PAPER C
Purpose
: for decision
REPORT
TO THE EXECUTIVE
Date : 26 FEBRUARY 2003
Title : SERVICE LEVEL AGREEMENT
BETWEEN THE COUNCIL AND THE ISLE OF WIGHT ECONOMIC PARTNERSHIP
REPORT OF THE PORTFOLIO HOLDER FOR ECONOMIC
DEVELOPMENT, UK AND EU REGIONAL ISSUES
IMPLEMENTATION DATE : 10 MARCH 2003
SUMMARY/PURPOSE
1. To consider and approve the Service Level
Agreement (SLA) between the Council and the Isle of Wight Economic Partnership
(IWEP) for the delivery of economic development and regeneration services.
BACKGROUND
2. In 1999 the Council determined to deliver its economic
development services through the Isle of Wight Partnership, a Company limited
by guarantee, which brought together a number of agencies, including the
Council, into a single organisation. An
Agreement was drawn up between the Council and the Partnership for a two year
period from 1 April 1999 laying down the terms and conditions of this
arrangement, which included the Council providing finance and seconding staff
to the Company.
3. Over the past 18 months there have been substantial changes
to both the staffing and function of the Company, which has been renamed the
Isle of Wight Economic Partnership (IWEP).
The new service delivery arrangements for the economic development service
resulting from these changes were reported to the Economic Development,
Planning, Tourism and Leisure Services Select Committee on 27 May 2002.
4. The attached draft Agreement (Appendix 1) lays out
the terms and conditions of continued Council support to IWEP reflecting these
changes. In particular, it outlines the
following :
·
The respective roles of the IWEP and the Council (see
clause 3)
·
Details of Council payments and contributions to the
IWEP (see clause 4)
·
Performance monitoring arrangements and details of the
Councils nomination rights to the IWEP Board (see clause 5)
·
Default and contract termination arrangements (see
clauses 8 and 9)
·
Arrangements for reviewing and making variations to
the SLA (see clauses 10 and 11)
·
Standards of conduct for IWEP Board directors
STRATEGIC CONTEXT
5. The Councils Corporate Plan has 6 key
objectives one of which relates to Encouraging job creation and economic
prosperity. The Council was instrumental in establishing the IWEP as the
primary vehicle for delivery of this objective. In particular, the IWEPs
responsibilities relate to the attraction of new investment and the delivery of
regeneration programmes.
CONSULTATION
6. Development of the Service Level
Agreement has been the subject of consultation with the following :
·
The Isle of Wight Economic Partnership
·
Director of Finance
·
Director of Corporate & Environmental Services
7. In addition, on 27 January 2003, the
Economic Development, Planning, Tourism and Leisure Services Select Committee
considered the draft SLA. The Select Committee recommended to the Executive
that the SLA be approved subject to the following :
(i)
That the £14,000 set aside from last years budget for
the Ambassadors Scheme be deducted from the budget paid to the IWEP for 2003/04
(ii)
That reports on the economic development and
regeneration programmes delivered by the IWEP also be made to the Select
Committee on a quarterly basis
(iii)
That clause 5.1.1. be amended to make specific
reference to the IWEP also providing a quarterly financial report to the Select
Committee
(iv)
That clause 3.3.2. be removed from the agreement.
(v)
That the Chairman and Vice Chairman have an input on
behalf of the Committee into the final negotiations regarding clause 10.2.
8. The advice of officers regarding these
comments is as follows :
(i)
That point (i) above be considered by the Executive.
Since the meeting of the Select Committee the IWEP have provided a briefing
note on the Ambassadors Scheme describing activities delivered to date and
proposals for its future development.
This is attached as Appendix 2 and will assist the Executive in
reaching a decision on this matter.
(ii)
That points (ii), (iii) and (v) be accepted. The
attached SLA has been amended accordingly.
