Issue - meetings

Following a report to Cabinet in November 2013, when it was agreed to develop a new approach to the delivery of marketing, culture, tourism and business development in the city, this report  presents the business case and options for the establishment of the company. It also makes recommendations for its set-up, including proposals for the transfer of City of York Council resource into the company and recommendations for CYC to acquire sole ownership of Science City York.

Resolved:  That Cabinet agree:

(i)           In principle the business case for the new company as set out at Appendix B of the report.

(ii)          In principle to support the formation of the new company subject to a business plan being approved by Cabinet in the Autumn.

(iii)        That the Council becomes sole owner of Science City York, on the basis of the business case set out, in confidential Appendix C, and subject to final financial due diligence with the final decision delegated to the Director of Customer and Business Support Services (CBSS).

(iv)        A one off financial contribution towards the set up costs of the new agency of £140k from a combination of the Transformation Fund (£90k) and contingency budget (£50k).

(v)         To delegate to the Directors of CBSS, Communities and Neighbourhoods and City and Environmental Services together with the Assistant Director, Governance and ICT, in consultation with the Leader and Cabinet Member for Finance and Performance, the authority to finalise the detailed arrangements for the formation of the company, specification and governance arrangements, and to enter into all necessary legal agreements.

Reason: To provide full information on the proposals in order to progress establishment of the company in an effort to improve efficiency, cost effectiveness and business investment in the city.

Members considered a report which presented the business case and options for the establishment of a new company to deliver marketing, culture, tourism and business development in the city.

Details of proposals for the transfer of City of York Council (CYC) resource into the company and for CYC to acquire sole ownership of Science City York, in an effort to align the work of SCY with the new company were reported.

It was noted that, if approval was given, a transitional chair would be involved in development of a new Board of Directors for the agency and that a new service level agreement would be prepared, which would include setting outcomes and objectives for the use of public funding.

Consideration was then given to the following options:

1.   Status quo

2.   Provision of services by Council directly

3.   Procurement

4.   Wholly owned company

Based on legal advice provided and the objectives and principles set out for the establishment of the new company, the establishment of a wholly owned company was recommended as the best option to achieve the Council’s objectives.

Members reiterated details of the proposed governance arrangements, the details of which would be delegated to the appropriate Members and Officers to finalise. Officers highlighted the use of similar successful models across the UK and to the wish to strengthen co-ordination and promotion of the city’s profile and cultural offer.

The Cabinet Member referred to the need to provide a new approach to the current service provision in order to deliver greater inward investment and market share for the city.

Resolved:  That Cabinet agree:

(i)           In principle the business case for the new company as set out at Appendix B of the report.

(ii)          In principle to support the formation of the new company subject to a business plan being approved by Cabinet in the autumn.

(iii)        That the Council becomes sole owner of Science City York, on the basis of the business case set out, in confidential Appendix C, and subject to final financial due diligence with the final decision delegated to the Director of Customer and Business Support Services (CBSS).

(iv)        A one off financial contribution towards the set up costs of the new agency of £140k from a combination of the Transformation Fund (£90k) and contingency budget (£50k).

(v)         To delegate to the Directors of CBSS, Communities and Neighbourhoods and City and Environmental Services together with the Assistant Director, Governance and ICT, in consultation with the Leader and Cabinet Member for Finance and Performance, the authority to finalise the detailed arrangements for the formation of the company, specification and governance arrangements, and to enter into all necessary legal agreements. ^1.

Reason: To provide full information on the proposals in order to progress establishment of the company in an effort to improve efficiency, cost effectiveness and business investment in the city.