apply when TMBC wishes to make a Project Request within the scope of the Project Principles.

12.2 TMBC may submit a Project Request falling within the scope of the Project Principles to TfGM at any time. A Project Request shall contain:

12.2.1 sufficient detail to enable TfGM to evaluate it

12.2.2 Specify TMBC’s reasons for the Project Request

12.2.3 Indicate any implications of the Project Request, including but not limited to its impact on the Duct and the Fibre Cable

12.2.4 Indicate whether there are any critical dates by which a decision by TfGM is required

12.2.5 Request that TfGM consult with TMBC with a view to deciding whether to agree to the Project Request

12.2.6 details of the connection point or points with plans;

12.2.7 the connection route with plans;

12.2.8 the location of the Break Out Chamber, and the information required as part of a Works Package

12.2.9 any other relevant details as requested by TfGM from time to time

12.2.10 On receipt of Project Request, TfGM shall consider and evaluate the Project Request in good faith taking into account all relevant issues including but not limited to whether:

12.2.11 How and if the Project Request may affect the Metrolink and or the delivery of the Metrolink Services

12.2.12 Whether the Project Request will interfere with the relationship of TfGM with third parties

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12.2.13 The Project Request materially affects the risks or costs to which TfGM is exposed

12.3 As soon as practicable after receiving the Project Request the parties shall meet and discuss the matters referred to in it. During discussions subject to paragraph 12.7 TfGM may propose modifications to, or accept or reject the Project Request.

12.4 If TfGM accepts the Project Request (with or without modification) the parties shall consult and agree the remaining details as soon as practicable and upon agreement TfGM shall issue a notice confirming to TMBC the Project Request which will set out the agreed Project Request and the parties shall

12.5 Enter into any documents to amend this Agreement or any other relevant document which are necessary to give effect to the Project Request and any such Agreement shall become part of the Project Documents for the purposes of this Projects and any obligations in relation to the Project shall be interpreted accordingly

12.6 The Project Request shall be implemented within the period specified by TfGM in its notice of acceptance

12.7 All costs in respect of the Project Request shall be borne by TMBC and TfGM’s costs in respect of the Project Request shall be reimbursed by TMBC to TfGM within 10 Working Days of such written request made by TfGM

12.8 If TfGM rejects the Project Request it shall not be obliged to give its reasons for such a rejection and Tameside shall not be entitled to reimbursement by TfGM in respect of any of its costs involved in the preparation of the Project Request. For the avoidance of doubt TfGM may, in its absolute discretion, decline to agree to formalise a Project Request.

12.9 In order to formalise a Project Request TfGM will confirm whether TfGM will require TMBC to enter into one or both of the following:

12.9.1 A Lease

12.9.2 A Licence.

12.9.3 A Deed of Grant or another document as agreed between the parties to document the Connection

12.10 In making a selection as to the appropriate form of documentation under clause 10.4 TfGM will take into consideration whether the connection route is over land owned by TfGM or a third party and whether the land in question is in the process of being acquired by TfGM

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SCHEDULE 8B PROJECT REQUEST TEMPLATE

Part 1. This Project Request is dated [INSERT] and made between:

(1) TAMESIDE METROPOLITAN BOROUGH COUNCIL of Town Hall King Street, Dukinfield, SK16 4LA (2) [FULL COMPANY NAME] incorporated and registered in England and Wales with company number [NUMBER] whose registered office is at [REGISTERED OFFICE ADDRESS] ([DEFINED TERM FOR PARTY]).

Part 2. Background

Part 3. Project provisions

Signed by [NAME OF DIRECTOR] ...... for and on behalf of [NAME OF TFGM] Director Signed by [NAME OF DIRECTOR] ...... for and on behalf of [NAME OF Director TAMESIDE]

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SCHEDULE 9 REVIEW PROCEDURE

1. Review Procedure

1.1 Save where a specific procedure is specified the provisions of this Schedule shall apply whenever any item, documents or course of action are required to be reviewed, approved or otherwise processed in accordance with the Review Procedure at the request of either party under the terms of this Agreement

1.2 Each submission under the Review Procedure shall be accompanied by a copy of the document to be reviewed or a statement of the proposed course of action referred to as (Submitted Item). In relation to each Submitted Item the following procedure shall apply:

1.3 Within 10 Working Days of the date of receipt of a submission (or re-submission as the case may be) of the Submitted Item to TfGM (or such other period as the Parties may agree), TfGM shall return one (1) copy of the relevant Submitted Item to TMBC endorsed “no comment” or (subject to and in accordance with paragraph 1.3) ‘comments’ as appropriate; and

1.4 If TfGM fails to return a copy of a Submitted Item (including any re-submitted Submitted Item) duly endorsed in accordance with paragraph 1.2(a), within ten (10) Working Days (or within such other period as the Parties may agree in writing) or the date of its submission to TfGM, then TfGM shall be deemed to have returned the Submitted Item to the Tameside endorsed “no comment”

1.5 If the TfGM raises comments on any Submitted Item in accordance with this paragraph 1.3 he shall state the ground upon which such comments are based and the evidence or such other information necessary to substantiate that ground. To the extent that the TfGM comments on a Submitted Item other than on the basis set out in this Schedule or fails to comply with the provisions of this paragraph, TMBC may in its discretion, either:

1.5.1 Request written clarification of the basis for such comments and, if clarification is not received within five (5) Working Days of such request by TMBC , refer the matter for determination in accordance with the Dispute Resolution Procedure;

1.6 TMBC shall submit any further or other information, data and documents that the TfGM reasonably requires in order to determine whether he has a basis for raising comments or making objections to any Submitted Item in accordance with this Schedule. If the Contractor does not submit any such information, data and documents, the TfGM shall be entitled to:

1.6.1 Comment on the Submitted Item on the basis of the information, data and documents which have been provided; or

1.6.2 Object to the Submitted Item on the grounds that insufficient information, data and documents have been provided to enable the TfGM to determine whether there is a legitimate basis for commenting or objecting in accordance with this Schedule

1.7 The expression ‘raise comments’ in this paragraph shall be construed to mean ‘raise comments or make objections’ unless the contrary appears from the context. TfGM may raise comments in relation to any Submitted Item on the grounds set out in the paragraph above or on the grounds that a Submitted item would (on the balance of probabilities) breach any Legislation or not be in

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accordance with any Necessary Consent but otherwise may raise comments in relation to a Submitted Item only as follows:

1.7.1 The implementation of the Submitted Item would or may (on the balance of probabilities) have an adverse effect on the running of Metrolink Services or cause disruption to Metrolink Services

1.7.1.1 may affect the TfGM’s ability to perform its obligations under this Agreement or under Metrolink Operations

1.7.1.2 may affect TMBC’s s ability to perform its obligations under this Agreement

1.7.1.3 The Submitted Item is not in accordance with the Authority’s Requirements

2. Effect of review

2.1 Any Submitted Item which is returned or deemed to have been returned by the TfGM endorsed ‘no comment’ may be complied with or implemented by TMBC

2.2 In the case of any Submitted Item, if TfGM returned the Submitted Item to TMBC endorsed ‘comments’ TMBC shall comply with such Submitted Item after amendment in accordance with the comments unless TMBC disputes that any such comment is on grounds permitted by this Agreement, in which case TMBC and the TfGM may refer the matter for determination in accordance with clause 29 Dispute Resolution

2.3 The return or deemed return of any Submitted Item endorsed ‘no comment’ shall mean that the relevant Submitted Item may be used or implemented for the purposes for which it is intended but, save to the extent expressly stated in this Agreement such return or deemed return of any Submitted Item shall not otherwise relieve the Tameside of its obligations under this Agreement not is it an acknowledgement by the TfGM that TMBC has complied with such obligations

3. Document management

3.1 TMBC shall issue 3 copies of all Submitted Items to TfGM and compile and maintain a register of the date and contents of the submission of all Submitted Items

3.2 TMBC shall compile and maintain a register of the date of receipt and content of all Submitted Items that are returned or deemed to be returned by TfGM

3.3 No review, comment or approval by the Tameside shall operate to exclude or limit TMBC’s obligations or liabilities under this Agreement (or the TfGM’s rights under this Agreement.

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SCHEDULE 10 COMMERCIALLY SENSITIVE INFORMATION

1. Part 1

1.1 Commercially Sensitive Contractual Provisions

Column 1 Commercially Column 2 – For period Sensitive Contractual ending on date below: Provisions

None None

2. Part 2

2.1 Commercially Sensitive Material

Column 1 – Commercially Column 2 - For period Sensitive Material ending on date below:

None None

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SCHEDULE 10 TRANSPORT LAND

 MAN9996

 GM452803

 MAN18519

 GM436299

 GM671202

 MAN213477

 GM938088

 GM681986

 GM770387

 GM649192

 LA339281

 GM960416

 GM645875

 GM147731

 GM769329

 GM721855

 GM968655

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THE COMMOM SEAL OF TRANSPORT ...... FOR GREATER MANCHESTER was Authorised Signatory hereunto affixed in the presence of: ...... Authorised Signatory

EXECUTED as a DEED by TAMESIDE METROPOLITAN BOROUGH COUNCIL In the presence of:

Assistant Borough Solicitor

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Report To: EXECUTIVE CABINET

Date: 13 December 2017

Cabinet Deputy/Reporting Councillor Lynne Travis; Executive Member (Lifelong Officer: Learning) Robin Monk; Executive Director of Place Kathy Roe, Director of Finance Tameside & Glossop and Tameside MBC

Subject: CONSULTATION ON PAYMENT ARRANGEMENTS FOR SCHOOLS MEALS

Report Summary: The current financial arrangements for the schools meals service have not been reviewed for some time and have

become disjointed and haphazard. Improvements that could be made to the arrangements have been identified and it is planned to consult schools about these. A further report will be presented to Members about any recommended changes in the light of feedback to the consultation.

Recommendations: The Executive Cabinet is asked to:  Approve the commencement of consultation on the full delegation of the school meals service to primary schools;  Support the implementation of cashless payment systems in schools.

Links to Community Strategy: The proposal will contribute to the aims if the Community Strategy 2012-22 by making best use of council resources.

Policy Implications: None.

Financial Implications: There would be a minor on-going budgetary saving from 2017/18 to the Council of £4,970 per year. (Authorised by the Section 151 Officer) Cost of installing the cashless systems in 67 schools would be £73,200. This would be funded from existing resources.

Legal Implications: The local authority has a duty under Section 512 of the Education Act 1996 (EA 1996) to provide school meals to (Authorised by the Borough registered pupils, provided it would not be unreasonable to do Solicitor) so. The local authority has the discretion to charge for these meals, however such charges must not exceed the cost of providing the food, and some pupils will be eligible for free school emails. As such it is the default position that local authorities will provide school meals and set the pricing. School meals must comply with nutritional standards outlined in the Requirement for School Food Regulations 2014/1603. Page 257

Under Section 533 EA 1996, the governing bodies of maintained schools with delegated budgets are also empowered to provide school meals to registered pupils, subject to all of the above. In such cases, the provision of school meals and pricing thereof falls within the remit of the governing body. There is no statutory regulation as to the mechanics of how a local authority or maintained school charges for school meals in practice. Owing to the shrinking number of schools buying into the direct service, the Council procured the LEP to provide these services under a three year contract and staff transferred accordingly. Under the contract the Council is liable to pay for all the services and/or equipment which is covered by the 13p for each meal under the contract. In effect the 13 pence/meal acts as an insurance as some schools will use more or have a greater claim against the budget. This proposal makes it fairer for individual schools but may mean some pay more and it may mean that some schools have to pay for unbudgeted sums as the timely means that heavy equipment fails which would have been covered under this arrangement. What will be important to safeguard the Council is to ensure that the Council is able to recover the sums payable by each individual school which the Council is currently liable for.

Risk Management: This proposal will bring primary schools operations of schools catering in line with the secondary schools. Therefore the

risks in relation to this proposal are minimal.

Access To Information: The background papers relating to this report can be inspected by contacting Tom Wilkinson, Assistant Director, Finance by:

Telephone: 0161 342 2062

e-mail: [email protected]

Page 258 1. BACKGROUND

1.1 The provision of school meals is a delegated item in the Local Management of Schools. This means schools are free to decide who they commission to provide the service, with the cost being met from their delegated budget.

1.2 Secondary schools tend to operate a restaurant type of service with pupils having a choice of meals. The prices for the meals are set by the school and the income generated from pupils is retained by the school to help towards the cost of providing the service.

1.3 In primary schools there is limited choice menu and a standard price which is determined by the Council each year. Until recently the arrangement was that the money schools collect from parents for school meals was paid into the Council’s bank account. Schools were then charged for the net cost of the catering service i.e. the difference between the contract price and the amount due from parents. There has been an enforced change in this arrangement which is referred to below. In addition schools are levied an additional charge of 13p per meal to cover certain costs associated with operating the catering contract.

2 PROPOSED CHANGES TO BE CONSULTED UPON

2.1 As this is a delegated service to schools it is proposed that all income and expenditure related to the catering service is managed by each school from their delegated budget.

2.2 Currently this is largely happening by default. After the Council was forced to change its bank in 2015. Schools have not been able to pay the money they collect from parents into the Council’s new bank account with Barclays as there are only limited paying in facilities (the Post Office could be used for the Co-op Bank this service cannot be accessed via Barclays). For security purposes the schools pay the money into their own bank account. This has a knock-on effect as the monthly advances paid to schools have to be manually re-calculated to allow for the fact that schools have received the benefit of having catering income in their bank account. This is an inefficient and laborious task.

2.3 It is proposed that the additional charge to schools of 13p per meal ceases. Anecdotally we understand that schools are not in favour of this charge. However it is levied to cover the following costs associated with the catering service:

 Provision, maintenance & repair of heavy catering equipment e.g. cookers ,freezers, mixers  Provision of light catering equipment e.g. cutlery, trays, serving equipment  Provision and maintenance of school dining hall furniture e.g. SICO fixed tables  Pest control, Trade waste, catering health and safety checks in kitchens e.g. PAT testing, emission testing, and fan cleaning.  Stationery items connected to provision e.g. registers  School kitchen telephones, fax machines and landline installation and rental.  The collection of payments for lunches including administration of ‘bad debt’.

2.4 These services still need to be provided and therefore it is proposed that these are carried out by schools, as schools will already be carrying out a number of these activities as part of the local management arrangements e.g. pest control, PAT testing, waste collection.

2.5 The proposed changes would bring primary schools in line operationally with the secondary schools in the borough. It would also help to ‘future proof’ these primary schools, making it Page 259 easier to change the school meals provider if they desired or make the transition to an Academy. Indeed a number of primary schools have changed their catering provider and will have arranged for these services identified in para 2.3 to be carried out.

2.6 Some of the expenditure is ad-hoc in nature, such as the replacement of furniture and equipment. This will be paid to schools by the abolition of the 13p charge but it will require schools to decide how to build this into their financial plans.

2.7 On average over the past 3 years the council has incurred a loss on providing the services listed in paragraph 2.3 above of £9,472, with a projected surplus of £15,500 for the current financial year. Therefore if arrangements stayed the same the charge would need to increase. It is important to note that the plan to pass the responsibility for the direct cost of these services to primary and secondary does not necessarily mean an extra cost to a school’s budget. Apart from a saving from the ending of the 13p charge, schools will not incur the Council’s overhead charge and will almost certainly improve collection of school meals charges from families.

2.8 For the avoidance of doubt, any change in the financial arrangements of the school meals service would have to be applied consistently across all schools i.e. schools could not have the individual choice whether to opt in, or not, to some or all of the arrangements.

3 COLLECTION OF INCOME

3.1 A total of £1.5m is collected each year from parents for school meals. This may come in the form of cash, cheques and, for some schools which have the facility, card payment. There are occasions when payment is not received and schools may ask the Council to pursue payment. As with any debt, if payment is not received promptly it can be difficult to collect the debt.

3.2 As can be seen, part of the additional 13p charge is to cover losses from families not paying the charge for school meals. It is felt that schools have the best opportunity to collect the charge as they are in closer and more regular contact with families; at present the Council is unaware of unpaid school meals until asked by a school to pursue arrears.

3.3 A number of schools have cashless payment systems which makes it much easier to collect income and have the ability to track where payments have not been received. To ensure that all schools have the same opportunity it is proposed that the Council pays for the installation of a cashless payment system, and first year’s maintenance, for those schools without such a system.

3.4 There are 67 schools which would require such a system and the estimated costs are:

Year 1 costs including training – £47,500 Year 2 cost £25,700 Total cost for 2 years £73,200

There are some schools that are in the process of opting out of the council catering contract and in the process of converting to academies so the final number of schools and resulting costs may change.

3.5 A procurement process would need to be gone through to purchase the system, by the Council procuring this on schools behalf a discounted rate could be secured, generating a saving of between £34k if one year only and £53k over the 2 years. Note the costs in 3.3 include this assumed level of savings. Page 260 3.6 The system would enable parents to pay the school directly for school meals via a secure portal. For parents who do not have access to the system online, there is an option to pay for meals at a post office or local shop via PayPoint.

