LONDON BOROUGH OF WALTHAM FOREST
Meeting / Date
Cabinet: 14 September 2010
Agenda Item
Report Title
Extension of the Public Lighting Maintenance Contract
with May Gurney (Cartledge)
Cabinet Portfolio
Councillor Clyde Loakes
Portfolio Holder for Environment
Report Author/
Contact details
Vala Valavan
Head of Highways & Infrastructure
Public Realm, Environment & Regeneration
020 8496 2525
Vala.valavan@walthamforest.gov.uk
David Richefond
Business Development Manager
Public Realm, Environment & Regeneration
020 8496 6861
David.richefond@walthamforest.gov.uk
Wards affected
All
Public Access
Open
1.
SUMMARY
1.1
This report informs Cabinet that the existing public lighting
maintenance contract with May Gurney (Cartledge) Limited expires in
May 2011.
1.2
The contract was awarded by Cabinet March 2008, for a period of
three years with the option of a three year extension.
1.3
In view of the performance of the contactor and the efficiency savings
being offered to the Council, Cabinet is requested to approve
extending the existing contract for three years.
2.
RECOMMENDATIONS
2.1
For the reasons given in this report, Cabinet is recommended to:
2.1.1 Authorise a three year extension to the existing public lighting
maintenance contract with May Gurney (Cartledge) in accordance with
the terms of the existing agreement, subject to the extension being
properly documented.
3.
BACKGROUND
3.1
The purpose of this report is to present a business case for the
extension of the existing public lighting maintenance contract with May
Gurney (Cartledge).
3.2
In March 2008 Cabinet awarded the public lighting maintenance
contract to May Gurney (Cartledge) for a period of three years with a
possible three year extension.
3.3
This is a schedule of rates contract where potential service providers
submit prices based on possible maintenance workstreams. It should
be noted that there is no guaranteed volume of work.
3.4
In 2009/10 May Gurney carried out £700k of public lighting
maintenance work on behalf of the Council.
3.5
This is indicative of the future volumes of work subject to competing
priorities and the current economic climate.
3.6
May Gurney (Cartledge) provide a high quality service that also
demonstrates value for money.
3.7
May Gurney (Cartledge) have a proven track record in the industry.
This is demonstrated by the fact that they provide street lighting
services for Redbridge, Tower Hamlets, Barking and Dagenham,
Bromley, Bexley, Havering, Hillingdon, Sutton and Kingston and the
Home Counties e.g. Essex. In many cases their contracts have either
been extended or re-won in open competition.
3.8
If the Council pursues the option of extending the contract, May
Gurney (Cartledge) have offered a two and a half per cent reduction in
their schedule of rates prices.
3.9
In addition to this, they have also offered to provide scheme design
support at the rate of 6% based on the cost of the scheme. This
represents a very competitive rate as the usual market rate for this
service is 10% to 12%.
3.10
Officers considered the option of going out to tender. However, the
savings and added value offered by the existing service provider has
resulted in a decision not to purse this avenue as it did not represent
the best use of Council resources in terms of both officer time and
finances in the current economic climate.
3.11
In addition to this, Officers took the view that the proposed extension
would ensure that the Council has continuity in the “run up” to the
Olympics.
4.
PROPOSALS
4.1
In March 2008, Cabinet approved the award of the Public Lighting
Maintenance Contract to May Gurney (Cartledge).
4.2
The contract commenced in June 2008 and was for a period of three
years with the possibility of a further three year extension if it was
deemed that it would be in the interest of the Council to do so.
4.3
The contract award involved the TUPE transfer of 7 council
employees (Street Lighting Direct Labour Organisation) and these staff
remain content with their new employer.
4.4
The performance of the contractor has been of a high standard during
the three year period and they have successfully met key performance
indicators. The performance of May Gurney (Cartledge) is attached as
Appendix A.
4.5
May Gurney (Cartledge) have also successfully tendered for capital
works and 2012 streetscene improvements works further
demonstrating that their prices are competitive.
4.6
The existing contract expires in May 2011. In recognition of the
possibility of a three year extension, May Gurney (Cartledge) has
offered the Council a two and a half per cent discount on its schedule
of rates prices.
