Issue - meetings

RESOLVED that 1) the principle of the Council acting as main contractor for other local authorities seeking work and services from Dragonfly Development Ltd be approved,

2) delegated authority be granted to the Chief Executive Officer to enter into non-binding cooperation arrangements with other local authorities.

Executive considered a detailed report, presented by the Portfolio Holder for Corporate Performance and Governance, which sought Members agreement in principle to the Council acting as main contractor for local authorities wishing to procure works and services from Dragonfly Development Ltd.

The report also sought approval to delegate to the Chief Executive, the power to enter into co-operation arrangements with other local authorities to deliver construction related services.

Dragonfly Development Ltd had successfully completed a housing scheme for a wholly owned company of a neighbouring local authority. This project was so successful that the local authority, along with other local authorities, would like to engage the services of Dragonfly to deliver more construction projects and consultancy services for property related schemes.

Under section 101 of the Local Government Act 1972, a local authority may arrange for another local authority to discharge its functions and it had been proposed that other local authorities arrange for work to be undertaken by the Council who would in turn sub-contract with its Dragonfly companies.

Freeths LLP solicitors, had advised Dragonfly that another authority could procure the Council to deliver construction and property related projects. In turn, the Council would need to enter a subcontract with either Dragonfly Development Ltd or Dragonfly Management (Bolsover) Ltd, depending on the value of the contract in accordance with the Council’s Contract Procurement Rules.

The Council was seeking its own external advice on the proposal; however, this advice had not yet been received and would be presented to a future Executive meeting.

In response to a query from Councillor Moesby, the Monitoring Officer confirmed that each individual contract would need to be approved by Executive.

Moved by Councillor John Ritchie and seconded by Councillor Duncan McGregor

RESOLVED that: 1) the principle of the Council acting as main contractor for other local authorities seeking work and services from Dragonfly Development Ltd. be approved,

2)    delegated authority is given to the Chief Executive to enter into non-binding cooperation arrangements with other local authorities.

Reasons for Recommendation

By agreeing to the proposal Dragonfly Development Ltd will be able to enter negotiations with other authorities to undertake work on their behalf via a contractual agreement with the Council.

Alternative Options and Reasons for Rejection

Not to agree to the proposal. Other local authorities will need to undertake procurement exercises which will mean that Dragonfly Development Ltd will need to compete with other building contractors.

Councillor Steve Fritchley returned to the meeting.

Councillor Janet Tait returned to the Council Chamber.

Councillor Steve Fritchley in the Chair