3.7 The benefit for the school is they could remove cash handling completely, removing the need to keep cash securely on site and banking the cash. Also removing the associated cash reconciliations that sit alongside this process and sign off by the Bursar, or Head in some cases, again reducing administration for the school.

3.8 The cashless systems include other functionality within system including:

 maintaining individual pupil balances so the parent knows exactly how much they have paid or owe. These can be text, emailed or notified by letter directly from the system. This would support the assist in the debt management of unpaid meals.  automatically updates pupil data with payments as they are made automating reconciliations.  enabling parents to make meal choices on line to help with healthy meal choices for children. Enables the parent to make advance meal bookings for the days they require meals.  having the option within the system to collect other cash items such as trips, once again reducing the administration on the teaching and admin staff.

4 CONSULTATION

4.1 Consultation with the schools would need to take place for the proposed change. If Members agree to consult schools then this would start in October 2017 and will run for four weeks. The proposed questions are attached at Appendix A.

4.2 Feedback from the consultation will be reported back to Members and will be taken into account as part of the final decision report.

5 CONCLUSION

5.1 The transfer of the responsibility of school meals income to schools would support effective use of resources for both the Council and the schools in the collection of income.

5.2 The procurement and roll out of a cashless system in primary schools would provide parents with an easier method of payment of the meals and manage payments to schools more succinctly.

6 RECOMMENDATION

6.1 As set out on the front of the report.

Page 261 APPENDIX A

Schools Meals Service for Primary Schools

We are consulting with primary schools about proposed changes to the charging arrangements for the schools meals service and also the collection of income from parents for the Primary Schools Catering Contract. We are proposing to bring primary schools operations of school catering in line with that provided by secondary schools.

We are asking you to submit your views by no later than XXXXXXXX.

Income Collection

The report proposes that the collection and banking of schools catering income would be carried out completely by the school. As part of this transfer it is proposed the council invest in a cashless system to enable parents to pay online, or via pay point for school meals income.

1. To what extent do you agree that the efficiency of catering income collection would be improved if this was transferred to the school with all payments going directly to the school bank account? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

2. To what extent do you agree that the school would benefit from investment in a cashless payment service? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

3. To what extent do you agree that parents would benefit from being able to pay for schools meals on-line directly to the school or via pay point facility at local shops or post offices? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

4. To what extent do you agree that a cashless system would remove some of the administration of the income collection for the School’s Bursar/Business Manager? (Please tick one box only)

 Strongly agree  Agree  Disagree Page 262  Strongly disagree

5. To what extent do you agree that schools are better placed to collect the school meal income directly as they are in closer and more regular contact with families? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

Transfer of Schools Catering Contract

The provision of school meals is a delegated item in the Local Management of Schools. This means schools decide who they commission to provide the service, with the cost being met from their delegated budget. The report proposes to transfer the management of the schools meals service in primary schools to the school in line with Secondary schools and Academies. The report also proposes to stop the charge of 13p per meal (currently) for the management of the additional services of catering operation, and transfer the responsibility of this to the school.

6. To what extent do you agree that the school is better placed than the council to understand the daily catering requirements of the children and staff within the school? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

7. To what extent do you agree it would be more efficient for schools to directly purchase services required for the kitchen alongside the general services purchased for the school? (examples of these services may include Pest control, trade waste collection; health and safety checks in kitchens, PAT testing) (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

8. The council currently charges 13p per meal for the management of the additional services of catering operation. This 13p charge covers

 Provision, maintenance & repair of heavy catering equipment e.g. cookers ,freezers, mixers  Provision of light catering equipment e.g. cutlery, trays, serving equipment  Provision and maintenance of school dining hall furniture e.g. SICO fixed tables  Pest control, Trade waste, catering health and safety checks in kitchens e.g. PAT testing, emission testing, and fan cleaning.  Stationery items connected to provision e.g. registers  School kitchen telephones, fax machines and landline installation and rental.  The collection of payments for lunches including administration of ‘bad debt’. Page 263  All other costs e.g. utility bills, school kitchen building maintenance.

The school would have to factor this expenditure into the routine planning of school finances.

The council are proposing to remove the 13p charge so that the school could use these funds to pay for the additional services element that it would become responsible for. Please note this charge is due to be reviewed and is likely to increase if the function remains with the council.

To what extent do you agree with the proposal that the additional service charge per meal (currently 13p) would be removed? (Please tick one box only)

 Strongly agree  Agree  Disagree  Strongly disagree

Page 264 Agenda Item 9

Report To: EXECUTIVE CABINET

Date 13 December 2017

Executive Member/Reporting Councillor Peter Robinson – Executive Member (Strategic Officer: Planning and Transport) Robin Monk: Executive Director of Place

Subject: TRANS PENNINE ROUTE CONNECTIVITY

Report Summary: The report provides an update on the works currently being undertaken on the Trans-Pennine Upgrade Programme and the Trans Pennine Tunnel Strategic Study initiative.

Recommendations: Executive Members are asked to: 1. Welcome Highways England announcement for:  Taking forward route Option A to include a new Mottram Moor Link Road and a A57(T) to A57 link road to Glossop as set out within the report.  The introduction a series of safety and technology improvements addressing accident clusters on the A57/A628 Woodhead Pass  Improvement works at Westwood Roundabout, Tankersley, Barnsley, to improve congestion and traffic flows 2. To note that officers continue to seek assurances from Highways England that any potential funding shortfalls are fully secured to enable completion of the package of announced measures. 3. Note that whilst Tameside’s full scope of involvement in the Develop Consent Order process is fully established for Executive Cabinet approval, comment has been and will be provided on receipt of two early documents in respect of an “Environmental Impact Assessment Scoping Report” and “Statement of Community Consultation”, respectively, to the Planning Inspectorate in conjunction with the Executive Director of Place 4. To note and support to the ongoing joint working initiative between Tameside and High Peak Borough council in securing the full benefits of the announced works and in their continued lobbying for a full bypass not only around Mottram but also Hollingworth and Tintwistle. 5. To fully support Highways England in developing initiatives to alleviate traffic issues in Tintwistle and Hollingworth. 6. To note the current position in respect of the on-going feasibility study for a high performance road link between Manchester and Sheffield through a purpose-built tunnel.

Links to Community Prosperous Tameside Strategy:

Policy Implications: The trans-Pennine roads upgrade programme is a main thrust of encouraging economic development to the eastern edge of the Page 265

borough and Greater Manchester. The initiative is seen as a “main stay” of City to City links as part of the Greater Manchester 2040 Strategy.

Financial Implications: There is currently no funding identified within the Councils Budget to contribute to this scheme. Before any works commence it is (Authorised by the Section imperative that all funding is secured. 151 Officer)

Legal Implications: None arising from the report itself as it is for information only. The proposed upgrade will be planned, designed and constructed by (Authorised by the Borough Highways England as a nationally significant infrastructure project. Solicitor) It is important that the Council maintains a risk register to manage all impacts of the project and there will need to be a clear communication strategy. Additional governance put in place to ensure executive oversight.

Risk Management: The Council needs to maintain a risk register to manage all impacts of the project and there will need to be a clear communication strategy.

Access To Information: The background papers relating to this report can be inspected by contacting Nigel Gilmore, Assistant Director, Finance by:

Telephone: 0161 342 3920

e-mail: [email protected]

Page 266

1.0 INTRODUCTION

1.1 The five mile long M67, originally conceived as part of a trans-Pennine link between Manchester and Sheffield, runs from the M60, junction 24, “Denton Island” at its eastern edge to the western edges of the Mottram Village to the east. The original road was opened in two stages, the Hyde bypass in March 1978 and the Denton Relief Road section in September 1981.

1.2 Beyond Mottram, existing road links to Sheffield consist of two substandard routes, the A628 Woodhead and the A57 Snake passes. Both are unfit for purpose and given their height and exposure to extreme weather conditions, often suffer from traffic related problems.

1.3 Over many years there have been calls to improve links between Manchester and Sheffield, including a full bypass around the villages of Mottram, Tintwistle and Hollingworth. The last major initiative to take forward a full bypass around the three villages was halted by the then Highways Agency in 2009.

2.0 CURRENT TRANS-PENNINE INITIATIVES

2.1 The Government’s Road Investment Strategy (2015/16 – 2019/20)1 (RIS1), included three separate initiatives pertinent to the trans-Pennine road routes. These are:

 Mottram and A57 Trunk Road Improvements: An announced £170m investment package to improve links across the existing trans-Pennine routes consisting of: o Mottram Moor link road: A dual carriageway link from the M67 terminal roundabout to a junction at A57(T) Mottram Moor o A57(T) to A57 link road: A single carriageway link from the A57 at Mottram Moor to a junction on the A57 at Brookfield, bypassing the existing A628/A57 and A57 Woolley Lane/Hadfield Road junctions o A61: A dual carriageway on the A61 between the A616 roundabout and junction 36 of the M1 o A628 climbing lanes: Consideration of the provision of two overtaking lanes on the A628 near Woodhead Bridge and near Salters Brook Bridge o Safety and technology improvements: Measures focused on addressing accident clusters

 Future Consensus Scoping Consultation: The strategy document also committed to consulting with local communities and stakeholders on the scope and viability of further improvements and extension of the Mottram Moor Link Road that would address the issues faced in Hollingworth and Tintwistle.

 Feasibility of A High Performance Road Link between Manchester and Sheffield through a Purpose-Built Tunnel: This is one of six new strategic studies, focused on “making major improvements to the capacity and connectivity of SRN”.

3.0 MOTTRAM AND A57 TRUNK ROAD IMPROVEMENTS – PROGRESS TO DATE

3.1 In preparation for the development of the scheme initiatives as set out in paragraph 2.1 above and prior to any statutory planning process, a non-statutory public consultation on options took place between the 13 March 2017 and 10 April 2017.

1 The Government’s Road Investment Strategy outlines its long-term programme for motorways and major roads and is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/408514/ris-for-2015- 16-road-period-web-version.pdf Page 267

3.2 For the Mottram Moor Link Road and the A57(T) to A57 link road two route options, Option A and Option B, have been developed by Highways England both bypassing Mottram only. These were presented as part of the April 2017 consultation event and are attached at Appendices A and B for information. Each consists of a dual carriageway link from the M67 terminal roundabout to the A57(T) Mottram Moor and a single carriageway link from the A57(T) Mottram Moor to A57 at Brookfield.

3.3 In respect of the Mottram Moor Link Road and the A57(T) to A57 Link Road options, 50% of respondents2 preferred Option A, compared to 33% preferring Option B, and 17% not offering any response. Of the 733 respondents who expressed a preference, 440 respondents (60%) preferred Option A compared to 293 (40%) for Option B.

3.4 In areas away from Tameside, the majority of respondents (63%) strongly agreed or agreed that the climbing lanes along the A628 (at two locations) in the eastbound (uphill) direction and a single westbound (downhill) lane will reduce collisions and journey times and have a major positive impact on safety.

3.5 Of the 843 respondents who expressed views, 50% strongly agreed or agreed that changing speed limits would improve safety, whilst 26% strongly disagreed or disagreed with this statement. Of the 850 respondents who expressed views, 56% strongly agreed or agreed that average speed cameras would improve safety, whilst 25% strongly disagreed or disagreed. For the remaining safety measures, there was widespread agreement that they would be effective.

3.6 A total of 551 (65%) respondents strongly agreed or agreed that the technology measures would improve conditions for traffic, whilst 130 (15%) strongly disagreed or disagreed with this statement.

4.0 PREFERRED ROUTE ANNOUNCEMENT

4.1 On the 2nd November 2017 Highways England confirmed the preferred package for the Trans-Pennine upgrade programme. The following elements are now being taken forward to the next stage of development:

 Mottram Moor and A57(T) to A57 Link Roads: Option A was identified as the preferred route. This option performed the best in terms of community impact and had the most support from those taking part in the consultation.  Safety and technology: There was broad support for the majority of the proposed measures, so further work to identify how they can be best used along the route is to be developed.  Improvement works: At Westwood Roundabout, Tankersley, Barnsley, to improve congestion and traffic flows

4.2 The preferred Mottram Moor link road (Option A) has minimal residential effect and minimises the number of properties to be demolished when compared to Option B.

5.0 SCHEME PROGRESS AND PROGRAMME

5.1 All Highways England major projects follow a standard lifecycle divided into three main elements, each with individual sub-elements. Each sub-element aligns with key decision

2 Trans-Pennine Upgrade Programme Non-Statutory Consultation Report – https://highwaysengland.citizenspace.com/he/trans-pennine-upgrade-programme/results/consultation-report.pdf Page 268

points in the project’s development and delivery. The three main elements are Options, Development and Construction as indicated at Figure 1 below.

5.2 For the trans-Pennine upgrades announced at paragraph 4.1 the initiative is currently moving from Options to the Development Phase where the Preliminary Design sub- element is due to commence. The Preliminary Design process consists of a number of important stages including:  Surveys (such as topographical, geotechnical, environmental)  As part of the Planning Act 2008 holding community consultation including exhibitions, consultation reports and the resolving of outstanding issues  Complete and freeze the preliminary design of the preferred route  Prepare draft Planning Act 2008 Development Consent Order3 in consultation with the stakeholders.  Complete the environmental assessment and prepare the environmental statement

5.3 At this stage, funding for the full scheme initiative would appear to have not yet been secured by Highways England. The £170m funding announced as part of RIS 1 (2015/16- 2020/21) is insufficient for the whole scheme and further resources are being sourced more than likely as part of the RIS 24 announcements. At this stage, however, Highways England is proceeding with the initiative “with confidence”.

Figure 1: Highways England Key decision Process within the Major Projects *Nationally significant infrastructure projects only (Includes Trans-Pennine Upgrade Programme of Works)

5.4 The Mottram Lifecycle Moor and A57(T) to A57 Link Roads are classed as a Nationally Significant Infrastructure Project (NSIP) under the Planning Act 2008. As such Highways England is required to make an application for a Development Consent Order (DCO) in order to obtain planning permission to construct it. This application will be made to the Planning Inspectorate who will examine the application in public hearings and then make a recommendation to the Secretary of State for Transport, who will decide whether or not the project will go ahead.

3 A Development Consent Order is the means of obtaining permission for developments categorised as Nationally Significant Infrastructure Projects. 4 RIS 2, Government’s Road Investment Strategy for post 2020 Page 269

5.5 Highways England envisages that it will submit an application for a DCO by winter 2018/19 with a decision expected in spring 2020. To inform its application for a DCO, Highways England will hold a statutory consultation by summer 2018 to secure relevant feedback.

5.6 In its Advice Notes5 the Planning Inspectorate notes that:  Host and neighbouring local authorities have an important role in the 2008 Planning Act process.  Local Authority participation is not obligatory but is strongly advised  A local authority will provide an important local perspective at the pre-application stage and  Local authorities are also likely to have a role in monitoring and enforcing many of the DCO provisions and requirements.

5.7 Whilst the scope of Tameside’s full involvement in the DCO process is determined and brought to Executive Cabinet for consideration and approval, two early documents have and are to be received by the authority from the Planning Inspectorate. These are the “Trans-Pennine Upgrade Programme Environmental Impact Assessment Scoping Report” establishing the scope of the Environmental Statement and the “Statement of Community Consultation” setting out how the applicant proposes to consult the community.

5.8 Given the nature of these documents and the restrictive timetable set by the Inspectorate, for comment, Executive Cabinet is asked to note that initial responses have been forwarded to the Inspectorate in conjunction with Executive Director of Place, prior to a full report setting out the full DCO process and its implications for Tameside are brought to Cabinet for consideration and approval.

5.9 Highways England have committed to starting the trans-Pennine upgrade works on site by March 2020

6.0 HIGH PEAK BOROUGH COUNCIL AND FUTURE CONSENSUS SCOPING CONSULTATION

6.1 Members and senior officers have always worked closely with colleagues in High Peak Borough Council in order to secure the maximum benefits of the announced initiative for both local authority areas. Furthermore both see this as a long term arrangement to ensure delivery of a full bypass around Hollingworth and Tintwistle enabling improved air quality in the area, the relief of traffic congestion in our towns and the wider economic potential of the local area to fully realised.

6.2 In respect of 6.1, Highways England “through consultation with local communities and stakeholders, look to reach consensus on the scope and viability of further improvements and extensions to the Mottram Moor Link Road that would alleviate the issues faced in Hollingworth and Tintwistle6.”

6.3 The outcome of this initiative, however, is not yet known and will likely be included in future strategy documents published by Government. Tameside, High Peak Borough Council and the Greater Manchester Combined Authority all continue to make strong representation to both Government and Highways England to secure a funding commitment to take forward such work in future strategy initiatives.

5 https://infrastructure.planninginspectorate.gov.uk/wp-content/uploads/2015/03/Advice_note_2.pdf 6 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/408514/ris-for-2015-16-road- period-web-version.pdf (Page 23) Page 270

7.0 FEASIBILITY OF A HIGH PERFORMANCE ROAD LINK BETWEEN MANCHESTER AND SHEFFIELD THROUGH A PURPOSE-BUILT TUNNEL

7.1 In 2014, the Department for Transport (DfT), as part of making major improvements to the capacity and connectivity of Strategic Route Network, commissioned six studies. Three are in the northern regions including a Trans-Pennine Tunnel study initiative.

