Issue - meetings

Report of Shareholder Representative

Purpose of report

To bring to the attention of the Executive the request from Graven Hill Village Development Company Ltd (Dev Co) for the Council to act as surety in two performance bonds for roadway infrastructure works to be undertaken by Dev Co under section 38 of the Highways Act 1980.

Recommendations

The meeting is recommended:

1.1       To approve in principle that the Council act as surety for Dev Co in respect of two performance bonds (up to the sum referred to in Exempt Appendix 1 to this report) relating to the construction of highway works by Dev Co pursuant to agreements between Dev Co and Oxfordshire County Council (as local highway authority) to be made under section 38 of the Highways Act 1980.

1.2       To delegate to the Shareholder Representative authority to agree the formal documentation in relation to the bonds, in consultation with the s.151 Officer and the Monitoring Officer.

1.3       To agree that Dev Co be requested to pay to the council 1% of the value of the agreed bonds for use of the facility.

Resolved

(1)           That it be approved, in principle, that the Council act as surety for Dev Co in respect of two performance bonds (up to the sum referred to in exempt Annex to the Minutes, as set out in the Minute Book) relating to the construction of highway works by Dev Co pursuant to agreements between Dev Co and Oxfordshire County Council (as local highway authority) to be made under section 38 of the Highways Act 1980.

(2)           That authority be delegated to the Shareholder Representative authority to agree the formal documentation in relation to the bonds, in consultation with the s.151 Officer and the Monitoring Officer.

(3)           That it be agreed that Dev Co be requested to pay to the council 1% of the value of the agreed bonds for use of the facility.

The Shareholder Representative submitted a report to bring to the attention of the Executive the request from Graven Hill Village Development Company Ltd (Dev Co) for the Council to act as surety in two performance bonds for roadway infrastructure works to be undertaken by Dev Co under section 38 of the Highways Act 1980.

Resolved

(1)          That it be approved, in principle, that the Council act as surety for Dev Co in respect of two performance bonds (up to the sum referred to in exempt Annex to the Minutes, as set out in the Minute Book) relating to the construction of highway works by Dev Co pursuant to agreements between Dev Co and Oxfordshire County Council (as local highway authority) to be made under section 38 of the Highways Act 1980.

(2)          That authority be delegated to the Shareholder Representative authority to agree the formal documentation in relation to the bonds, in consultation with the s.151 Officer and the Monitoring Officer.

(3)          That it be agreed that Dev Co be requested to pay to the council 1% of the value of the agreed bonds for use of the facility.

Reasons

Through agreeing with the recommendations in this report the council is ensuring that Dev Co can act swiftly to meet its aims and delivery objectives in relation to the highway works and in doing so safeguard the council’s investment and return on investment.

Alternative options

Option 1: Not to give a performance bond.  This has been dismissed by officers on the grounds that performance bonds are prerequisites for entering section 38 adoption agreements with the county council, and that, by giving a performance bond to a company in which the council has a stake, the council is acting in no less a manner than a parent company would in relation to a subsidiary.