Issue - meetings

To consider proposals for a Joint Property Initiative [“JPI”] within the public sector in Worcestershire to be delivered by a Joint Property Vehicle [“JPV”].

(Report attached)

Jim Stobie, Head of Estates Services. for Warwickshire and West Mercia Police, attended the meeting to provide Members with a brief explanation of the proposed Joint Property Vehicle (JPV) which was being put forward as a property management solution for public sector organisations in Worcestershire and the surrounding area. At the outset it was reported that the County Council had recently agreed to move towards a Full Business Case. Should the Borough Council decide to progress the initiative, the Full Business Case would be presented for approval in approximately 12 months time.

Jim Stobie explained that the JPV represented a unique proposition, an arms-length company limited by shares, wholly owned and governed by the participating public sector partners. Those partners who were in at the outset would have control of the function of the JPV and each partner would possess an equal vote and voice on the shareholder group. There would be scope for other public sector organisations to come on board over time but this would be with the agreement of the existing partners.

The most obvious benefit of this approach would be efficiency savings together with those realised from the rationalisation of management structures. Property portfolio costs could be reduced in all areas other than for Non-Domestic Rates. The JPV would contribute to the local environment and economy through the contracting of services from local suppliers, would lead to revenue savings and would also contribute towards regeneration through the Worcestershire LEP. The one town approach was a further benefit of the proposal.

Members were generally supportive of the proposal and sought assurances and clarification on a number of areas. It was made clear that only public sector partners would be able to collaborate as part of the JPV in order to be Teckal compliant. It was also explained that it was up to each authority who was appointed to the Shareholder group but that the current proposal was for this to be a Director of the public body in question.

RESOLVED that

1)        the Worcestershire Capital and Asset Partnership Outline Business Case for a Joint Property Initiative for the development of a joint Estates function across public sector organisations across the Worcestershire region, attached at Appendix 1, be noted;

2)        the development of a Full Business Case, to be brought back to Members in due course, be agreed; and

3)        the Executive Director for Finance and Resources and Head of Legal, Equalities and Democratic Services, following consultation with the Portfolio Holder for Corporate Management be delegated to work with partners to support the development of the Full Business Case for a Joint Property Vehicle, tom include exploring hosting and proposed governance arrangements.