7.2 In publishing its Trans-Pennine Tunnel Strategic Study Stage 3 report in November last year the report analysed the 5 best performing options to improve connectivity between the Manchester and Sheffield areas. The DfT stated that they would conduct further analysis to improve “our understanding of these options to assess more fully the potential benefits and impacts”7.

7.3 Transport for the North has also produced a Stage 1 Wider Transport Connectivity Assessment trans-Pennine Tunnel Study report8 in support of the tunnel initiative. The report covers the evidence base around the existing conditions within the study area, and provides an initial view on the need for various transport interventions.

7.4 Currently the results of the further analysis mentioned in paragraph 7.2 above, sits with Government alongside other study initiatives for their consideration. It is hoped the results of the study will be published in the near future

8.0 CONCLUSION

8.1 Improvements to the major strategic routes between Manchester and Sheffield have been a major driver for Tameside and Greater Manchester over a number of years, in order to unlock the economic potential of the area.

8.2 Work underpinning the RIS1 funding announcements made in 2014 is nearing fruition and there is now a need to ensure such initiatives move from strategy and design into actual construction with a fully resourced scheme.

8.3 Highways England must ensure that a practical solution is found to alleviate the on-going traffic issues for Tintwistle and Hollingworth as part of its wider consensus exercise discussed above.

8.4 It is also incumbent on Government that the results of the three year study into a potential trans-Pennine tunnel are published with a positive outcome to enable the economic potential of the eastern gateway into the Greater Manchester area.

9.0 RECOMMENDATION

9.1 As set out on the front of the report.

7 https://www.gov.uk/government/publications/trans-pennine-tunnel-strategic-study-stage-3-report 8 http://www.transportforthenorth.com/wp-content/uploads/TPT-WTCA-Stage-1-Final-Report-1.0-PDF.pdf Page 271

This page is intentionally left blank Appendix 1: Mottram and A57 Trunk Road Improvements Preferred Option A

Page 273 Page This page is intentionally left blank Appendix 2: Mottram and A57 Trunk Road Improvements Option B

Page 275 Page This page is intentionally left blank Agenda Item 10

Report To: EXECUTIVE CABINET

Date: 13 December

Executive Member/ Councillor John Taylor – Deputy Executive Leader Reporting Officer: Robin Monk, Director, Place.

Subject: STRATEGIC HOUSING AND EMPLOYMENT LAND AVAILABILITY UPDATE 2017 AND THE BROWNFIELD LAND REGISTER

Report Summary: Paragraph 159 of the National Planning Policy Framework requires local planning authorities to prepare an assessment to understand the available supply of land for housing and employment. At present this assessment is being refreshed in order to provide an up to date position across the Borough for the 15 year period from 1 April 2017 - 31 March 2032. This will build on the housing and supply position approved by Cabinet in March 2017. A complete review of all sites in the borough is in progress, particularly to maximise the potential from brownfield sites within or around Town Centres and having regard to the contribution that greenfield sites should make to future housing potential. In April 2017, the government introduced the Brownfield Land Register (BLR Regulations) and the grant of planning permission in principle (PiP Regulations). These regulations are aimed at speeding up the delivery of housing on brownfield sites. Part 1 of the Brownfield Land Register must be published no later than 31 December 2017 and is simply a list of brownfield sites (no part of which may be greenfield) which are estimated to accommodate 5 dwellings or more. The report therefore lists the brownfield sites that should be included on Part 1 of the register. The inclusion of a site on Part 1 of the Register does not grant planning permission in principle. This is a separate process that requires detailed assessment and governance to be established. This is not required to be in place by 31 December 2017 and will be the subject of a future report to Executive Cabinet in 2018.

Recommendations: The Executive Cabinet is asked to: (i) Note the contents of this report and approve the publication of the brownfield sites identified at Appendix 1 for inclusion on part 1 of the Brownfield Land Register for Tameside. (ii) Agree to receive a further report in 2018 setting out the detailed requirements and recommended governance arrangements for assessing sites to be included on Part 2 of the Brownfield Land Register, granting Permission in Principle. (iii) Agree to receive a further report on the overall position for housing and employment land supply.

Links to Community The Tameside Housing and Employment Land Availability

Page 277 Strategy: Assessments are closely aligned with the Community Strategy, creating a spatial expression of its aims and priorities. The assessment highlights the land requirements that will allow continued economic growth in the Borough, thus supporting the aims and vision of a prosperous Tameside.

Policy Implications: The best use of previously developed (brownfield) land is an important part of the evidence base that will be used to support the evolution of the Greater Manchester Spatial Framework (GMSF) and the proposed new Local Plan for Tameside.

Financial Implications: There are no direct financial implications as a result of this report. (Authorised by the Borough If sites are developed then planning fee income and future Treasurer) Council tax income will assist the Councils Budget position.

Legal Implications: Assessments of land availability are a requirement of the National (Authorised by the Borough Planning Policy Framework (NPPF). The publication of a Solicitor) Brownfield Land Register is now a statutory duty under the 2017 Regulations.

Risk Management: Annual monitoring of sites ensures that the supply information is up to date and minimises the risk of challenge. It is acknowledged

that in order to manage the risk of over-estimating the available supply it must be accepted that not all sites may actually be developed. Detailed procedures and governance arrangements will need to be established to manage any risks arising from challenges to any sites on Part 1 of the Brownfield Register being subsequently granted (or denied) planning permission in principle.

Access to Information: The background papers relating to this report can be inspected by contacting the report writer Peter Taylor

Telephone:0161 342 5242

e-mail: [email protected]

Page 278 1. INTRODUCTION

1.1 The National Planning Policy Framework (NPPF) states that the purpose of the planning system is to contribute to the achievement of sustainable development. An assessment of land availability identifies a future supply of land which is suitable, available and achievable for housing and economic development uses. This now also includes a clear mandate to maximise the potential for the redevelopment of brownfield sites (previously developed land) particularly in and around Town Centres.

1.2 The most recent Housing and Employment Land Availability report was published earlier this year and updated land supply data as at 31st March 2016. The 2017 assessments are being fundamentally reviewed to ensure that we have maximised the contribution of the housing supply on previously developed land. This information will be utilised to inform both further development of the Greater Manchester Spatial Framework (GMSF) and the emerging Local Plan for Tameside.

1.3 The requirement for local authorities to publish a brownfield land register has been formalised through the publication of two sets of planning regulations in April 2017. These cover the publication of the brownfield land register (BLR Regulations1) and the grant of permission in principle (PiP Regulations2). Following the publication of the statutory regulations the DCLG also published two sets of guidance notes on in July 2017 covering the two elements identified above.

1.4 The Guidance3 was issued to support local planning authorities in preparing and publishing brownfield land registers. The purpose of the brownfield land register is stated as allowing local authorities to provide up-to-date and consistent information on sites that are considered to be appropriate for residential development.

1.5 The BLR Regulations set a deadline of 31 December 2017 for the preparation, maintenance and publication of the register of brownfield land.

2.0 STRATEGIC HOUSING AND EMPLOYMENT LAND SUPPLY

2.1 In March 2017, Executive Cabinet approved the Strategic Housing and Employment Land Availability Assessment (SHELAA) to cover the period 1st April 2016 to 31st March 2031.

2.2 Over recent months officers have been working to update the SHELAA. Following discussions with members, further work is now being undertaken on the SHELAA with a particular focus on ensuring that we have maximised the contribution to housing land supply from Previously Developed Land (PDL), particularly in terms of the contribution from sites in and around our town centres. Alongside this, an assessment of Public Open Space is also being undertaken which will also further inform the SHELAA; this project is currently on-going.

2.3 A further and updated report will therefore be presented to Executive Cabinet in March 2018 with a new SHELAA to cover the base date of 1st April 2017 to 31st March 2032. It should also be noted that there is no legal deadline for the publication of the SHELAA as with the BLR.

1 The Town & Country Planning (Brownfield Land Register) Regulations 2017 2 The Town & Country Planning (Permission in Principle) Regulations 2017 3 https://www.gov.uk/guidance/brownfield-land-registers

Page 279

3.0 BROWNFIELD LAND REGISTER

3.1 The purpose of the brownfield land register (BLR) is to allow local authorities to provide up-to-date and consistent information on brownfield sites that are considered to be appropriate for residential development. The BLR Regulations set a deadline of 31 December 2017 for the preparation, maintenance and publication of the register of brownfield land. Sites that meet the criteria identified below must be included in the Part 1 register.

3.2 Brownfield land is defined as previously developed land (PDL) and has the same meaning as the description set out in Annex 2 of the National Planning Policy Framework. In this case PDL is referred to as brownfield land. The regulations require all Local Planning Authorities to have a brownfield land register covering their area by 31 December 2017.

3.3 In determining site suitability regard must be had to the criteria set out in the Town and Country Planning (Brownfield Land Register) Regulations 2017 (4)(1)(a-d), that the land must be:  At least an area of 0.25 hectares or is capable of supporting at least 5 dwellings;  Is suitable for residential development;  Is available for residential development; and  That residential development is achievable.

3.4 In accordance with the criteria of at least 5 dwellings, there are 87 sites capable of delivering somewhere in the order of 2,731 dwellings – which is equivalent to approximately 35% of the housing supply within the urban area of Tameside.

3.5 The register will consist of two parts; Part 1 will comprise all brownfield sites appropriate for residential development and Part 2 will comprise those sites granted permission in principle. Sites considered appropriate for Part 1 are not subject to any prescribed procedures, such as consultation. Part 1 can include sites with full or outline permission and sites without planning permission, put forward by landowners or developers that the Council considers are deliverable within the next 10 years. These sites are set out in Appendix 1. The Appendix also provides an indication of ownership and planning status which has informed the sites inclusion on the register – the planning status references are explained below.

Planning Status Explanation OUT Outline planning permission FUL Full planning permission AL Allocated in the Unitary Development Plan PEN Decision pending on detailed matters or a more recent application EXP Expired permission but with clear potential WITH Withdrawn application but with clear potential WRIT Planning application written off but with clear potential P3N Prior notification for permitted development CFS Submitted by landowner/developer through TMBC call for sites GMSF CFS Submitted by landowner/developer through GMSF call for sites NLUD Identified in the National Land Use Database SHLAA Identified by TMBC officer knowledge

Page 280 3.6 Appendix 1 does not include any sites currently under construction as they are not considered available because they are already committed. However they will clearly contribute to the overall brownfield supply since 2015. Inclusion of sites on Part 1 of the register is not considered to be controversial. Some sites already have planning permission but have not commenced but for the remaining sites without permission inclusion on Part 1 of the BLR does not infer any form of planning permission; albeit they could benefit from Permission in Principle once they have been assessed appropriately for entry on to Part 2 of the register.

3.7 Part 2 of the register is a subset of Part 1 and it will only include sites that the LPA has determined should benefit from permission in principle for residential development. The entry of a site on to Part 2 of the BLR requires that the Council undertakes the necessary requirements for publicity, notification and consultation as required under Regulation 6 of the BLR Regulations. This principally entails the placing of a site notice in a visible place for not less than 21 days and publishing specific information on a website maintained by the council. There is no deadline set in the regulations for identifying sites to be on part 2 of the register. However, a clear set of procedures and governance is necessary in order to implement a decision making process for sites to be included on Part 2 of the Brownfield Register, granting Permission in Principle. Recommendations for this will be the subject of a separate report to Executive Cabinet.

4.0 CONCLUSION

4.1 The Council is required to produce a Brownfield Land Register under the Brownfield Land Regulations by the 31 December 2017. These sites, capable of delivering 5 or more dwellings, are set out at Appendix 1. Inclusion on Part 1 of the register does not infer any form of planning permission but sites will subsequently need to be assessed for inclusion on Part 2 of the register which will grant Permission in Principle. The procedures and governance arrangements for including sites on Part 2 of the register will be the subject of a separate report to Executive Cabinet in 2018.

5.0 RECOMMENDATIONS

5.1 As set out on the front of the report.

Page 281 This page is intentionally left blank APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/HURST/028 SITE OF FORMER Ashton-under-Lyne Ashton Hurst Site of former club building. 15/00063/FUL 24 apartments Brownfield Private 0-5 FUL 24 0.4026 CONSERVATIVE CLUB (PEN)... 11/00228/OUT Ownership VERNON STREET, Extension of time limit for 05/00697/OUT - block of 24no. Appartments (approved 17/06/2011)... 08/01369/REM - Design of block of 24no. Flats… 05/00697/OUT - erection of 24no. appartments

H/STMICH/009 PREMISES AND LAND AT Ashton-under-Lyne Ashton St Works building 08/00008/FUL Part 3-storey, Brownfield Private 6-10 EXP 9 0.0563 239 Mossley ROAD, OL6 Michael's part 4-storey block containing Ownership 6LN 9no. Apartments (Approved 26/02/2008). Page 283 Page

H/STMICH/013 FORMER MINERS Ashton-under-Lyne Ashton St Site of cleared public house. 10/00389/FUL Erection of 6no. Brownfield Private 6-10 EXP 6 0.0773 REFUGE PUBLIC HOUSE, Michael's dwellings (Approved Ownership 222 KINGS ROAD, OL6 20/12/2011). 08/00638/FUL 8HD demolition of vacant public house and erection of 4no. 2- storey terraced houses (Approved 05/11/2008)

H/STMICH/064 30 ROMNEY STREET, OL6 Ashton-under-Lyne Ashton St End terraced property formally 15/00853/FUL Change of use Brownfield Private 0-5 FUL 6 0.0097 9HU Michael's used as a retail shop and of first and second floor to 6 Ownership storage bedsits (Ap 10/11/15).

H/STMICH/065 FORMER MILL Ashton-under-Lyne Ashton St Site of former mill reservoirs No previous planning Brownfield Public 0-5 GMSF CFS 26 0.7476 RESERVIOR, OFF FERN Michael's adjacent to fish pond applications relating to Ownership LODGE DRIVE/QUEENS residential development on ROAD, this site. H/WATERL/050 PARK BRIDGE WORKS Ashton-under-Lyne Ashton Employment site including 13/00182/OUT Demolition of Brownfield Private 0-5 PEN 26 1.2305 PARK BRIDGE, OL6 8AW Waterloo large works building and car exisitng warehouse and Ownership park. redevelopment of site with 26no. Houses (Approved 30/05/2013). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/MOSSLE/158 JUNCTION GARAGE Ashton-under-Lyne Mossley Site of former petrol filling 14/00474/FUL 9 dwellings & Brownfield Private 0-5 FUL 9 0.2730 Mossley ROAD ASHTON, station, kiosk, office and dem garage petrol station (Ap Ownership OL6 9BQ workshop located in the Green 24/7/14). 11/00443/FUL 9 Belt. Dwellings & dem garage & filling station (Ap 25/08/2011)

H/STPETE/052 LAND CORNER OF Ashton-under-Lyne St Peter's Area of hardstanding used as 06/01727/FUL Erection of a Brownfield Private 6-10 WITH 9 0.0542 CHURCH STREET AND town centre pay and display four storey building comprising Ownership GREY STREET car park. of 2no. shops on the ground floor and 6no. flats above, layout and associated car parking spaces (Withdrawn 17/01/2007)

Page 284 Page H/STPETE/008 LAND AT SWAN STREET Ashton-under-Lyne St Peter's Vacant land to the rear of 10/00331/FUL Extension of Brownfield Private 6-10 EXP 5 0.0194 REAR OF 18-28 OLD commercial premises. time limit for 07/00223/FUL Ownership STREET, (Approved 23/06/2010) - 3- storey building with retail at ground floor and 5no. Flats above… 07/00223/FUL 3- storey buildong with 2no. Retail units at ground floor & 5 flats.

