Agenda and minutes
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Contact: Democratic Services
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Apologies for absence
Minutes: Apologies were received from Councillors’ Barry Dobson, Philip Knowles and Jill Thomas.
Councillor Ian Stokes was a substitute for Councillor Barry Dobson and Councillor Nikki Manterfield substituted for Councillor Jill Thomas. |
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Disclosure of interests
Members are asked to disclose any interests in matters for consideration at the meeting Minutes: There were none. |
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Minutes of the meeting held on 26 April 2022
Additional documents: Minutes: The minutes of the meeting held on 26 April 2022 were proposed, seconded and AGREED. |
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Updates from the previous meeting
To consider updates on Actions agreed at the previous meeting. Minutes: It was confirmed that actions had been completed as required. |
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East Midlands Building Consultancy Update
Additional documents: Minutes: This report, presented by the Assistant Director of Planning had the purpose of taking reasonable steps to improve efficacy and visibility of the work of the East Midlands Building Consultancy (EMBC) which the Council currently collaborated with Rushcliffe Borough Council (RBC) and Newark and Sherwood District Council (N&SDC) on.
This Committee last received a report on EMBC at its 23 February 2021 meeting.
The Committee noted that Building Control was a statutory service provided by a local authority. Building Regulations set the minimum standards for design, construction and alterations to virtually every building. Building regulation approvals could be sought from the Council’s Building Control service or from an Approved Inspector (AI). In that regard the Council competed with AI’s for a share of the market.
The partnership was originally set up in 2014 between SKDC and RBC, with N& SDC joining the partnership in 2015/2016. The partnership was based on a shared service agreement, with South Kesteven District Council delivering the EMBC service on behalf of each partner. Each council shared any financial surplus or deficit equally, operating financially under one single trading account. A Partnership Board comprising of senior officers from each partner authority had primary responsibility for overseeing the operational management and delivery of the joint building control partnership.
The services provided by any Local Authority Building Control service were split between “fee earning” and “non-fee earning”. The fee earning aspect related to applications made to the Council for it to assess if the development met the Building Regulations. The Council was in direct competition with AI’s for this element of the workload.
Non-fee earning work covered those aspects of the service that the Council was statutorily obliged to provide and includes maintaining a register of all Building Control approvals awarded in its area (whether issued by EMBC or by an AI), providing general advice to the public and undertaking work associated with dangerous structures.
During discussion, Members raised the following points:
· How long was the interim Manager expected to be in post?
· The report quoted an average market share of 49%, what did this refer to exactly?
The Assistant Director of Planning confirmed that the interim Manager had been in post since August 2022 under a contract of six months. Recruitment was ongoing. The Officer confirmed that the 49% referred to the fee-earning work. Applications were to be made to the Council partnership or to an Approved Inspector to check that work was compliant with current building control regulations.
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Exclusion of Press and Public
Minutes: In accordance with Section 100A(4) of the Local Government Act 1972 (as amended) the press and public were excluded from the meeting during consideration of EMBC Draft Business Plan, Appendix B because of the likelihood that otherwise exempt information as described in paragraph 3 of the Act would be disclosed to them.
(At 10:11 the meeting went into closed session) |
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Exempt Appendix B - East Midlands Building Consultancy Update Draft Business Plan
Minutes: The Committee discussed exempt Appendix B, see exempt minute.
AGREED:
That in noting the Quarter 1 performance and the draft business plan, Companies Committee:
a) Considered whether there were any actions required in relation to the detail contained within this report for consideration by the East Midlands Building Consultancy Board.
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Dissolution of InvestSK Ltd
To update Companies Committee on progress in dissolving InvestSK Ltd and to provide a review of the company’s performance during the period of the final Business Plan from September 2020 to March 2022.
Minutes: The Corporate Plan (2020-2023), set out how the Council would promote the conditions to help businesses thrive and prosper. Investment in housing, town centre regeneration, building on and celebrating the rich heritage and culture, alongside employment and skills support, all contributed to creating a thriving working environment, essential for good growth and a vibrant local economy.
In November 2021 the Board of InvestSK Limited undertook a review into the business operating model of the company and whether the function would be better delivered in-house. The outcome of the review was to insource InvestSK Limited and Transfer of Undertaking (Protection of Employment) (TUPE) of staff to South Kesteven District Council as part of the Growth and Culture Directorate. Some of the advantages of insourcing identified through the review were:
a) The roles and responsibilities would embed alongside Planning and Leisure & Cultural Services, under the leadership of the Director of Growth and Culture.
b) Terms and Conditions for staff would improve to aid morale and retention.
c) Potential to explore closer working with Council teams, as well as for partnerships with neighbouring local authorities to deliver efficiencies.
Companies Committee subsequently endorsed the recommendation that InvestSK Limited as a company should be dissolved, the activity transferred to the Council and retention of the successful InvestSK brand. The transfer of all five members of staff was completed on 31 March 2022. As of 1 April 2022, all staff formerly employed by InvestSK Limited became employees of South Kesteven District Council.
Prior to commencing the closure of the company, the company must have been in a position of not trading for a period of three months. The final accounts have since been audited and a meeting with the InvestSK Limited Board took place on 18 August 2022. The draft accounts were approved and were currently being processed for formal sign off. Employees and Directors have been informed of the decision to close the company and His Majesty's Revenue and Customs (HMRC) have been informed.
