Decision details

(i)  To delegate authority to the Service Director, Business Operations and Digital, following consultation with the Service Director, Legal and Governance and the Service Director, Finance and Commercialisation, to amend the HSP Contract by extending its term until 23:59 hours on 30 September 2025 and make associated amendments to reduce the Council’s General Fund costs associated with this contract in each of the remaining years of the contract from 2017-18 onwards.

(ii)  To delegate authority to the Service Director, Business Operations and Digital, following consultation with the Service Director, Legal and Governance and the Service Director, Finance and Commercialisation, to extend the term of the Citywatch (also known as ‘ROMTV’) contract until 23:59 hours on 30 September 2025 and make associated amendments to reduce the Council’s General Fund costs associated with this contract in 2017-18.

(iii)  To note the increase in financial commitment to the Authority covering the period 2020/21 to October 2025 to meet the additional contract costs over the extended years of the HSP and Citywatch contracts which total an estimated £13.3M (uplifted by indexation).

(iv)   To note that the renegotiated terms for the HSP and ROMTV contracts will achieve estimated General Fund savings - compared to current spending and costs. These are detailed in confidential Appendix 1.

1.  The revised contractual arrangements would ensure that the Council retains appropriate service levels and risk allocation whilst achieving General Revenue Fund savings.

2.  Extending the contracts would avoid the need to re-procure the HSP and ROMTV contracts in 2020 and 2022 respectively, the associated re-procurement costs and the prospect of the costs associated with one or both contracts rising against current expenditure levels.

Alternative options rejected include:-

•  Making no changes to the two contracts and leaving costs and terms unchanged.

•  Termination of one or both of the contracts. The Council would be responsible for financial damages to BBLP and would suffer reputational damage.

•  Re-procuring the contracts at the expiry of their core term. The Council would need to fund costs associated with re-procurement and would achieve contract prices at the prevailing market rate.

•  In-sourcing the services relating to one or both contracts at the expiry of their core terms. Services would be delivered at in-house costs.