H/STPETE/015 FORMER WESLEYAN Ashton-under-Lyne St Peter's 19th century building formally 09/01042/FUL extend time Brownfield Private 0-5 EXP 6 0.0326 SCHOOL 18 CROWN used as Wesleyan Sunday limit 06/01496/FUL Ownership STREET, OL6 7PQ School now vacant. (10/06/2010). 06/01496/FUL erection of 35 flats. 04/01603 demolish warehouse & factory & erect 27 flats - amend 03/00632/FUL. 03/00632/FUL demolition of exisitng warehouse & facotry & erection of 20 flats APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/STPETE/004 9-15 WELLINGTON Ashton-under-Lyne St Peter's Vacant site within town centre. 10/00004/FUL Discharge Cond Brownfield Private 6-10 EXP 7 0.0247 STREET AND 6-10 WOOD 2, 5, 6 & 7 of 05/00287/FUL Ownership STREET, OL6 6AJ (16/03/2010). 05/00287/FUL Residential & commerical dev comp g/f retail unit & 14 flats at 9-15 Wellington Street (30/03/2005)

H/STPETE/022 GOLDGEM Ashton-under-Lyne St Peter's Rectangular employment site 07/00261/OUT Mixed use Brownfield Private 6-10 EXP 71 0.4412 INTERNATIONAL LTD, on junction of Cavendish Street development: max of 110 flats, Ownership CAVENDISH STREET, and Katherine Street. B1, A1, A2, A3 & A4 ASHTON, OL6 7BF (01/06/2007). 05/01693/OUT flats/houses & retail unit (Refused 17/02/2006) 05/01340/OUT Demolish exisitng & erect 18 flats & Page 285 Page 1retail unit & 13 houses (Withdrawn 25/11/2005)

H/STPETE/024 8 CHURCH STREET, OL6 Ashton-under-Lyne St Peter's Run down former industrial/ 15/00255/FUL Alteration & Brownfield Public 0-5 FUL 18 0.0529 6XE storage building. extension to form 18 Ownership apartments (Ap 19/10/15). 09/00075/PLCOND (Withdrawn 26/03/10). 06/01019/FUL Alteration of building & new extension to form 18 apartments (Ap 08/12/2006)

H/STPETE/018 FORMER BIRCH HOTEL Ashton-under-Lyne St Peter's Site of former public house. 09/00608/REM 28 apartments Brownfield Private 6-10 EXP 8 0.2156 SITE ON LAND TO REAR (12/11/2009). 06/01063/FUL Ownership OF BIRCH STREET, OL7 erect 7 houses. 06/01062/OUT 0DZ erect 4-storey apartment block. 04/01223/OUT Conversion of public house to apartment building and houses

APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/STPETE/029 FORMER LEGENDS PH, Ashton-under-Lyne St Peter's Large prominent building with 07/01562/FUL Conversion of Brownfield Private 6-10 EXP 7 0.0458 149 STAMFORD STREET, commercial use on ground outbuilding and first and Ownership OL6 6DL floor. second floor into 7no. 1-bed and 1no. 2-bed apartments (Approved 22/01/2008).

H/STPETE/030 228 STAMFORD STREET Ashton-under-Lyne St Peter's Vacant 19th century building in 07/01681/FUL Proposed Brownfield Private 6-10 EXP 8 0.0423 CENTRAL, OL6 7LJ town centre location, adjacent ground floor office/retail and Ownership to listed building. residential development comprising 8no. 2-bed apartments (Approved 27/02/2008) H/STPETE/007 PARCEL OF LAND Ashton-under-Lyne St Peter's Town centre site with 10/00421/FUL ext time limit Brownfield Private 6-10 EXP 35 0.0845 JUNCTION OF DELAMERE permission for use as a 07/01039/FUL (08/12/2010). Ownership Page 286 Page ST/WELLINGTON temporary car park until 31 07/01039/FUL 22no. 1-bed STREET/WOOD STREET, October 2018. flats, 13no. 2-bed flats & 2no. OL6 7LZ Retail untils fronting Deleamere Street.

H/STPETE/009 203-203A STAMFORD Ashton-under-Lyne St Peter's Vacant building and adjoining 10/00601/FUL Written Off - Brownfield Private 6-10 WRIT 8 0.0496 STREET CENTRAL, OL6 land within town centre. Article 36 (13) (a) DMPO 2010 Ownership 7QB Ext time limit for redevelopment 07/01136/CON (Withdrawn 07/03/2014). 10/00606/CON Demolition of existing buildings and construction of 2no. Retail units and 20no. 1 & 2 bed apartments

H/STPETE/010 205-217 STAMFORD Ashton-under-Lyne St Peter's Cleared site, currently 10/00607/FUL Written Off - Brownfield Private 0-5 WRIT 20 0.1277 STREET CENTRAL, OL6 temporary car park. Article 36 (13) (a) DMPO 2010 Ownership 7QB Ext time limit for 07/01135/FUL (Withdrawn 07/03/2014). 07/01135/FUL demolition of existing buildings and construction of 7 retail units and 76no. 1 and 2 bed apartments... APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/STPETE/061 BUILDERS YARD BANK Ashton-under-Lyne St Peter's Fomer builders merchants falls No previous planning Brownfield Private 6-10 AL 34 0.4864 STREET/BENTICK STREET, with UDP Policy E2 (2) applications relating to Ownership Development Opportunity residential development on Area this site.

H/STPETE/108 CLYDE HOUSE CLYDE Ashton-under-Lyne St Peter's Office building. 12/00760/FUL conversion of Brownfield Private 6-10 EXP 5 0.0789 STREET ASHTON, OL7 exisitng B1 offices to mixed use Ownership 0NQ containing 5no. One-bed residential units and retention of rear ground floor office (Approved 18/10/2012)

H/STPETE/133 GOOD HOPE HOUSE Ashton-under-Lyne St Peter's Offices located within a former 16/00729/P3N Change of use Brownfield Private 0-5 P3N 7 0.0103 BENTINCK STREET, OL6 mill now in mixed use from office to residential to Ownership 7SS provide 7no. flats

Page 287 Page H/AUDENS/110 FORMER ROBERTSON'S Audenshaw Audenshaw Vacant employment site, No previous planning Brownfield Private 0-5 CFS 318 8.0791 JAM, LAND AT FITZROY formally Robertson's Jam. applications relating to Ownership STREET, residential development on this site.

H/DENTNE/026 WORKS AT JUNCTION OF Denton Denton North Small employment site 11/00642/OUT Outline Brownfield Mix 6-10 WITH 18 0.4495 BROMSGROVE LANE East consisting of planning permission for AND THORNLEYS ROAD, industrial/commercial units residential re-development - M34 3DS and yard area. Withdrawn 15/6/16

H/DENTNE/005 WORKS BUILDING 88-90 Denton Denton North Employment site containing 05/01137/OUT Residential Brownfield Private 6-10 EXP 19 0.2898 WILTON STREET, East works unit. development - outline Ownership (Approved 26/09/2005). 04/01581/OUT Residential development - Outline (Withdrawn 16/12/2004). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/DENTNE/002 LAND AND BUILDINGS Denton Denton North Site of former works buildings - 15/00081/OUT 56 UNITS Brownfield Private 0-5 OUT 56 1.1396 ON THE EAST SIDE OF East now demolished. (07/05/2015). 11/00513/OUT Ownership EDWARD STREET, 67 dwellings (01/02/2012). 08/00444/OUT 45 dwellings (19/06/2008). 08/00443/OUT 43 dwellings (19/06/2008). 08/004444/OUT 45 dwellings rear 1-17 Osb. Rd (19/06/2008)

H/DENTNE/044 51-55 STOCKPORT ROAD, Denton Denton North Vacant listed early 19th 13/01037/FUL Changeof use of Brownfield Private 0-5 PEN 9 0.0962 M34 6DB East century house last in use as building from commercial use Ownership offices. to 9no. 1-bed apartments Page 288 Page (Approved 27/02/2014).

H/DENTNE/001 FORMER OLDHAM Denton Denton North Vacant brownfield former 15/00704/OUT Outline for resi Brownfield Private 0-5 OUT 147 3.4265 BATTERIES SITE WEST East employment site. Subject to dev up to 150 houses (App Ownership SIDE EDWARD STREET, UDP policy E2(11) 09/09/15). 15/00686/ENV (PEN 25/09/15). 14/01149/OUT Outline resi dev up to 150 units (Ref 04/11/15)

H/DENSTH/001 SITE OF 2-32 Denton Denton South Overgrown land and 13/00929/FUL 16no. houses Brownfield Private 0-5 FUL 16 0.3608 WORDSWORTH ROAD, hardstanding. (PENDING). 10/00361/FUL Ownership renewal of 05/01071/FUL (Approved 17/11/2010). 05/01071/FUL 60no. apartments & 2no. Retail units (Approved 28/10/2005).

H/DENSTH/031 FORMER SITE OF THE Denton Denton South NLUD site - former rectory and No previous planning Brownfield Private 6-10 NLUD 13 0.3629 OLD RECTORY, MEADOW grounds. applications for residential Ownership LANE, M34 7GD development on this site

H/DENWST/021 S G TURRET LTD 96 Denton Denton West Two storey industrial/works 15/00094/FUL Demolition of Brownfield Private 0-5 FUL 8 0.0968 TOWN LANE, M34 2 DD building industrial unit & Ownership redevelopment of site with 8 apartments in 2 blocks (Ap 14/05/15). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/DROEST/013 LAND ADJACENT TO 46 Droylsden Droylsden East Former car park. 14/00741/FUL 9 Houses (Ap Brownfield Private 0-5 FUL 9 0.1768 GORSEY FIELDS, 07/10/14). 09/00041/PLCOND Ownership (13/10/2009). 09/00038/PLCOND (09/10/2009). 09/00037/PLCOND (09/10/2009). 06/01857/REM 12 Flats (04/04.2007). 04/00286/OUT 12 dwellings (26/07/2004)

H/DROEST/014 296 EDGE LANE AND 429- Droylsden Droylsden East Derelict multi storey building 10/00007/PLCOND Conds 2, 4, Brownfield Private 6-10 EXP 5 0.0225 431 MANCHESTER 5 & 6 of 04/01830/FUL Ownership ROAD, M43 6BG (10/08/2010). 08/01152/FUL Additional apartment to scheme previously app Page 289 Page 04/01830/FUL (18/02/2009). 04/01830/FUL Alts of exisitng shop & bed sits to 4 flats& 2 Shops (31/01/2005)

H/DROEST/017 GARAGE PREMISES AT Droylsden Droylsden East Car repair garage and 07/00834/OUT Demolition of Brownfield Private 6-10 EXP 6 0.0689 178 MOORSIDE STREET, surrounding yard area. exisitng garage/car repair Ownership M43 7HG premesis & erection of 2- storey apartment block comprising 6no. Units (approved 12/11/2007)…

H/DROEST/035 VICTORIA MILL BUCKLEY Droylsden Droylsden East Mill complex located close to 15/00030/OUT Demolition of Brownfield Private 0-5 OUT 127 1.2426 STREET, M43 6DU Droylsden Marina exisitng buildings and erection Ownership of 127 dwellings etc (Ap 19/11/15). 15/00856/ENV Screening opion relating to proposed mixed use development (Pen 24/09/15).

H/DROEST/053 MEADOW VIEW FISH Droylsden Droylsden East Former fish farm buildings and 15/00564/OUT Demolition of Brownfield Private 0-5 OUT 8 0.5106 FARM LUMB LANE, M43 associated parking areas. existing buildings & erection of Ownership 7LN 8 houses (Ap 11/09/15) APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/DUKINF/017 SITE OF NORTH STAR Dukinfield Dukinfield Cleared site of former Pub 07/00826/REM Erection of Brownfield Private 6-10 EXP 18 0.0883 PUBLIC HOUSE QUEEN 15no. 2-bed apartments and Ownership STREET Dukinfield, SK16 3no. 1-bed apartments with 4LS undercroft car parking (Approved 12/09/2007). 05/00373/OUT Erection of 18no. Self contained apartments (Approved 02/06/2005). H/DUKINF/018 GARAGE AND Dukinfield Dukinfield Garage and showroom 06/00392/OUT Construction of Brownfield Private 6-10 EXP 10 0.1782 SHOWROOM AT 193 apartment block housing 24no. Ownership KING STREET, SK16 4TH Apartments and including associated car parking and landscaping (approved 10/05/2006)... Page 290 Page

H/DUKSTB/002 LAND ADJACENT 102-128 Dukinfield Dukinfield Triangular shaped, vacant 14/00627/OUT Proposed Brownfield Private 0-5 OUT 15 0.4006 SANDY LANE, Stalybridge former reservoir site in residential development with Ownership established employment area. all matters reserved - Outline (Approved 30/03/2015)

H/DUKSTB/062 PARKING AREA REAR OF Dukinfield Dukinfield NLUD site No previous planning Brownfield Private 6-10 NLUD 7 0.2070 1-7 GLOUCESTER RISE, Stalybridge applications relating to Ownership residential development on this site H/HYDGOD/022 FORMER GLOBE WORKS Hyde Hyde Godley Vacant former industrial site. 13/01025/OUT Erection of Brownfield Private 6-10 WRIT 44 1.4343 BROOK STREET, Wasteland. Untidy. Sloping 44no. dwellinghouses (With). Ownership sections, with stream adjacent. 04/00052/OUT Proposed residential development (Ap 05/09/2006).

H/HYDGOD/038 LAND AT JUNCTION OF Hyde Hyde Godley Former site of Uniterian 10/01028/FUL Renewal of Brownfield Private 6-10 EXP 23 0.1280 WILLIAM STREET AND Methodist Church, now car planning consent Ownership CROOK STREET, park and car showroom and 07/01461/FUL 23 appartments garage. in 2-blocks (Approved 03/03/2011). 07/01461/FUL Residential development of 23no. apartments in two blocks (Approved 21/01/2008). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/HYDGOD/046 SITE OF HATTERSLEY Hyde Hyde Godley Former housing site 09/00760/OUT Residential Brownfield Private 6-10 OUT 20 0.3410 COURT AND ADJOINING development of approx 192no. Ownership LAND, HATTERLSEY homes on Sites 12, 13, 14, 15, ROAD WEST: 16, 17, 19 & 20. Site 17 - 20no HATTERSLEY dwellings (09/12/2009). REGENERATION SITE 17, 06/00143/OUT Residential development: Site 17 - 13no. dwellings (17/03/06)

H/HYDGOD/047 SITE OF 2-18 WATERSIDE Hyde Hyde Godley Former housing site 09/00760/OUT Residential Brownfield Private 6-10 OUT 21 0.3751 AND GARAGES: development of approx 192no. Ownership HATTERSLEY homes on Sites 12, 13, 14, 15, REGENERATION SITE 19, 16, 17, 19 & 20. Site 19 - 21no dwellings (09/12/2009). 06/00151/OUT Residential development: Site 19 - 14no. dwellings (17/03/06) Page 291 Page

H/HYDGOD/069 1-3 MARKET PLACE, SK14 Hyde Hyde Godley Office building located within 15/00949/P3N Change of use Brownfield Private 0-5 P3N 11 0.1011 2LY Hyde Town Centre of second & third floor from Ownership offices to 11 studio apartments (No Permission Required)

H/HYDGOD/070 WOODHEAD HOUSE 44- Hyde Hyde Godley First and second floor office 16/00439/P3N Change of use Brownfield Private 0-5 P3N 8 0.0502 46 MARKET STREET, accomodation located within of first and seconf floor from Ownership SK14 1AH Hyde Town Centre offices to 8no. apartments

H/HYDNEW/001 LAND AT 2 BROADWAY, Hyde Hyde Newton Vacant employment site, 13/01045/OUT OPP for means Brownfield Private 0-5 OUT 90 2.1023 SK14 4QQ located within an established of access for mixed use Ownership employment area development comprising demolition of remaining structures, 90 dwellings including children's play area and employment use of 3,300 square meters (Appeal Upheld 02/02/2015).

H/HYDNEW/007 FORMER CARRFIELD Hyde Hyde Newton Vacant site located within an 16/00897/OUT Residential Brownfield Private 0-5 PEN 127 2.7651 MILLS SITE NEWTON established employment area. development comprising up to Ownership STREET, 127 dwellings (Pending) APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/HYDNEW/052 EAST TAME BUSINESS Hyde Hyde Newton Cleared former industrial site 15/00721/OUT Dem existing Brownfield Private 0-5 OUT 42 1.8208 PARK REXCINE WAY, within East Tame Business buildings & redeve 49 Ownership SK14 4GX Park. Boundary redrawn to dwellings (Ap 24/12/15). include SHLAA 2014 site HY016 15/00299/ENV Screening opinion for dem industrial buildings & redev for resi (Pen). 10/00276/FUL Ext time limit 07/00287/FUL (Ap 19/05/10) H/HYDNEW/066 WHARF MILL NORTH Hyde Hyde Newton Remainder of Wharf Mill 15/00631/FUL (Ap 11/11/16). Brownfield Private 0-5 GMSF CFS 33 0.8955 SITE, Dukinfield ROAD, employment site 15/00797/ENV (Pen 25/09/15). Ownership 09/01070/OUT Dem factory & redev for mixed use (App 19/10/11). 09/00002/OUT (Case Dismissed 09/08/10). Page 292 Page 08/01315/ENVSCO (Pen 03/12/08)

H/HYDNEW/082 NEWTON BUSINESS Hyde Hyde Newton Exisitng business park and 16/00054/OUT Demolition of Brownfield Private 0-5 OUT 64 2.0817 PARK CARTWRIGHT ancillary parking areas all exisitng structures on site Ownership STREET, SK14 4FA and redevelopment for residential dwellings (App 16/12/2016)... H/HYDWER/026 VACANT BUILDERS YARD Hyde Hyde Werneth Derelict buildings and areas of 14/00038/PLCOND Dis Brownfield Private 0-5 PEN 16 0.4601 OFF ACORN AVENUE hardstanding. Flat, untidy and Conditions 1, 3, 6 & 14 of Ownership AND ROWBOTHAM within residential area. 10/00512/FUL (PEN). STREET, GEE CROSS, 10/00512/FUL 16 dwellings & refurbishment of 4 exisitng dwellings (29/06/2011). 08/00045/OUT Resub 07/01364/OUT (Refused). 04/00112/OUT 21 dwellings

H/HYDWER/059 DRESS UP AND PARTY Hyde Hyde Werneth Early 20 century single storey 15/00011/OUT Demolition of Brownfield Private 0-5 OUT 6 0.0347 SHOWROOM, CROFT building in retail use retail unit & erection of 6 flats Ownership STREET, H/HYDWER/062 20 ALEXANDRA STREET, Hyde Hyde Werneth Office building located within 16/00222/P3N Change of use Brownfield Private 0-5 P3N 9 0.0604 an employment area adjacent from offices to 9no. Ownership to residential dwellings apartments APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/HYDWER/066 CHARLOTTE HOUSE Hyde Hyde Werneth Site of residential care home 15/01038/FUL Demolition of Brownfield Private 0-5 FUL 16 0.1026 RESIDENTIAL HOME exisitng fire damaged care Ownership ALBERT ROAD, SK14 1DH home and redevelopment of site with 16no. apartments (Ap 23/06/2016)

H/LONGDE/008 LAND AT DOVE HOUSE Hyde Longdendale Single storey industrial unit 08/00657/FUL 5 houses - Brownfield Private 6-10 EXP 5 0.1569 THORNCLIFFE WOOD, and yard. Resubmission (21/08/2008). Ownership HOLLINGWORTH, SK14 07/01155/OUT Renew 8NJ 04/01069/OUT (24/10/2007). 07/01201/FUL 5 houses (Withdrawn 02/06/2008). 04/01069/OUT 4 apartments (01/09/2004).

