Agenda and minutes

Report of the Cabinet Member for Education and Change, seeking approval for an alternative business model for City Catering service, attached.

DECISION MADE: (Ref: CAB 14/15 13249)

On consideration of the report of the Cabinet Member for Education and Change, Cabinet agreed the following:

(i)  That, subject to further consultation as required and clarification of the risks and costs around pensions, Cabinet approve in principle the  transfer of the City Catering service to a Charitable Mutual Company (Limited by Guarantee) with effect from 1^st April 2015

(ii)  To delegate authority to the Director, People to carry out such consultation, due diligence and other ancillary actions as may be necessary in relation to (i) above.

(iii)  To delegate authority to the Director, People to consider and determine the outcome of any necessary consultation referred to at (ii) above and, in light of all material considerations, to determine whether or not to proceed with the establishment of City Catering as a Charitable Mutual Company (Limited By Guarantee) following consultation with the Cabinet Member for Education and Change, the Cabinet Member for Adult Social Care, the Cabinet Member for Resources and Leisure and the Chief Financial Officer.

(iv)  To agree that, subject to the satisfactory conclusion of discussions with the Hampshire Pension Fund, the new Mutual Company becomes an admitted body member of the Hampshire Pension Fund; and to agree that this will be on the basis of a closed scheme (i.e. closed to new entrants)

(v)  To agree that the Council will act as guarantor for any future potential cessation deficit which could arise on the Mutual company’s admitted body pension, as set out in paragraphs 24-30.

(vi)  To delegate authority to the Chief Financial Officer to approve the final arrangements with regard to the new Mutual Company gaining admitted body status.

DECISION MADE: (Ref: CAB 14/15 9164)

On consideration of the report of the Cabinet Member for Resources and Leisure and having received representations from staff at the Warren Avenue Kennels, Cabinet agreed the following:

(i)  Note the results of the Consultation process outlined in Appendix 1.

(ii)  Note the Equality Impact Assessment process that was followed as outlined in paragraphs 6 to 8

(iii)  Approve the efficiencies and service reductions as set out in Appendix 2.

(iv)  Note the high level forecast for the General Fund for 2014/15 to 2015/16 as detailed in paragraphs 22 to 24.

(v)  Note the position in relation to City Catering as set out in paragraph 18.

(vi)  Delegate authority to the Chief Financial Officer to action all budget changes arising from the approved efficiencies, income and service reductions and incorporate any other approved amendments into the General Fund estimates.

(vii)  Delegate authority to the Chief Financial Officer, in consultation with the Executive Director of Corporate Services, to do anything necessary to give effect to the recommendations in this report.