Stockton-on-Tees Borough Council

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Cabinet Decision: 12th March 2015
Title of Item/Report
Xentrall Legal Agreement
Record of the Decision
This report updates Members on the ongoing success of Xentrall Shared Services, and seeks approval at the end of the initial 10 years in 2018 to further extend the operational period of the partnership on a continually rolling basis.

Xentrall Shared Services, the Stockton and Darlington partnership, was established in May 2008 and was almost seven years through the original ten year partnership agreement.

In establishing the partnership the Councils established an administrative arrangement called "Xentrall Shared Services". The administrative arrangement specifically meant the delivery of Shared Services provided through a public / public shared service partnership of both Councils, with the Shared Services provided by Stockton-on-Tees Borough Council to both Councils, under powers delegated to Stockton-on-Tees Borough Council by Darlington Borough Council.

The administrative arrangement was governed by the Executive Board, namely the Director of Resources (Stockton) and Director of Resources and Neighbourhood Services (Darlington), and was managed by two Heads of Service (Head of Transactional Services and Head of ICT and Design & Print). The Partnership Consultative Panel, the respective lead Cabinet members from each Council, monitor performance and act as "Champions" of the Shared Services within their respective Council.

The administrative arrangement commenced on 1 May 2008 for a period of ten years and was due to end on 30 April 2018 unless otherwise terminated or extended. The period of ten years may be extended for such further period as may be determined by the mutual agreement of the Councils. The administrative arrangement provides for termination of the partnership with twelve months' notice.

The ongoing success of the partnership in achieving savings as well as sustaining service performance and improvement was reported to both Cabinets in the Xentrall Annual Report. The original business case identified a number of efficiencies and benefits to be delivered resulting in initial savings of 7.4m over the original ten year period. Xentrall had delivered all of these plus additional efficiencies and benefits and was on target to make 13.6m savings over the same ten year period.

The Executive Board and Partnership Panel had discussed and agreed that the partnership should continue in its current form beyond the end of the original ten year partnership agreement.

It was recommended Cabinet approve a revision to the original ten year partnership agreement thereby making it a perpetual agreement with no defined end date.


1. The ongoing success of the partnership in achieving savings as well as sustaining service performance be noted.

2. The role of Stockton-on-Tees Borough Council be re-confirmed as host authority for the partnership and the delegation of functions from Darlington Borough Council be accepted.

3. A revision to the original ten year partnership agreement be approved thereby at the end of the initial period in 2018 making it a rolling agreement with no defined end date, but retaining the existing 12 month notice termination clause.
Reasons for the Decision
To allow the partnership to operate as a going concern and provide stability for the services and staff.
Alternative Options Considered and Rejected
Declared (Cabinet Member) Conflicts of Interest
Details of any Dispensations
Date and Time by which Call In must be executed
Midnight on Friday, 20th March 2015

Date of Publication: 16 March 2015

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