Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
In sourcing of the Property Services
Note - The Chairman of the Overview and Scrutiny Committee has been notified that the making of the decision detailed below is urgent and cannot reasonably be deferred. It is intended that Cabinet will take a Key Decision regarding the Review of the Property Service Contract at its meeting on 21 July 2021. Please note this item was on the Forward Plan in January 2021 (5th January 2021) The decision is urgent and cannot reasonably be deferred as there are decisions to be taken to adhere to timescales set out within the Contract. After the Cabinet meeting, if the Key Decision is made, under paragraph 16(j) of the Overview and Scrutiny Procedure Rules within Part 4 of the Council’s Constitution, call-in shall not apply.
The Deputy Leader and Finance and Assets Portfolio Holder presented the report which detailed the proposal for the future delivery of the Property Services Contract. He explained that in October 2016 the Council entered into a 5 year agreement with the current provider and that this agreement had come to a natural expiration. He set out the options which had been considered, including contract extension, and the officer recommendation to bring the service in house.
Members expressed their support for the proposals and felt that the proposal had been carefully considered by officers.
RESOLVED – That:-
(1) the submission attached at Appendix 1 by the current provider for a contract extension for 5 years be noted and the submission be declined for the reasons outlined within the report;
(2) the property services currently undertaken by the provider, be undertaken by the Council effective from 1 October 2021 and be approved by Cabinet;
(3) all matters relating to the insourcing of property service including but not limited to the staffing implications and TUPE be delegated to the Director of Customer and Commercial Services, in conjunction with the Operational Lead for Delivery and Commercial Services, Legal, Governance and Democracy Lead Specialist and Human Resources Lead Specialist;
(4) consultation commencing with all staff affected and with trade unions with a view to a timely transition back to the Council which ensure business continuity and manages risk, including consultation as required on Transfer of Undertakings (Protection of Employment) Regulations 2006;
(5) the consideration and details of the future in house management structures these having been reported to the Human Resources Committee be delegated to the Director of Customer and Commercial Services and the Chair of the Human Resources Committee; and
(6) the use of the current provider through the frameworks from time to time and as appropriate be agreed.
Reasons for Decision
The Cabinet having considered the detailed report, Local Government Reorganisation and best value considerations. In addition to the contract expiring and only making provision for a new 5 year term it was considered in the best interests of the Council to bring the services back in house.
Alternative Options Considered and Rejected
To neither extend nor bring the service in-house and to re-tender the property services contract. This is not recommended when taking into account the cost to re-tender and performance of the property services contractor does not warrant a re-tender.
To extend the current contract. This is not recommended when taking into account the savings proposed, the benefit of having the property services team working on the SLDC portfolio 100% of their time and the commercial opportunity this may bring the Council.
Report author: Sion Thomas
Publication date: 26/07/2021
Date of decision: 21/07/2021
Decided at meeting: 21/07/2021 - Cabinet