Decision details

To seek approval for the selection of the preferred bidder.

The Cabinet agreed the preferred partner for Medway LIFT Co, as referred to in the exempt addendum report, with whom further negotiations will be conducted.
The Cabinet agreed that the Portfolio Holder for Health and Community and the Director of Health and Community Services continue to represent the interests of the Council on the LIFT Shadow Board.
The Cabinet agreed that officers enter into discussions and negotiations with other public sector partners from the perspective of the Council remaining a key stakeholder, being an active participant in the Strategic Partnering Board and supporting the development of the annual Strategic Service Delivery Plan for LIFT Co.
The Cabinet agreed to reserve judgement on the issues of exclusivity pending further clarification of the issues and the evaluation of the implications of granting or not granting any exclusivity to Medway LIFT Co.
The Cabinet agreed that the Council's legal and financial officers evaluate the costs, benefits and other implications of Medway Council taking a shareholding in Medway LIFT Co.
The Cabinet agreed that the contract rules be waived in accordance with Contract Rule 2(b)(i) to permit Nabarro Nathanson to be retained should further legal support be required - subject to fees not exceeding the upper limit.

Officers of the Council have been fully involved in the process of identifying the preferred bidder. Due processes have been followed and these are compliant with the expectations the Council would have applied if it had led on the procurement.The establishment of LIFT Co presents a significant opportunity to improve public sector services in Medway and complements other regeneration initiatives in Medway. There is therefore a significant advantage to be gained from the Council being actively involved in LIFT Co.
LIFT Co should be regarded as a property development and management company in which the Council may wish to have a stakeholding and a shareholding. However, many of the detailed issues cannot be considered or addressed until it is possible to enter into negotiations with all LIFT Co stakeholders, which includes the preferred bidder.The concept of LIFT Companies is new and each procurement in the early phases will be developed in a unique way. The above recommendations therefore secure but do not compromise the Council's position, but do provide the basis for more focused negotiations with the preferred bidder and other public sector partners. This will help clarify the issues and implications in the formulation of firm recommendations for decisions that will need to be taken before financial close.