(iii)
With regard to point (iv) above, Executive are advised
to amend para 3.3.2.
to
refer to Advising the Executive and such other committees as may be
appropriate on all aspects of the service. The concern expressed by the Select
Committee related to the need to clarify the meaning of this paragraph. The proposed
wording addresses this issue.
FINANCIAL/BUDGET IMPLICATIONS
9.
Details of the Councils financial support for the
IWEP are detailed in clause 4 of the draft Service Level Agreement. Provision
for the proposed level of support has been made within existing budgetary provision.
LEGAL IMPLICATIONS
10. The Service Level Agreement will form a
legally binding agreement between the Council and the Isle of Wight Economic
Partnership. The power to fund the Partnership is created by Part 1 Local
Government Act 2000.
OPTIONS
11.
The options available to the Executive are as follows
:
Option
1 : Approve the SLA as drafted, subject to the comments of the Select
Committee as reported in paragraph 8 above and any additional comments that
Executive would wish to incorporate.
Option 2 : Reject the SLA and
ask officers to reconsider the matter.
EVALUATION/RISK MANAGEMENT
12.
The advice of officers as regards the comments of
Select Committee is set out in paragraph 8 above.
13. The draft Service Level Agreement aims to
provide appropriate safeguards to minimise the financial and operational risks
to the Council. In particular, through regular monitoring and liaison meetings,
members will be kept regularly informed as to the activities and achievements
of the IWEP. The Council also has 3 members of the Executive who sit as
directors on the IWEP Board to ensure close liaison.
RECOMMENDATIONS In
accordance with Option 1 that : 1.
The Service Level Agreement be approved subject to
any amendments which the Executive would wish to incorporate. 2.
That the Executive consider the recommendation of
the Select Committee regarding deduction of the sum of £14,000 paid to the
IWEP from the contribution to be made to the IWEP in 2003/4 relating to
delivery of the Ambassadors Scheme. |
BACKGROUND PAPERS
14. The following background papers are
relevant :
·
Report
to Economic Development, Planning, Tourism and Leisure Services Select
Committee on 27 May 2002 on Future
Delivery of Economic Development Services.
·
Report
to Economic Development, Planning, Tourism and Leisure Services Select
Committee on 27January 2003 on Service
Level Agreement between the Council and the Isle of Wight Economic
Partnership.
ADDITIONAL INFORMATION
15.
The
following appendices are attached to this report :
Appendix 1 : Proposed Service Level Agreement between the
Isle of Wight Council and the Isle of Wight Economic Partnership
Appendix 2 : Ambassadors Scheme : Update from
Mike King, Enterprise & Investment Director / IWEP
Contact Point : , F John Bentley
Head of Corporate Policy and
Communications
Ext 3346
([email protected])
|
M J A FISHER Head
of Paid Service
|
H REES Portfolio
Holder for Economic Development, UK and EU Regional Issues |
APPENDIX 1 : PROPOSED SERVICE LEVEL AGREEMENT BETWEEN THE ISLE
OF WIGHT COUNCIL AND THE ISLE OF WIGHT ECONOMIC
PARTNERSHIP
This Agreement is made on the day of 2003
Between:
(1) The Isle of Wight Council of County Hall, Newport, Isle of Wight, PO30 1UD (Council)
And
(2) The Isle of Wight Economic Partnership Limited, Innovation Centre, St Cross Business Park, Monks Brook, Newport, Isle of Wight, PO30 5WB (IWEP)
BACKGROUND
A. The parties are both committed (Joint Commitment) to the economic development and regeneration of the Isle of Wight including addressing issues of social exclusion
B. The Council supports the principle of a partnership approach to economic development and regeneration
C. The IWEP recognises the obligations and role of the Council in undertaking economic development and regeneration activities for the benefit of the Isle of Wight
D. The parties have agreed to carry out the activities in this Agreement on the following terms and conditions in order to meet the Joint Commitment and both agree that the tenets of social, economic and environmental sustainability must permeate all aspects of these activities.
