Agenda and minutes

To receive declarations of personal or prejudicial interests, arising from business to be transacted at this meeting, from all Members present.

RESOLVED:  To note that the following interests were declared:

To consider whether any of the items listed on the agenda should be considered with the press and public excluded.

The Chair indicated that the press and public would initially be excluded from the meeting whilst Members considered confidential matters in relation to the Business Transformation Partnership. The press and public would then be invited to attend the meeting to hear the debate and the decision-making.

Given the significance of the Business Transformation Partnership, the Chair advised that Unison had been invited by Portfolio Holders to make comments at Cabinet. Accordingly, Shirley Duffel addressed Cabinet. He emphasised that allowing Unison to address Cabinet would in no way set a precedent, as there was currently no provision in the Council’s Constitution to allow individuals to speak at Cabinet.

RESOLVED:  That all business be considered with the press and public present with the exception of the following item for the reasons set out below:-

Report of the Executive Director (Business Development)

The Director of Business Services introduced Sian Hibbs, Price Waterhouse Coopers (PWC) and Nigel Sternberg, Eversheds who had acted as the Council’s financial and legal advisers respectively in relation to the Partnership contract.

Members received a confidential presentation from the Director of Business Services, PWC and Eversheds in relation to the Business Transformation Partnership.  Members considered the confidential appendices to the report of the Executive Director (Business Development).

The Director of Business Services, PWC and Eversheds, introduced the report by making a public presentation to Cabinet. The Director of Business Services explained that an incremental partnership would enable the Council to develop a long-term Partnership, allow joint development of future strategy and priorities and enable the Council to move quickly to implement future projects - reducing procurement costs. An incremental Partnership was seen as relatively low risk in that future projects would only be agreed if the Partnership were successful.

The Director of Business Services outlined the procurement process, which although accelerated, was relatively standard. She highlighted the negotiation with two of the bidders at the Best and Final Offer stage of the procurement process, which had resulted in the Council receiving improved terms.

During her presentation, the Director of Business Services outlined the scope of the Capita proposal and the timetable. She detailed the proposed governance arrangements and advised that a more detailed report on this aspect of the Partnership would be submitted to Cabinet on 6 October 2005.

The representative of Eversheds made a presentation, which detailed his company’s experience of Strategic Partnerships and gave a commercial overview of the proposed Partnership. He advised that the Council had negotiated a well-balanced agreement on favourable terms. He reiterated that it was an incremental Partnership, was flexible, incentivised, had strong enforcement and was, overall, a good robust deal for Harrow.

The representative of PWC made a presentation, which outlined her company’s experience of Strategic Partnerships and gave a financial overview of the proposed Partnership. She advised that the financial models had been submitted on an open book basis, that is, there had been full disclosure to the Council. The representative indicated that the commercial and financial aspects of the deal were well within or exceeded the parameters of similar Strategic Partnerships.

In response to a Member’s question in relation to disaster recovery, the Director of Business Services advised that a good price for disaster recovery had been negotiated with Capita and that officers were looking at the potential to extend the Council’s existing disaster recovery. Although the Council now had improved disaster recovery, a report would be submitted for Members’ consideration as part of next year’s budget.

The Director of Business Services advised, in response to a Member’s question, that in order to protect the Council she would be monitoring future business cases and seeking external advice where necessary.

At the invitation of Members, a representative of Unison read a statement to Cabinet, which expressed the Union’s concerns in relation to the Partnership agreement. The representative stated that information had  ...  view the full minutes text for item 816.