Issue - meetings

(Report of the Consortium Secretary)

The Management Committee considered a report of the Consortium Secretary outlining progress in respect of the approval of the new Consortium Agreement by each of the Consortium Authorities.  A copy of the report, marked ‘Agenda Item 3’, is filed with these minutes. 

The Committee was advised that the final version of the exit agreement with Leicester City Council had been circulated to Consortium Authorities on a counterpart basis following the City’s signing of the document dated 31 May 2014.

It was also noted that although the date of the exit agreement had been slightly delayed until 31 May 2014, Leicester City’s share of the dividend would not extend beyond 31 March 2014 in accordance with the agreement. The new Partnership was also being re-circulated for signing, in the same form as approved by Management Committee in March 2013, with the only change being Leicester City Council having been removed as a signatory.

RESOLVED:

That the report be noted.

(Report of the Consortium Secretary)

The Management Committee considered a report of the Consortium Secretary outlining progress in respect of the approval of the new Consortium Agreement by each of the Consortium Authorities.  A copy of the report, marked ‘Item 6’, is filed with these minutes. 

The Committee was advised that, as of 27 June, Norfolk, Warwickshire, Leicestershire and Lincolnshire County Councils had obtained agreement through their respective political processes for the Consortium Agreement to be completed.  The members from Cambridgeshire County Council and Peterborough City Council confirmed that action was underway to complete those processes in their authorities.  It was understood that Leicester City Council was minded to withdraw from the Consortium, although no formal notice to that effect had been received.

Arising from discussion the following points were noted:

    (i)        The Leicester City Council members reported that their officers were exploring options with respect to their Authority’s future involvement with ESPO and, in due course, would report their recommendations for consideration and final decision by the City Mayor.  Leicester City Council intended for its representatives to continue to attend meetings of the Management Committee until such time as the matter was resolved.  It was envisaged that, should Leicester City withdraw from the Consortium, the Authority would continue to operate as a customer of ESPO;

  (ii)        Work which would need to be undertaken to understand the financial, administrative and operational implications and requirements of such a withdrawal could commence only once Leicester City Council had formally confirmed its intentions in writing.  These would need to be considered by the Chief Officer Group in the first instance;

 (iii)        It was the view of the Committee that Leicester City should resolve its position as soon as possible to enable the new Consortium Agreement to be put in place and ESPO’s good governance assured.

RESOLVED:

(a)       That the County Solicitor for the Servicing Authority be asked to write to Leicester City Council requesting early written confirmation of its intentions with regard to its continued involvement in the Consortium or otherwise;

(b)       That, subject to Leicester City Council’s response, the Chief Officer Group be requested to consider the consequences of the withdrawal of Leicester City Council from the Consortium with a view to reporting the outcome of these discussions to the Management Committee on 26 September.