Page 293 Page H/LONGDE/111 HATTERSLEY DISTRICT Hyde Longdendale Former Hattersley District 13/00619/NDM Demolition of Brownfield Mix 6-10 SHLAA 75 2.1522 CENTRE, Centre. exisitng block of flats and former Bird in Hand PH (Ap 23/08/13). 12/00686/NDM Proposed demolition of buildings within the Hattersley Centre (Ap

H/LONGDE/112 LAND ON CORNER OF Hyde Longdendale Former Peak Valley Housing No previous planning Brownfield Private 6-10 SHLAA 7 0.1919 HATTERSLEY ROAD EAST Office. application relating to Ownership AND UNDERWOOD residential development on ROAD, this site. H/LONGDE/035 LAND ON THE JUNCTION Hyde Longdendale NLUD site, now grassed site No previous planning Brownfield Private 6-10 NLUD 10 0.2965 OF BALL WALK AND and parking area applications relating to Ownership CLOUGH END ROAD, residential development on MOTTRAM, SK14 3PX this site

APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/LONGDE/215 WHITE HART 91 MARKET Hyde Longdendale Vacant public house located 15/00946/FUL Change of use Brownfield Private 0-5 FUL 6 0.0384 STREET MOTTRAM, SK14 within Mottram-in- to form 7 apartments (Ap Ownership 6JQ Longdendale Conservation 28/01/16). 12/00764/FUL Area Demolition of outbuildings and part of main building and conversion of pub into 2no. 3- bed houses (Approved 03/10/2012)

H/LONGDE/207 CLEARED SITE AND LAND Hyde Longdendale Former housing site now 09/00761/OUT Residential Brownfield Private 6-10 OUT 22 0.3931 OFF BUNKERS HILL comprising areas of grass and development of approx 22 Ownership ROAD: HATTERSLEY hardstanding. homes SITE 23 (14/12/2009). REGENERATION SITE 23, 06/00155/OUT Residential Development Site 23 to deliver Page 294 Page approxy 14-16no. dwellings (17/03/2006)

H/LONGDE/219 LAND ADJACENT 2 Hyde Longdendale Former car park to public 14/00378/OUT Proposed Brownfield Private 0-5 OUT 6 0.0942 ASHWORTH LANE house which is now in residential development of Ownership MOTTRAM, SK14 6NT residential use. 6no units - Outline (Approved 10/06/2014) H/LONGDE/206 SITE OF FLATS AND Hyde Longdendale Former housing site 16/00962/OUT Residential Brownfield Private 6-10 OUT 31 0.5944 BUNGALOWS AT SANDY development. 09/00760/OUT Ownership BANK AVENUE: Residential development of HATTERSLEY approx 192no. homes on Sites REGENERATION SITE 16, 12, 13, 14, 15, 16, 17, 19 & 20. Site 16 - 31no dwellings (09/12/2009). 06/00143/OUT Residential development: Site 16 - 22no. dwellings (17/03/06).

H/LONGDE/228 LAND AND FORMER Hyde Longdendale NLUD site including land No previous planning Brownfield Private 6-10 NLUD 7 0.1994 GARAGE SITE ADJACENT adjacent to church and former applications relating to Ownership TO HOREB BAPTIST garge site residential development on CHURCH MELANDRA this site CRESCENT, APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/MOSSLE/011 SITE OF RIVER MILL Mossley Mossley Site of demolished mill & 10/00821/FUL Renew Brownfield Private 6-10 EXP 16 0.3283 LAND REAR OF 16-32 Methodist church. Steep slope 07/00265/FUL (10/12/2010). Ownership WAGGON ROAD, from Waggon Road to River 07/00265/FUL 16 apartments. Tame. Eastern edge of site 04/01400/FUL 12 Apartments located within Flood Zones 2 & (29/11/2004). 3.

H/MOSSLE/107 LAND AT BROOK Mossley Mossley Works unit and remainder of 07/01543/REM WRITTEN OFF - Brownfield Mix 6-10 WRIT 18 0.5027 BOTTOM BETWEEN cleared site close to Mossley ARTICLE 36 (13) (a) DMPO 2010 SMITH STREET AND town centre. - erection of 5 houses & 26 NIELD STREET, retirement apartments - reserved matters for 05/00469/OUT (withdrawn 08/03/2013). 05/00469/OUT. 04/00329/OUT residential development Page 295 Page

H/MOSSLE/111 LAND ADJOINING AND Mossley Mossley Site comprises pallet works, 13/00169/OUT Proposed Brownfield Private 0-5 PEN 42 0.6281 TO REAR OF 60 EGMONT former engineering operation, Residential Development - Ownership STREET, car park and house. OUTLINE (Approved 14/01/2014). 07/00050/OUT Residential Development - Outline (Approved 16/07/2008).

H/MOSSLE/025 Mossley MILLS Mossley Mossley Cleared site of Carrhill Mill off 13/00856/OUT Erection of Brownfield Private 0-5 OUT 35 0.8815 DEVELOPMENT Manchester Road, Mossley. 35no. houses (App 14/04/14). Ownership OPPORTUNITY AREA 04/01311/FUL WRITTEN OFF - CARRHILL MILL, ARTICLE 36 (13) (a) DMPO 2010 - Demolition of Carrhill Mill and mixed use redev inc 122 dwellings (Withd 15/03/2010) APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/MOSSLE/015 WOODEND TAVERN, Mossley Mossley Public house with car park and 15/00501/FUL Demolition of Brownfield Private 0-5 FUL 16 0.3416 MANCHESTER ROAD, large front garden adjoining PH & erection of 16 houses (Ap Ownership OL5 9AY Warmco Industrial estate. 05/02/16). 10/00050/PLCOND TPO. (Ap 15/07/2010). 07/00275/FUL 10 town houses & 6 Flats (Ap 01/06/2007)

H/MOSSLE/022 Mossley MILLS Mossley Mossley Vacant mill building & land 07/00154/FUL CU mill to 18 Brownfield Private 6-10 EXP 22 0.2273 DEVELOPMENT adjoining River Tame. flats & erection of 4 dwellings Ownership OPPORTUNITY AREA (17/12/2007). 04/00860/FUL QUEEN STREET MILL partial dem & CU mill to 18 SITE, flats. 01/00836/FUL CU of Queens Mill to 24 dwellings & erection 20 dwellings Page 296 Page

H/MOSSLE/077 LAND BETWEEN Mossley Mossley Car storeage area on former No previous planning Brownfield Mix 6-10 CFS 9 0.2441 STATION ROAD AND railway embankment. Narrow applications relating to AUDLEY STREET, site with relatively flat area of residential development on hardstanding. OL4. this site.

H/MOSSLE/096 FORMER Mossley Mossley Mossley Site of former secondary No previous planning Brownfield Public 0-5 SHLAA 41 1.9102 HOLLINS HIGH SCHOOL, school located in elevated applications relating to Ownership HUDDERSFIELD ROAD, Green Belt location. residential development on OL5 this site.

H/MOSSLE/130 BRITANNIA MILL Mossley Mossley Unoccupied multi-storey mill No previous planning Brownfield Private 0-5 PEN 62 0.4051 MANCHESTER ROAD, with area of open land to the applications relating to Ownership OL5 9PH rear adjoining River Tame. residential development on this site.

H/MOSSLE/139 FORMER DRILL HALL Mossley Mossley Complex of red brick buildings 04/01719/OUT Erection of 1no. Brownfield Private 6-10 EXP 6 0.2745 MANCHESTER ROAD, between Manchester Road & Dwelling house (Withdrawn Ownership OL5 9AJ railway line, including dwelling 06/12/2004). 01/01207/FUL at 72 Manchester Road. Change of use of part of drill hall to residential (Approved 13/12/2001). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/MOSSLE/178 SCOUT GREEN DEPOT, 27 Mossley Mossley Depot building and No previous planning Brownfield Private 6-10 GMSF CFS 40 0.8678 MANCHESTER ROAD, surrounding yards, access via applications relating to Ownership OL5 9QW road bridge across River Tame. residential development on this site H/MOSSLE/131 BRITANNIA NEW MILL Mossley Mossley NLUD site. Deceptively large No previous planning Brownfield Private 6-10 NLUD 108 1.0835 QUEEN STREET, industrial unit on two levels on applications relating to Ownership banks of River Tame with residential development on hardstandings to south and this site. east.

H/DUKSTB/036 POLICE STATION SITE Stalybridge Dukinfield Former police station in the 14/00821/FUL Conv to 18 Brownfield Private 0-5 FUL 18 0.0819 CORPORATION STREET, Stalybridge centre of Stalybridge town apartments (Ap 12/12/14). Ownership SK15 3AA centre. 06/01852/FUL CU to offices at ground & first floor (16/04/2007). 06/01859/CON (05/04/2007). 06/01853/OUT Demolition of existing building Page 297 Page & erect building comp: restaurant & 27 apartments (13/04/2007)

H/DUKSTB/039 SITE OF WELLINGTON Stalybridge Dukinfield Cleared site of Wellington Inn, 07/00455/FUL new mixed use Brownfield Mix 6-10 EXP 24 0.1494 INN CAROLINE Stalybridge currently used as an informal deve inc 24 apartments STREET/BRIDGE STREET, parking area. (21/01/2008). 05/00199/OUT SK15 1PD Mixed use dev (07/04/2005)

H/DUKSTB/024 FORMER SITE OF 10-12 Stalybridge Dukinfield Former mill site now waste 17/00019/FUL Hybrid Brownfield RP 0-5 FUL 38 0.2988 CASTLE STREET - PARCEL Stalybridge land and informal car park application, FULL permission A, for 38no. dwellings on parcel A and OUT permission for 24no. dwellings on parcel lB

H/DUKSTB/023 CASTLE STREET CAR Stalybridge Dukinfield Vacant land/ car park Part of wider proposals for Brownfield Mix 0-5 AL 51 0.5100 PARK WEST OF Stalybridge Stalybridge DOA RESTURANT, redevelopment. APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/DUKSTB/020 PINEAPPLE INN 18 Stalybridge Dukinfield PH and car parking area 14/00696/FUL 4 semi detached Brownfield Private 0-5 FUL 6 0.1264 KENWORTHY STREET, Stalybridge houses and change of use of Ownership SK15 2DX public house to 3 terraced houses (Approved 16/01/15)

H/DUKSTB/049 44 GROSVENOR STRET Stalybridge Dukinfield Large, single commercial unit 12/01052/FUL Conversion of Brownfield Private 6-10 EXP 5 0.0436 STALYBRIDGE, SK15 1RR Stalybridge lcoated within Stalybridge exisitng shop to 3no. Units and Ownership Town Centre. conversion of first floor to 5no. Flats with new rear access (Approved 27/02/2013)

H/DUKSTB/061 FORMER SITE OF 10-12 Stalybridge Dukinfield Former mill site now waste 17/00019/FUL Hybrid Brownfield RP 0-5 OUT 24 0.1668 CASTLE STREET - PARCEL Stalybridge land and informal car park application, FULL permission B, for 38no. dwellings on parcel Page 298 Page A and OUT permission for 24no. dwellings on parcel lB

H/STANTH/038 FORMER STALYBRIDGE Stalybridge Stalybridge Site of demolished clinic 12/00890/NDM Demolition Brownfield Private 6-10 EXP 15 0.3530 CLINIC, STAMFORD North located on northern bank of (Ap 19/10/2012). Ownership STREET, SK15 1JZ River Tame. 12/00896/CON Demolition of former Clinic (Ap 26/10/2012). 06/00006/OUT Demolition & redevelopment of clinic for 44 flats etc (Ap 04/07/06) 03/00311/R3D Either resi or offices or Leisure use (Ap 12/05/2003)

H/STANTH/042 UNION BANK CHAMBERS Stalybridge Stalybridge Builing backing onto the River 07/00264/FUL Create 8 Brownfield Private 6-10 EXP 8 0.0201 75-79 MARKET STREET, North Tame in Stalybridge town Apartments (18/04/2007). Ownership SK15 2AA centre 06/01021/FUL Refurb of exisitng building to create 6 Apartmentst (29/08/2006). APPENDIX 1 - DRAFT SCHEDULE OF SITES FOR INCLUSION ON THE BROWNFIELD REGISTER PART 1

SHELAA Ref Location Town Ward Site Description Planning History Summary Land Use Ownership Period Planning Dwellings Site Area (Post 2000) (Years) Status (Net) (Ha)

H/STANTH/032 WEST STALYBRIDGE Stalybridge Stalybridge Various plots across No previous planning Brownfield Mix 6-10 AL 259 3.6973 MARKET STREET AND North Stalybridge West DOA, applications relating to CAROLINE STREET, including used and vacant residential development on inustrial units and commerical this site properties. HSE COMAH consultation zone may limit development potential.

H/STANTH/066 CAR PARK ADJACENT 20 Stalybridge Stalybridge Car park adjacent to public 15/01051/FUL Erection of 6no. Brownfield Private 0-5 FUL 6 0.0413 STAMFORD STREET, North house apartments (Ap 05/08/2016) Ownership

2731 Page 299 Page This page is intentionally left blank Agenda Item 11

Report To: EXECUTIVE CABINET

Date: 13 December 2017

Executive Councillor Allison Gwynne – Executive Member (Clean and Member/Reporting Officer: Green) Ian Saxon – Assistant Director (Environmental Services)

Subject: ACCEPTANCE OF THE GREATER MANCHESTER WASTE DISPOSAL LEVY ALLOCATION METHODOLOGY AND APPROVAL OF A REVISED LEVY ALLOCATION MODEL AGREEMENT (LAMA)

Report Summary: The current arrangements for the disposal of household waste in Greater Manchester (save for Wigan) were established in 2009 with the signing of the Recycling and Waste Management (PFI) Contract (the PFI Contract) with Viridor Laing (Greater Manchester) limited (VLGM). The GMWDA acquired VLGM (for £1) in October 2017 which will allow existing arrangements to be formally terminated so as to address issues that had arisen within the operation of the Contract and to enable significant efficiency savings to be released. The current Inter Authority Agreement, which was signed by all Districts in 2009, falls away with the termination of the PFI Contract and it is therefore necessary to reconsider the Levy apportionment within GM and for all Districts to approve and enter into a revised Levy Allocation Methodology Agreement (LAMA) which reflects the new arrangements. That Agreement is designed to apply for 10 years, and would be applied in full for the 2019/20 financial year onwards, with transitional arrangements being proposed for the financial year 2018/19

Recommendations: That Executive Cabinet be recommended to agree that: 1. Having considered the proposed revised methodology, agree that the revised Levy Apportionment Methodology Agreement be applied in full from 2019/20 with transitional arrangements in place during 2018/19; and 2. Delegate to the Director of Governance and Pensions and Borough Solicitor in consultation with the Assistant Director of Environmental Services and the Assistant Director (Finance) the finalisation of the Levy Apportionment Methodology Agreement, a current draft of which is appended at Appendix A, including any amendments required, together with the transitional arrangements, and any associated documentation relating thereto. The financial benefits of adopting the Levy Allocation Methodology Links to Community Agreement (LAMA) contribute to a Prosperous Tameside; Strategy: maintaining a high standard of cleanliness across the borough contributes to Attractive Tameside. Policy Implications: The reported improvements are helping to achieve the attractive Tameside aim of promoting environmental sustainability.

