The Cabinet considered a report of the Deputy Chief Executive (People) providing an update on the procurement for the preferred bidder to create a Joint Venture Partnership (JV) to deliver the Council’s Passenger Transport Service.

Resolved:

1. That the selection of the preferred bidder as detailed in the Part 2 report be confirmed and that a Joint Venture Partnership (JV) be established with the preferred bidder for a period of 10 years with an option to extend for a further 5 years.

2. That the Council’s annual contribution to the JV of £1.8M, be approved.

3. That the proposed additional community benefits as detailed within the Part 2 report, be approved.

4. That the additional financial arrangements as set out in the Part 2 report, be approved.

5. That the Strategic Director (Transformation), in consultation with the Deputy Chief Executive (People) and the Strategic Director (Finance and Resources) be authorised to:

a) Negotiate and settle the final details of the contractual obligations and responsibilities of each party which will be formalised and documented within a Partnership Agreement and further legal documents that are ancillary to this;

b) Take decisions associated with the creation of the JV (including organisational structure, Council representation and the appointment of directors) to ensure agile and timely decision making keeping the implementation of the JV to timetable and protecting the Council’s position;

c) Finalise and complete any ancillary agreements or documents necessary to give effect to the constitution, implementation and functioning of the JV company in accordance with the submitted report and its appendices.

Recommended:

Reasons for decision:

The Council has a statutory duty to provide the passenger transport service.  The JV approach is the best delivery model to achieve sustainable transport provision for the Council and offers transparency of costs, visibility of profits and the ability for the Council to have joint control in the delivery of the service.

Other options:

Do nothing – This option has been rejected because there is an ongoing, statutory need for this service.  To allow existing arrangements to continue without an agreed contract established would place the Council in a non-compliant position, and the continuation of an ‘in-house’ service would require significant capital investment in the Council’s fleet.

Note: This is an Executive Function save that Recommendation in 6 above is a Council Function.

Eligible for call-in to: All three Scrutiny Committees

Cabinet Members: Cllrs Boyd, Cox and Moring