1. DEFINITIONS
1,1 For all purposes of this Agreement the
terms defined in this clause have the meanings specified below.
Agreed PSA
Targets means the economic development and regeneration performance targets
agreed under the Public Service Agreement between the Isle of Wight Council and
the UK Government, which IWEP will be delivering on behalf of the Council
Ambassadors Scheme means a scheme promoted by the Isle of Wight Council to appoint leading members of the community to act as Champions for the Isle of Wight
Regeneration Director is the member of IWEP staff who is responsible for the team delivering a range of economic and social regeneration programmes on the Isle of Wight or such successor as may be appointed from time to time
Enterprise and Investment Director is the member of IWEP staff who is responsible for the team delivering a range of inward investment and marketing services
Council includes any authorised representative of the Council or such successor as may be appointed from time to time
Council Client Officer is John Bentley, Head of Corporate Policy and Communications for the Council or such successor as may be appointed from time to time,
Head of Finance and Business Services is Paul Wilkinson, the Council officer responsible for management of Council financial affairs or such successor as may be appointed from time to time
Island Regeneration Strategy is the document which describes the Economic Development Strategy for the Isle of Wight
Innovation Centre means the managed workspace facility based at St Cross Business Park, Newport, Isle of Wight, providing incubator space for hi-tech, hi-growth start-up companies
IWEP includes any authorised representative of the IWEP including any agent or volunteer acting on behalf of IWEP
Monitoring Group shall include representatives of the Council and IWEP as agreed between the parties
Persons shall include any employee, volunteer or agent of IWEP engaged in the execution of the Agreement on behalf of IWEP
Service means the promotion of economic development and social regeneration as set out in clause 3 below.
2. TERM OF AGREEMENT
2.1 This Agreement shall be for a term (Term) of three (3) years commencing on 1st April 2002 (Commencement Date) terminating on 31 March 2005 (Termination Date).
3.1 Key
Corporate Objectives
Promoting economic development and regeneration is a key corporate objective of the Council. The delivery of this Service will be shared between the Council and IWEP as follows:
(d) manage the Innovation Centre;
(e) deliver the Ambassadors Scheme; and
(f) deliver agreed PSA Targets on behalf of the Council.
3.2.2 Regeneration
The IWEP is responsible for the delivery of the following regeneration programmes for the Isle of Wight:
(a) Single Regeneration Budget (SRB) programmes approved under rounds 2,4,5 and 6 of the National SRB initiative;
(b) Rural Development Programme;
(c) Market Towns Initiative;
(d) Leader+;
(e) such other initiatives as may from time to time be developed;
(f) support for development of sustainable local regeneration partnerships;
(g) deliver agreed PSA Targets on behalf of the Council.
3.2.3
Managing Financial Affairs
The Regeneration Director and Enterprise and Investment Director are jointly responsible for executive management of the IWEP budget with the Regeneration Director being responsible for management of the day-to-day financial affairs of the IWEP.
3.3 Responsibilities of the Council:
The specific responsibilities of the Council shall be:
3.3.1 advising the IWEP and partner agencies on strategic policy issues concerning economic development and regeneration issues and activities affecting the Isle of Wight;
3.3.2 advising the Executive and other appropriate Council committees on all aspects of the Service;
3.3.3 working with the IWEP in the co-ordination and review of the Island Regeneration Strategy;
3.3.4 co-ordinating and advising the IWEP on European policy concerning economic development and regeneration issues and activities affecting the Isle of Wight;
3.3.5 co-ordinating and advising on bid development activities in order to maximise levels of external funding attracted to the Isle of Wight;
3.3.6 provision of a research and information service concerning economic development and regeneration issues and activities affecting the Isle of Wight; and
3.3.7 promoting the tenets of social, economic and environmental sustainability in all economic development and regeneration activities.
