Agreement between the Canton of Schaffhausen and the City of Schaffhausen on the termination of the agreement on the e-government and IT strategy and joint IT operations of 9 / 16 November 2010 and on future cooperation in the field of IT

1. Under the name KSD, the Canton of Schaffhausen (hereinafter Canton) and the City of Schaffhausen (hereinafter City) operate a joint IT enterprise in accordance with the agreement on the E-Government and IT strategy and the joint IT operation dated November 9/16, 2010 (SHR 172.601). The purpose is to provide IT services required by the Canton and City administrations cost-effectively and securely. The KSD is financed through interest-bearing loans from the Canton (55%) and the City (45%), which are budgeted and accounted for in their respective investment accounts.

2. In 1998, the KSD became a WOV pilot operation. With the new Financial Budget Act, the legal basis for WOV operations was repealed. According to the extended transitional provisions, the KSD must be converted into a new, legally compliant legal form by no later than January 1, 2023.

3. The present agreement aims to repeal the existing agreement between the Canton and City on the E-Government and IT strategy and the joint IT operation, thus facilitating the transformation of the KSD into a non-independent institution of the Canton. At the same time, it is intended to continue the cooperation between the Canton and the City in the IT sector in the long term.

1. The Agreement on E-Government and IT Strategy and Joint IT Operations dated November 9/16, 2010 (SHR 172.601) between the Canton of Schaffhausen and the City of Schaffhausen shall be repealed upon the entry into force of the new legal basis for KSD.

1. All rights and obligations, including all assets jointly owned by the canton and the city, shall be transferred to the relevant non-independent cantonal institution upon the new legal framework for the KSD coming into effect.

1. The canton compensates the city for the external capital used in the joint office/department KSD according to a business valuation conducted by an independent company. The corporate valuations already carried out as of 31.12.2016 and 31.12.2019 serve as the basis and methodological template for this. The business valuation is mandated based on the audited and timely certified balance sheet of the KSD by the financial control as of 31.12. of the last financial statement of the KSD in its previous organizational form.

2. The payout occurs after the decision of the competent bodies has become legally binding and in consultation between the government council and the city council. As a result, all liabilities incurred up to the relevant cut-off date are considered settled. The initial capital injected at the founding of the KSD will be paid to the owners according to the previously valid agreement.

1. The canton and the city aim for a long-term continuation of cooperation in the field of information technology. This is intended to utilize synergies, achieve corresponding cost savings, and minimize interface issues between the IT products of the canton, the city, and other municipalities of Schaffhausen.

1. The Canton operates the IT enterprise as a dependent public-law institution (hereinafter referred to as the IT Institution). The organization of the cantonal IT Institution is specified in a law.

2. The cantonal IT Institution provides IT services for the public administrations and enterprises in the Canton of Schaffhausen efficiently and securely. Other public administrations and private customers are served only to the extent that the cantonal IT Institution is exempt from VAT obligations and the in-house privilege is maintained. Additionally, it is ensured that service provision to third parties does not result in financial disadvantages for the city or the canton (in their role as service recipients) and does not impair the services to be rendered for the city or canton.

3. KSD maintains transparent operational accounting based on commercial principles and offers services generally on a cost-covering basis.

4. Surpluses are placed into a fluctuation reserve to avoid deficit compensation by the Canton as the owner. If this exceeds a level set by the government council, a proportionate reimbursement measured against the annual turnover is provided to the Canton, city, and other municipalities. The city guarantees the Canton that for 7 years, any deficits not covered by the fluctuation reserve will be shared proportionally to the order volume up to a cumulative maximum of CHF 100,000.00.

5. The employees of the IT Institution are subject to cantonal personnel law.

6. The city may request access to the operational accounting of the cantonal IT Institution at any time.

1. The city shall become a core customer of the cantonal IT institution and is fundamentally committed to obtaining IT services from it. The existing order practice shall serve as the benchmark. In return, the city shall be offered corresponding comprehensive IT services.

2. Details regarding orders and delivery items shall be documented in a service agreement (Service Level Agreement for basic services). The initial service agreement should essentially align with the previous ordering scope.

3. The city shall be offered the services of the cantonal IT institution under the same conditions (prices, service levels, range of offerings) as the canton.

4. The city is willing to contribute to innovation projects shared with other customers (replacement of the previous eGovernment credit). These contributions are subject to approval by the respective competent bodies.

1. The city, as an anchor client, obtains a seat in the customer panel of the cantonal IT institution and presents its requirements for standard products there.

2. The purpose of the customer panel is to promote and, as far as possible, standardize IT services in the canton, in the cantonal municipalities, as well as among the clients overall, particularly through the joint determination of IT standard products for the canton and the municipalities. Within this framework, the customer panel assumes the following tasks and powers

a) With regard to standard services offered to clients in the service catalog without obligation to order, recommendations are made to the competent body of the cantonal IT institution. In this context, the customer panel acts in an advisory capacity.

b) Concerning basic services (e.g., standard workstation) offered to clients in the service catalog with an obligation to order, recommendations are made to the competent body of the cantonal IT institution. In the absence of consensus regarding basic services with an order obligation, the city and the canton may each define their own basic services.

1. This agreement may be terminated by either party with a notice period of two years, effective at the end of a calendar year, provided that a minimum duration of 7 years from the date of commencement is observed.

1. This agreement shall come into effect simultaneously with the new legal basis for the KSD and once the credit resolution of the canton for the compensation of the city's share of external capital has become legally binding, and it is concluded for an indefinite period.

2. It is to be published in the official gazette and included in both the cantonal statute collection and the municipal ordinance collection.