Issue - meetings

*RESOLVED –

(1)         That authority be delegated to the Development and Growth Manager, in consultation with the Chief Finance Officer, Chief Executive Officer and Leader of the Council, to:

                     I.        Agree the final business case and finalise the arrangements for Chesterfield Borough Council to enter into new legal agreements setting out the terms of the partnership company

                   II.        Undertake the transfer of staff under TUPE, to provide building control services to Derbyshire and beyond.

(2)         That authority be delegated to the Development and Growth Manager, in consultation with the Chief Finance Officer, to undertake the necessary procurements on behalf of the new company in order to support the transition to a new building control partnership.

(3)         That a separate trading company be established to deliver Approved Inspector Services outside of the boundary of the Local Authorities involved.

(4)         That the necessary arrangements for the establishment of the separate trading company be put in place by the Development and Growth Manager in consultation with the Chief Executive Officer and the other Local Authorities included in the new building control partnership.

The Development and Growth Manager submitted a report seeking approval to establish a separate trading company in partnership with Amber Valley District Council, Bolsover District Council, Derby City Council, Derbyshire Dales District Council and North East Derbyshire District Council; to deliver Approved Inspector Services.

The report noted that there had been an increase in competitor activity by Approved Inspectors which had resulted in a reduced market share for the Local Authority building control service; in addition, the competitor activity was likely to increase further in the future. The report proposed that a larger local authority building control unit would be equipped to compete with the other Approved Inspectors and be able to take advantage of the upturn of the economy and growth in the construction industry.

The building control service is currently delivered by BCN, a joint Local Authority stand-alone service comprised of Chesterfield Borough Council, North East Derbyshire District Council and Bolsover District Council. The report proposed to pool the building control capabilities of the six authorities in Derbyshire to create a single organisation that would be stronger, more sustainable and better equipped to create a positive economic contribution.

The report outlined the objectives of the business:

·        To provide a blueprint for the commercial delivery of Authority services

·        To deliver the Council’s regulatory obligations

·        To support skills and employment growth

·        To provide a sustainable financial and resource position

·        To reduce the cost of service

·        To generate a surplus

The proposed staffing levels over five years were outlined in the report and it was noted that no staff would be made redundant and it was likely that the company would commence recruiting new staff as soon as it is formed. In addition, it was proposed that there would be the provision to take on graduates and apprentices that would diversify the largely ageing, highly-skilled workforce. Salary levels would be based on the current average salaries by grade and increases of 1% a year had been budgeted for.

A five year business plan was outlined in the report that included the financial implications of the proposals. An upfront investment loan of £250k, sourced from one of the shareholders, would be needed to start up the new business however this would be repaid within the five years of the business plan. In addition, the Council would see an immediate reduction in their contribution to the cost of the building control service and it was projected that a surplus of £0.42m would be created in the fifth year of the partnership. It was noted that the financial model had been stress tested under a variety of scenarios and the projections in the report were conservative and reflected the genuine beliefs of the building control team.

The report outlined the Human Resources, Legal implications and risks involved with ways to mitigate these. The report also outlined alternative options and the reasons why these were not being pursued.

It was emphasised that the proposals provided the opportunity for building control to operate more commercially and  ...  view the full minutes text for item 39