Purpose

This report seeks
Cabinet’s authority for the creation of a Local Authority
Trading Company, a joint Teckal company, together with Dover and
Canterbury. The company will deliver Revenue, Benefits and Customer
Services to the three Council. These services are currently being
provided by Civica.
 
The contract with Civica will
expire in January 2025. If Cabinet agrees with this report’s
recommendations, Thanet District Council (the Council) will become
an equal Shareholder with Dover and Canterbury, the company, to be
known as PartnershipOne, can formally be registered at Companies
House.

Decision

Cabinet agreed the following:
 
1.  Agree
to exit from the contract with Civica
UK Limited for the delivery of the Revenue, Benefits and Customer
Services;
3. 
Approve the LATCo service delivery
vehicle as the preferred option for future service delivery of
Revenue, Benefits and Customer Services;
4. 
Approve the Business Case at Annex 1 setting out the rationale for
the delivery of the aforementioned services by a Joint Teckal Company, a Local Authority Trading Company
(LATCo), together with Dover and
Canterbury, pursuant to Article 2 (2)(b) of the Local Government
(Best Value Authorities) Power to Trade)(England) Order 2009;
5.  Agree
the Shareholders Agreement and Articles of Association at Annex 2
and Annex 3 [with the updated Shareholders Agreement and Articles
of Association attached to the decision notice];
6. 
Authorise the East Kent Services Committee, to the extent that it
is not otherwise authorised to do so, to exercise the powers and
functions of the Council to form the LATCo and to enter into the contract with it, (to
include but not limited to); making decisions on behalf of the
Council in relation to:
 
 
i. 
Establishing the LATCo and enter into
any associated shareholders agreements.
 
ii. 
Appointing officers to the LATCo.
 
iii. 
Subscribing for shares in the LATCo
 
iv. 
Advancing money by way of loan capital to the LATCo to finance its capital requirements.
 
v. 
Entering into a contract with LATCo for
the delivery of the Revenue, Benefits and Customer Services on
behalf of each of the councils.
 
vi. 
Managing the contract.
 
vii. 
Renegotiating the contract.
 viii. 
Varying the contract.
 
ix. 
Assigning the contract.
 
x. 
Novating the contract.
 
xi. 
Terminating the contract.
 
xii. 
Enforcing the contract.
 xiii. 
The doing of anything in relation to the exercise of the powers and
functions under Part ll of the
Deregulation and Contracting Out Act 1994 and the orders and
regulations made under it.
xiv. 
Authorising entry into contracts* with third parties in relation to
any functions of the Council which are not the Revenues, Benefits
and Customer Services Functions but which can usefully be entered
into in connection with or in order to facilitate contracts entered
into, or to be entered into with regard to the Revenues, Benefits
and Customer Service Functions.
 
*the contracts shall be entered into in
accordance with each local authority’s respective Contract
Standing Orders.
 
(xv) Anything which is calculated to
facilitate, or is conducive to or otherwise expedient to (i) to
(xiv) above.
 
7. 
Authorise the East Kent Services Committee, to the extent that it
is not otherwise authorised to do so, to exercise the powers and
functions of the Council in its capacity as a shareholder of the
LATCo, including the giving of any
consent, approval or permission under the provisions of any
shareholders agreement BUT NOT the giving of any approval under the
shareholders agreement to carry out any matters which are specified
as Reserved Matters under the shareholders agreement;
8.  Agree
that a report be considered by EKSC on final contract terms and, if
approved, authorisation of entry into the contract and associated
documentation;
9.  Agree
that a new collaboration agreement be entered into between the
authorities dealing with and reflecting:
 
(a)  The
fact that the existing collaboration agreement makes specific
reference to Civica (UK) Limited;
(b)  The
management of the service contract with the LATCo and the rights of liabilities of the councils
(inter se) in relation to the service contract with the
LATCo;
(c) 
The reduced number of services now being delivered as shared
services e.g. ICT and Human Resources are no longer delivered as
shared services.
(d)  The
changes to the procurement regime effected by the Procurement Act
2023;
(e)  Data
protection matters;
(f) 
Such other matters as are considered appropriate by the monitoring
officer.
 
10.  That
the terms of such new agreement be determined by the Monitoring
Officer in consultation with the Leader of Council.

Reasons for the decision

To ensure continuity of service for Revenues
and Benefits and customer services.

Alternative options considered

These are the disaggregation of services, an
alternative outsourcing company, a shared service or a LATCo. The disaggregation of services is costly and
inefficient. A shared service benefits from economies of scale and
efficiency through sharing limited resources.
 
Whilst there are some financial advantages to
a shared service the options analysis in the business case
illustrates that the most financially beneficial option is the
LATCo in that it both benefits from
economies of scale and also the option to operate commercially.