Issue - meetings

Cabinet Member: Environment

Forward Plan Ref: 2013/111

Contact: Mark Kemp, Deputy Director for Environment & Economy – Commercial & Delivery Tel: (01865) 815845

Report by Director for Environment & Economy (CA 21).

The information contained in the appendices is exempt in that it falls within the following prescribed category:

5 - Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings

It is considered that in this case the public interest in maintaining the exemption outweighs the public interest in disclosing the information,  in that disclosure would be to the detriment of the Council’s ability properly to discharge its fiduciary and other duties as a public authority.

Atkins was awarded the Oxfordshire Highways Partnership contract in April 2010.  The approximate annual value is between £20M to £25M.  The scope of the contract covers highway maintenance, design services and construction.

Atkins notified the Council in September of its intention to restructure its business by seeking a purchaser of its local highways contract.  On 28 February, Atkins issued a briefing to the City and its staff about its proposal to sell the operational services part of the UK Highways & Transport business to Skanska. It hopes to complete the sale during the summer. Clearly this course of action will have a very significant impact for the Council.

Cabinet is recommended to:-

(a)  approve in Principle to the transfer of the performance of the Highways Contract from Atkins to Skanska subject to the following details being agreed:

·        Publish a Voluntary Ex Ante Transparency (VEAT) Notice

·        Suspend entry into the arrangement/transfer for a 10 days standstill period following publication

·        Agree appropriate indemnities to mitigate the risk for the Council from Atkins and Skanska

·        Secure the necessary Parent Company Guarantee from Atkins and Skanska

·        Completion of due diligence

(b)   approve to delegate the decision on the proposed transfer of the performance of the Highways Contract from Atkins to Skanska to the Chief Executive in consultation with the Director for Environment & Economy along with the Executive Member for Highways and the County Solicitor.

Cabinet considered the implications to the County Council of Atkins decision to restructure its business and its proposal to sell the operational services part of the UK Highways & Transport business to Skanska. It hopes to complete the sale during the summer..

The information contained in the appendices is exempt in that it falls within the following prescribed category:

5 - Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings

It is considered that in this case the public interest in maintaining the exemption outweighs the public interest in disclosing the information,  in that disclosure would be to the detriment of the Council’s ability properly to discharge its fiduciary and other duties as a public authority.

Atkins was awarded the Oxfordshire Highways Partnership contract in April 2010.  The approximate annual value is between £20M to £25M.  The scope of the contract covers highway maintenance, design services and construction.

Atkins notified the Council in September of its intention to restructure its business by seeking a purchaser of its local highways contract.  On 28 February, Atkins issued a briefing to the City and its staff about its proposal to sell the operational services part of the UK Highways & Transport business to Skanska. It hopes to complete the sale during the summer. Clearly this course of action will have a very significant impact for the Council.

RESOLVED:            to:-

(a)   approve in principle to the transfer of the performance of the Highways Contract from Atkins to Skanska subject to the following details being agreed:

·        Publish a Voluntary Ex Ante Transparency (VEAT) Notice

·        Suspend entry into the arrangement/transfer for a 10 days standstill period following publication

·        Agree appropriate indemnities to mitigate the risk for the Council from Atkins and Skanska

·        Secure the necessary Parent Company Guarantee from Atkins and Skanska

·        Completion of due diligence

(b)   approve to delegate the decision on the proposed transfer of the performance of the Highways Contract from Atkins to Skanska to the Chief Executive in consultation with the Director for Environment & Economy along with the Cabinet Member for Environment and the County Solicitor.