Decision details

The Cabinet Member:

1)    To approved the closure of Gladstone Primary School and authorise the execution and completion of a Commercial Transfer Agreement (CTA) between Peterborough City Council, the Interim Executive Board of Gladstone Primary School and TDA Education Trust;

2)    To authorised the grant of a 125 year lease of the land and buildings occupied by the School known as Gladstone Primary School (located at Gladstone Street and Bourges Boulevard site), excluding the land currently used as a children’s centre and the public play area, at a peppercorn rent to TDA Education Trust;

3)    To authorised entering into a Deed of Novation with TDA Education Trust and Carillion Construction Limited to novate the Council’s contract dated 12 August 2013 with Carillion Construction Limited to TDA Education Trust, to give effect to the terms of the CTA;

4)    To authorised entering into a Duty of Care Deed with Carillion Construction Limited;

5)    To authorised entering into a Dual Use Agreement with TDA Education Trust in respect of the Bourges Boulevard site; and

6)    To delegated authority to the Corporate Director People and Communities to authorise variations to the Dual Use Agreement entered into pursuant to recommendation number 5 during the operation of the Dual Use Agreement.

The Council is obliged under the Academies Act 2010 to cease maintaining a school on the date it opens as an Academy. The DfE expect Local Authorities to co-operate with the Academy conversion process, once approved by the Secretary of State for Education.

The Council’s consent is not required for a school to convert to an Academy and if the Council does not cooperate with the conversion process and negotiate and enter into lease arrangements and a CTA, the Secretary of State has the power to make transfer schemes under the Academies Act 2010 in relation to property, land, rights and liabilities (including rights and liabilities in relation to staff) which would be binding on the Council. It is therefore preferable for the Council to reach agreement with the IEB of the School and Trust and enter into the lease arrangements and CTA in respect of these matters, rather than be subject to transfer schemes made by the Secretary of State.

The proposed lease to the Trust includes the land currently occupied and used for the purposes of the School, but excluding land within the school grounds which is currently operated as a children’s centre by a third party at the Gladstone Street site, and the public play area. 

The CTA sets out the respective obligations of the IEB of the School, the Council and the Trust arising from the academy conversion in relation to employees, contracts and assets (other than land), and the liabilities of each of the parties in that regard.

Under the proposed terms of the CTA, the Council is obliged to assign the benefit of and/or novate contracts entered into by the Council for the purpose of operating the School, and the approach usually taken by the Council in academy conversions is to transfer all such existing contracts relating to the School (including building contracts) to the academy trust.  Recommendation 3 therefore requests authority to enter into a Deed of Novation with the Trust and Carillion Construction Limited to give effect to the terms of the CTA.  As the works carried out by Carillion Construction Limited under that contract did, however, also include refurbishment works to Gladstone Park Community Centre, the intention is to enter into a duty of care deed with Carillion Construction Limited simultaneously.  Recommendation 4 therefore requests authority to enter into a duty of care deed in that regard.  It should be noted that the Council will retain the sub-contractor warranties associated with the Carillion Construction Limited contract.

Part of the site currently occupied by the school (Bourges Boulevard site) is shared use with Gladstone Park Community Centre.  For example, the school’s 4G pitch is used by the members of the community during evenings and weekends, and part of the sports hall within the community centre is used by the school during term time.

As the school will no longer be a maintained school, and the Trust will occupy the school site under a lease upon conversion to an academy, it is necessary to formalise the shared use of the site by way of a Dual Use Agreement between the Council and the Trust.  The Dual Use Agreement will set out the details of the shared use, including the timings of the use by each party of certain areas, contributions for costs of repairs and utilities, insurance and security of the site.  The agreement will remain in place unless and until both parties jointly agree to terminate it.  Recommendation 5 therefore requests authority to enter into the Dual Use Agreement.

The proposed Dual Use Agreement contains provision to review the dual use arrangements annually to consider if any changes are required to assist in the operation of the shared use arrangements or to more fairly represent the parties, and recommendation 6 requests that authority be delegated to the Corporate Director People and Communities in this regard, to authorise variations to the Dual Use Agreement during its operation.

Refuse the closure of Gladstone Primary School and the transfer to academy status:  Once the school has been accepted for academy status by the Secretary of State, the Council is required to support the decision. Failure to cooperate could result in the Secretary of State making transfer schemes which would be binding on the Council. 

Not to transfer the premises:  This option was rejected because the Department for Education guidance specifies that the land held by the Local Authority is to be leased to the academy on a 125 year lease for a peppercorn rent and failure to follow the guidance and cooperate could result in the Secretary of State making a transfer scheme in relation to the land.

Sell the site to the Trust:  This option was rejected because there is no requirement for the Trust to buy land (for which no funding has been made available) and the Council would prefer to retain ownership.

Not to novate the Council’s Carillion Construction Limited contract to the Trust:  This option was rejected because if the Council retained the contract, if any claim in relation to those works in respect of the school were to arise, it is likely that the Council would then have to become involved or take action on behalf of the Trust.  Novating the contract allows the Trust to deal with any such claims directly.  Additionally, the contract makes provision for a duty of care deed to be provided to the Council to seek to protect the Council’s interests in respect of the works relating to the community centre.

Not to enter into a dual use agreement: This option was rejected because it would result in uncertainty for both the Council and the Trust in relation to the shared use of the Bourges Boulevard site.  If arrangements were not formalised in a dual use agreement, then this could result in disputes arising between the Council and the Trust regarding use and financial contributions (for example in respect of repairs and utilities).

None.

None.