4.1 The Council will make the following payments and contributions for the services specified:
4.2 Staff
Subject to clause 4.2.3 below, the Council will employ six (6) members of staff (Staff) and second them to the IWEP to work in accordance with the requirements of IWEP to enable it to meet its obligations under this Agreement. These six (6) staff shall be as follows :
4.2.1 The following two (2) staff members who will be fully funded by the Council for the Term:
4.2.2 The following four (4) members of staff who are either partially or fully funded from sources other than the Council (External Sources of Funding) as indicated below.
(a) Rural Development Officer employed on a full time basis and jointly funded on an equal basis, including all on-costs, by the Council and the IWEP
(c) Economic Projects Officer employed on a full time fixed term contract and jointly funded on an equal basis, including all on-costs, by the Council and the IWEP
(d) Rural Development Support Officer employed on a full time basis and fully funded by the IWEP
(e) Monitoring Manager employed on a full time fixed term basis and fully funded by the IWEP.
4.3.1 In consideration for the IWEP providing the Services specified in clause 3 and complying with the terms and conditions of this Agreement, the Council will pay to the IWEP an annual sum of One Hundred and Four Thousand Pounds (£104,000) (Annual Budget Monies) to be received by the IWEP by April 1st for the ensuing financial year. Consideration of any variation in this amount, including provision for inflation, will be considered as part of the annual review of the Councils support.
4.3.2 The IWEP must provide the Council with a written acknowledgement of receipt of the Budget Monies within seven (7) days of their receipt.
4.3.3 The amount of the Annual Budget Monies will be subject to:
(a) the results of an annual review of the performance of the terms of this Agreement by the parties by no later than 31 March of each and every year of the Term in accordance with the Councils budgetary cycle and each party hereby agrees to work in good faith to complete the annual review by the times required; and
(b) the allocation of adequate funding in the Councils annual budget.
4.4 Banking Services
4.4.1 The Council will undertake the banking role of the IWEP for the following regeneration programmes which are delivered by IWEP:
(a) Single Regeneration Budget Programmes 2,4,5,6;
(b) Rural Development Programme;
(c) Market Towns Initiatives;
(d) Leader+ Programme; and
(e) such other regeneration programmes as may from time to time be agreed.
4.4.2 The banking role described in clause 4.4.1 above includes keeping appropriate financial records and making authorised payments relating to these programmes.
The Council will act as accountable body, as appropriate, for the following regeneration programmes which are delivered by IWEP:
(a) Single Regeneration Budget Programmes 2,4,5,6;
(b) Rural Development Programme; and
(c) such other regeneration programmes as may from time to time be agreed.
5. GENERAL
5.1 Monitoring Arrangements
To enable both parties to monitor activities and maximise the potential for partnership working the following arrangements will apply:
5.1.1 Every three (3) months the IWEP will provide a written report to the Councils Executive, the Economic Development, Planning, Tourism and Leisure Services Select Committee and such other committee/s as may be required from time to time on:
(a) the IWEPs activities;
(b) progress towards the achievement by the IWEP of the annual performance targets described in clause 5.1.4 ; and
(c) the financial standing of the IWEP.
5.1.2 Meetings between the IWEPs Regeneration Director, Enterprise and Investment Director and the Councils Client Officer (or such other senior officer as shall from time to time be nominated or appointed), will be held at regular intervals to be agreed from time to time, but not to be less than once every three (3) months.
5.1.3 Meetings between the IWEPs Regeneration Director, Enterprise and Investment Director and the Councils Head of Business and Finance Services (or such other person as may be nominated from time to time) will be held at regular intervals to be agreed from time to time, but not to be less than once every three (3) months.
5.1.4 At the commencement of each and every year of the Term the parties will agree in writing to defined annual performance targets set in accordance with the Island Regeneration Strategy, Public Service Agreement, Social Inclusion Strategy and other initiatives, strategies or documents which may apply from time to time.
