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U~...NORTH LANARKSHIRE COUNCIL A~~~D~ITEM NOl....~~.~u~.... NORTH LANARKSHIRE COUNCIL REPORT To: LEARNING & LEISURE SERVICES Subject: FORMATION OF CULTURE NL COMMITTEE LIMITED Date: 8 March 2013 Ref: LMcM/EW INTRODUCTION The purpose of this report is to provide Learning & Leisure Services Committee with a final pre-transfer update regarding progress towards the transfer of the operation of the Council's cultural and associated services by 1"ApriI 2013. RECOMMENDATIONS The Learning and Leisure Services Committee is recommended to:- (i) approve the transfer of the assets and undertaking to Culture NL Limited; (ii) appoint Culture NL Limited to operate the Council's cultural and associated services; (iii) agree that the terms and conditions of all associated contracts necessary to facilitate the foregoing be finalised by the Head of Community Information & Learning in consultation with the Head of Legal Services and the Head of Financial Services; and (iv) note progress. Members wishing further information should contact: Lizanne McMurrich, Head of Community Information and Development on 01236 812338 3 NORTH LANARKSHIRE COUNCIL - LEARNING AND LEISURE SERVICES FORMATION OF CULTURE NL LIMITED Report by Head of Community Information and Learning 1. I NTRO DUCTI0 N The purpose of this report is to provide Learning & Leisure Services Committee with a final pre- transfer update regarding progress towards the transfer of the operation of the Council’s cultural and associated services by 1st April 2013. 2. BACKGROUND 2.1 Formation of a Charitable Organisation to Manage and Operate Cultural and Associated Services - Previous Approvals Members are reminded that, at a special meeting of the Policy & Resources Committee held on 27 September 2012, the following was agreed:- * that the Head of Community Information & Learning progress the formation of a charitable organisation to manage and operate cultural and associated services; that the Head of Legal Services, the Head of Financial Services, the Head of Human Resources and the Head of Community Information & Learning be authorised to:- * finalise leases 0 develop managementkervices and funding agreement for the management of the in scope services and facilities 0 progress the attainment of charitable status for the non profit distributing organisation and achieve admission to the Strathclyde Pension Fund for the non profit distributing organisation as an admitted body that the Head of Community Information & Learning and the Head of Human Resources be authorised to enter into a formal agreement (under the transfer of undertakings (protection of employment) regulations 2006 (TUPE) conditions) with the trade unions and the staff employed at present within the in scope services potentially affected by the proposed transfer to the non profit distributing organisation; 0 that the Head of Legal Services be authorised to:- * establish a TECKAL compliant structure for the non profit distributing organisation establish a Shadow Board for the non profit distributing organisation, seeking nominations for five independent directors complete the final drafts of the memorandum and articles of association of the non profit distributing organisation prepare documentation in relation to the establishment of the non profit distributing organisation and the associated transfer agreement. prepare the legal documentation to establish a trading subsidiary for the non profit distributing organisation, and appoint legal advisers to provide independent advice to the non profit distributing organisation and the shadow board. 4 2.2 Culture NL Limited - Recap on the Development Process Operational responsibility for North Lanarkshire Council's cultural and associated services, including leisure, catering, caretaking and cleaning will transfer, on 1'' April 2013 to a specially created non profit distributing organisation (NPDO), Culture NL Limited, which has been established as a company limited by guarantee with charitable status. The transfer follows a detailed feasibility study and option appraisal previously reported on to the Council's Policy & Resources Committee at its meeting on 22nd September 2011, which was carried out to determine the optimum way to deliver these services to the residents of North Lanarkshire. The new organisation will assume responsibility for the management and operation of performance venues, arts activity and arts development, community centres (including the letting of school halls), museums, libraries services and play services on behalf of North Lanarkshire Council and will also manage the leisure, catering, cleaning and caretaking functions associated with these services. Culture NL Limited will:- provide a high quality wide range of arts, heritage, cultural services and facilities to the communities of, and visitors to, North Lanarkshire in order to support and encourage everyone to participate, learn and develop their skills and cultural pursuits regardless of skill level, physical ability or age, thereby enjoying a healthy life; preserve and promote North Lanarkshire's heritage as well as provide access to area's rich history through provision of museums, libraries, archives and local study services; support community organisations and individuals to participate in community basedholuntary cultural and leisure activities and put in place programmes to help people and communities build their skills; advance and support the delivery of cultural learning both within and outwith a formal education setting in support of a Curriculum for Excellence, More Choices More Chances, and other lifelong learning initiatives; and promote participation in play activities. Culture NL Limited will be accountable to North Lanarkshire Council for the delivery of these services through a services agreement which will incorporate funding provisions. The project team, chaired by the Head of Community Information & Learning with project management support from the Creative Services Manager has developed and steered this project through to completion from the earliest stages of the phase 1 option appraisal. As Committee is aware, the project team comprises senior officers each with specific responsibility for progressing project tasks within their specialist field as well as for contributing to the overall development of the project. Representation on the project team has come from Learning & Leisure Services, Environmental Services, Corporate Services, Finance & Customer Services. 2.3 Transition Roadmap Significant progress has been made against the transition roadmap which was established at the time of the report to the special Policy & Resources Committee in September 2012. An updated copy of which is contained within Appendix 1 of this report. Committee is asked to note the progress made in the following key areas in particular which are critical to the establishment of Culture NL Limited by 1 April 2013. 5 Approval and adoption of articles of association of Culture NL Limited The Executive Director of Finance & Customer Services has exercised delegated powers in terms of paragraph 11 of the Council Scheme of Delegation to approve, on behalf of the sole member of Culture NL Limited (North Lanarkshire Council), the Members resolution to adopt the articles of association for Culture NL Limited. This was subsequently homologated by the Policy & Resources (Finance & Customer Services) Sub Committee at its meeting on Wednesday 27'h February 2013. The approval by the Council of the Members resolution to adopt the articles of association of Culture NL Limited was reported to the Culture NL Limited Shadow Board meeting held on Monday 18'h February 201 3. Culture NL Limited Business Plan 2013 - 2018 The first business plan for the organisation, covering the period 2013 - 2018, has been prepared. This document sets out the aspirations, objectives and performance targets over this period. The Culture NL Limited management team will report on progress to the board at quarterly meetings and will prepare an annual report and audited accounts each year. The business plan (a copy of which is included in Appendix 2 to this report) sets out the following:- the local, regional and national context for cultural services services to be provided by Culture NL Limited mission, vision and objectives of Culture NL Limited PEST (political, environmental, sociological and technological) and SWOT (strengths, weaknesses, opportunities and threats) analysis summary of the communications strategy the structure and role of the board management team structure assets financial strategy and projections performance management and monitoring framework challenges and risks key delivery targets 2013 - 18; and implementation plan The business plan has been created to support and guide cultural services in the North Lanarkshire area over the period 2013- 2018, working with local partners to deliver strong, measured outcomes, to improve the quality of life and to improve the delivery of cultural services to local people and visitors to the area. A mission statement, vision and values have been developed collaboratively with employees. The mission statement vision and values:- Mission To deliver high quality and inspiring cultural and leisure experiences and facilities which promote and increase participation, meet customer and visitor expectations and improve the quality of life. Vision Culture NL Limited is working for the communities of; and visitors to, North Lanarkshire and will be the organisation trusted to:- encourage an enjoyment and involvement in cultural
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