REPORT TO CABINET. 20 September 2017

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1 Agenda Item 11 REPORT TO CABINET 20 September 2017 Subject: Presenting Cabinet Member: Director: Christmas Lights Councillor David Hosell - Cabinet Member for Highways and Environment, Councillor Syeda Khatun - Cabinet Member for Neighbourhoods and Communities Interim Director - Neighbourhoods - Ajman Ali Contribution towards Vision 2030: Key Decision: Forward Plan (28 day notice) Reference: Cabinet Member Approval and Date: Director Approval: Reason for Urgency: Exempt Information Ref: Ward Councillor (s) Consulted (if applicable): Scrutiny Consultation Considered? Contact Officer(s): Yes SMBC16183 Yes Jan Britton Urgency provisions do not apply Exemption provisions do not apply This report affects the whole borough Scrutiny have not been consulted on the proposals Click or tap to enter a date. Sam Turner, Category Manager, sam_turner@sandwell.gov.uk John Sheppard; Highways Operations Manager; john_sheppard@sandwell.gov.uk 1

2 That Cabinet: DECISION RECOMMENDATIONS 1. Approve the procurement of new Christmas lights for the period ; 2. Authorise the Executive Director - Neighbourhoods to award the contract for Christmas lights in accordance with the Council s Procurement and Contract Procedure Rules; 3. In connection with 1 above, authorise the Executive Director - Resources to enter into a form of agreement on terms to be agreed by the Executive Director - Neighbourhoods for the provision of new Christmas lights for the period PURPOSE OF THE REPORT 1.1 The purpose of this report is to seek approval to put in place the arrangements to procure new Christmas lights for the next four years in Sandwell. 2 IMPLICATION FOR THE COUNCIL S AMBITION 2.1 The successful implementation of Christmas lights across the borough will help contribute to the creation of distinctive towns and neighbourhoods and ensure they are successful centres of community life, leisure and entertainment where people increasingly choose to bring up their families. 3 BACKGROUND AND MAIN CONSIDERATIONS 3.1 The Council currently has a contract to supply, install, maintain and manage the associated work relating to the provision of Christmas lighting across the borough. This contract will end in January 2018, therefore, there is a requirement to commence the process for procuring a new contractor for this work for 2018 and beyond. 3.2 The current contract is based on a mixed hire and ownership basis whereby the council owns some of the lights and hires others with the contractor responsible for installing, repairing, removing and storing the lights as part of the contract. 3.3 The Christmas lights under the current contract include the following items: 2

3 Column motifs (hire) 316 aluminium framed column motifs with rope LED lighting; Small LED pea lights (owned) for the decoration of 6 small trees; Small white incandescent pea lights (owned) for the decoration of 4 small trees; Festoon LED lights (owned) - 16 sets for decorating Christmas trees. 3.4 The motifs comprise design such as stars, snowflakes, bells, presents, trees, snowmen and candles. 3.5 In addition to the expenditure on highways lights, the council also purchase Christmas trees and displays in Sandwell Valley Park as well as expenditure on organising the switch on events. 3.6 In addition to the above, some of the Council owned lights are now reaching the end of their working life and will need replacing within the term of the proposed contract. 4 THE CURRENT POSITION 4.1 Following meetings between the senior management and officers from highways and procurement it is recommended that the Council needs to appoint a supplier for the new contract who can provide the most eye catching festive lighting design within its available budget. The proposed value of the new contract is to be 600,000 (over four years) for which the Council will be seeking a significantly improved offer and design innovation from suppliers which provide a wide range of displays with great visual impact. The contract will be procured as a service under a Contract Hire arrangement utilising Council terms and conditions, policies, etc. 4.2 Market research has identified that the hiring of festive lighting is still common place in most other Local Authorities as it allows the cost of the lights to be spread over the term of the contract and therefore removes the requirement for any large upfront capital investment by the Council. The supply market has confirmed that such hire schemes continue to be an attractive option. 3

4 4.3 The new contract will place a high priority on the quality of the lights as well as excellent ongoing aftercare with respect to repairs and maintenance and customer satisfaction. The successful contractor must also be able to demonstrate they will provide (on a hire basis) as a minimum the following: 396 column mounted Christmas lighting motifs (new); 10 small tree lights (new) to decorate trees outside Oldbury Council House and Wednesbury traffic island; 16 festoon lights for Christmas trees (new) for the locations set out below; 4.4 The festoon lights will be located at: Bearwood (Lightwoods); Blackheath; Great Bridge; Langley (High Street); Oldbury (Council House); Old Hill (Reddall Hill Road); Smethwick (Council House); Smethwick (rear of Victoria park hotel); Tipton (Owen Street); Cradely Heath (Mary McArthurs Gardens); Wednesbury (Crankhall Lane); Wednesbury (Union Street); West Bromwich (Queens Square); West Bromwich (Junction one island); West Bromwich (Carters Green); West Bromwich (Stone Cross) 4.5 In addition to the above, the Sandwell sign at Birchley island will also be lit with Christmas lights. 4.6 However, the Council s expectation is that the successful contractor will be able to substantially exceed these minimum requirements for the design, supply, installation and ongoing maintenance of the lights. On this basis, contractors will be expected to submit their best lighting proposals with different designs spread across the borough, for example, static and animated LED bulbs of different complimentary colours to provide the most economically advantageous offer and eye catching designs within the available budget. 4

