Agenda item

To approve a number of recommendations relating to the establishment of a Local Authority Trading Company; a joint venture to generate external income with private sector partners for CCTV; and a framework for the provision of CCTV equipment and maintenance.

  i.  Delegate to the Corporate Director (Services) in consultation with the Executive Councillor for Strategic Partnerships and Shared Services authorisation to exercise the Council’s powers granted under s.95 of the Local Government Act 2003 and/or sections 1 and 4 of the Localism Act 2011 to trade on commercial terms with other parties including Public, Private and third sector organisations through the establishment of a Local Authority Trading Hold Company together with associated or subsidiary companies where appropriate and prudent.

  ii.  Delegate to the Corporate Director (Services) in consultation with the Executive Councillor for Strategic Partnerships and Shared Services the conclusion of the Articles of Association and Shareholders/Members Agreement(s) for final approval by the Company’s Board of Directors.

  iii.  Appoint the Executive Councillor for Strategic Partnerships and Shared Services to be a Non-Executive Director and the Chairman of the company and that the Leader be authorised to nominate another member to be on the board as Non-Executive Director.

  iv.  That the Cabinet on behalf of Huntingdonshire District Council agree to purchase one ordinary share for the sum of £100K in the new general trading company.

  v.  Approve a pan Council commercial operating policy (The Commercial Model) and a commercial business development team to be used as the sole methodology for evaluating all commercial activity, new propositions and trading with external organisations.

  vi.  Delegate to the Corporate Director (Delivery), in consultation with the Executive Councillor for Strategic Partnerships and Shared Services, the procurement of a partner to provide CCTV technology and maintenance services through a call-off framework.

  vii.  Delegate to the Corporate Director (Delivery), in consultation with the Executive Councillor for Strategic Partnerships and Shared Services, the sourcing of a partner to jointly deliver CCTV as a commercial joint venture company (CCTVCo) to other organisations outside any existing shared services arrangements the Council may have.

 viii.  Authorise the granting of indemnities against the potential personal liability for non-fraudulent acts or omissions undertaken in the course of their duties for such elected members of officers as were appointed by the Council to serve as Directors of the Local Authority Trading Company or CCTV pursuant to and in accordance with the terms of s265 of the Public Health Act 1875 and the Local Authorities (Indemnities for Members and Officers) Order 2004.

  ix.  Approve the outline Business Case, as detailed in Appendix 2 of the submitted report.

By way of a report by the Corporate Director Services (a copy of which is appended in the Minute Book) the Cabinet considered a number of recommendations to enable the Council to provide services to third parties through its own trading company and/or in partnership with the private sector including the establishment of a Commercial Business Development Team as part of its transformation programme to ensure any commercial activities were accessed, planned and managed properly.

The report recommended that the Council establish a Local Authority Trading Company with one share for the sum of £100K.  The money would be used to establish the company and for any external advice as required on branding, insurance, legal and financial matters of taxation. In addition it would be used to evaluate the viability of proposals to form a new Commercial CCTV Joint Venture with a private sector provider to generate income from the sale of CCTV and associated monitoring services from the Huntingdonshire CCTV Control Room.

The Cabinet were referred to the sixth recommendation contained within the report regarding the procurement of a private partner to provide CCTV technology and maintenance services through a call-off framework and it was envisaged that a private partner would be appointed by March 2017.  The proposed timetable for this process was included within the report and by entering a call-off framework there was no obligation for the Council to enter into a contract. 

Any potential private partner would need to demonstrate that there would be sufficient income and revenue savings generated to reach a position of ‘cost neutrality’ for the CCTV service by March 2021.

In addition to the recommendations contained within the report it was requested that the Cabinet approve the outline Business Case, as detailed in Appendix 2 of the report.  However, it was noted that a detailed Business Case would be presented to the Cabinet to approve prior to making a firm commitment to pursue the identified opportunities to generate income from selling advertising space on its fixed and mobile assets, and to create a CCTV and associated services partnership with the private sector. 

In response to a question it was explained that the Council would make a cash investment of £100k for 100% shareholding in the Company which would be funded from the revenue budget.

In response to a question regarding progress reporting and the governance processes, it was explained that there would be a two stage governance structures adopted with the introduction of two boards, a Board of Directors featuring Executive and Non-Executive Members, and a Management Board led by the company Managing Director who would be an Executive Director of the Board.  The Board structure of the Company would initially comprise four company directors, two from elected Members and two Council Officers.

The Company would follow the guidelines as set out by the Institute of Directors regarding Executive and Non-Executive roles and responsibilities. The details of the governance, delegated powers of the Directors and retained shareholder powers would be articulated in the shareholder agreement.

As a shareholder, the Council, through its representation on the Executive Board, was able to propose a special resolution for the Board to consider.

A progress report would be presented to the Board of Directors and the Management Board but could also be presented to the Cabinet, Council or Overview and Scrutiny Panel as appropriate. 

In considering the recommendations, the Cabinet agreed the additional recommendation as previously requested regarding the outline business case and also agreed that the Leader be authorised to nominate another Member to the board as Non-Executive Director subsequent to the meeting, following which the Cabinet

RESOLVED

  i.  to delegate to the Corporate Director (Services) in consultation with the Executive Councillor for Strategic Partnerships and Shared Services authorisation to exercise the Council’s powers granted under s.95 of the Local Government Act 2003 and/or sections 1 and 4 of the Localism Act 2011 to trade on commercial terms with other parties including Public, Private and third sector organisations through the establishment of a Local Authority Trading Hold Company together with associated or subsidiary companies where appropriate and prudent;

  ii.  to delegate to the Corporate Director (Services) in consultation with the Executive Councillor for Strategic Partnerships and Shared Services the conclusion of the Articles of Association and Shareholders/Members Agreement(s) for final approval by the Company’s Board of Directors;

  iii.  to appoint the Executive Councillor for Strategic Partnerships and Shared Services to be a Non-Executive Director and the Chairman of the company and that the Leader be authorised to nominate another member to be on the board as Non-Executive Director;

  iv.  that the Cabinet on behalf of Huntingdonshire District Council agree to purchase one ordinary share for the sum of £100K in the new general trading company;

  v.  to approve a pan Council commercial operating policy (The Commercial Model) and a Commercial Business Development Team to be used as the sole methodology for evaluating all commercial activity, new propositions and trading with external organisations;

  vi.  to delegate to the Corporate Director (Delivery), in consultation with the Executive Councillor for Strategic Partnerships and Shared Services, the procurement of a partner to provide CCTV technology and maintenance services through a call-off framework;

  vii.  to delegate to the Corporate Director (Delivery), in consultation with the Executive Councillor for Strategic Partnerships and Shared Services, the sourcing of a partner to jointly deliver CCTV as a commercial joint venture company (CCTVCo) to other organisations outside any existing shared services arrangements the Council may have;

 viii.  to authorise the granting of indemnities against the potential personal liability for non-fraudulent acts or omissions undertaken in the course of their duties for such elected members or officers as were appointed by the Council to serve as Directors of the Local Authority Trading Company or CCTV pursuant to and in accordance with the terms of s265 of the Public Health Act 1875 and the Local Authorities (Indemnities for Members and Officers) Order 2004; and

  ix.  to approve the outline Business Case, as detailed in Appendix 2 of the submitted report.