Issue - meetings

Establishment of a Property & Infrastructure Support Local Authority Trading Company (LATC)

Meeting: 16/01/2015 - Policy and Resources Cabinet Committee (Item 126)

126 Facing the Challenge - Property Future Service Delivery Model

To receive exempt information relating to item B2 on the agenda

Additional documents:


(Sara Waller, Director of Cornerstone Assets, who had been retained by Property and Infrastructure Support to advise on transformation and the development of the financial model for the local authority trading company, was in attendance for this item)


(1)       Mr Cooke (Cabinet Member for Corporate and Democratic Services) introduced the report which set out details of a proposed decision to implement a Local Authority Trading Company (LATC) for the delivery of Property Services. He referred to an excellent presentation given by the Director of Property and Infrastructure Support to a meeting of the Policy and Resources Cabinet Committee on 10 July 2014 in which she had outlined much of the information contained within the report.


(2)       Mr Cooke said the proposal to establish a LATC for the delivery of property services had been developed following a structured review and analysis which concluded that this was the most viable option to deliver the required savings.


(3)       During discussion, questions were raised about governance arrangements, the nature of business opportunities to be pursued, the reasons for the establishment of a LATC, the possible establishment of subsidiary companies, the recruitment and retention of staff and the percentage of the LATC’s activities undertaken for KCC.


(4)       Resolved to endorse the proposed decision to be taken by Cabinet that:


(a)       In consultation with the S151 Officer, Monitoring Officer and subject to the comments of the Trading Activities Sub Committee (Governance and Audit) the County Council establishes a wholly owned Local Authority Trading Company to deliver its property service based on the principles outlined in the report. The Local Authority Trading Company to be established as soon as possible but trading would not commence until the necessary resources, approvals and commissioning functions for KCC were in place.


(b)       Subject to the proposed decision set out in recommendation (a) being taken, authority be delegated to the Director of Property and Infrastructure Support, in discussion with the Cabinet Member, to put in place the necessary arrangements to facilitate the establishment of the Local Authority Trading Company.