Report by Chief Executive

In accordance with section 100B (4)(b) of the Local Government Act 1972, the Mayor agreed that this item of business should be considered as a matter of urgency, because at the time of the original despatch of the Council agenda on 8 October 2018 necessary work was still ongoing to finalise the report and associated papers for this meeting.  The Mayor was also satisfied that the report could not be deferred to the next meeting of the Council, which was due to take place on 22 January 2019, as the decisions set out in the recommended action would need to be considered prior to the proposal to establish Brighter Futures For Children Limited from 1 November 2018.

Further to the Minute 59 of Policy Committee on 15 January 2018, and Minute 5 of the Adult Social Care, Children’s Services and Education (ACE) Committee on 11 July 2018, the Chief Executive submitted a report setting out the decisions required by the Council to transfer the delivery of the Council's children's services to a newly established, wholly owned subsidiary Company of the Council, Brighter Futures for Children Limited (‘BFfC’/the ‘Company’). This followed the recommendation of the Children’s Services Commissioner, to establish a ‘full service’ children’s company, which was formally endorsed at Policy Committee on 15 January 2018.  As part of this endorsement, the Committee also agreed to transfer the Council’s Children’s Social Care, Early Help and Education services to the Company.  Therefore, this report was seeking approval to the formal transfer of the Council’s children’s services to the Company, which included the direct award of a services contract to BFfC for the delivery of the Council’s children’s services through a service delivery contract.  The report also sought approval for other key documents which would underpin the relationships between the Council and BFfC, in particular the Company’s Articles of Association.

The report further asked for approval to the transfer of relevant Council staff and assets to BFfC; and to amend relevant parts of the Council’s Constitution and register of delegations to reflect the establishment of BFfC as an independent, wholly owned subsidiary Company of the Council.  The report had attached:

Appendix A:    Memorandum of Understanding (28 March 2018)

Appendix C:    Revised Portfolios for Lead Councillors for Children and Education

Appendix D:    Revised terms of reference for the Adult Social Care, Children’s Services & Education, and Policy Committees

Appendix E:    Property Matters

Appendix F:     Support Services – Service Level Agreements Summary

In addition, the draft Articles of Association; Governance Side Agreement; and Service Delivery Contract, listed as Appendix B in the report, had been provided in confidence to all Councillors because they were draft documents, which would be published once they had been finalised.  At this stage, it was likely that making these documents public would disclose information relating to the financial or business affairs of the authority and the Company, which was exempt under paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

The following motion was moved by Councillor Terry and seconded by Councillor Pearce and CARRIED:

Resolved –

(1)            That the Articles of Association for the Company (which include the Council’s reserved matters in relation to the Company) and the Governance Side Agreement, at Appendix B (i) and (ii) which had been provided to Councillors confidentially, be noted and the Chief Executive, in consultation with the Leader of the Council and Lead Councillors for Education, Children and Corporate & Consumer Services, be authorised to finalise the terms of the above documents;

(2)            That the intention to directly award the Service Delivery Contract, at Appendix B (iii) which had been provided to Councillors confidentially, to BFfC for the provision of the Council’s children’s social care, education and early help functions set out in Section 8 of the report, in accordance with the Memorandum of Understanding between the Council and the Department for Education and in line with the agreed resolution of Policy Committee on 15 January 2018 (Minute 59 refers), be noted and the Chief Executive, in consultation with the Leader of the Council and Lead Councillors for Education, Children and Corporate & Consumer Services, be authorised to finalise the terms of the above document;

(3)            That the contracting-out of the performance and discharge of the Council’s children’s social care functions and the relevant education and early years functions, listed in Section 9, pursuant to the said Service Delivery Contract and in accordance with [Section 1 of the Children and Young Persons Act 2008 and the Contracting Out (Local Authority Education Functions) (England) Order 2002], be authorised and approved;

(4)            That the transfer of and/or provision via Service Level Agreements of support services by the Council to BFfC, via the Support Services Agreement in the Service Delivery Contract as set out in Section 12, be approved;

(5)            That the transfer of property (by way of lease), assets and third party contracts from the Council to BFfC be approved, as set out in Section 13 of the report, and the necessary licences, leases and contracts be entered into;

(6)            That the transfer of all relevant staff via TUPE (Transfer of Undertakings (Protection of Employment) arrangements on the Service Delivery Contract commencement date, as set out in Section 15 of the report, be approved;

(7)            That the Council’s proposal for designated body status in relation to the pension arrangements of all transferred staff, as set out in Section 15 of the report, be approved;

(8)            That with regard to the Council’s Constitution:

a)              the revised portfolios for the Lead Councillors for Children, and Education, attached at Appendix C, be agreed;

b)              the revised terms of reference for the Adult Social Care, Children’s Services & Education Committee, to reflect the transfer of the direct provision of children’s social care, education services and early help functions to Brighter Futures for Children, and the new role of oversight of the RBC clienting function of the contract with Brighter Futures for Children, attached at Appendix D, be agreed;

c)              the function of exercising the Council’s sole membership/ownership of Brighter Futures for Children be added to the terms of reference of the Policy Committee;

d)        the Monitoring Officer be authorised to make any other necessary amendments to the Council’s Constitution and Scheme of Officer Delegation to reflect the establishment and responsibilities of BFfC, in conjunction with the Director of Children, Education and Early Help Services, and to report these for retrospective approval to the Annual Council Meeting in May 2019;

(9)              That the Chief Executive, in consultation with the Leader of the Council and Lead Councillors for Education, Children and Corporate & Consumer Services, be authorised to finalise the terms of the new arrangements with BFfC and the Department for Education prior to formal transfer of the children’s services to the Company pursuant to the Service Delivery Contract; and be delegated authority to make a Council appointment to the Board of Directors of the Company;

(10)           That the Head of Legal & Democratic Services be authorised to execute all legal documents that would be necessary to give effect to the above resolutions.