Page 301 Financial Implications: The Tameside MBC levy budget for 2016/17 was £18.546m. Due to significant changes being made through the bin swap (Authorised by the Section programme and the anticipated savings due to accrue from the 151 Officer) breaking of the PFI contract, meant that a £5m levy budget saving was made in order to help balance the 2017/18 Council budget. The levy for 2017/18 was £13.546m and provision was made within the medium term financial plan (MTFP) for this to increase to around £14m by the start of 2019/20. Had the PFI contract continued the £5m saving could not have been offered to assist with the balancing of the 2017/18 budget. It was also unlikely that the costs of the new arrangements would sustain the full £5m over the longer term. The review of the formula and waste tonnages across all districts in the Waste Disposal Authority (WDA) has resulted in the new levy being calculated. The methodology of the formula and principles were agreed prior to the new model being developed to prevent vested interests of each party influencing the formula for individual district gain. Had the PFI continued the levy for 2019/20 would have been around £18.2m, about £300k lower than the available budget in 2016/17. The table below shows the changes in the levy budget from 2016/17 through to the proposed levy under the new arrangements in 2019/20.

requirement budget Additional

Change overall

Revised Levy

Changes

Planned

Revised

Original

Budget Budget

£m £m £m £m £m £m

2017/18 18.546 -5.000 13.546 13.546 -5.000

2018/19 13.546 0.120 13.666 14.500 0.834 -4.046

2019/20 14.666 0.400 14.500 15.524 1.024 -3.022

There are three main reasons for the increase in the cost against what the council has budgeted for:  The new formula removes a cross subsidy between the costs of disposing of residual waste and recycling. The effect of this cross subsidy was to move costs around the system as it was calculated on relative tonnages. The impact of this on Tameside is around £1.216m, and is largely because Tameside has a higher recycling rate for dry recyclables when compared to residual waste. The formula change has resulted in a £25 per tonne subsidy turning into a £28 per tonne cost for the marginal cost of disposing of dry recycling.  The tonnages that the 2017/18 levy has been based on are slightly different than expected and this has meant that

Page 302 £0.357m of the increase is due to more waste being collected as residual rather than recycling.  The third factor is that the commodity price of recyclates has reduced and this has penalised high recycling districts such as Tameside. The impact of these changes is hidden within the formula changes. Overall the financial impact for the Council is that there will be a budget pressure of £0.954m in 2018/19 and a further £1.024m in 2019/20 as we move to the new levy. These additional costs are being factored into the Council’s medium term financial plan. They still represent a saving of £3.022m against the 2016/17 budget and a £2.692m saving against the do nothing PFI arrangements. The costs of moving to the default position would be significantly higher than this proposal Tameside MBC, due the default basis being calculated on the number of band D equivalent council tax ratings and gross tonnages disposed of rather than current waste tonnages collected and recycled.

Legal Implications: Sections 45 and 48 of the Environmental Protection Act 1990 set out the Council’s duties to collect and arrange for disposal of (Authorised by the Borough waste within its administrative area. Greater Manchester Waste Solicitor) Disposal Authority (GMDWA) in turn is required to receive that waste for disposal in accordance with statutory requirements, including the meeting of national recycling targets, and then charge a levy which is representative of the cost of that disposal. Whilst the district Greater Manchester Councils can and do challenge the GMWDA in relation to calculation of their levies from time to time, not paying or participating is not an option under the current legal arrangements.

Risk Management: There remain a number of significant risks associated with the retender of the waste disposal contracts following the withdrawal from the PFI contract. For the purposes of setting the new levy and the inter-authority agreement, it has been assumed that efficiencies of £18m against the current cost base can be made by the WDA. If these savings cannot be achieved then the additional cost pressures will be applied using the newly proposed levy formula. In addition the new levy formula will result in more costs being directly passed through to districts, meaning changes to the costs /income from the processing of recyclates will be passed through to districts based on market prices, which can be volatile.

Access to Information: The background papers relating to this report can be inspected by contacting the Report Writer, Ian Saxon – Assistant Executive Director by:

Telephone: 0161 342 3647

E-mail: [email protected]

Page 303 1.0 INTRODUCTION AND BACKGROUND

1.1 The Greater Manchester Waste Disposal Authority (GMWDA) was established on 1 January 1986 as a Statutory Joint Waste Disposal Authority (JWDA) by the Waste Regulation and Disposal (Authorities) Order 1985. The Authority began to carry out its functions on 1 April 1986, following the abolition of the Greater Manchester County Council. The GMWDA is responsible for the disposal of waste collected by the constituent Waste Collection Authorities, for the provision and maintenance of household waste recycling facilities and for compliance with recycling requirements.

1.2 The GMWDA is a levying body. In February 2009 the GMWDA and its nine constituent councils, entered into an Inter Authority Agreement regulating the levy. The Inter Authority Agreement was entered into pursuant to the Joint Waste Disposal Authorities (Levies) (England) Regulations 2006 (SI 2006/248).

1.3 The existing Inter Authority Agreement was agreed unanimously by all constituent Districts as part of a suite of documents at the time the PFI Contract was adopted in 2009. That moved the Levy allocation method to one that supported Greater Manchester’s commitment to both the four waste stream collection system and also to incentivise recycling. The Inter Authority Agreement was designed to stay in place for the duration of the Recycling and Waste Management (PFI) Contract arrangements with VLGM, to 2034, but has a provision that it would ‘fall away’ on termination of the PFI. A new locally agreed basis to apportion the Levy is therefore needed to be applied from the 2018/19 financial year onwards.

1.4 Whist the original principles upon which the Inter Authority Agreement were founded, in practice, it is considered that the Inter Authority Agreement should be revised to address a number of issues that have arisen as a result of the current methodology: the cost of residual waste is now set at punitive levels. That in turn means that Inter Authority Agreement tonnage declarations are not always as accurate as they should be:  due to changes in income levels for recyclates there is now a subsidy on both the paper/ card (pulpables) and cans/ plastic bottles/ glass (commingled) recycling waste streams, which is added to the cost of residual waste.  The Inter Authority Agreement exaggerates the benefits for one District, over wider savings and benefits for the conurbation;  there is a lack of transparency; and  a number of perverse results are caused by application of bandings.

1.5 All constituent Districts have very recently reached the same capacity for residual waste collections. This therefore provides an opportunity, along with the new operating contract(s) arrangements, to move to a different and more stable agreement.

2.0 CURRENT POSITION

2.1 Following extensive consultation with Districts the GMWDA made a decision to terminate the existing PFI arrangements in order to reduce costs and to attain operational improvements in order to fulfill the required budget savings.

2.2 Upon Termination of the PFI, the existing Inter Authority Agreement becomes obsolete. Once the PFI Contract is formally terminated in accordance with the decision to this effect, the existing Inter Authority Agreement will no longer be binding, and a new Inter Authority Agreement must be unanimously agreed by all nine constituent Districts

2.3 Accordingly, an extensive and inclusive process of consultation has now been concluded within Greater Manchester about the replacement process and set out below are the broad proposals for the new levy allocation methodology agreement.

Page 304

3.0 PROPOSALS

3.1 The key design characteristics for a 10 year duration LAMA and reasoning for their inclusion in the methodology are set out in the table below:

A. District Collected Waste (c £136m, 78.6% of net costs)

Retain 4 waste stream approach, based upon:- To Reflect collection working practices and to ensure costs and environmental benefits from i. Commingled/pulpables (as one); recycling improvements remain. ii. Organics (food and Garden); iii. Trade Waste, and iv. Residual Waste.

Retain year-end adjustments for tonnages Ensures a direct link to performance and (introduced from 2017/18). Adjustments to be at encourages direct link to benefits of improving a pre-agreed annual rate, reflecting marginal recycling performance. Marginal costs are processing costs (subject to items A3 below). used to match any cost/reductions at a District level with broadly corresponding changes in costs paid to the providing contractor.

Allocate costs on the basis of an Apportionment Increases transparency and stops a mere cost Model (AM) which comprises:- reallocation exercise (as changes in levy are broadly matched by corresponding changes in i. fixed element (i.e. are related to costs costs paid to the contractors). Also provides a which do not vary, such as debt charges). more stable budget position year on year at These will be allocated to Districts based district level. on adjusted1 2017/18 actual tonnages, and will be reviewed after 5 years for 2022/23 ii. variable costs – which reflect marginal processing cost.

For Districts whose recycling falls below 1% of This provision ensures that one District cannot current levels, residual waste to be charged at adversely impact others by reducing its full cost (i.e. fixed and variable). The 1% recycling efforts. 1% variation is proposed to assessment to be from the 2017/18 base reflect seasonality/past changes etc. (i.e. not a position. hair trigger) and to have an exception override (to the GMCA Treasurer) in case of exceptional circumstances

Common assumptions to be used in tonnage This provision ensures that all future year estimates. increases are based upon common factors, such as expected changes in housing type/numbers and population. It will also ensure re-procurement facilities/capacity are correctly sized.

B. Household Waste Recycling Centres (HWRC) (c. £31m, 17.9% of net costs)

Cost allocation moved to be based upon: Move is away from 100% based on Council Tax Base and better reflects that usage will be i. 50% Council Tax Base

1 An adjustment may be made to Salford and Trafford figures (only) to reflect the part year impact of reduced waste capacity roll out and potential impact of charging for Garden Waste (respectively). Page 305

ii. 50% Car Ownership (2011 Office of linked to access by cars. National Statistics census) but subject to

a survey of users (in 2018/19) to establish the district in which they live. To allay any concern that these ‘proxy’ measures may still not reflect usage there is a proposed review, following a survey of uses, in the 2018/19 financial year (as part of the Waste Composition Analysis work stream).

C: Authority Own costs (c. £5m, 2.9% of net costs) – including direct costs (such as salaries/running costs)

Equal share Costs do not vary significantly by activity, and are thus linked to an 11.1% each District allocation basis.

D: Non-Key Services (c. £1m, 0.6% of net costs) – this comprises specialised waste services, such as asbestos, plasterboard, clinical waste, dog waste, etc.

Waste arisings No change from the existing basis. It is intended that the majority of ‘regular’ waste will in future be included in the re-procured contracts and thus the value of this will fall further.

3.2 District tonnages need to be revised on an annual basis, to reflect changes in both volumes and in the level of recycling that local residents are achieving. In previous years an inconsistent approach has been taken to those projections, particularly in relation to the possible impacts of population and housing growth. Through the Waste Chief Officers Group, led by Bolton Council, a common approach to growth has been adopted, and has been included in the projections for future years levy. That approach has advantages both in projecting future requirements (for the new operating contracts) and also in minimising the potential for significant in-year fluctuations (which are now a district level risk). Figures used in projections thus take account of 5 months actuals, which is essential given the scope of collection changes made in the last 12 months by many districts, but will still require further refinement and challenge before being finalised in December 2017.

3.3 Based on the revised LAM principles (para. 9), and updated tonnages (para. 10) the impact on the 2019/20 financial year would be: -

Sept 2017 February 2017 projected levy Cost/ Saving projection (old requirement, Cost/ Saving due to levy Inter Authority District revised LAM due to tonnage allocation Agreement and methodology changes methodology Dec. 2016 and Sept 2017 changes tonnages) tonnages £m £m £m £m Bolton 20.430 20.534 -0.136 0.032 Bury 14.076 13.879 -0.086 0.283 Manchester 30.417 32.985 -0.955 -1.613 Oldham 17.944 17.567 0.515 -0.138 Rochdale 15.743 15.849 0.023 -0.129 Salford 20.526 21.133 -0.132 -0.475 Stockport 20.958 20.659 -0.196 0.495 Page 306

Tameside 15.524 13.951 0.357 1.216 Trafford 16.858 15.721 0.579 0.558

Total 172.476 172.278 -0.031 0.229 (It must be noted at this point that the tonnage data submitted by Tameside MBC is likely to be subject to small adjustments again as we move towards an ‘actual tonnes delivered’ basis, rather than a ‘predicted figure’ basis.)

3.4 It is further proposed that, after taking account of tonnage changes year on year, that the levy allocation in 2018/19 be based upon a ‘half the difference’ (i.e. average of 2017/18 revised estimate and 2019/20 estimates) and will be adjusted at year end to reflect actual tonnages at the marginal tonnage rate change basis, as mentioned above.

3.5 Subject to the above methodology being approved it is necessary for each GM District to obtain formal agreement before the 31 December 2017 of the new LAM. That in turn will allow the 2018/19 Levy to be set by the GMWDA (8 February 2018) using the new LAM basis.

4.0 PROPOSED NEXT STEP

To approve the proposed revised LAMA and the recommendations set out in the report. This proposed next step is suggested following extensive consultation, all districts have considered it to be more equitable, cost effective and environmentally friendly.

5.0 CONSULTATION

5.1 There has been extensive consultation with all of the Districts affected. Those involved were Members whose portfolio included waste, Chief Waste Officers, Greater Manchester Treasurers, and the Greater Manchester Waste Disposal Authority.

6.0 RECOMMENDATIONS

7.1 As set out at the front of the report.

Page 307

APPENDIX A

DATED 2018

(1) Greater Manchester Waste Disposal WDA

(2) Bolton Borough Council

(3) Bury Metropolitan Borough Council

(4) The Council of the City of Manchester

(5) Oldham Metropolitan Borough Council

(6) Rochdale Metropolitan Borough Council

(7) Salford City Council

(8) Stockport Metropolitan Borough Council

(9) Tameside Metropolitan Borough Council

(10) Trafford Borough Council

Page 308

WASTE MANAGEMENT LEVY ALLOCATION METHODOLOGY (LAMA) AGREEMENT

CONTENTS Clause Page

1. Definitions 4 2. Commencement and Duration 8 3. Partnering Ethos 8 4. Principal Obligations of the WDA 9 5. Principal Obligations of the WCAs 10 6. WCA Best Value Duty 11 7. Change to Viridor Operating Contract (VC) and the 12 Replacement Operating Contracts 8. Exit and Entry Arrangements 12 9. No Worse/No Better 12 10. Freedom of Information 13 11. Privity 13 12. No Agency 13 13. No Partnership 13 14. Entire Agreement 14 15. Law of Contract and Jurisdiction 14

Schedules 1. WCA Forecast 15 2. Facilities 33 3. Levy Allocation to WCA Mechanism 42 4. Change Control Procedures 46

Page 309

THIS LEVY ALLOCATION METHODOLOGY AGREEMENT (LAMA) is made on the

2018

BETWEEN

(1) Greater Manchester Waste Disposal Authority of 1st Floor, Churchgate House, 56 Oxford Street, Manchester, M1 6EU (“the WDA”);

(2) Bolton Borough Council of Town Hall, Victoria Square, Bolton, BL1 1RU;

(3) Bury Metropolitan Borough Council of Town Hall, Knowsley Street, Bury, BL9 0SW;

(4) The Council of the City of Manchester, PO Box 532, of Town Hall, Albert Square, Manchester, M60 2LA;

(5) Oldham Borough Council of Civic Centre, West Street, Oldham, OL1 1UG;

(6) Rochdale Metropolitan Borough Council of Rochdale OL16 1LQNumber One Riverside, Smith Street, Rochdale, OL16 1XU

(7) Salford City Council of Civic Centre, Chorley Road, Swinton, Salford, M27 5DA;

(8) Stockport Metropolitan Borough Council of Town Hall, Edward Street, Stockport, SK1 3XE

(9) Tameside Metropolitan Borough Council of; and Dukinfield Town Hall, King Street, Dukinfield, Tameside, SK16 4LA

(10) Trafford Borough Council of Trafford Town Hall, Talbot Road, Stretford, Manchester, M32 0TH;

EACH (other than the WDA) being a Waste Collection Authority and which are (other than the WDA) collectively referred to as “the WCAs”.

Page 310

RECITALS

(A) The WDA is a Waste Disposal Authority and has a statutory duty to dispose of waste. From 1st April 2018 the WDA will be abolished and all its functions will transfer to the Greater Manchester Combined Authority (GMCA) under the Greater Manchester Combined Authority (Functions and Amendment) Order 2017. From that time forwards all references to WDA in this agreement will be read as references to GMCA.

(B) The WCAs have a statutory duty to collect waste and deliver it to the WDA.

(C) The LAMA is designed to support delivery of the WDA’s Waste Management Strategy, delivery of the English 50% minimum recycling target and to promote diversion from landfill in a way that maximises financial and environmental benefits. Policy on waste management is currently being reviewed at a European level, and as such whilst the LAMA is intended to reflect an expected increase in the levels of recycling performance and diversion from landfill that will be required, it will need to be reviewed over its 10 year period to ensure it reflects final policy decisions.

(D) The Joint Waste Disposal Authorities (Levies) (England) Regulations 2006 established the WDA’s power to issue levies on its constituent councils (the WCAs) to meet all liabilities falling to be discharged by the WDA.

(E) The WDA has continued with a Viridor Operating Contract (VC) and will enter into new Replacement Operating Contracts for the disposal of residual waste and treatment of recyclates, pulpables and green waste (amongst other things). The WCAs have agreed, subject to the terms of this LAMA, to support the WDA in fulfilling its responsibilities under these arrangements, which includes a commitment to deliver recyclable material to VC and the Replacement Operating Contracts.

