To update Cabinet on the progress made since the report of 16^th February 2016.  To seek Cabinet’s approval to execute a further Memorandum of Understanding to be entered into between the ten local authorities (the Councils) participating in the City Deal project.  To obtain from Cabinet appropriate delegated powers in order to undertake the functions related to the governance structure.  To commit a further sum of £47,034 representing the Council’s contribution to a regional fund of £500,000 to continue to fund the development of the City Deal.  To seek approval of the appointment of a Programme Director by the County Council of the City and County of Cardiff (Cardiff Council) on behalf of the participating Councils and to agree to the procurement and appointment by Cardiff Council of specialists advisors as part of the project work. 

The Corporate Director Operational and Partnership Services reported on an update on progress made with the Cardiff Capital Region City Deal.  He stated that the Leaders of the respective Councils had signed the Cardiff Capital Region City Deal Agreement (City Deal) with the Welsh and UK Governments in March 2016 with the Councils working together to develop the detailed City Deal proposals and put in place all arrangements and documentation required to finalise the City Deal.  The Councils now have to develop a robust business case that will enable each of the ten Councils to undertake their own assessment as to whether they commit to the financial terms and conditions of the City Deal. 

He reported that the next stage of the process requires the establishment of robust governance arrangements in shadow form and to develop the City Deal Agreement.  He stated that the Councils have agreed to enter into a further Memorandum of Understanding to undertake the project work and how resources would be allocated and the project co-ordinated. 

The Corporate Director Operational and Partnership Services outlined the governance structure which will include a shadow joint committee to be known as the Cardiff Capital Region Shadow Joint Committee; the Chief Executive’s Board and the Cardiff Capital Region City Deal Officers Group which will carry out the day to day activities to progress the project.  He stated that it was proposed that the Leader and appointed deputy be given delegated power to make any decisions on behalf of this Council, provided it was within the remit of the Shadow Joint Committee. 

The Corporate Director Operational and Partnership Services informed Cabinet that the Councils had created a fund of £500,000 based on population share to meet the costs of preparing the City Deal bid.  To date £332,000 of this fund had been spent or committed.  He stated that additional costs would need to be incurred and it was proposed that the individual contributions be apportioned on the same basis as before, which for Bridgend would equate to expenditure of £47,034, which would be met from corporate contingency.  If costs and expenditure exceed the financial contributions of each of the individual Councils, they would be apportioned between the Councils on the percentage of population across the City Region.  He also informed Cabinet that to ensure the governance arrangements are sufficiently strong, that the ten local authorities procure and appoint specialist legal advisors to draft all appropriate and necessary documents for the City Deal from the Crown Commercial Services Framework Agreement, to be met from within the £500,000 fund. 

The Cabinet in commending the proposals to progress the City Deal commented that a significant element of the Deal is its relationship with the Metro scheme and given the uncertainty in the economy following the referendum result to leave the European Union requested that representations be made to the UK and Welsh Governments that they honour their commitment to the City Deal Region and that the funding remain in place.   

RESOLVED:               That Cabinet:

a)     noted the content of the report and in particular the progress being made to progress the City Deal Agreement, and to approve the establishment of the bodies outlined in Appendix 1 and 5 of the report,

b)     approved the execution of a further Memorandum of Understanding by the Chief Executive Officer on behalf of the Council. The final terms and conditions of the Memorandum of Understanding are to be agreed by the Chief Executive Officer in consultation with the Corporate Director - Operational and Partnership Services and the Section 151 Officer,

c)     appointed the Leader of the Council to the Cardiff Capital Region City Deal Shadow Joint Committee, and if the Leader is unavailable for any reason appoint the Deputy Leader as the deputy to that Joint Committee

d)     delegated to the Leader power to make any decision within the terms of reference of the Cardiff Capital Region City Deal Shadow Joint Committee, and if the Leader is unavailable, the Deputy Leader can exercise such powers.

e)   appointed the Chief Executive Officer to the Chief Executives Board and if the Chief Executive if unavailable for any reason appoint the Corporate Director – Communities as the deputy to that Chief Executives Board.

f)    delegated to the Chief Executive Officer the power on behalf of the Council to make any decision within the terms of the reference of the Chief Executives Board, and if the Chief Executive Officer is unavailable for any reason, such powers to be exercised by the Corporate Director- Communities. The Chief Executive Officer and the Corporate Director- Communities also to have the additional power to nominate officers to the Cardiff Capital Region City Deal Officers Group and any sub-groups. 

g)   approved the appointment of a Project Director and any ancillary staff on behalf of the participating Councils.

h)   committed a further sum of £47,034, from available resources, representing the Council’s contribution to a regional fund of £500,000 to continue to fund the development of the City Deal, and that Cabinet note that any expenditure or costs in addition to this amount incurred by the County Council of the City and County of Cardiff on behalf of the participating Councils, will be apportioned to individual Councils on the basis of their percentage share of the population across the City Region.

i)       approved the procurement and appointment of specialist advisors by the County Council of the City and County of Cardiff on behalf of the participating Councils.   

j)     approved that representations be made on behalf of the ten local authorities to the Chancellor of the Exchequer and the Secretary of State for Wales seeking assurances that the funding for the Cardiff Capital Region City Deal is still in place and to honour its commitment to the Region in light of the recent result of the Referendum to leave the European Union.