Purpose

Cabinet is recommended to consider the options
appraisal on extending, remodelling or ending the current joint
venture at the end of the current contract in March 2027 and agree
the next steps for the joint venture.   
 

Content

Cabinet:
 
(1)         
approved that the council activates its option to extend the JV for
a five-year period up to 2032, including a contract variation to
remodel the JV, to embed new statutory requirements and service
delivery;

 
(2)         
endorsed the commencement of activity to enhance Norse Evolve as
set out in paragraphs 3.11-3.14 of the report; and
 
(3)         
delegated authority to the Corporate Director of Capital Strategy
and Delivery, in consultation with the Corporate Director of
Governance and Law, to finalise the contract extension and the new
legal framework for the JV arrangements.
 

Options & Alternatives Considered

As part of the review, four strategic options were
considered by the council. Ending the JV was discounted due to the
financial impact to the council and complexity of the transition,
which would place additional strain on council
resources.

Revising the contractual terms to remove exclusivity
and introduce full competition was not supported by the JV partner
and presented significant delivery and commercial risks. Continuing
under existing arrangements would not address performance
challenges and legislative changes during the review.

The preferred option, to extend the JV with targeted
contractual amendments provides stability to the council with
improved delivery and responsiveness to the Council’s current
financial context.