Issue - meetings

To consider a report by the Head of Customer Service presenting an outline business case to support the viability of procuring a joint venture to operate and develop the print services elements of HDC’s Document Centre service.

(Executive Councillor: Cllr D Brown)

That the business case presents a fair reflection of the broad potential benefits of establishing a partnership with an external commercial print supplier.

That the information presented in the business case provides a robust basis upon which to initiate a procurement process to identify potential commercial partners.

That soft market testing continues in order to further develop the model set out in the business case, particularly in terms of evaluating market potential and projecting future sources and levels of income.

The model described in the business case be used, as part of an EU compliant procurement process (Restricted Procedure with Competitive Dialogue), as the framework for negotiations with potential commercial partners.

Consideration was given to a report by the Head of Customer Service to which was appended a Business Case (copes of which are appended to the Minute Book). Members were presented with a business case building the proposed basis for the procurement of a suitably qualified and experienced commercial partner to form a joint venture company to provide printing and related services. Executive Councillors were reassured that research showed that this was an area with growth and opportunities available for development.

In order that the Council can proactively pursue its intention to be financially self-sufficient by 2020, it would be essential that the Council established the commercial vehicles necessary to provide opportunities to increase income and, where possible, reduce costs. The establishment of this joint venture company would enable the Council to protect its existing investment in print services (people and equipment) whilst also creating opportunities to enhance the commercial potential of a business that is equipped to service a wider range of customers across the public, private and third sectors.

RESOLVED

a)  that the business case presented a fair reflection of the broad potential benefits of establishing a partnership with an external commercial print supplier;

b)  that the information presented in the business case provided a robust basis upon which to initiate a procurement process to identify potential commercial partners;

c)  that soft market testing continued in order to further develop the model set out in the business case, particularly in terms of evaluating market potential and projecting future sources and levels of income; and

d)  that the model described in the business case be approved, as part of an EU compliant procurement process (Restricted Procedure with Competitive Dialogue), as the framework for negotiations with potential commercial partners.

The Document Centre – Business Case for Commercialisation is to be presented to the Panel.

With the aid of a report by the Head of Customer Service (a copy of which is appended in the Minute Book), the Document Centre – Business Case for Commercialisation was presented to the Panel.

Members were given some background on the Document Centre including that it includes two elements: printing and distributing documents and receiving the documents into the Council. The Business Case focuses on the printing and distribution element of the Document Centre and there has been soft marketing testing carried out with three companies.

A Member stated that having previously dealt with the Document Centre it was considered too expensive and had the Executive Councillor considered closing the Document Centre and getting the Council’s printing done externally. The Panel was informed that it had been considered, however the consultant has recommended the Document Centre can provide the basis of a viable business.

The Panel was informed that the Council has budget to replace the printing equipment however there is a hold on procurement as some companies may have equipment which they could bring to the commercialisation agreement. In return, the Council has the building and staff. Some Council equipment is old and a company could bring new equipment which doesn’t cost as much to run as the older equipment.

Following a question regarding staffing, the Panel was informed that the Document Centre has 13 staff of which the staff dedicated to printing may be transferred across to the new business, but this dependent upon a successful procurement exercise and agreement on staffing arrangements. A number of models potentially exist.

Members questioned the projected level of growth particularly as printing is in decline with the emergence of paperless working. In response, the Panel was informed that the soft market testing has predicted the level of growth stated in the report and that the testing has found that different areas of the printing market are growing.

Some Members expressed contentment with the business case for the Document Centre and added that if the right partner could be found then it would be a success.

Concern was expressed that by venturing into commercialisation the Council could end up forcing local print businesses to close down.

In response to a comment, that the Council don’t seem to be reviewing all of the options, Members were informed that the consultant advanced five options and the Council’s senior officers along with the Executive Councillor decided the preferred options.

It was noted that the Council will always need printing and if it can be done cheaper in house then that would make sense, however Members were informed that the commercialised company wouldn’t necessarily carry out in house work.

The Panel was content that the process continues so long as Members can view the Full Business Plan before it is approved.

(At 8.23pm, after the discussion of this item, Councillor D Brown left the meeting and did not return.)