(F) For the 10 year duration of the LAMA the WDA is: -

1. Continuing the existing Operating Contract with the operator Viridor Waste (Greater Manchester) Limited (VC) which provides a short term ‘run off’ contract, which is estimated to cease in April 2019; 2. Proposing to enter into Replacement Operating Contracts which are expected to be awarded covering: -  Lot 1 – known as the “Waste and Resource Management Services” (WRMS).  Lot 2 – known as the “Household Waste Recycling Centre management services” (HWRCMS).  Lot 3 – known as the “Biowaste Management Services” (BMS).

AND In consideration of £1.00 given by the WDA to each of the WCAs (receipt of which is hereby acknowledged) it is agreed as follows:-

Page 311

1. DEFINITIONS

1.1 In this Agreement, unless the context otherwise requires terms with an initial capital shall have the meanings set out below.

“2019/20 Base Financial This is a cost allocation model developed by the WDA Model” and made available to WCA Treasurers, to support the levy allocation process. The model contains commercially sensitive information and is not therefore part of this Agreement “Administrative Area” The administrative area(s) of the Parties at the date of this Agreement “Agreement” This agreement and the Schedules hereto “Best Value” The obligation continuously to improve both the quality and cost of the collection of Residual Waste and Recycling pursuant to the provision of the Local Government Act 1999 “Best Value Duty” The duty of continuous improvement in relation to, inter alia, the collection of Residual Waste and Recycling imposed on WCAs by Section 3 (1) of the Local Government Act 1999 “Bulky Waste” District collected waste that by its nature will not fit in the usual residual waste receptacles (such as large items of furniture etc.), often referred to as Bulky Waste “Change” Any change agreed in accordance with clauses 6 (WCA Best Value) or 7 (Change) and Schedule 4 (Change Control Procedures) “Change in Law” The coming into effect, after the date of this Agreement, of:- (a) Legislation, other than any Legislation which on the date of this Agreement has been published (i) in a draft Bill as part of a Government Departmental Consultation Paper; (ii) in a Bill; (iii) in a draft statutory instrument; (iv) as a proposal in the official Journal of the European Union; (b) any Guidance; or (c) any applicable judgement of a relevant court of law which establishes or changes a binding precedent “Commencement Date” 1st April 2018 “Comingled Waste” Dry recycling that is usually collected as mixed materials by WCA; initially comprising cans, plastic bottles, and glass “Delivery Points” The delivery points for waste to be deposited by type to be agreed by the WCAs on an annual basis as provided Page 312

for by the process set out in Schedule 2 (Facilities) or such other delivery points as the Parties shall agree.

“EIR” The Environmental Information Regulations 2004 “EPA” The Environmental Protection Act 1990 “Exceptional A decision to be made by the GMCA Treasurer to Circumstances” exercise his/her discretion in circumstances that are outside the direct decision making control of the WCAs under which Recycling Minimum Performance Level is triggered. In these Exceptional Circumstances the GMCA Treasurer shall apply a tonnage adjustment rate that is at the LAM Variable costs, rather than the total cost rate. “Expiry Date” Subject to any earlier termination of this Agreement the expiry date shall be 31st March 2028, and “Expiry” shall be construed accordingly “Facility” Each and any facility for the reception of Waste from WCAs including the Delivery Points provided and/or operated or to be provided under the VC or the Replacement Operating Contracts with all supporting infrastructure and equipment “FOIA” The Freedom of Information Act 2000 and any subordinate legislation (as defined in Section 84 of the

Freedom of Information Act 2000) made under the Freedom of Information Act 2000 from time-to-time together with any guidance and/or codes of practice issued by the Information Commissioner or relevant Government Department in relation to such Act “GMCA” Greater Manchester Combined Authority “HWRC” Household Waste Recycling Centre “IVC” In-vessel Composting Facility “LAM fixed costs” The LAM model costs which are not expected to vary by volumes of tonnages processed, and are by definition mostly fixed by their nature. The 2019/20 Base Financial Model applied the following elements as fixed:  Finance charges, in respect of the TPSCo and VLGM Compensation Sum;  Facility modification financing costs;  Other Financing costs (including former GMCDAF);  National Non Domestic Rates (NNDR); and  Insurance “LAM variable costs” The LAM model costs which are expected to vary by volumes of tonnages processed. The 2019/20 Base Financial Model applied the following elements as variable:  Replacement Operating Contracts;

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 Runcorn RVC; and  landfill costs “Legislation” Any Act of Parliament or subordinate legislation within the meaning of Section 21(1) of the Interpretation Act

1978, any exercise of the Royal Prerogative, and any enforceable community right within the meaning of Section 2 of the European Communities Act 1972, in each case in the United Kingdom “Levy” The charge to the WCAs in accordance with Schedule 3 “Levy Allocation Model A financial model that is used to allocate cost between (LAM)” fixed, variable and WDA own costs as set out Schedule 3 “Levy Requirement” The annual budget requirement, less any contributions for reserves, that the WDA needs to raise from WCA by the Levy to produce a balanced budget. “MBT” Mechanical and Biological Treatment Facility, which is expected to be utilised for the financial year 2018/19 only “MT” Mechanical Treatment Facility, which is expected to operate from 2019/20 onwards “Parties” The WDA and the WCAs, and “Party” shall mean any of them “Partnering Ethos” The aspirational aims set out at clause 3.2 “Performance Deductions” As defined in the VC and the Replacement Operating Contracts “Performance Standards” The criteria set out in the VC and the Replacement Operating Contracts as agreed or amended from time- to-time “Planned Maintenance” Planned maintenance by VC and Replacement Operating Contractors at any of the Delivery Points “Recyclable Materials” Any materials collected separately or otherwise separated from Residual Waste for the purposes of Recycling (and including materials collected and delivered comingled), including the materials listed below: (a) paper and cardboard; (b) plastics; (c) ferrous and non-ferrous metals; (d) textiles; (e) glass; (f) wood; (g) organic kitchen and garden waste; (h) tyres; and (i) waste electrical equipment, or such other materials as shall be agreed in writing between the Parties from time-to-time

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“Recycle” The delivery of Recyclable Materials for Reprocessing (as evidenced by a Defined Audit Trail) but excluding Energy Recovery or Beneficial Use for inclusion in a reprocessing process, and the terms “Recycling” and “Recycled” shall be interpreted accordingly “Recyclate Performance Below the Recyclate Minimum Performance level the Adjustment” level of adjustment applied per tonne shall be the total of LAM fixed and LAM variable costs (both expressed in £ per tonne levels) “Recyclate Base This is the actual level of recycling achieved in 2017/18 Performance level (RBP)” at an individual district level expressed as a percentage of total waste arisings less trade waste, as set out in the formula below: - District RBP = dg+dc+dp dw-dt where; dg = district food and garden waste tonnes dc = district comingled recycling tonnes dp = district pulpables tonnes dw = district total waste arisings tonnes dt = district trade waste “Recyclate Minimum This is the level by which recycling levels can reduce, Performance level” below which the Recyclate Performance Adjustment is applied. It is expressed as shown in the formula below: RBP – 1% “Replacement Operating Three waste management operating contracts to be let Contracts” around April 2019 comprising: -  Lot 1 – known as the “Waste and Resource Management Services” (WRMS).  Lot 2 – known as the “Household Waste Recycling Centre management services” (HWRCMS).  Lot 3 – known as the “Biowaste Management Services” (BMS).

“Residual Waste” All Waste delivered to the WDA that is not recycling, or Trade Waste “Runcorn RVC” The Residual Value Contract entered into by the Authority and Thermal Power Station (Runcorn) Limited (TPSCo) for the end disposal in a combined heat and power plant by thermal means of the refuse derived fuel produced from residual waste. “Service Delivery Plans” The plans in VC and the Replacement Operating Contracts which sets out how the Residual Waste and

Recycling services and certain of the standards to which the services must be performed in respect of the relevant Facilities

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“Smoothing Factor” An adjustment to the 2018/19 Levy only to reflect the adjustments caused by methodology changes from the 2017/18 Inter Authority Agreement (Inter Authority Agreement) basis, and the 2019/20 LAMA, as set out in Schedule 3, para. 9 “Trade Waste” Waste of similar composition to Residual Waste which is collected from commercial and office premises for or by the Districts and is treated in accordance with Schedule 3, para. 6 “TRF” The Thermal Recovery Facility located at Raikes Lane, Bolton “Transport Levy Base” The mid-year 2016 population base, as applied to the 2018/19 levy year. “TLS” Transfer Loading Station “Unavailable/Un- That a Delivery Point is for a period of time or availability” permanently unavailable for the reception of Residual Waste and Recycling, as further defined in VC and the Replacement Operating Contracts “Waste” The types of waste described in Schedule 1 (WCA Forecast) to be delivered by the WCAs to the WDA pursuant to this Agreement and other provisions relating thereto “WCA Collection Any collection contractor engaged by a WCA to collect Contractor” Contract Waste “WCA Forecast” The forecast, made by each WCA, of all Waste arising, for a five year forward period that takes account of expected increase in housing and population, and which is set out at Schedule 1 (WCA Forecast). Each district will prepare at least two forecasts annually, which will be subject to scrutiny by the WDA. Those forecasts will be required each year in: -  September – to complement the initial budget forecast and inform the initial allocation of levy at district level; and  December – which will be used as the basis of setting the annual Levy at a district level “WCA Operations” The methods of operation from time-to-time of each WCA in collecting and delivering its Waste to Delivery

Points “WDA” The Greater Manchester Waste Disposal Authority “WET Act” The Waste and Emissions Trading Act 2003

2. COMMENCEMENT AND DURATION

This Agreement will commence on the Commencement Date and continue in full force and effect until the earlier of:- 2.1 the Expiry Date; or

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2.2 earlier if all of the WCAs and the WDA agree to amend or terminate this Agreement.

3. PARTNERING ETHOS

3.1 The Parties will work in good faith and in accordance with the Partnering Ethos.

3.2 Partnering Ethos shall mean that each party shall:-

3.2.1 act reasonably and co-operatively with the other Parties;

3.2.2 provide information to each other which they consider (acting reasonably) to be relevant relating to waste collection and waste disposal;

3.2.3 use reasonable endeavours to mitigate any losses arising from a Party’s failure under this Agreement and to reduce the detrimental impact on the other Parties (or the council tax payers of any one of them) of any failure to carry out its obligations under this Agreement;

3.2.4 use reasonable endeavours working together and in co-operation with VC and the Replacement Operating Contractors, to minimise waste, to educate the public and the commercial sector about recycling schemes and why their participation in these schemes is crucial, and to ensure that as much Waste as possible is (in order of priority) reduced, re-used, recycled or recovered; and

3.2.5 without prejudice to the express rights, remedies and obligations of the WCAs under this Agreement and Legislation the WCAs shall (using reasonable endeavours) not knowingly do anything under their reasonable control which would put the WDA in material breach of VC and the Replacement Operating Contracts.

4. PRINCIPAL OBLIGATIONS OF THE WDA

4.1 The WDA will discharge its statutory duties and contractual obligations to the WCAs (to receive and dispose of Waste at the Delivery Points) through VC and the Replacement Operating Contracts referred to in the Recitals.

4.2 The WDA will apportion the costs incurred in relation to these obligations pursuant to Schedule 3 (Levy Allocation to WCAs Methodology).

4.3 Where an act or omission of the WDA or any relevant Contractor of the WDA, including a failure of VC and the Replacement Operating Contractors to achieve any of the Performance Standards, causes any loss to one or more WCAs, the WDA Page 317

will use its best endeavours to pursue any appropriate remedies available to it including the recovery of Performance Deductions under the VC and Replacement Operating Contracts referred to in the Recitals and pay such monies to the affected WCA. Where more than one WCA has suffered the same performance failure the payment of any compensation or the Performance Deduction shall be shared between the affected WCAs pro-rata based upon the amount of losses incurred by each WCA arising out of the performance failure. The payment shall be made to WCAs by the WDA through the LAMA in the month following the month in which the Performance Standard was not achieved.

4.4 Any money compensation obtained or payable by the WDA pursuant to clause 4.3 will be returned to the WCAs in appropriate proportions through the LAM.

4.5 Subject to clauses 4.7 the WDA will use its reasonable endeavours to notify a WCA of any changes within the VC and the Replacement Operating Contracts set out in the Recitals which might be of relevance to it or affect its obligations flowing from that contract or this Agreement.

4.6 The WDA shall use its reasonable endeavours to ensure that the VC and the Replacement Operating Contractors achieves the Performance Standards and shall ensure that each WCA is made aware of the Performance Standards and of the current Service Delivery Plans and, where relevant, is consulted about them.

4.7 The WDA shall agree the basis for the new contractual arrangements with the Replacement Operating Contractors and the WCAs and once agreed shall use its best endeavours to ensure that any material change to the Replacement Operating Contracts shall be agreed with the WCAs in advance and shall use its best endeavours to mitigate any impact on the WCAs

5. PRINCIPAL OBLIGATIONS OF THE WCAs

5.1 Each WCA will deliver or cause to be delivered all Waste to the Delivery Points for that WCA set out in Schedule 2 (Facilities).

5.2 Without prejudice to clauses 6 (WCA Best Value) and 7 (Change to the VC and the Replacement Operating Contracts), each WCA shall commit Residual Waste and Recycling (to the extent set out in Schedules 1 & 2) to the WDA.

5.3 If any act or omission of a WCA causes loss to the WDA (including, without limitation, through entitling the VC or the Replacement Operating Contractors of the WDA to increase its charges or seek any other remedy from the WDA) or to any other WCA, then that WCA will bear the cost of the relevant losses, so that they do not fall equally, through the LAM, on those WCAs which were not at fault.

5.4 The WCAs will pay the WDA for the waste disposal services it provides to the WCAs pursuant to the Levy Regulations as defined in Schedule 3 in accordance with the principles set out in Schedule 3 (Levy Allocation to WCAs Methodology).

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5.5 Prior to the start of the initial WCA Forecast projections (annually in September) the WDA will facilitate the production of guidance on the impact of population and housing growth on potential levels of waste arisings. Each WCA shall, in preparing the WCA Forecast for its Administrative Area, take account of those expected impacts. The WDA will act as a ‘critical friend’ to challenge the WCA Forecasts produced, and seek explanations that it deems appropriate. Comments by the WDA will be given due consideration by the WCA and if no changes are proposed the WCA will be required to supply a written explanation of why changes have not been made to the WCA Forecast. The WCA Forecast shall be provided annually and will cover a 5-year rolling period, or other shorter period as the WDA deems appropriate.

5.6 Nothing contained in this Agreement and no consent or approval given by any party to this Agreement shall prejudice restrict interfere with or otherwise affect any of the statutory or other rights powers or obligations and duties for the time being vested in that party or the performance by that party of any such obligations or duties or the means by which that party shall in its absolute discretion exercise its respective rights or powers or fulfil or discharge any such obligations or duties.

6. WCAs’ BEST VALUE DUTY

6.1 The WDA acknowledges that WCAs are subject to the Best Value Duty and it agrees to assist WCAs in discharging the Best Value Duty in relation to the continuous improvement in the delivery of their waste collection services.

6.2 The WDA shall comply with requests for information, data or other assistance made by WCAs in pursuance of the Best Value Duty.

7. CHANGE TO VC AND THE REPLACEMENT OPERATING CONTRACTS

7.1 WCAs may request a change to the VC and the Replacement Operating Contracts in accordance with the provisions of Schedule 4 (Change Control Procedures).

8. EXIT AND ENTRY ARRANGEMENTS

8.1 Expiry and Termination

8.1.1 Not before 1st April 2025 the Parties shall meet to discuss and, all acting reasonably and in good faith, determine the arrangements for the disposal of waste after the expiry of the Agreement and the Replacement Operating Contracts.

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8.2 New Entrant

8.2.1 If at any time during the term of this Agreement, any third party wishes to utilise any part of the Replacement Operating Contracts, the Parties will meet to discuss and, acting reasonably and in good faith, determine whether agreement should be given to that third party utilising the Replacement Operating Contracts and, if so, the terms of that agreement with the intention that the WCAs are in no worse position as a result of the third party’s use, and that such third party is not put in any better position than the WCAs.

9. NO WORSE/NO BETTER

9.1 Any reference in clause 8 to leaving the WCAs in a “no worse position” shall be construed by reference to the WCAs:-

9.1.1 rights, duties and liabilities under or arising pursuant to performance of this Agreement; and

9.1.2 their ability to perform their obligations and exercise their rights under this Agreement, so as to ensure that:

9.1.3 each WCA is left in a position which is no worse in relation to its financial position under this Agreement and its operating methods for the collection and delivery of Waste had the third party not utilised the Replacement Operating Contracts; and

9.1.4 the ability of the WCAs to comply with this Agreement is not adversely affected as a consequence of that utilisation.

9.2 Any reference in clause 8 to putting the third party in “any better position than the WCAs” shall be construed by reference to the WCAs’ rights and financial position under this Agreement.