5.1.5 These targets may be subject to revision during the year with the written consent of both parties.
The Council shall be entitled to nominate three (3) persons to serve as directors of the IWEP for the Term of this Agreement. Unless otherwise agreed to between the parties, these shall be the Leader of the Council, the Deputy Leader of the Council and the Economic Development Portfolio Holder for the Council.
5.3 Attendance at IWEP Board Meetings
At the discretion of the Chairman, all IWEP directors shall be entitled to request the attendance of other individuals at Board meetings for specific issues. Such individuals shall attend meetings in an advisory capacity only. Those directors on the Board who are nominated by the Council shall also be entitled to seek officer advice on Board papers, correspondence and all other IWEP matters. These provisions shall be subject to all parties being bound by the IWEP rules of confidentiality.
6.1 The IWEP agrees to maintain throughout the period of the Agreement a fully paid insurance policy for:
6.1.1. Employers liability (for any staff it may employ directly);
6.1.2. Public liability; and
6.1.3. Professional indemnity insurance
6.2 The above mentioned policies shall contain a Principals Clause which fully indemnifies the Council in respect of all claims which may arise in connection with the IWEP carrying out works under this Agreement. The Councils Insurance Declaration Form (Annex I to this Agreement) must be completed by the IWEPs Insurance Company or Broker on request.
STATUTORY REGULATIONS
7.1. The IWEP shall operate in accordance with all Acts of Parliament and all statutory regulations made thereunder which affect the provision of the Service specified under this Agreement and ensure that all employees, agents, volunteers and management employed or engaged by IWEP comply with Equal Opportunities Legislation, the Health and Safety at Work etc. Act, 1974, the Data Protection Act 1984 and the Freedom of Information Act 2000 including any re-enactments or amendments to the above.
DEFAULT
8.1 Where a Party (in this clause called
the Party in Default):
8.1.1 suspends for any reason its performance of
all or any part of the obligations under this Agreement; or
8.1.2
fails to proceed regularly and diligently to perform its
obligations under this Agreement; or
8.1.3
fails to pay any sum properly due under this Agreement;
then the non
defaulting Party (in this clause called the Party Giving Notice) may, but is
not obliged to, give a notice to the Party in Default specifying the default
and requiring the Party in Default to rectify the default within seven (7) days
of receipt of the notice.
8.2 If the Party in Default continues the default for seven (7) days or at any time repeats the default then the Party Giving Notice may issue the Party in Default with a written request for a default meeting (Default Meeting) specifying:
8.2.1
the alleged default;
8.2.2
the required remedy;
and
8.2.3
the place and time of
the proposed Default Meeting which must be conducted no less than two (2) days
and no more than seven (7) days from the date of this written request. Both
parties may agree in writing to an alternative time and venue.
8.3 If
neither party can reach agreement from the issues raised in the Default Meeting
then the matter will be referred to a single arbitrator to be agreed upon by the
parties, or in default of agreement on such appointment by the Chairman of the
Independent Board of Arbitrators on the application of either party and
subject to and in accordance with the Arbitration Act 1996 or any statutory
modification or re-enactment thereof.
9.1 This Agreement may be terminated without penalty at any time by either party giving not less than six (6) months prior written notice provided that the terminating party has not breached any term of this Agreement.
9.2 This Agreement may be immediately terminated by either party without penalty if the parties cannot agree by 31 March each year to the annual funding and Business Plan arrangements for any subsequent year of the Term in accordance with clause 4.3.3.
9.3 This Agreement
may be terminated without prejudice to any other rights by the Council if the IWEP goes into liquidation, appoints a receiver or
ceases operation.
9.4 If
a party fails to abide by a decision made in accordance with clause 8.3 then
without prejudice
to any other rights the other party may by notice forthwith terminate this
Agreement.