5 4.7 In addition to the supply of the lights, the successful contractor will be expected to be responsible for all other aspects of service provision such as site visits and attendance at the switch on events (or provide remote switch on capability if that is reliable and provides value for money), breakdowns, maintenance and repairs, delivery and collection of the equipment. 4.8 In order to minimise breakdowns, the whole electrical and mechanical integrity of the infrastructure has / is being tested and appropriate remedial action taken. 4.9 To complement the above work, the overall responsibility for the management of Christmas lighting will be led and co-ordinated by a lead officer at Service Manager level whose role will be to project manage the following elements: Lighting contract management and monitoring to ensure the contractor complies with all aspects of the contract; Annual procurement of the Christmas trees; Event planning and co-ordination Member and stakeholder engagement in current procurement process and future planning. 5 CONSULTATION (CUSTOMERS AND OTHER STAKEHOLDERS) 5.1 Local Members have been consulted on the location and numbers of Christmas trees in their respective areas. 6 ALTERNATIVE OPTIONS 6.1 The current contract is coming to an end and in order to ensure there are Christmas lights displayed in the borough, the council can either: 6.2 Option 1 (not recommended) - procure a contractor on the existing basis. This option would enable the council to provide a Christmas light display, but the quality of the display would be compromised as the lights are now getting to the end of their useful life. This could lead to resident dissatisfaction. 5

6 6.3 Option 2 (recommended) procure a new contract and hire the lights in favour of ownership. This option will provide a much better quality of lighting across the borough and higher levels of satisfaction, including better value for money as the council would increase the number of lights available. The hire of the lights will allow for a full refresh of the Councils festive light offer following the 4 year contract and will not leave the Council in ownership of any lights that will be close to end of life. The hire option will still offer a complete solution; design, supply, installation, supervised switch on, removal, storage, maintenance, refurbishment and repair of all the festive lighting. 7 STRATEGIC RESOURCE IMPLICATIONS. 7.1 The four year cost of the Christmas lights contract for will be set at 600,000 and will be met from existing budgets with the Neighbourhoods Directorate. 7.2 By hiring the Christmas lights the Council will be able to spread the cost over the life of the contract as opposed to making a large up front capital investment. 8 LEGAL AND GOVERNANCE CONSIDERATIONS 8.1 The procurement of the contractor to supply the Christmas lights will be procured in accordance with the Public Procurement Contracts 2015 Regulations. 9 EQUALITY IMPACT ASSESSMENT. 9.1 The Christmas lights contract will ensure the lights are designed to be able to meet the needs of different multi-cultural religious festivals and accessible to all. 10 DATA PROTECTION IMPACT ASSESSMENT 10.1 There are no data protection issues arising from the proposals. 11 CRIME AND DISORDER AND RISK ASSESSMENT 11.1 There are no crime and disorder implications arising from the recommended proposals. Community events that are planned for the switch on of the lights will have the appropriate health and safety plans in place which will take account of all associated public risks. 6

7 12 SUSTAINABILITY OF PROPOSALS 12.1 The approval of the proposed recommendations will ensure the Council is able to provide affordable high quality Christmas lights across the borough at a price which is fixed for the duration of the lighting contract thereby minimising future inflationary or maintenance liabilities for the Council. 13 HEALTH AND WELLBEING IMPLICATIONS (INCLUDING SOCIAL VALUE) 13.1 The Christmas lights are very much rooted in the local areas where the community has an opportunity to both enjoy the lights but also be involved organising local events associated with it. Taken collectively, these can promote community cohesion, well being and intergenerational activities that are suitable for all. 14 IMPACT ON ANY COUNCIL MANAGED PROPERTY OR LAND 14.1 None 15 CONCLUSIONS AND SUMMARY OF REASONS FOR THE RECOMMENDATIONS 15.1 The council needs to procure a new contractor to supply the Christmas lights from 2018 onwards when the current contract ends. By consolidating and increasing the budget by a modest amount and providing a greater focus on quality from a new contract as well as tighter contract management arrangements, including having already invested in the infrastructure, the council is more likely to be able to have more sustainable and well managed Christmas lights for the next four years. 16 BACKGROUND PAPERS 16.1 None 17 APPENDICES: None Ajman Ali Interim Director - Neighbouhoods 7