Approval of Future Arrangements for the Existing Enterprise Managed Services Contract - JUL18/CAB/19
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Approval of future arrangements for the existing Enterprise Managed Services contract and agreement of funding provision.
Cabinet considered the report and RESOLVED to:
1. Authorise officers to create a Local Authority Trading Company (Company), noting the Business case prepared in support of this decision.
2. Authorise officers to provide through that Company all services currently performed under the 2011 EMS/Amey contract and any other services considered as part of the Business Plan.
3. Authorise an extension to the current contract with EMS/Amey from the current contract termination date of 31 August 2018 to 1 February 2019 at an additional cost of £810,000.
4. Authorise a loan facility from Peterborough City Council of up to £1.75million (at state aid compliant interest rates and market terms) to the Company to provide working capital and cover start-up costs:
· Vehicles and plant (if required) - £1m
· Acquisition of ICT equipment & software - £100k
· Consultancy to prepare for go-live - £75k
· Stationery, marketing, website & contingency - £75k
· Running costs (if required) - £500k.
5. Delegate authority to the Chief Executive, in consultation with statutory officers as necessary, any decision relating to:
· Appointment and transfer of staff to the Company;
financial matters necessary to support the business but with annual
budget approval sought through the normal budget
6. Delegate authority to the Director of Governance in consultation with the Director of Resources and relevant Service Director authority to make decisions and enter into legal agreements necessary to effect the set up and future operation of the Company including:
· Appointment of Officers to the Company Board of Directors from incorporation;
· The agreement between Company and Council for discharging responsibilities and monitoring of performance;
· Appointment of Independent or Member representation to the Interim Board;
· Agreement of Articles of Association and shareholder agreement;
· Services and Asset Purchase Agreements;
· Leases and other property documentation;
arrangements, pension provision and other employment
7. That the Leader of the Council in consultation with the Cabinet Member for Waste & Street Scene and Service Director for Environment and Economy approve the Company name.
Reasons for the decision:
This report sought approval to transfer all services currently performed by Amey under the EMS/Amey contract to the Council’s own Local Authority Company.
Alternative options considered:
These had previously been considered by Cabinet as described in section 4.3 of the report.
Interests and Nature of Interests Declared:
Cabinet Report 18 December 2017
Cabinet Report 18 June 2018
Publication date: 23/07/2018
Date of decision: 23/07/2018
Effective from: 27/07/2018
- It is not anticipated that there will be any documents other than the report and relevant appendices to be published.