9.5 Upon termination of this Agreement by whatever mechanism, any part of the Budget Monies or any other monies paid in advance to the IWEP by the Council and not spent or committed must be refunded within twenty-eight (28) days.
10. VARIATION
10.1 This Agreement may be varied at any point in time during a given year of the term subject to all such variations being agreed in writing by both parties.
11 REVIEW
OF AGREEMENT
11.1 By no later than 31 March of each and every year of the Term the parties will review the specification of the Services and, following each review, it may be necessary for the Council to amend Services as required. Prior to any such decision by the Council, there shall first be reasonable discussions between the parties hereto concerning the potential effects of any such amendments.
12. RENEWAL OF AGREEMENT
12.1. Any agreement by the parties to renew this Agreement must be completed not more than nine (9) months and not less than three (3) months prior to the Termination Date.
13. STANDARDS OF CONDUCT
13.1 All directors of the IWEP shall act in accordance with the extract from the IWEPs standards of conduct as set out in the IWEPs Code of Conduct as attached at Annex 2 to this Agreement and in accordance with the Companies Act 1985.
13.2 When Council staff or members are acting in their capacity as company directors of IWEP they shall act in the best interest of IWEP and IWEP only, as required by the Companies Act 1985. Where this may conflict with their duties under the Council Code of Conduct, such conflict shall be declared and the director shall withdraw from discussions and decisions on the matter in question.
14. INVALID CLAUSES
14.1 If any part or provision of this Agreement is held to be invalid, amendments to this Agreement may be made by the addition or deletion of wording, as appropriate, to remove the invalid part or provision, but otherwise retain the provision and the other provisions of this Agreement to the maximum extent permissible under the law.
EXECUTED
on the date hereinbefore written
FOR AND ON BEHALF OF THE ISLE OF WIGHT COUNCIL by:
____________________________________________________
Authorised Signatory
______________________________________________
Name
___________________________________________
Position
FOR AND ON BEHALF OF THE ISLE OF WIGHT ECONOMIC PARTNERSHIP LIMITED by :
____________________________________________________
Authorised Signatory
______________________________________________
Name
___________________________________________
Position
ANNEX 1 INSURANCE
DECLARATION
SERVICE PROVIDER
DESCRIPTION OF WORKS: Provision of economic development and regeneration services Agreement between the Isle of Wight Economic Partnership Limited and the Isle of Wight Council.
To: John Bentley, Head of Corporate Policy
and Communications, Isle of Wight Council, County Hall, Newport, Isle of Wight,
PO30 1UD.
I/We hereby certify as the Insurance
Company/Insurance Brokers for the Isle of Wight Economic Partnership as
follows:-
- That the under mentioned insurance policies are held by:
(Name of Insured Agreement) ..of .
(A) Employers Liability Policy Policy No .
Name of Insurance Company . .
The policy premium has been paid and the policy is in force until
The indemnity provided by the Policy is not less that £10,000,000 (Ten Million Pounds).
(B) Public Liability Policy Policy No ...
Name of Insurance Company .
The policy premium has been paid and the policy is in force until
The indemnity provided by the policy is not less that £5,000,000 (Five Million Pounds) for any one accident or any one claim.
(C) Professional Indemnity Policy Policy No
.
Name of Insurance Company ..
The policy premium has been paid and the policy is in force until
The indemnity provided by the policy is not less that £2,000,000 (Two Million Pounds) for any one accident or any one claim
2.
That
the above mentioned policies contain a Principals Clause which fully indemnify
the Council in respect of all claims which may arise in connection with the
insured carrying out works under the above Agreement with the Council.
FOR AND ON BEHALF OF THE ISLE OF WIGHT ECONOMIC
PARTNERSHIP
Authorised signatory:
Name:
.
Position:
Address:
.
.
.
Date:
...
ANNEX 2
ISLE OF WIGHT ECONOMIC PARTNERSHIP LIMITED
EXTRACT FROM CODE OF CONDUCT