Agenda item

Decision:

(1)   To extend the G Live Contract with HQ Theatres from 1 October 2021 for 3 years until 30 September 2024

(2)  To grant a Lease to HQ Theatres for a term of 3 years from 1 October 2021 until 30 September 2024

(3)  To make provision for the Lease and Contract to be co-terminus.

Reason:

A contract extension was the only viable option at this point due to the impact of the pandemic. A three-year extension offered the best extension period for the Council to meet its medium- term objectives in relation to the financial savings strategy.

Reason for Urgency:

The urgency of this decision was due to the fact that the current contract expires on 30 September 2021 and the need to publish an OJEU notice in advance of entering into the extension meant that the decision needed to be taken before 31 August 2021.

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 Executive considered a report submitted under special urgency arrangements. The Leader thanked the Chairman of the Overview and Scrutiny Committee for agreeing the report could be presented under urgency provisions. The Lead Councillor for Environment introduced the report.

The Council had entered into a 10-year G Live Operator Agreement on 12 August 2011 with HQ Theatres Guildford Limited and QDOS Entertainment PLC (HQT) in respect of the operation and management of G Live.  The arrangement included an annual management fee to be paid by the Council whilst receiving 20% of operational surplus. There had been an operational surplus in favour of the Council for the two years prior to the pandemic. The contract was due to expire on 30 September 2021. 

The Covid pandemic had caused the open procurement process for a new agreement to be suspended in March 2020. The ongoing pandemic and its effect had made it impossible to operate a procurement process which would have secured a suitable replacement offer for the ongoing operation of the venue. There was no automatic provision within the existing contract to extend the agreement unless there were special circumstances. HQT had successfully operated the venue since it opened with a steady increase in business attracting well-known performers to the venue. Income and attendances had improved each year. It was possible to extend the existing contract on the same terms and conditions under Regulation 72(1)(c) of the Public Contracts Regulations 2015, which allowed for a proportional extension of the current contract subject to meeting specific criteria. The Executive noted that there was not a practical alternative to extending the existing contract.

HQT had offered an improved management fee which was permissible under the regulations in exchange for a three-year extension to the existing contract. The share of the operational surplus would be retained. There would be a reduction in the management fee of 15% to decrease the base cost by £53,595 per annum.

The Executive agreed that the contract was favourable to the Council under the current market circumstances, and

RESOLVED:

(1)   To extend the G Live Contract with HQ Theatres from 1 October 2021 for 3 years until 30 September 2024

(2)  To grant a Lease to HQ Theatres for a term of 3 years from 1 October 2021 until 30 September 2024

(3)  To make provision for the Lease and Contract to be co-terminus.

Reason:

A contract extension was the only viable option at this point due to the impact of the pandemic. A three-year extension offered the best extension period for the Council to meet its medium- term objectives in relation to the financial savings strategy.

Note: By reason of the special circumstances described below, the Chairman considered that this item should be dealt with at this meeting as a matter of urgency pursuant to Section 100B 4 (b) of the Local Government Act 1972.

Special Circumstances: The current G Live management contract would expire on 30 September 2021 and the Council would need to publish an OJEU notice in advance of entering into the extension, which meant that the decision to extend the contract needed to be taken before 31 August 2021.