10. FREEDOM OF INFORMATION

10.1 Each Party acknowledges that each of the other Parties is subject to the requirements of the Freedom of Information Act 2000, the Environmental Information Regulations 2004 and the General Data Protection Regulation Data Protection Act 2018 and shall assist and co-operate with the other Parties to comply with these information disclosure requirements.

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11. PRIVITY

11.1 No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

12. NO AGENCY

12.1 None of the parties shall hold itself out as being the servant or agent of any other Party, otherwise than in circumstances expressly permitted by this Agreement.

12.2 None of the parties shall hold itself out as being authorised to enter into any contract on behalf of any other Party or in any other way to bind any other Party to the performance, variation, release or discharge of any obligation.

12.3 No WCA shall in any circumstances hold itself out as having the power to make, vary, discharge or waive any bye-law or any regulation of any kind relating to the disposal of Waste.

13. NO PARTNERSHIP

13.1 Nothing in this Agreement is intended to, or shall operate to create, a partnership as defined by the Partnership Act 1890 or joint venture of any kind between the Parties or any of them, or to authorise any Party to act as agent for any other, and no Party shall have the WDA to act in the name or on behalf of or otherwise to bind any other in any way (including but not limited to the making of any representation or warranty, the assumption of any obligation or liability and the exercise of any right or power).

14. ENTIRE AGREEMENT

14.1 Except where expressly provided in this Agreement, this Agreement constitutes the entire agreement between the Parties in connection with its subject matter and supersedes all prior representations, communications, negotiations and understandings concerning the subject matter of this Agreement.

14.2 Each of the Parties acknowledges that:-

14.2.1 it does not enter into this Agreement on the basis of and does not rely, and has never relied, upon any statement or representation (whether negligent or innocent) or warranty or other provision (in any case whether oral, written, express or implied) made and agreed to by any person (whether a party to this Agreement or not) except those expressly repeated or referred to in this Agreement and the only remedy or remedies available in respect of any misrepresentation or untrue statement made to it shall be any remedy available under this Agreement; and Page 321

14.2.2 this clause 14 shall not apply to any statement, representation or warranty made fraudulently, or to any provision of this Agreement which was induced by fraud, for which the remedies available shall be all those available under the law governing this Agreement.

15. LAW OF THE CONTRACT AND JURISDICTION

15.1 This Agreement shall be governed by the laws of England and Wales and the Parties submit to the exclusive jurisdiction of the courts of England and Wales.

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SCHEDULE 1

GMWDA Summary of Inter-Authority Agreement Tonnages - September 2017

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 45,433 45,659 45,856 46,053 46,251 Pulpables 11,279 11,331 11,376 11,420 11,465 Dry recyclables (excl. pulpables) 13,090 13,160 13,220 13,279 13,339 BOLTON In-Vessel Composting (IVC) 20,182 20,305 20,409 20,514 20,618 Trade waste 4,854 4,878 4,903 4,927 4,952 TOTAL 94,838 95,333 95,764 96,193 96,625

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 28,987 29,132 29,278 29,424 29,571 Pulpables 7,815 7,854 7,893 7,933 7,972 Dry recyclables (excl. pulpables) 9,291 9,337 9,384 9,431 9,478 BURY In-Vessel Composting (IVC) 17,961 18,051 18,141 18,232 18,323 Trade waste 4,790 4,814 4,838 4,862 4,887 TOTAL 68,844 69,188 69,534 69,882 70,231

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 70,087 70,087 70,087 70,087 70,087 Pulpables 14,598 14,598 14,598 14,598 14,598 Dry recyclables (excl. pulpables) 18,537 18,722 18,910 19,099 19,290 MANCHESTER In-Vessel Composting (IVC) 30,074 30,074 30,074 30,074 30,074 Trade waste 0 0 0 0 0 TOTAL 133,296 133,481 133,669 133,858 134,049

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 41,000 41,200 41,400 41,600 41,800 Pulpables 7,600 7,500 7,400 7,300 7,200 Dry recyclables (excl. pulpables) 9,150 9,200 9,250 9,300 9,350 OLDHAM In-Vessel Composting (IVC) 15,300 15,375 15,450 15,525 15,600 Trade waste 8,800 8,900 9,000 9,100 9,200 TOTAL 81,850 82,175 82,500 82,825 83,150

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 35,731 35,874 36,053 36,224 36,415 Pulpables 6,964 6,999 7,034 7,069 7,104 Dry recyclables (excl. pulpables) 8,695 8,738 8,782 8,826 8,870 ROCHDALE In-Vessel Composting (IVC) 18,692 18,785 18,879 18,974 19,069 Trade waste 0 0 0 0 0 TOTAL 70,082 70,396 70,748 71,093 71,458

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 47,425 47,175 47,675 48,175 48,675 Pulpables 9,360 9,560 9,660 9,760 9,860 Dry recyclables (excl. pulpables) 10,450 10,500 10,600 10,700 10,800 SALFORD In-Vessel Composting (IVC) 17,250 17,400 17,500 17,600 17,700 Trade waste 9,150 9,250 9,250 9,250 9,250 TOTAL 93,635 93,885 94,685 95,485 96,285

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 42,000 42,170 42,330 42,500 42,660 Pulpables 13,115 13,167 13,218 13,270 13,322 Dry recyclables (excl. pulpables) 13,156 13,208 13,260 13,311 13,363 STOCKPORT In-Vessel Composting (IVC) 36,540 36,684 36,828 36,972 37,115 Trade waste 0 0 0 0 0 TOTAL 104,811 105,229 105,636 106,053 106,460

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 30,949 31,104 31,259 31,416 31,573 Pulpables 8,398 8,440 8,482 8,525 8,567 Dry recyclables (excl. pulpables) 12,872 12,936 13,001 13,066 13,131 TAMESIDE In-Vessel Composting (IVC) 18,920 19,015 19,110 19,205 19,301 Trade waste 6,759 6,793 6,827 6,861 6,895 TOTAL 77,898 78,288 78,679 79,073 79,467

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 32,237 32,479 32,804 33,132 33,463 Pulpables 9,831 9,800 9,800 9,800 9,800 Dry recyclables (excl. pulpables) 10,623 10,676 10,729 10,783 10,837 TRAFFORD In-Vessel Composting (IVC) 26,505 25,525 25,653 25,781 25,910 Trade waste 7,000 7,070 7,141 7,212 7,284 TOTAL 86,196 85,550 86,127 86,708 87,294

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 373,849 374,880 376,742 378,611 380,495 Pulpables 88,960 89,249 89,461 89,675 89,888 Dry recyclables (excl. pulpables) 105,864 106,477 107,136 107,795 108,458 WCA TOTAL In-Vessel Composting (IVC) 201,424 201,214 202,044 202,877 203,710 Trade waste 41,353 41,705 41,959 42,212 42,468 TOTAL 811,450 813,525 817,342 821,170 825,019

2017/18 2018/19 2019/20 2020/21 2021/22 Residual 158,506 162,425 166,441 170,556 174,773 Dry recyclables 80,818 82,816 84,863 86,961 89,111 HWRCs Windrow 17,495 17,928 18,371 18,825 19,291 Rubble 48,394 49,590 50,816 52,073 53,360 TOTAL 305,212 312,759 320,491 328,415 336,535

TOTAL CONTRACT WASTE 1,116,662 1,126,284 1,137,833 1,149,585 1,161,554

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SCHEDULE 2 Facilities

The Facilities set out at clause 5.1 will be agreed with each WCA on an annual basis and will cover by waste stream type (e.g. pulpables, Comingled, Food and Green Waste, and Residual (including Trade and Bulky Waste)), in a format similar to the template table set out below. Any changes to these Delivery Points, whether temporary or permanent will be dealt with in accordance with the Change Control Procedure (Schedule 4). For the avoidance of doubt ‘tipping away’ payments will be applied in the event of temporary changes necessitated by unavailability of named facilities.

Delivery Point

Pulpables

Comingled

Kitchen & Garden

Residual (including Bulky and Trade Waste)

Notes:  Excludes clinical waste, which is directed to third party sites for disposal.  Excludes hazardous waste, which is directed to WDA specific sites licensed accordingly.  ‘Third Party - WDA’: This waste stream is delivered by the WCA to an agreed WDA third party site. Disposal is committed to the WDA VC or Replacement Operating Contracts at the Commencement Date.

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SCHEDULE 3

LEVY ALLOCATION METHODOLOGY

1. Payment by the WCAs to the WDA for the waste disposal services received, and apportionment of the Levy under the Joint Waste Disposal Authorities (Levies) (England) Regulations 2006 (“the Levy Regulations”) will be established in accordance with the principles set out in this Schedule 3. Therefore, the levy allocation mechanism set out in this Schedule represents an agreed basis for apportioning the Levy under Regulation 4 (1) (a) of the Levy Regulations.

2. Under the proposed post April 2019 Replacement Operating Contracts the WDA is expected to have costs which comprise: a) A Fixed Cost element, such as financing costs (LAM Fixed Costs); b) A Variable Cost element, such as the Replacement Operating Contracts (LAM Variable Costs). The variable element is directly linked to the expect tonnages processed via the Facilities, as set out in Schedule 1; and c) The WDA’s own direct costs.

Collectively these costs will be used to determine annual budget requirements, which after application of any reserves, generates a Levy Requirement.

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3. The following table sets out the key design characteristics, and reasons for their inclusion (based on expected 2019/20 costs) using the volumes of Residual Waste and Recycling arisings set out in Schedule 1 in apportioning the Levy.

Key design characteristics Reasons for their inclusion A. District Collected Waste (c £136m, 78.6% of net costs)

1. Retain 4 waste stream approach, based upon:- v. Comingled/pulpables (as one); vi. Organics (food and Garden); Reflects current WCA collection vii. Trade Waste, and working practices and ensures viii. Residual Waste. costs/environmental benefits from improvements are retained. 2. Retain year-end adjustments for tonnages (introduced from 2017/18). Adjustments to be at a pre-agreed annual rate, reflecting LAM Variable Costs of processing (subject to items A3 below).

Ensures a direct link to

performance and encourages direct link to benefits of improving recycling performance. Variable costs are used to match any cost/reductions at a WCA level

with broadly corresponding 3. Allocate costs on the basis of an Levy Apportionment Model (LAM) which comprises:- changes in costs paid to the Replacement Operating iii. LAM Fixed Costs element (i.e. are related to Contractors. costs which don’t vary, such as debt charges). These will be allocated to Districts based on adjusted2 2017/18 actual tonnages, and will be reviewed and reset after 5 years for the 2022/23 financial year. iv. LAM Variable Costs – which reflect marginal processing cost.

4. For WCAs whose recycling falls below the Recycling Minimum Performance Level they will be required to make an additional levy contribution calculated by:

i. expected total Recycling tonnes arisings as per 2017/18 actuals (total Recycling calculated as dc+dp+dg) ii. less actual total Recycling tonnes arisings in Ensures that one District can’t year adversely impact others by reducing iii. equals additional tonnes of waste to be its recycling performance. charged iv. cost allocation additional sum is additional tonnes of waste multiplied by LAM Fixed Costs

2 An adjustment may be made to Salford City and Trafford Council figures (only) to reflect the part year impact of reduced waste capacity roll out and potential impact of charging for Garden Waste (respectively). Page 326

per tonne for Residual Waste. In case of Exceptional Circumstances this additional levy 5. Common assumptions to be used in tonnage contribution can be over-ridden by estimates, as per schedule 1. the GMCA Treasurer.

Ensures that all future year increases are based upon common factors and also ensure re- procurement facilities/capacity are correctly sized.

B. Household Waste Recycling Centres (c. £31m, 17.9% of net costs)

Cost allocation to be based upon: Move is away from 100% based on Council Tax Base (Band D iii. 50% Council Tax Base (Band D equivalent) equivalent), to better reflect that iv. 50% Car Ownership (2011 Office of National usage will be linked to access by Statistics census) cars. but subject to a survey of users (in 2018/19) to establish the WCA in which they are resident. Validation of these ‘proxy’ designed to reflect usage measures, to be undertaken by conducting a survey of HWRC site users in the 2018/19 financial year (as part of a Waste Composition Analysis work stream).

Cost allocation factors to be reviewed and amended, as needed, for future years LAM.

C: WDA Own costs (c. £5m, 2.9% of net costs) – including direct costs (such as salaries/running costs)

Equal share to each WCA Costs don’t vary much by activity, and are thus linked to an 11.1% each WCA allocation basis.

D: Non-Key Services (c. £1m, 0.6% of net costs) – this comprises specialised waste services, such as asbestos, plasterboard, clinical waste, dog waste, etc.

Waste arisings No change from the existing basis. It is intended that the majority of ‘regular’ waste will in future be included in the Replacement Operating Contracts and thus the value of this element of the LAM will fall further.

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4. As soon as practical after the year end an adjustment will be determined by the WDA to vary district Levy allocations to reflect variations in actual costs, income from recyclates and actual tonnages delivered (compared to WCA Forecasts). The WDA will aim to provide the year end Levy adjustment information by the third week of May, at the latest.

5. As part of the annual budget and levy process the WDA will determine and publish the LAM Variable Cost rates which will be made available to the WCA Treasurers. Given the commercial sensitivity of that information it will not be published in an open format, but will be part of the closed budget and levy report, which will be provided on or before the Statutory latest Levy fixing date of 15th February prior to the commencement of each financial year. The 2019/20 Base Financial Model results for those LAM Variable Costs have already been shared.

6 For the WCA declarations for Trade Waste (offices, shops, traders etc.) the WDA will set an annual rate per tonne in accordance with the 2013/14 rate inflated in accordance with the RPIx. An adjustment to the Trade Waste element of the Levy will be carried out as part of the financial year end reconciliation process and any difference between actual WCA tonnages and WCA Forecasts will be made at the pre-agreed per tonne rate.

A review of the Trade Waste area has been commissioned, for completion in 2018/19, and the recommendations from that will be used to inform a review of this paragraph of the LAMA for 2019/20

2018/19 only Transitional Arrangements.

7. The 2017/18 WDA Levy included an additional Levy sum of £77.8m to provide headroom and facilitate the restructuring of the former Waste PFI Contract. That additional Levy sum was allocated to individual WCAs on the basis of the mid 2015 population figures as set out below: -

Mid 2015 Population Bolton 281,619 Bury 187,884 Manchester 530,292 Oldham 230,823 Rochdale 214,195 Salford 245,614 Stockport 288,733 Tameside 221,692 Trafford 233,288 2,434,140

8. The additional Levy sum will be fully reimbursed to WCAs in 2018/19 but based on the mid 2016 population numbers. To ensure the impact of the roll forward of population numbers is corrected and adjustment may need to be made, either through the inclusion Page 328

of an additional factor in the 2018/19 LAMA, or via the GMCA Treasurer’s adjustments on the AGMA budget requirements. The purpose of the adjustment is to ensure that the impact at a district level overall is £nil.

9. A Smoothing Factor will be included for 2018/19 only to cushion the impact of methodology changes. That is calculated by taking ‘half the difference’ of the impact of methodology changes between the 2017/18 Inter Authority Agreement basis and 2019/20 full LAMA basis (i.e. average of 2017/18 revised estimate and 2019/20 estimates). That adjustment will be subject to a further change in May 2019 to reflect actual tonnages at the LAM Variable Cost Tonnage rate.

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SCHEDULE 4 Change Control Procedures

A. Change to the VC and the Replacement Operating Contracts and WCA Operations from the operations set out in the agreed Service Delivery Plan will be governed by the procedures set out in this Schedule 4

1. Principles

1.1 Where a WCA sees a need for a change to the services provided under the VC and the Replacement Operating Contracts affecting a WCA then a WCA may at any time request a change in accordance with the procedure set out in paragraph 2 below.

1.2 The WDA shall not unreasonably withhold its agreement to any change.

1.3 The obligations of the Parties shall not be effected until a Change Control Note has been signed by the relevant WCA and sent to the WDA.

2. Procedure

2.1 The WCA and the WDA shall discuss changes proposed by the WCA and such discussion shall result in:

2.1.1 a decision not to proceed further; or

2.1.2 a written request for a change by the WCA.

2.2 Each Change Control Note shall contain details of the change including, where applicable:

2.2.1 the title of the change;

2.2.2 the originator and the date of the request or recommendation for the change;

2.2.3 the reason for the change;

2.2.4 full details of the change including any specifications;

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2.2.5 a timetable for implementation, together with any proposals for acceptance of the change;

2.2.6 the impact, if any, of the change on other aspects of the VC and the Replacement Operating Contracts;

2.2.7 the date of expiry of validity of the Change Control Note; and

2.2.8 provision for signature by the WCA/WDA if the change is agreed.

2.3 For each Change Control Note submitted to the WDA, the WDA shall, within twenty working days from receipt of the Change Control Note, evaluate the Change Control Note and notify the relevant WCA whether the WDA (acting reasonably) agrees to the change.

2.4 A Change Control Note signed by both Parties shall constitute a variation to this Agreement.

B. Amendment to the Agreement

No amendment to or modification of this Agreement (other than an amendment under paragraph A of this Schedule) shall be valid or binding on any Party unless it is made in writing, refers expressly to this Agreement and is executed by all of the Parties.

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