1.1.
Agreed the selection of ITS Technology Limited (company registration number 08786229) (“ITS”) as the Council’s Joint Venture Partner for the purpose of delivering a fibre infrastructure across the Borough, with an initial focus in the Woolwich area.
1.2
Agreed that the legal structure of the joint venture will be a company limited by shares, and that the Council’s subsidiary company, DG Cities Limited, will be the vehicle to enter into the joint venture with ITS Technology Limited;
1.3
Agreed the Joint Venture Agreement (JVA) and Fibre Infrastructure Operating Agreement (FIOA) as set out in Exempt Appendices 1 & 2 respectively and summarised in Section 4 of this report;
1.4
Noted the anticipated Return on Investment (ROI) based on the Business Case set out in Exempt Appendix 3, and to confirm this represents an acceptable basis to invest on commercial terms
balanced with the Council’s aim of universal coverage;
1.5
Noted that under the terms of the JVA, DG Cities Limited and ITS will each have a 50:50 interest in the JV company with up to three representatives for each party on the Board and equal representation from each party;
1.6
Noted the recommendation, to be made to the Leader of the Council, that there will be two representatives from the DG Cities Limited Board including the Managing Director, and one Officer representative nominated directly by the Council, on the JV Board.
1.7
Approved a payment of £1,000,000 in subscription monies to DG Cities Limited in return for an allotment of 1,000,000 new ordinary shares of £1 each at par. An initial amount
of £222,000 to be paid when the shares are allotted and the remainder paid as and when DG Cities Limited demands payment. And to note that this investment is necessary to ensure that DG Cities Limited has the funds required to make the proposed investment of £1,000,000 in JV Co
1.8
Noted that subscription monies have been allocated from Local London Strategic Investment Programme funding, and underwritten from Community Infrastructure Levy receipts