Report for consideration.  Exempt Appendix 1.

1.    Subject to 2 below and for the reasons set out in the report and its appendices, Cabinet, agreed the variation of the oneSource agreement between the Council and the London Boroughs of Newham and Bexley on the following terms:

a.    London Borough of Bexley’s full withdrawal from oneSource from 31st July 2020, waiving the requirement to give 15 months’ notice;

b.    London Borough of Newham’s withdrawal of its delegation to the oneSource Joint Committee of all Finance Services provided by oneSource except for the Finance services provided currently by the Transactional Team, Treasury and Pensions and the Oracle Systems Support Team (the latter initially for one year only);

c.    The financial compensation payable by the exiting boroughs to Havering as detailed in Table 1 of the oneSource report considered at oneSource Joint Committee on 26 June 2020 (Exempt Appendix 1);

d.    To vary the oneSource Agreement generally and the remodelling of oneSource services specifically to the extent that the affected services and the relevant delegations are executive functions of the Council;

e.    To the London Borough of Bexley’s withdrawal from the membership of the oneSource Joint committee with effect from 31 July 2020;

2.    Cabinet agreed that the decisions in 1 above are subject to the approval by Bexley and Newham of all of the terms of the agreement reached at the oneSource Joint Committee on 26 June 2020 and the formation of a contract between the three boroughs to give effect to the agreement.

3.    Cabinet delegated the implementation of the agreement reached at the oneSource Joint Committee on 26 June 2020 to the Executive Director of oneSource;

4.    Cabinet noted that the other Councils may continue to share some of the proposed withdrawn services for a transitional period beyond 31 July 2020 whilst permanent arrangements are put in place within the sovereign boroughs.

Cabinet considered the report presented by Simon Pollock the Managing Director of oneSource.

Cabinet’s approval was recommended for the remodelling of oneSource services and related matters. The recommendations arise from a provisional agreement between Havering, Newham and Bexley Councils reached by the oneSource Joint Committee on 26^th June 2020, which now requires the formal agreement of each Council to be implemented.

In the lead up to the Joint Committee meeting, detailed discussions and meetings took place with the partner boroughs a number of which were formal meetings comprising the political leadership of the partner boroughs.

The oneSource joint Committee met on 26 July 2020 and agreed to the LB Newham and LB Bexley  requests to make  the following changes to the shared arrangement:-

·         Bexley wish to withdraw all delegated services from oneSource

·         Newham wish to withdraw from all Finance Services except for the Finance services provided currently by the Transactional Team, Treasury and Pensions and the Oracle Systems Support Team (the latter initially for one year only).

These changes will create additional costs for Havering, which will lose some of the economies of scale that have been achieved by sharing services. Under the Partnership Agreement between the three boroughs, the two boroughs requesting the withdrawal of services must compensate Havering for the additional costs this change creates.

The oneSource Joint Committee agreed the following:

·         To agree Bexley’s full withdrawal from oneSource from 31^st July 2020, waiving the requirement to give 15 months’ notice.

·         To agree Newham’s withdrawal from all Finance Services except for the Finance services provided currently by the Transactional Team, Treasury and Pensions and the Oracle Systems Support Team (the latter initially for one year only).

·         To agree the financial compensation payable by the exiting boroughs.

·         To vary the terms of the oneSource agreement to withdraw the Bexley’s membership of the oneSource Joint committee with effect from 31^st July 2020

·         To agree a joint press release.

In line with the delegation arrangements in place in each borough, the decisions of the oneSource Joint Committee are subject to approval by each and all of the authorities in respect of the delegation of powers to the Joint Committee and the other terms of the agreement. 

Following discussion:

1.    Subject to 2 below and for the reasons set out in the report and its appendices, Cabinet, agreed the variation of the oneSource agreement between the Council and the London Boroughs of Newham and Bexley on the following terms:

a.    London Borough of Bexley’s full withdrawal from oneSource from 31st July 2020, waiving the requirement to give 15 months’ notice;

b.    London Borough of Newham’s withdrawal of its delegation to the oneSource Joint Committee of all Finance Services provided by oneSource except for the Finance services provided currently by the Transactional Team, Treasury and Pensions and the Oracle Systems Support Team (the latter initially for one year only);

c.    The financial compensation payable by the exiting boroughs to Havering as detailed in Table 1 of the oneSource report considered at oneSource Joint Committee on 26 June 2020 (Exempt Appendix 1);

d.    To vary the oneSource Agreement generally and the remodelling of oneSource services specifically to the extent that the affected services and the relevant delegations are executive functions of the Council;

e.    To the London Borough of Bexley’s withdrawal from the membership of the oneSource Joint committee with effect from 31 July 2020;

2.    Cabinet agreed that the decisions in 1 above are subject to the approval by Bexley and Newham of all of the terms of the agreement reached at the oneSource Joint Committee on 26 June 2020 and the formation of a contract between the three boroughs to give effect to the agreement.

3.    Cabinet delegated the implementation of the agreement reached at the oneSource Joint Committee on 26 June 2020 to the Executive Director of oneSource;

4.    Cabinet noted that the other Councils may continue to share some of the proposed withdrawn services for a transitional period beyond 31 July 2020 whilst permanent arrangements are put in place within the sovereign boroughs.