Decision details

The Director of Resources reminded Members that a Trading Company group structure had been established some months previously, and this was the first of a number of forthcoming proposals.  It was proposed to hold a workshop for Members in the New Year to provide an understanding of how a Trading Company worked.

The Strategic Lead – Customer First described the success of the commercial agenda to date.  The Council was now looking to establish the second Company within the structure.

The Building Control Service had a number of commercial opportunities available to it; through associated surveying services and additional new energy services.  The Council produced and approved a business case for Building Control commercial operations through the Commercial Board.  Since that time the Unit had been undertaking relevant training in the energy related services; and was now ready to commence service delivery.

The Building Control Service was able to operate within the district of West Lindsey but to take full advantage of income generation from new services; and to operate outside of the Boundary, the Council would need to trade through a Subsidiary Trading Company.

Members welcomed the report and the proposals within it, and made suggestions for publicity.  It was hoped that the Trading Company would be launched by the end of February and be fully operational for the new financial year in April.

RESOLVED: that

a)    it be recommended to Council that approval be given to a subsidiary company of the Group Holding Company, which will be a trading company (the trading arm) for Building Control services to facilitate the return of profits to the Council which can be used to ensure the sustainable delivery of front line services;

b)    it be recommended to Council to delegate authority to the Committee for approval of annual business plan and accounts as a subsidiary of the Group Holding Company;

c)    it be recommended to Council that it approves the Shareholder Agreement for the Building Control Company;

d)    the Articles of Association for the new company, as previously approved for the Group Holding Company and its subsidiaries, be accepted;

e)    it be recommended to Council the nomination of the Chief Executive as Company Director for the new company;

f)     it be recommended to Council the nomination of the S151 Officer, (the Director of Resources) as the Council’s Shareholder representative; and

g)    authority be delegated to the Council’s Section 151 Officer and the appointed Director of the new company to agree the format and content of a Resourcing Agreement for the supply of services by the Council.