Issue - meetings

The Head of Corporate Finance & Commercial Procurement to present a report which invites the Executive to consider a proposed transaction by the Yorkshire Purchasing Association (YPO) and proposed amendments to the governance arrangements of the YPO.

Resolved:  (i)      That the proposed transaction be supported.

(ii)      That financial backing for the transaction be confirmed and approval be given to underwrite a loan through entering into a supplemental agreement, with authority being delegated to the Chief Executive to approve the supplemental agreement set out in Appendix 4 to the report, subject to:

a)   At least 10 of the 13 founder members remaining as founder members and agreeing to enter into the supplemental agreement;

b)   The satisfactory completion of legal and financial due diligence on the proposal giving confidence to process; and

c)   A resolution of the YPO Management Committee to enter into the transaction.

Reason:     To enable YPO to continue to provide benefits to its members in the long term.

The Head of Corporate Finance & Commercial Procurement (Interim s.151 Officer) presented a report which invited Members to consider a proposed transaction by the Yorkshire Purchasing Organisation (YPO) and amendments to the governance arrangements of the YPO.

Created in 1974, YPO was a joint local government service for the procurement of goods and services.  It currently comprised 13 ‘founder member’ authorities, including York, with Wakefield Council acting as ‘lead authority’.  The transaction, detailed in the exempt appendices to the report, was intended to safeguard and promote its strategic objectives in an increasingly competitive market environment.  Wakefield would provide the funding and make the transaction on behalf of all the founder members, who would in turn be asked to stand behind the lead authority’s position through an addendum to the Management Agreement.

The proposal was still going through due diligence; this was expected to conclude in early December, in time for review by the relevant statutory officers.

Resolved:  (i)      That the proposed transaction be supported.

(ii)      That financial backing for the transaction be confirmed and approval be given to underwrite a loan through entering into a supplemental agreement, with authority being delegated to the Chief Executive to approve the supplemental agreement set out in Appendix 4 to the report, subject to:

a)   At least 10 of the 13 founder members remaining as founder members and agreeing to enter into the supplemental agreement;

b)   The satisfactory completion of legal and financial due diligence on the proposal giving confidence to process; and

c)   A resolution of the YPO Management Committee to enter into the transaction.

Reason:     To enable YPO to continue to provide benefits to its members in the long term.