Agenda item

To seek approval to proceed with the implementation of a wholly-owned company to deliver all the functions of the Council’s Integrated Transport Unit.

Cabinet considered a report seeking approval to proceed with the implementation of a wholly-owned company to deliver all the functions of the Council’s Integrated Transport Unit.

The Council had registered a company under the name Transport Service Solutions Ltd (TSS), 100% owned by the Council. The role of the company would be to deliver transport services on behalf of the Council with a current total budget of approximately £17.8M. The aim was for the new company to become operational by 1^st July 2014but with a contingency commencement date of 1^st October 2014.

The officers had developed a detailed business case and plan which had been subject to scrutiny by the Council’s project management regime. The Environment Policy Development Group had been fully involved in considering the available delivery options for the Transport Service and there had been widespread support for the wholly-owned company model as being the most appropriate for the Integrated Transport Unit, both in terms of financial sustainability and service improvements.

The Leader commented that he expected communication with councillors and the public to be one of the performance outcomes he would be expecting from the new company. He also stressed the ongoing need for unions to be consulted on this and all other alternative service delivery vehicles.

RESOLVED

That Cabinet

1.    approves the implementation of Transport Service Solutions Ltd as the future management model for integrated transport services in accordance with the detailed business case and implementation plan attached as Appendix A to the report;

2.    agrees that all current functions of the Integrated Transport Unit be transferred to Transport Service Solutions Ltd whilst accepting that the ultimate strategic direction for Transport remains with the Council;

3.    gives any necessary delegated authority to the Executive Director of Strategic Commissioning, the Head of Local Communities, the Head of Legal Services and the Chief Operating Officer, in consultation with the Portfolio Holder for Environment to proceed with the implementation in accordance with the project plan, including negotiating appropriate contractual arrangements, arranging leases and central support services and novating contracts where necessary;

4.    acknowledges the timetable for the project which aims to establish the company by 1^st July 2014 but with a contingency go-live date of 1^st October 2014 should operational issues prevent this being achievable;

5.    agrees to the commencement of a formal consultation period with all the staff who might be affected by any proposed TUPE transfer; and

6.    acknowledges that, following Cabinet’s approval of this proposal, work will continue to develop the more detailed business plans and draft contracts for the new company.