Agenda item

(a)  That it be agreed that officers build a business case and structure for the Trading Partnership, in conjunction with OPSL.

(b)  That it be noted that the Trading Partnership is likely to be established as a company limited by shares, with the Council holding  49% of the shares and OPSL 51%.

(c)  That the Head of Neighbourhood Services, as Contract Administrator for the RMI Contract, with the s151 Officer, be delegated authority to establish a project team to progress the realisation of the proposed company structure – costs to be met from within existing resources.

(d)  That it be agreed that an appropriately worded legal agreement be drawn up between the Council and OPSL in respect of the utilisation of the retained 1-4-1 RTB receipts where appropriate; with the agreement of the s151 Officer.

(e)  That it be noted that an update report on the Trading Partnership be presented to Cabinet by December 2017, which would be supported by a detailed business plan and indicative programme.

The Cabinet Member for Housing introduced a report that sought approval to enter into a trading partnership with Osborne Property Services Limited (OPSL) following their appointment as the partner to deliver the repairs, maintenance and investment services to the Council’s housing stock.  As part of the bidding process, OPSL had included innovative proposals to establish a special purpose vehicle in the form of a trading partnership to provide additional services to leaseholders, homeowners and to private sector landlords.

It was noted that OPSL would own 51% of the shares in the company with the Council being ‘gifted’ the remaining 49% and having a profit share arrangement.  The proposal would enable the Council to generate income to invest in local communities with potential service innovations such as modular housing units on Council sites which could be used for temporary accommodation, social care or key workers.  The Cabinet welcomed the proposal and recognised the significant amount of work that had gone in to both the RMI contract and innovative trading partnership proposal which provided an opportunity to help address a range of key housing priorities.

Speaking under Rule 30, Councillor Strutton highlighted that it was essential that the asset database was kept up to date to properly manage and maintain the Council’s stock.  The Cabinet recognised that this had been an issue historically and the Council and Osborne had already identified it as a priority in the new RMI contract.  A representative from Osborne Property Services confirmed the intention to work very closely with the Council on data sharing and the process of undertaking stock condition surveys was already underway.

At the conclusion of the discussion, the Cabinet welcomed the proposal to establish a trading company with OPSL and agreed the recommendations proposed in the report.

Resolved –

(a)  That it be agreed that officers build a business case and structure for the Trading Partnership, in conjunction with OPSL.

(b)  That it be noted that the Trading Partnership is likely to be established as a company limited by shares, with the Council holding  49% of the shares and OPSL 51%.

(c)  That the Head of Neighbourhood Services, as Contract Administrator for the RMI Contract, with the s151 Officer, be delegated authority to establish a project team to progress the realisation of the proposed company structure – costs to be met from within existing resources.

(d)  That it be agreed that an appropriately worded legal agreement be drawn up between the Council and OPSL in respect of the utilisation of the retained 1-4-1 RTB receipts where appropriate; with the agreement of the s151 Officer.

(e)  That it be noted that an update report on the Trading Partnership be presented to Cabinet by December 2017, which would be supported by a detailed business plan and indicative programme.