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Wolverhampton City Council OPEN EXECUTIVE DECISION ITEM (AMBER)

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Wolverhampton City Council OPEN EXECUTIVE DECISION ITEM (AMBER) Agenda Item No: 7A Wolverhampton City Council OPEN EXECUTIVE DECISION ITEM (AMBER) Cabinet / Cabinet Panel CABINET Date 1 JULY 2009 Portfolio(s) COUNCILLOR MRS G FELLOWS (SCHOOLS) Originating Service Group(s) CHILDREN & YOUNG PEOPLE Contact Officer(s) TIM WESTWOOD/KAREN NEWEY Telephone Number(s) 4225/1469 Title FINAL DECISION ON PROPOSALS TO DISCONTINUE THREE SECONDARY SCHOOLS LEADING TO THE ESTABLISHMENT OF TWO NEW ACADEMIES IN THE NORTH AND SOUTH OF THE CITY AND THE ESTABLISHMENT OF BUSINESS TRANSFER/LEASE AGREEMENTS AND FUNDING AGREEMENT KEY DECISION YES / NO IN FORWARD PLAN YES / NO Recommendation(s) 1. Cabinet considers the proposals outlined in recommendation 2. below, in accordance with statutory guidance (see section 10 of the report). 2. In accordance with Section 15 (1) and Schedule 2 (paragraphs 8 and 19) of the Education and Inspections Act 2006, Cabinet approves the following discontinuance of three Secondary Schools, conditional upon the signing of a Funding Agreement by the Secretary of State, for the establishment of the new Academies: a. In accordance with Schedule 2 (paragraph 19), the discontinuance of Parkfield High School (Wolverhampton Road East and Bilston sites) on 31 August 2009, leading to the establishment of an Academy in Bilston. b. In accordance with Schedule 2 (paragraph 8), the discontinuance of The Northicote School and Pendeford Business and Enterprise College (BEC) on 31 August 2010, leading to the establishment of an Academy on the Pendeford site. 3. Subject to approval of the discontinuance proposals, authority is delegated to the Cabinet Member for Schools in conjunction with the Director for Children & Young People to approve any amendment required to the discontinuance dates of Parkfield High School, Pendeford BEC and The Northicote School, should the signing of the Funding Agreements with the Secretary of State be delayed and/or the start date of the new Academies be delayed. 4. Two “short term leases” are granted to the Academies Trust, of school buildings and land at the following sites (the “Sites”): a. Parkfield High, Wolverhampton Road East, Wolverhampton, WV4 6AP b. Parkfield Bilston High, Prosser Street, Bilston, WV14 0QD Final Decision July 2009 together referred to as the “Short Term Leases” and if necessary the entering into of agreements for lease in respect of the Short Term Lease. 5. Authorise the Director for Children & Young People and/or the Director for Customer & Shared Services (as appropriate) together with the Chief Legal Officer and Chief Financial Officer to negotiate and enter into: a. the Business Transfer Agreement b. the Short Term Leases and Memorandum of Understanding c. Funding Agreement 6. That Cabinet approve delegated authority to the Director for Children & Young People and Chief Financial Officer in conjunction with the Cabinet Member for Schools and Cabinet Member for Resources, Governance & Support Services to approve the outcome of financial implications detailed in paragraph 11. Executive Summary Following informal consultation with schools, parents/carers and other stakeholders on the discontinuance of Parkfield High School, Pendeford Business & Enterprise College (BEC) and The Northicote School, a number of comments were received which were reported to Cabinet on 22 April 2009. At this meeting, Cabinet authorised the publication of a Public Notice and a second period of consultation (Formal Representation) commencing on 27 April 2009. The formal Representation Period ended on Sunday 14 June 2009. During this period of consultation no objections were received in respect of Parkfield High School. One letter raising concerns was received in respect of The Northicote School and Pendeford BEC. Cabinet is asked to consider the outcome of the informal consultation and responses to the formal Representation Period and to make a final determination on the proposals to discontinue Parkfield High School, Pendeford Business & Enterprise College (BEC) and The Northicote School. The Academy Sponsors, in conjunction with the project management company working on behalf of The Department for Children, School and Families (DCSF), have indicated that they wish to take over the assets of Parkfield High School. To effect this, a Business Transfer Agreement is to be entered into. In addition, Short Term Leases and a Funding Agreement are currently under development. Since such agreements would need to be completed by 1 September 2009 Cabinet is requested to approve delegated authority to negotiate and enter into the agreement. Schedule of Background Papers 1. Building Schools for the Future – Lifelong Learning Cabinet Team 2 October 2003. 2. Building Schools for the Future (Secondary) - Cabinet 12 September 2006. 3. Building Schools for the Future (Secondary) - Cabinet 4 October 2006. 4. Building Schools for the Future – Children and Young People’s Scrutiny Panel 7 June 2007. 