Agenda item

Decision:

That the Executive:

1.   approves the appointment of Trafalgar Entertainment Group as the operators of G Live for a 25-year contract; and

2.   delegates authority to the Strategic Director for Finance, in consultation with the Lead Councillor for Commercial Services, to

agree and enter into all such contracts and other legal agreements as

may be necessary to implement this award, in compliance with the Procurement Procedure Rules where applicable.

Reason(s):

The contract has been competitively tendered through the GBC procurement portal and Trafalgar Entertainment Group have proven to be the most competitive and best placed to run G Live going forward.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The Council had entered into a 10-year G Live Operator Agreement with HQ Theatres Guildford Limited and QDOS Entertainment PLC (HQT) on 12 August 2011. Subsequently, Trafalgar Entertainment had acquired HQ Theatres. With a 3-year extension due to the pandemic, that contract would run until 30 September 2024. The council had also granted a lease of the G Live premises to HQT (now, Trafalgar) for a period of 10 years at a peppercorn rent. This lease was also extended until 30 September 2024. As the contracts had been extended to maximum length under the original procurement the contract had to be re-tendered.

The Executive considered a report that summarised the outcome of the competitive tender process with recommendations to appoint the successful operator and length of term of the new contract.

There was additional informal in regard to sustainability targets over the period of the proposed new contract which had been provided for the Executive at the request of the Services Overview and Scrutiny Committee. The Leader thanks the Chairman and the members of that Committee.

The Executive agreed it would not discuss the restricted material set out in the appendix to the report.

The Lead Councillor for Commercial Services introduced the report and explained that the venue had been in operation for just 13 years and when the 2011 contract was agreed its future success was unknown. At that point in time the council felt it was appropriate to subsidise the contract, award a peppercorn rent and take just a small share of the profit. Today, G Live was a highly successful venue with national and international acts drawing audiences from a wide area and it brought £4m to the local economy annually. The venue was involved with the local community and was described as a ‘jewel in Guildford’s crown’. The procurement of the new contract had been more than a commercial exercise because of the way in which the venue was a part of the Guildford community. The lead councillor thanked all of those involved in the negotiations, procurement and scrutiny of the process to date, and those who tendered for the contract.

The new contract proposal was an all-round financial gain for the council in that there would no longer be a subsidy to be paid and a rental income would be received of £240,000 per annum resulting in a positive financial saving of over £0.5m per annum.

It was noted the targets set out in the Supplementary Information Sheet should read 2025 and not 2024.

The Executive welcomed the report and the recommendations. There was confidence given the new contract would be awarded to the same team that had built the venue over the previous years and which was now proposing a capital investment to develop the venue further and to continue to improve the visitor experience. It was particularly noted and welcomed that the contractor would operate sustainably and match the council’s own commitment to reach zero-carbon by 2030. The creative learning experience would also be an area of focus under the new contract benefitting local people with opportunities for personal development.

Overall, the Executive concluded that the new contract would be a good outcome for the venue, the council and the residents of Guildford. Consequently, it was,

RESOLVED:

That the Executive:

1.   approved the appointment of Trafalgar Entertainment Group as the operators of G Live for a 25-year contract; and

2.   delegated authority to the Strategic Director for Finance, in consultation with the Lead Councillor for Commercial Services, to

agree and enter into all such contracts and other legal agreements as

may be necessary to implement this award, in compliance with the Procurement Procedure Rules where applicable.

Reason(s):

The contract has been competitively tendered through the GBC procurement portal and Trafalgar Entertainment Group have proven to be the most competitive and best placed to run G Live going forward.