Agenda item

Executive are asked to consider the establishment of a brand new Teckal company, for the continued provision of agency workers to the Council of the City of York (“CYC”).

Resolved:

                      i.         Further to Article 12 of the Council of the City of York’s

Constitution, approve the formation of a new Teckal compliant company for the Introduction of Candidates for Direct Engagement and the Provision of Agency Workers to Council of the City of York;

                     ii.         Approved the novation of the Council of the City of York’s current Contract dated 7th September 2023 for the Introduction of Candidates for Direct Engagement and the Provision of Agency Workers with the current Teckal company, City of York Trading Limited, to the New Company;

                    iii.        Approved City of York Trading Limited making an Inter- Company Loan to the New Company of up to £500,000 to cover the initial licensing, the first month payroll and HMRC costs for the New Company, pending payment of the initial invoice under the Contract for the Introduction of Candidates

for Direct Engagement and the Provision of Agency Workers by Council;

                   iv.        Delegated authority to the Director of Governance to negotiate, draft and conclude with City of York Trading Limited all necessary documentation linked to the formation of the New Company including (but not limited to) the New Company’s Articles of Association, Shareholder’s Agreement, the Novation of the Contract dated 7th September 2023 for the

Introduction of Candidates for Direct Engagement and the Provision of Agency Workers between the Council of the City of York and the City of York Trading Limited to the New Company, and the Inter-Company Loan between City of York Trading Limited and the New Company.

Reason:     To ensure that the Teckal compliant New Company can deliver candidates for direct engagement and agency workers to CYC in compliance with Reg. 12(1) of the Procurement Regs (and Schedule 2, Part 1, Para 2 of the Procurement Act 2023 once this comes into force later in 2024).

To ensure that CYT can continue to support CYC, whilst enabling the expansion of Work with Schools, Work with Yorkshire, and Williams & Anthony to maximise commercial opportunities and the potential dividend to CYC .

The Council’s Resourcing Manager introduced the report and confirmed that an agenda supplement had been published for the item to provide greater clarity to the recommendation. She confirmed that the proposals were similar to decisions made by the Council in relation to the Yorkshire Procurement Organisation and Veritau. She confirmed that City of York Trading provided the Council’s supply of agency employees, but with a reduction in the number of agency roles at the Council, City of York Trading was expected to lose its Teckal status in January 2025.

Karen Bull Managing Director of City of York Trading highlighted that the proposals would allow the Council to continue to use City of York Trading without going out to tender and would not lose its level of control over City of York Trading with roles such as shareholder positions.

The Executive Member for Finance, Performance, Major Projects, Human Rights, Equality and Inclusion stated that the Council was a victim of its own success in reducing agency staff numbers. She stated her support for the creation of a new company to allow the Council to continue to benefit from the success of City of York Trading.

Resolved:

                      i.         Further to Article 12 of the Council of the City of York’s

Constitution, approve the formation of a new Teckal compliant company for the Introduction of Candidates for Direct Engagement and the Provision of Agency Workers to Council of the City of York;

                     ii.         Approved the novation of the Council of the City of York’s current Contract dated 7th September 2023 for the Introduction of Candidates for Direct Engagement and the Provision of Agency Workers with the current Teckal company, City of York Trading Limited, to the New Company;

                    iii.        Approved City of York Trading Limited making an Inter- Company Loan to the New Company of up to £500,000 to cover the initial licensing, the first month payroll and HMRC costs for the New Company, pending payment of the initial invoice under the Contract for the Introduction of Candidates

for Direct Engagement and the Provision of Agency Workers by Council;

                   iv.        Delegated authority to the Director of Governance to negotiate, draft and conclude with City of York Trading Limited all necessary documentation linked to the formation of the New Company including (but not limited to) the New Company’s Articles of Association, Shareholder’s Agreement, the Novation of the Contract dated 7th September 2023 for the

Introduction of Candidates for Direct Engagement and the Provision of Agency Workers between the Council of the City of York and the City of York Trading Limited to the New Company, and the Inter-Company Loan between City of York Trading Limited and the New Company.

Reason:     To ensure that the Teckal compliant New Company can deliver candidates for direct engagement and agency workers to CYC in compliance with Reg. 12(1) of the Procurement Regs (and Schedule 2, Part 1, Para 2 of the Procurement Act 2023 once this comes into force later in 2024).

To ensure that CYT can continue to support CYC, whilst enabling the expansion of Work with Schools, Work with Yorkshire, and Williams & Anthony to maximise commercial opportunities and the potential dividend to CYC .