Issue - meetings

Report number DSK02 of the Leader of the Council.                    (Enclosure)

Decision:

1.    Cabinet supports and approves the establishment of DeliverSK as described in report DSK002

2.    Cabinet delegates to the Cabinet Member for Growth and Communications, in consultation with the Strategic Director for Growth and the Strategic Director for Resources, authority to select and confirm the private sector partner for DeliverSK as discussed in report DSK002

3.    Cabinet delegates to the Cabinet Member for Growth and Communications, in consultation with the Strategic Director for Growth and the Strategic Director for Resources, authority to set up DeliverSK as detailed in report DSK002, entering into any necessary legal agreements needed to facilitate this

4.    Cabinet recommends to Council the approval of a budget of up to £100k for initial set-up costs and up to £500k as initial working capital for DeliverSK, and to delegate to the Cabinet Member for Growth and Communications, in consultation with the Strategic Director for Growth and the Strategic Director for Resources, authority to invest up to £500k (i.e. the working capital) in Deliver SK, once the company has been set up

5.    Cabinet seeks to recover a portion of the establishment costs for DeliverSK from the Partnership’s future profits

6.    Cabinet approves the appointment of the Leader of the Council, the Deputy Leader of the Council and the Chief Executive as the Council’s nominated Board Members for DeliverSK

7.    Cabinet requests that the Governance and Audit Committee considers any changes necessary to the Council’s Treasury Management Strategy to allow the initial and future investments in DeliverSK activities and projects

8.    Cabinet authorises a governance review of all of the Council-owned companies and DeliverSK to ensure that decision-making is transparent and open, and that those companies are empowered to fulfil their stated purpose

Considerations/reasons for decision

1.    Report number DSK002 of the Leader of the Council

2.    The Council is seeking to add a further £1.2 billion to South Kesteven’s economy by 2040

3.    An announcement made by the Leader in October 2017 regarding £40m investment in strategic projects to be delivered or underway by 2020

4.    The opportunity for the Council to work with an experienced private sector partner on a more agile, commercial basis on larger development projects

5.    Detailed business cases would need to be approved for all projects

6.    Potential inputs different partners could bring to DeliverSK and their benefits to the district

7.    Working with a partner would share the ownership and risk

8.    Companies seeking to be prospective partners would be considered as part of a selection process

9.    Returns would be used to pay off project costs, then investments from both partners, then any profits would be split according to the proportion of investment made by each partner

10.The proposed management structure for the company as set out in report DSK002

11.Indicative timelines for the formation of DeliverSK and commencement of activity

12.Assessment of risk and controls in place to mitigate identified risks

13.The role of the Governance and Audit Committee, which is to “monitor, review  ...  view the full minutes text for item 24