THAT:

(a)          the delivery element of the Borders Broadband contract with BT be closed subject to a deed of variation being agreed with the following terms:

·     Achievement of contracted delivery for phase one is based on required premises being fully evidenced as Passed Premise with the ability to access a 30Mbps service based on the output of the wholesale line checker as of 31 May 2017;

·     That a compensation sum is calculated on the basis of £2,400 for each premise not achieving  Passed Premise status as part of the target delivery;

·     That any compensation sum is retained from any future eligible claim and if required charged to BT where the residual contract payments are less than the compensation sum due;

·     That BT’s obligation to deliver universal service commitment (USC) under the contract is removed and 50% of Herefordshire’s M1b budget is reallocated to Herefordshire’s M1a budgets subject to evidence of under 30Mbps premises being reached and costs incurred;

(b)         subject to recommendation (a) being implemented, a reinvestment fund be established under the control of the partner councils (for which Herefordshire Council will act as accountable body) to hold any excess profits generated by BT to be used to fund additional network deployment during a period of 7 years after final payment for phase 1;

(c)          in the event that the deed of variation referenced in recommendation (a) is not accepted by BT, BT be issued with a termination notice based on the contracted delivery as of 31 December 2016 based on evidence provided; and