1. That the transition of Arvato services to in-house service delivery at the end of the contractual arrangement on 18 October, 2020 be approved.
2. That a letter be issued to Arvato and their subcontractor Kier, confirming that the existing partnership arrangement will not be extended.
3. That the Assistant Director – Customers, Commissioning and Change, in consultation with the Cabinet Member for Business Transformation and Customers and the Executive Director, be granted delegated authority to make arrangements to secure a robust transition of services.
4. That the Assistant Director – Customers, Commissioning and Change, in consultation with the Cabinet Member for Business Transformation and Customers and the Executive Director, be granted delegated authority to finalise the contractual agreement with Derbyshire Dales District Council to deliver a shared service delivery model for Revenues and Benefits service from 18 October, 2020.
REASONS FOR DECISIONS
To enable the Council to implement the conclusions of the contractual review to bring services back in house. The recommendations will enable a shared service arrangement with Derbyshire Dales District Council, resulting in efficient utilisation of resources for both Local Authorities.
The Assistant Director – Customers, Commissioning and Change submitted a report seeking approval for the transition of services currently delivered through the Council’s public private partnership with Arvato to in-house delivery from October 2020.
Chesterfield Borough Council entered into a public private partnership with Arvato in October, 2010 to deliver a range of council services.
In 2017/18 the council undertook a review to determine whether or not to extend the partnership until October, 2025, as permitted under the terms of the contractual arrangement. For the reasons set out in the report, officers had concluded that the services should be brought back in house at the end of the 10 year contractual arrangement.
Arvato had requested formal confirmation that Chesterfield Borough Council did not intend to exercise their right to extend the contractual arrangement. This would enable steps to be taken to initiate contract exit negotiations, in particular, around ensuring that the rights of employment of transferring staff were maintained.