5. Building Schools for the Future – Children and Young People’s Scrutiny Panel 27 September 2007. 6. Building Schools for the Future (BSF) – Strategy for Change Part 1 – Cabinet - 17 October 2007. 7. Building Schools for the Future (BSF) Strategy for Change Part 2 – Cabinet – 12 March 2008. 8. Building Schools for the Future – Outline Business Case - Cabinet - 1 October 2008. 9. Building Schools for the Future – Update – Resources Panel - 6 January 2009. Final Decision July 2009 10. Building Schools for the Future – Update – Cabinet 25 March 2009. 11. Building Schools for the Future Update, Academy Development & Outcome of Informal Consultation on School Closures Leading to Establishment of the New Academies - Cabinet 22 April 2009. Final Decision July 2009 FINAL DECISION ON PROPOSALS TO DISCONTINUE THREE SECONDARY SCHOOLS LEADING TO THE ESTABLISHMENT OF TWO NEW ACADEMIES IN THE NORTH AND SOUTH OF THE CITY AND THE ESTABLISHMENT OF BUSINESS TRANSFER/LEASE AGREEMENTS AND FUNDING AGREEMENT 1.0 Background 1.1 Cabinet on 22 April 2009 received a report on the progress of the establishment of the two new Academies (now referred to as the North Wolverhampton Academy and the South Wolverhampton Academy) within the purview of a new Academies Trust. 1.2 Cabinet were advised that, following approval of the Academy Expressions of Interest, which were jointly submitted by the City of Wolverhampton College, the University of Wolverhampton and the City Council, the Academy programme has now moved into a feasibility phase. 1.3 The Department for Children, School and Families (DCSF) appointed consultants who are now working with the Sponsors and the Council on the establishment of an Academy in Bilston with an anticipated opening date of 1 September 2009 (following final approval of the discontinuance of Parkfield High School outlined in this report). An overarching Funding Agreement is currently being prepared to establish the South Wolverhampton Academy; this is subject to final approval by the Secretary of State. 1.4 Although the discontinuance proposals outlined in this report are connected to both the North and the South Wolverhampton Academies, the proposed date for the discontinuance of The Northicote and Pendeford BEC is not to be effective until 31 August 2010. 1.5 Due to the later timescale for the establishment of the North Wolverhampton Academy, the detail of the Funding Agreement/Business Transfer Agreement/Short Term Leases have not yet been determined however, this process will commence over the next few months, the details of which will be reported to Cabinet. 2.0 Business Transfer Agreement 2.1 The Academy Sponsors, in conjunction with the project management company working on behalf of the DCSF, have indicated that they wish to take over the assets of Parkfield High School. To affect this, a Business Transfer Agreement is to be arranged. Since such agreement would need to be completed by 1 September 2009 Cabinet is requested to approve delegated authority to negotiate and enter into the agreement. 3.0 Short Term Leases and Memorandum of Understanding 3.1 The forms of the Short Term Lease of the sites currently occupied by Parkfield High School are intended to be very similar and subject to only site specific differences. The initial draft of the form of the Short Term Leases provides as follows: Final Decision July 2009 4 • Duration – four years with the provision for early determination if the Funding Agreement terminates. The provision for four years may increase to five years, if required by the Academy. • Rent – nil. • Repair – In respect of the Wolverhampton Road East site, the Academy is to keep the buildings in the same state of repair and condition as they are in at the date of the lease. The evidence of such repair and condition will be set out in a schedule of condition. In respect of the Bilston site, the Academy will return to the Council the budget provided for repair of the buildings and the Council will take on the repairing risk for the buildings. However, if a repair is required which exceeds the budget returned to the Council then the Council will be entitled to terminate the Short Term Lease for the Bilston site and require the Academy to decant to the Wolverhampton Road East site. • Alterations – Structural alterations are to be only permitted with Council’s consent (not to be unreasonably withheld or delayed). Other alterations are permitted without the need for the Council’s consent. • Transfer of the Short Term Leases to a Third Party or Underlettings – A transfer of the Short Term Leases would be permitted to a party to whom the Development Agreement for the Academy had been transferred. Underlettings of part would also be permitted with the Council’s consent, not to be unreasonably withheld or delayed. 3.2 As the above information has been taken from the initial draft it is subject to negotiation and may change. However, due to the fact the Short Term Leases need to be completed for the sites by 1 September 2009, and they are not in an agreed form, it has been necessary to include information from the initial position with a commentary on possible further amendment.
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