Issue - meetings

Recommendations:

The Executive are requested to:

a)         approve the implementation of anew whollyowned company (APP2), in accordance with the detailsset outin the Business Case atAppendix A;

b)         approve thesetting upof acompany limitedby shares;

c)         approve the investment of 100 £1 shares in APP2;

d)         delegate the approval of the articles, the company name and anyother governancedocuments associatedwith newcompany to Assistant Chief Executive – Legal and Democratic Services;

e)         delegate the Council entering into all other agreementsand documentsnecessary for the establishment of the new company to the Assistant Chief Executive - Legal and Democratic Services;

f)          delegate to the Assistant Chief Executive Legal and Democratic Services in consultation with the Assistant Director, Strategic Resources (BES and Central Services) to conclude all steps to agree a working capital loan for the company, up to a maximum of £200k to be funded from North Yorkshire Council reserves for which a market rate of interest will be charged;

g)         delegate to Assistant Chief Executive Legal and Democratic Services to progress and conclude the working arrangements of APP2 including the method of the provision of support services, staffing and secondment arrangements;

h)         delegate all other necessary steps to secure the implementation of the proposed Option to the Assistant Chief Executive – Legal and Democratic Services;

i)          agree to theappointment of theCorporate Director - Strategic Resources,the Corporate Director - Business and Environmental Services andthe Operations Director for Align Property Partners to the Board of Directors of the new company;

j)          agree that the appointed officers to the board of directors of the company will be entitledto indemnityin accordancewith theCouncil’s Indemnity Policyfor Members and Employees.

Considered - A report of the Corporate Director for Strategic Resources presenting the Business Case for the establishment of a new council owned company for the provision of property projects and estatesservices which wouldadhere tothe Teckalexemption inthe PublicContracts Regulations 2015.  The report sought the Executive’s approval to establish the new company (transferring to North Yorkshire Council from 1 April 2023) and to limit the shares on the basis of the Business Case.

County Councillor Carl Les confirmed the Executive would not be entering into private session as there was to be no discussion on the content of the exempt Appendix A.

County Councillor David Chance introduced the report, providing an overview of the setup of the original company, its successes to date and the requirements of a Teckal agreement.  He noted that Align Property Partners Limited would operate on a commercial basis in the future without the benefit of the Teckal exemption.

County Councillor Gareth Dadd reflected on the scepticism around the creation of the original company and was pleased to acknowledge the Authority’s success in running a commercial enterprise and commended the work of the personnel involved

Resolved – That:

a)     The implementation of anew whollyowned company (APP2) be approved, in accordance with the detailsset outin the Business Case atAppendix A;

b)     The settingup ofa companylimited byshares be approved;

c)      The investment of 100 £1 shares in APP2 be approved;

d)     The approval of the articles, the company name and anyother governancedocuments associatedwith newcompany be delegated to the Assistant Chief Executive – Legal and Democratic Services;

e)     The Council entering into all other agreements anddocuments necessaryfor the establishment of the new company be delegated to the Assistant Chief Executive - Legal and Democratic Services;

f)       The Assistant Chief Executive Legal and Democratic Services in consultation with the Assistant Director, Strategic Resources (BES and Central Services) be delegated to conclude all steps to agree a working capital loan for the company, up to a maximum of £200k to be funded from North Yorkshire Council reserves for which a market rate of interest will be charged;

g)     The Assistant Chief Executive Legal and Democratic Services be delegated to progress and conclude the working arrangements of APP2 including the method of the provision of support services, staffing and secondment arrangements;

h)     All other necessary steps to secure the implementation of the proposed Option be delegated to the Assistant Chief Executive – Legal and Democratic Services;

i)       The Corporate Director - Strategic Resources, the Corporate Director - Business and Environmental Services andthe Operations Director for Align Property Partners be appointed to the Board of Directors of the new company;

j)       The appointed officers to the board of directors of the company be entitledto indemnityin accordancewith theCouncil’s Indemnity Policyfor Members and Employees.