Decision details

The Chief Officer (Organisational Change) presented the update report on the development of the Alternative Delivery Model (ADM) for Facilities Management leading to the transfer of NEWydd Catering & Cleaning to a Local Authority Trading Company with Teckal Exemption.

An overview was given of activities leading to the establishment of the company on 1 May 2017.  In using a Teckal Exemption, the company was wholly owned by the Council but benefitted from being able to trade to a limited degree with other agencies.  Due diligence on robust business planning was part of the process and a multi-skilled Board had been setup with representation in the local community.  A new financial system had been adopted to reflect the different arrangements on which the company operated.

Mr Steve Jones, Managing Director of NEWydd Catering & Cleaning Services and Mr Darren Jones, Chair of the Board were invited to share their views on progress since the transfer of the company.

During their presentation, they referred to the benefits of a combined skill set of the Board to help support the development of the company.  The short delay in the launch date had been due to the need to address some technical issues which had been resolved through effective joint working with Council departments.  Positive outcomes were reported on the transition of employees to the company, along with responses from service users most of whom had been retained.  An encouraging report was given on financial performance against targets whilst recognising the long-term aims to grow the business and reduce the subsidy.  The engagement of a consultant to review the business plan would also help to identify opportunities for growth and provide advice on governance issues.

Following a suggestion by Councillor Ian Dunbar, there was discussion on the cleaning of void properties.

Councillor Paul Shotton asked about arrangements with school meals and was told about the use of marketing tools and support for healthy options, whilst flexibility on procurement frameworks would help to maximise efficiencies.  On the potential impact of the apprentice levy, the company had been advised that it was part of the Council’s arrangements.  Responses were also given to Councillor David Wisinger’s queries including the possible effects of Brexit.

In response to a question from the Chairman on figures shown in the Cabinet report from February 2016, it was explained that significant work had been undertaken on finances since that stage.

RESOLVED:

That the Committee supports the work undertaken in relation to the transfer of NEWydd Catering and Cleaning to a Local Authority Trading Company with Teckal Exemption.