Members raised the following points during discussion:
· Were there any successes that the Council can learn from and take forward to the in-house business model?
· Did being an arms-length company enable Invest SK Ltd to receive grants that otherwise would not have been available?
· Were we still looking to join the UK Shared Prosperity Fund Scheme?
· When can the Committee see how much was spent compared to what was achieved by Invest SK Ltd?
· Lessons learnt need to be considered.
· Are there further projects planned and has all the Heritage action zone funding been allocated for spending?
· How would the effectiveness of business support be monitored in future?
The Deputy Chief Executive confirmed that Invest SK Ltd was very successful in passing grants in a timely manner to the relevant businesses to enable them to continue through the Pandemic. The company was also able to facilitate an increase in contact with local businesses and built up a brand that was liked and trusted. It was confirmed that other projects were to ... view the full minutes text for item 62. |
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Leisure SK Ltd Accounts and Financial Year 2020-2021
To present the financial accounts for LeisureSK Ltd up to 31 March 2021.
Additional documents: Minutes: The report was presented by the Deputy Leader of the Council.
LeisureSK Ltd is a not-for-profit Teckal company and is wholly owned by the Council. Formed in September 2020, it was established to manage the Council’s leisure facilities, the associated management contract between the Council and LeisureSK Ltd commenced on 1 January 2021. LeisureSK Ltd also delivered on the priority of being a high performing Council, managing finance and assets effectively, and identifying savings and efficiencies.
The initial year of trading for LeisureSK Ltd was originally extended to cover a fifteen-month period to the end of March 2022. This enabled the assessment of any management fee required to be considered as part of the Council’s annual budget setting process. Following the end of the financial year 2020/21, the Council commissioned Burgin & Co of Grantham, a practising member firm of the Institute of Chartered Accountants, to prepare the company accounts for LeisureSK Ltd to March 2021. These were signed off by Councillor Adam Stokes at a meeting of the Board of Directors held on 31 May 2022 and have already been filed at Companies House.
For this period, September 2020 to March 2021, the company showed a loss of £40,086. During this time, opportunities to attract income were limited due to the enforced closure of facilities as part of the Government’s response to the COVID 19 pandemic. Whilst the leisure centres remained closed, LeisureSK Ltd did receive a small amount of income from hiring out to the National Health Service Lincolnshire Clinical Commissioning Group (NHS CCG), the Table Tennis Centre at Grantham Meres Leisure Centre as the main local vaccination centre.
Members raised the following points during discussion:
· When would Stamford receive adequate leisure facilities for swimming?
· What would the impact on Leisure SK Ltd be when Deepings Leisure Centre was fully reopened?
· Was there enough in funds to fix Bourne and Stamford facilities?
The Deputy Leader of the Council confirmed that Stamford and Bourne Leisure facilities were being maintained as required. Bourne had received investment into new gym services. Income from the Deepings Leisure Centre would be reinvested into Leisure SK Ltd. The rise in energy costs brought pressures to the company, in particular, the heating of swimming pools which could not be turned off and on again.
It was proposed, seconded and AGREED:
That the Committee:
In noting the 2020/2021 accounts have been filed at Companies House for LeisureSK Ltd:
a) Agreed to receive accounts for the period April 2021 to March 2022 at the November 2022 Companies Committee meeting.
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Environment SK Ltd - Finance Update including Financial Statements 2021-22
Additional documents: Minutes: At the meeting of the Committee on 25 January 2022, there were a number of financial matters raised in relation to the 2022/23 financial year which had been considered by the board of directors. One of the key business issues that impacted on performance in 2021/22 was the recruitment and retention challenges associated with the national workforce shortage. Environment SK Ltd reviewed a number of their employment and remuneration policies to address this issue for 2022/23. There were also a significant number of other cost pressures outside of the control of the business that impacted on the contract fee the service could be delivered for. Cost pressures included the increase in employer national insurance, utility price rises and significant increases in the price of vehicle fuel.
The board of directors agreed an interim position of focusing on delivering SKDC core contract works and for other local public sector/non-profit making organisations. A review led to a change in the loan repayment arrangements which had eased the financial pressures for the current financial year.
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Exclusion of Press and Public
Minutes: In accordance with Section 100A(4) of the Local Government Act 1972 (as amended) the press and public were excluded from the meeting during consideration of EMBC Draft Business Plan, Appendix B because of the likelihood that otherwise exempt information as described in paragraph 3 of the Act would be disclosed to them.
(At 10:45 the meeting went into closed session)
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Exempt Appendix 1 - Environment SK Ltd Final Accounts 2021/22
Minutes: The Committee discussed exempt Appendix 1, see exempt minute.
AGREED:
That the Committee:
a) Noted the 2021/22 final accounts for Environment SK Ltd.
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Work Programme 2022 - 2023
Minutes: The Committee noted the Work Programme for 2022 – 2023.
The Chief Finance Officer informed Members that the Grounds Maintenance report was to be heard at the November meeting and would be required to be added as necessary. |
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Any other business which the Chairman, by reasons of special circumstances, decides is urgent
Minutes: There were none. |
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Close of meeting
Minutes: The Chairman closed the meeting at 11:10. |