4.7
In addition to this, they have also offered to provide the Council with
capital scheme design support at a rate of 6% based on the cost of the
scheme. The rate offered is very competitive as the market rate varies
between 10% and 12%.
4.8
Over the last three years May Gurney (Cartledge) has demonstrated
both high quality service provision and value for money. The transfer of
the Street Lighting DLO staff and associated works in 2008 was
seamless.
4.9
The services provided by May Gurney (Cartledge) have significant
impact on all wards in the borough in respect of the appearance of the
public realm, combating fear of crime and health and safety.
4.10
It is in the interest of the Council to invoke the option of a three year
extension until May 2014 with a partner that has clearly demonstrated
its ability to provide high quality and value for money services.
4.11
Officers in Public Realm are currently working collaboratively with
neighbouring boroughs (East London Solutions) to develop a common
specification and to establish a public lighting maintenance contract
that will commence in June 2014 and produce economies of scale.
5.
SUSTAINABLE COMMUNITY STRATEGY PRIORITIES (AND
OTHER NATIONAL OR LOCAL POLICIES OR STRATEGIES)
5.1
Transform the design and quality of public space.
6.
CONSULTATION
6.1
This report has been written in consultation with the Portfolio Holder for
Environment, the Director Public Realm and the Executive Director
Environment and Regeneration and the Client Officers in the Highway
Network Group.
6.2
It should also be noted that any major works undertaken by the
contractor, will be subject to before and after local consultation to
gauge customer satisfaction and improve service delivery.
7.
IMPLICATIONS
7.1
Finance and Risk
7.1.1 The total public lighting works within current volume of works is £700k.
The proposals from May Gurney to apply 2.5% reduction on their
schedule of rates, will generate additional work being undertaken in the
region of £20k free of charge to the Council.
7.1.2 The new contract offers a saving in the region of 4% and 6% on Capital
works, to be made available through the ‘scheme design’ support
service. This will prove both cost effective and timely, against the 2012
street scene improvement plans.
7.1.3 Risks surround labour and equipment cost, which is reliant on volume
of works and operations within a term maintenance contract. These
risks will normally apply to any other potential Service Provider.
7.1.4
Current public information on May Gurney, reports a steady
improvement in their financial position. Contract monitoring will cover
performance and complaints and liabilities, as a result of noncompliance.
7.2
Legal
7.2.1 The OJEU Notice and existing contract were both clearly subject to the
option in favour of the Council to extend for 3 more years and
therefore, subject to the extension and changes being properly
documented, there will be no legal issues arising from the extension
envisaged.
7.3
Equalities and Diversity
7.3.1 A full equality impact assessment is attached as Appendix A.
7.4
Sustainability (including climate change, health, crime and
disorder)
7.4.1 Contractors have a legal obligation to employ waste management and
recycling procedures.
7.4.2 May Gurney (Cartledge) promote sustainability by holding bi-annual
environmental forums with all of their customers. The forums are aimed
at promoting good environmental practice bringing together a mix of
available new products or services and sharing ideas and experiences
between local authority clients. The forum is attended by energy
managers and lighting professionals. Through this forum Officers have
developed a energy saving strategy for street lighting and other
illuminated equipment which was displayed and demonstrated at the
Councils 2009 Green Fair and are now being installed around the
borough (without changing the perceived lighting levels and hence the
fear of crime). This work is expected to save around 193 tonnes of
CO2 emissions per year.
7.4.3 A climate change impact assessment is attached as Appendix B.
7.5
Council
Infrastructure
(e.g.
Accommodation or IT issues)
Human
Resources,
7.5.1 The extended contract will be managed using existing resources within
Public Realm.
APPENDICES
Appendix A: Equality Impact Assessment
Appendix B: Climate Change Impact Assessment
BACKGROUND INFORMATION (as defined by Local Government
(Access to Information) Act 1985)
Approval by the Portfolio Holder
I have cleared this report for inclusion on the Cabinet agenda.
Signed
Portfolio Member for Environment
Date 26 August 2010