Date 06/05/2011. Date 16/05/2011. Date 03/06/2011. Date 20/05/2011. Date 06/05/2011. Date 06/05/2011. Date 17/06/2011.

Transcription

1 1330 DELEGATED POWERS REPORT NO. SUBJECT: Street Lighting PFI Contract Energy Saving Measures Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to the Governance Service for publishing All reports 1. Governance Service receive draft report Name of BGO Andrew Charlwood Date 06/05/ Governance Service cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) 10. Signed & dated report, scanned or hard copy received by Democratic Services for publishing 11. Report published by Dem Services to website Name of BGO Andrew Charlwood Date 16/05/2011 Name of Fin. officer Jayne Fitzgerald Date 03/06/2011 Name of Res. officer N/A Date Name of TU rep. N/A Date Name of Legal officer Sheila Saunders Date 20/05/2011 Name of P&P officer Andrew Nathan Date 06/05/2011 Name of officer Andrew Nathan Date 06/05/2011 Name Pam Wharfe Date 17/06/2011 Name of DSO Andrew Charlwood Date 24/06/2011 Name of DSO Andrew Charlwood Date 24/06/2011 Officer reports: 12. Head of Service informed report is published and can be implemented. Name of DSO Date Cabinet Member reports: 13. Expiry of call-in period Date 14. Report circulated for call-in purposes to COSC Name of DSO members & copied to Cabinet & Head of Date Service Andrew Charlwood 24/06/2011

2 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER IN CONSULTATION WITH CABINET MEMBER(S) (EXECUTIVE FUNCTION) Subject Officer taking decision Street Lighting PFI Energy Saving Measures Interim Director of Environment and Operations. Date of decision 17 June 2011 Summary Officer Contributors Status (public or exempt) Wards affected Enclosures This report identifies proposals to make amendments to the street lighting programme of works in order to install new technology. This will enable significant savings to be made in the cost of electricity for street lighting. Once completed the savings will be available on an annual basis for the remaining term of the contract. Roger L Gilbert, Street Lighting PFI Project Manager Public All Appendix A Reason for exemption from callin (if appropriate) Not applicable Contact for further information: Roger L Gilbert, Street Lighting PFI Project Manager: Serial No. 1330

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Cabinet, 3 April 2006, Decision 15 (Street Lighting Private Finance initiative) 1.2 Cabinet, 14 February 2011, Decision 9 (Budget, Council Tax and Medium Term Financial Strategy 2011/ /14) 1.3 Council, 1 March 2011, Decision 8 (Council Budget and Council Tax 2011/12) 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 Better Services with Less Money officers have been reviewing ways in which the Street Lighting PFI Contract may be altered to provide cost savings across a number of different areas. 2.2 A Successful London Suburb street lighting is key to enhancing the night time street scene, reducing crime and, importantly, the fear of crime and helping to reduce accidents and incidents involving pedestrians and/or vehicles and will play a continuing role in the Borough s plans for success. 3. RISK MANAGEMENT ISSUES 3.1 I do not consider the issues involved are likely to raise significant levels of public concern or give rise to policy considerations as the proposal will maintain street lighting in line with the current requirements contained in BS 5489 Code of Practice for the Design of Street Lighting. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The proposal is a Borough wide project ensuring all groups will be treated equally. Lighting levels will be provided in accordance with the British Standard Code of Practice recommendations. The Code of Practice determines suitable lighting levels for roads based on volumes of vehicular and pedestrian traffic. Consequently, the proposals will not, in the view of Officers, have a detrimental impact on any particular individual or group. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for money, Staffing, IT, Property, Sustainability) 5.1 The cost of implementation of this scheme will not increase the financial burden on the Council. In fact the scheme is designed to reduce the financial burden on the Council by reducing the associated electricity charges. The proposals will also assist in counteracting the continual annual increase in energy charges which have, to date, adversely and significantly impacted upon the street lighting budget. 5.2 The proposals involve diverting existing capital project funds to a modified investment programme. The resources employed will be diverted accordingly, thereby ensuring there are no additional costs to resource the changing priorities.

