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Issue - decisions

Approval of future arrangements for the existing Enterprise Managed Services contract - KEY/11JUN18/04

23/07/2018 - Approval of Future Arrangements for the Existing Enterprise Managed Services Contract - JUL18/CAB/19

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;

·         Budget and financial matters necessary to support the business but with annual budget approval sought through the normal budget process.

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;

·         Secondment arrangements, pension provision and other employment matters.

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.