Issue - decisions

Resolved to:

2.1       approve the award of a contract (Partnering Agreement) to the Preferred Partner identified in Part B of this report for a term of seven years with the option for the Council to extend for a further three years, with a maximum contract value of £42,971,673. The Partnering Agreement is for the provision of CES to the Council (CES Services), business support and development services to the Mutual (Partnering Services), and also entry into a framework agreement in relation to CES services (Framework Services).  The CES Services and Framework Services will be provided, by the Partner, through means of a flow-down agreement (Flow Down) between the Partner and the Mutual;

2.2       note that the contract value stated above in relation to the Partnering Agreement excludes the value of the CES Services provided under existing contracts held by the Council with other local authorities (including an inter-authority collaboration agreement for the Provision and Maintenance of a Community Equipment Shared Service Framework hosted by the Council). Such contractual arrangements will in future be fulfilled by the Council through the CES Services element of the Partnering Agreement;

2.3       note that bid details concerning the Delivery Partner’s minority interest in the mutual are set out in Part B of this report;

2.4       agree that subject to (i) any discussions held to ‘clarify, specify and optimise’ the Preferred Bidder’s Final Tender or otherwise finalise the terms of the Partnering Agreement and other transaction documents to the satisfaction of the Council; and (ii) there being no material alteration to either the scope of the Preferred Bidder’s Final Tender or matters set out in this report, the Director of Legal Services is authorised to arrange for the execution of the Project Agreement and other transaction documents referred to in this report);

2.5       note the establishment of the Mutual and that, as part of the transaction, (and subject to further internal governance approvals being obtained as applicable) a) certain CES-related Council assets will be transferred to the Mutual pursuant to a business transfer agreement (BTA), b) a 25-year lease over the Council’s premises at Imperial Way will be granted and c) seed funding of up to £500k and a loan facility of £1.9m will be granted

2.6       note that the overall savings to the Council remain broadly in line with the details previously advised in the Strategy Report, with some reductions as detailed in the Part B report

2.7       note that a draw-down from the transformation project budget totalling £334k has enabled the successful delivery of the project.