4 6. LEGAL ISSUES 6.1 On 21 st April 2006, the council entered into a Project Agreement with Barnet Lighting Services Limited ( BLSL ) for the provision and maintenance of street lighting across the London Borough of Barnet. In turn, on 21 st April 2006, BLSL entered into a Service Contract with David Webster Limited ( DWL ) passing down, to DWL, the obligations set out in the Project Agreement. The Project Agreement includes an, initial, Core Investment Programme for the removal and replacement of, identified, lighting columns. 6.2 In order to give effect to the agreement, now, reached between the council and BLSL - to cease further work on the Core Investment Programme ( CIP ) for the purpose of releasing the 2.1M to be re-used towards the cost of installation of the technology required to achieve the energy savings, identified - the council will execute a Waiver Letter, with BLSL, varying the terms of the Project Agreement referred to in above. 7. CONSTITUTIONAL POWERS 7.1 Contract Procedure Rule 5 and Table 5-1 set out the council s Authorisation & Acceptance Procedures, including the thresholds for deciding in which Officer or Member or Committee the authority to vary a contract resides. 7.2 A Director/Head of Service has delegated authority to vary a contract where the value of the variation does not exceed 156, A Director may exercise the delegated authority, referred to in 7.2 above, where: the variation is notified to and agreed in writing with the contractor; and any additional expenditure necessarily incurred does not exceed 10% of the initial contract. 8. BACKGROUND INFORMATION 8.1 The possibility of stopping the column installation programme and reinvesting the resulting capital funds in new technology to save money by reducing annual energy bills has been discussed with the Cabinet Member for Environment. The proposal is to stop the replacement of street lighting under the Core Investment Programme (CIP) and further investigate the proposal to install new technology to enable the implementation of energy saving measures. 8.2 Officers of Environment and Operations have been in discussions with Barnet Lighting Services (BLS), the Service Provider for the Street Lighting PFI, to identify how this proposal might best be achieved. 8.3 The effect on the CIP will mean stopping CIP works on [1520] street lighting columns. This will release capital funds of [ 2.1M] contributing to the installation of the technology required to achieve the energy savings identified. 8.4 The proposal will include the supply and installation, to all street lighting in the Borough, of a state of the art Contract Monitoring System (CMS). The CMS will monitor and control all street lighting and enable officers to amend switching times

5 and levels in many variations to permit reductions in energy usage and consequent savings in the electricity charge. The proposal requires electronic control gear to be fitted in the lantern with a Node, directly replacing the current photoelectric control unit. The Node will then communicate, via a collection point known as a Branch Node, with the central management system enabling close monitoring and control of each lighting column. 8.5 The installation programme will be approximately 18 months from commencement and the energy and carbon footprint savings previously presented will be achievable within this time frame. 8.6 Costs for supply and installation of the CMS system will be approximately 4.93M. The 2.1M already identified in CIP stoppage funds, will leave a balance, in the order of 2.8M, to be realised from both the consequent energy savings and other, associated reductions, such as reduced routine maintenance activities and so on contributing to the overall cost of implementing the system. As the costs of the energy saving project will be self-financed, from changes within the Project itself, there will be no increase in the overall cost of the Project. 8.7 The legal and financial work, on behalf of the council and relating to the reduction in the CIP work and release of funds by the Funders, has been carried out by Addleshaws, Solicitors. The Waiver Letter, has been agreed by all parties and will, shortly, be submitted for execution on behalf of the Council. 8.8 The schedule of roads being deferred from the CIP has been finalised and, once verified, the consequent re-investment fund will be evaluated and agreed. The roads being withdrawn from the CIP will be immediately entered into the Post Core Investment Period (PCIP). These columns will be programmed for replacement on a priority basis, dependent on circumstances and structural integrity factors. 8.9 Reinvestment funds released from the CIP deferred columns, to the sum of 2.1M will be placed in a Council bank account to be ring-fenced for the energy saving investment works The full schedule of new technology equipment is being finalised and will shortly be agreed and costed. The total cost of supply and installation of the new technology equipment will be approximately 4.93M In conclusion this report records the decision to cease further work on the CIP phase of the Street Lighting PFI and to make the associated variations to the Project Agreement 8.12 Once in place the Waiver will allow commencement of the implementation of the installation of the new technology, for monitoring, controlling and managing the street lighting stock, in order to reduce the energy consumption with the associated reduction in the electricity annual charge and carbon footprint to the Council Once this new technology is installed the resulting energy savings will be achieved on an annual basis, for the remaining years of the PFI contract term The energy savings, on completion of the scheme, have already been accounted for in the Councils forward budget, as recently agreed by the Council.

6 9. LIST OF BACKGROUND PAPERS 9.1 Waiver documents 9.2 Change Notice 10. CONSULTATION WITH CABINET MEMBER(S) 10.1 The Cabinet Member for Environment has been consulted and has given his approval. 11. OFFICER DECISION I authorise the following action 11.1 That Officers proceed to enter into a variation of the Project Agreement (identified above) between the council and BLSL to allow the column installation work to be halted and replaced with the implementation of the new energy saving technology proposals. Signed Pam Wharfe Interim Director of Environment & Operations Date 17/06/2011