To approve the revised, joint agreement following consultation with Shropshire Council, the Borough of Telford and Wrekin and Worcestershire County Council.

Recommendations

THAT:

a) the revised joint agreement at appendix 1 setting out the role, functions and terms of reference for the joint executive committee overseeing the strategy and direction of West Mercia Energy (WME) joint purchasing operation be approved; and

b) the assistant director communities be authorised to agree with the other constituent authorities any further amendments to the Joint Agreement required, following consultation with the cabinet member, prior to completion and to complete the necessary deeds of variation on behalf of the council.

The WME joint committee has discussed the need for revising and updating the governance arrangements. Since February 2016 Shropshire Council legal services, on behalf of WME, have conducted a review of the joint agreement between the member authorities as well as internal documents for the joint committee such as the financial regulations, standing orders, and scheme of delegation. The joint agreement has been subject to consultation with the relevant officers and a joint agreed recommended approach.

Cabinet could decide not to approve the revised governance documents but this would carry the risk that decision–making was not conducted in accordance with constitutional and statutory requirements.

The joint purchasing operation could be established under different governance arrangements, such as a legal entity in its own right. Whilst the advantages and disadvantages of such an option are being explored and will be subject to a decision

in the future, there remains a need to ensure that existing governance arrangements are robust and fit for purpose.