Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The purpose of this report was to authorise bringing forward the termination date of the Council’s Agreement with NPS Peterborough Limited to 31 January 2023, or as soon as possible thereafter, and the consequential actions required.
Cabinet considered the report and RESOLVED to:
1. Agree to bring forward the termination of the Council’s Agreement with NPS Peterborough Limited to 31 January 2023 or as soon as reasonably possible thereafter.
2. Note that upon termination of the Council’s Agreement with NPS Peterborough Limited, property and estate management services will be provided in-house by the Council and staff will transfer accordingly.
3. Delegate authority to the Executive Director of Corporate Services and S151 Officer in consultation with the Cabinet Member for Finance and Resources and the Director of Law and Governance and Monitoring Officer to agree to decommission and wind up NPS Peterborough Limited or dispose of its shareholding in accordance with the shareholders agreement and articles of NPS Peterborough, subject to appropriate due diligence and their agreement that it is appropriate to do so.
4. Agree that the Council, as a shareholder of NPS Peterborough Limited, will exercise its vote and give such consent as may be required, to give effect to these recommendations.
5. Delegate authority to the Executive Director of Corporate Services and S151 Officer, in consultation with the Director of Law and Governance and Monitoring Officer to:
a) negotiate and enter into a Commercial Transfer Agreement with NPS Peterborough Limited in respect of the termination;
b) in respect of the earlier termination date referred to in recommendation 1 above, approve any financial payment to NPS Peterborough Limited; and
c) issue notices, negotiate and enter into any other documentation and take all other steps reasonably necessary in the view of the Executive Director of Corporate Services and S151 Officer to facilitate and give effect to these recommendations
The Cabinet’s approval on 20 June 2022 to terminate the services contract with NPSPL was provided on the basis of gaining better corporate oversight and control of its property portfolio and asset management planning, including its disposals strategy. Since that decision, the Council had been running the services under the leadership of an Interim Property Services Lead, and this had led to the conclusion that the Council would realise financial and service benefits early, by bringing the transfer date forward. A number of staff had left NPSPL and because of the uncertainty surrounding the future of the joint venture, NPSPL was unable to recruit new employees, adversely impacting on the service NPSPL provided the Council. Bringing forward the transfer date, removed this uncertainty, allowing the Council to offer more certain employment to new starters and the existing staff. A full-time Service Director – Commercial Partnerships, property and Asset Management, had already been appointed to drive the service forward.
Do not bring the termination date forward: Leaving the termination and transfer date as the end of June 2023 was discounted because the earlier date provides the Council more immediate control of the service and the ability to better able tailor the service to meet the Council’s requirements.
Cabinet Report JUN22/CAB/07
Publication date: 16/01/2023
Date of decision: 16/01/2023
Decided at meeting: 16/01/2023 - Cabinet
Effective from: 20/01/2023