Meeting documents

1 THE ISSUE

1.1 This report sets out proposals for developing Bath & North East Somerset's Local Area Agreement (LAA). It summarises the timetable for LAA development and makes recommendations for managing the process.

2 RECOMMENDATION

2.1 Establish an LAA Project Board as set out in Paragraphs 4.5 - 4.7 of the report, agree Council Executive representation on the Board and invite representation from the bodies indicated

2.2 Note and agree the LAA development timetable as set out in Appendix 1

3 FINANCIAL IMPLICATIONS

3.1 As set out in the report to Executive on 5^th October 2005, the first Local Public Service Agreement (LPSA) attracted £920,000 in "pump-priming" funds into the area and it is expected that significant performance reward grant will also be gained, the exact figures depending on audited performance against targets. The Executive in March 2005 earmarked £50,000 from this sum to `pump-prime' the development of LPSA2. The sum will be used to support the development of a high-quality LAA including staff resources, project team support, research, consultation and community engagement.

4 THE REPORT

4.1 This report sets out the proposed arrangements for developing a Local Area Agreement in Bath & North East Somerset.

4.2 As reported to the Executive in October 2005, LAAs are three-year agreements between Government and Councils (working with partners) which provide an opportunity for fresh thinking about how local services are delivered. They contain a "reward element" which attracts additional funding to improve key areas of performance.

4.3 Bath & North East Somerset is expected to have an LAA in place by April 2007 and GOSW has now set out a timetable for negotiating our LAA. This, along with additional key dates, is attached at Appendix 1. ODPM has also issued a consultation paper on Local Strategic Partnerships (LSPs) which highlights the implications of the development of LAAs as drivers for change. A summary of the paper is attached at Appendix 2.

4.4 The ODPM publication LAA Advice Note 1 states that "the local authority will be responsible, in partnership with the LSP, for driving the LAA". The local authority is also the accountable body for LAA funding arrangements. The Council Executive, reporting to Council as required, is therefore the body with the key responsibility for ensuring robust arrangements are in place to develop, negotiate and implement an LAA for Bath & North East Somerset, in partnership with the LSP and other stakeholders.

4.5 It is therefore recommended that the Council Executive establish a broadly-based Project Board to take forward this project. The Board's role would be to:

Champion the LAA across the Council and partner organisations

Report to the Executive for decisions at key milestone points in the project

Ensure that project milestones are met

Commission work as appropriate on issues such as performance management and governance arrangements for implementing the LAA

4.6 Constituent members of the Project Board would also report as appropriate to the bodies they represent on the Board. It is proposed that the project Board consist of members representing the following:

Executive members

Director-level Project Sponsor

Change Programme Management Group representative/Project Leader

Head of Service representative

Section 151 and Monitoring Officer representatives

The Local Strategic Partnership

Avon and Somerset Police

Bath & North East Somerset Primary Care Trust

The Voluntary and Community Sector

4.7 The Project Board would be supported by a team who would undertake the key drafting and associated work involved with the LAA's development. Project leadership, management and co-ordination would be provided by the Council's Corporate Projects Team. It will also be important to involve the Government Office for the South West in these arrangements from an early stage.

5 RISK MANAGEMENT

5.1 A risk assessment related to the issue and recommendations has been undertaken, in compliance with the Council's decision making risk management guidance. Key risks identified to date include:

Risks associated with pooling resources and targets, and in thereby ensuring that resources continue to be channelled to Council and community priorities

Risks associated with the three-year nature of LAAs, which will mean that ongoing funding and costs will be required to be addressed

Risks associated with partnership approach and potential perception of loss of democratic accountability

5.2 It is proposed that the governance and control mechanisms put in place will significantly address these risk issues. The Draft Project Initiation Document, which will be presented to the Project Board for approval, contains a Risk Assessment and linkages to other projects. Risk mitigation can also be achieved by focusing on budget alignment rather than "pooling". The LAA may also be used as a tool for mitigating and managing existing risks by bringing together funds within the LAA framework.

6 RATIONALE

6.1 The Council Executive agreed on 5th October 2005 that the Council, working with its partners, start work on developing a Local Area Agreement (LAA) for Bath and North East Somerset to begin in April 2007. GOSW have now invited Bath & North East Somerset to work with its partners to negotiate a Local Area Agreement. This process has the potential to improve services for our local community and address local priorities.

7 OTHER OPTIONS CONSIDERED

7.1 Alternative project governance structures have been considered. However, these would not enable the high-level engagement necessary for such a key initiative and would not facilitate links to the integration agenda.

8 CONSULTATION