Issue - meetings

Variation to Environmental Services Contract

Meeting: 05/04/2011 - Cabinet (Item 40)

Variation to Environmental Services Contract

Minutes:

The Cabinet at its meeting on 19th October 2010 had recommended that the Environmental Services (SERCO) contract be deferred and the Audit Committee be commissioned to investigate the financial aspects of the settlement of invoices for the Gross Annual Services Charges of the Serco contract (Cabinet Minute No. 107/10 refers).

 

The Audit Committee had discussed the implications of the variation of the contract and had concerns about the risks involved whilst being mindful of the savings; therefore, a one month settlement had been proposed.

 

The Executive Member for Economic & Commercial struggled with the notion why the Council would want to pay for services upfront that had not been received.  The return would be very small and could set a precedent and could open up the Council to abuse.

 

The Chairman agreed with the aforementioned comments and accordingly did not support the Audit Committee’s recommendation.

 

The Overview & Scrutiny Commission Chairman reminded Members that Breckland Council was the custodian of ratepayers’ monies and felt that the principle of paying for services up front was fundamentally flawed.  He stated that if the recommendation was approved, the Overview & Scrutiny Commission would call in the decision.

 

Options

 

N/A

 

Reasons

 

N/A

 

RESOLVED that the recommendation from the Audit Committee be refused and the Gross Annual Service Charges for the contract not be settled one month in advance in order to realise a 1% discount from Serco.