The contract for provision of catering services to the Plough Lane offices was awarded in 2014 to Reyes Catering Co and the mechanism for payment was via a profit share for Herefordshire Council, this has proved cumbersome to manage and the income from this has proved negligible therefore a more simple process for securing income to Herefordshire Council is required.

This report therefore seeks permission to alter the existing contract from a profit sharing basis to a fixed monthly rental.This will ensure constant income to the council and simplify the costs of trying to obtain that income.

That:

the payment for rent currently based on a profit sharing basis is altered to one of a fixed monthly rental of £300.

1.         To continue with the existing arrangement, this has been discounted as to date the income from this has been variable and it has been time consuming and contentious to prove the income due.

2.         Terminate the existing contract, this has been discounted and the contract would need to be tendered again. This is not recommended as grounds for early termination have not been evidenced.

3.         Incorporate the catering contract into the larger construction and cleaning contract going out to tender. This has been discounted as it would be difficult to prove non-compliance with the contract. However this may be an option for when the existing catering contract expires in 2019.

4.         Stop providing the canteen for staff and members. This has been discounted as the canteen is used by a large number of staff, and it can generates a small income for Herefordshire Council.  In addition removing the facility would have an effect on the staff morale and is therefore not recommended.