Decision:
RESOLVED: That the reports be noted.
Minutes:
5.1 Lesley Brooks, Service Group Manager and Ralph Wilkinson, Head of Public Services spoke to the Committee and highlighted the following key points:
· The parking contract had been awarded to NSL and had been operational since August 2013.
5.2 In the discussion that followed the following key points were raised:
5.3 Rob Holmans, Director of Regeneration and Asset Management and Steve Iles, Director of Streets from the London Borough of Croydon, spoke to the committee and highlighted the following key points:
· The Council had started a 25 year Private Finance Initiative (PFI) contract in partnership with the London Borough of Croydon to include the replacement of 46,000 street lights and traffic signs over a 5 year period. This would be followed by an on-going maintenance commitment.
· The proportional balance within the contract was 64% Croydon to 36% Lewisham and the contract and costs were divided accordingly.
· The performance to date had meant that many of the performance indicators had not been met and deductions had been taken from the costs due to the contractor (Skanska).
· Expected completion for the replacement and renewal of street lights in Lewisham would be summer 2015 as scheduled.
5.4 In response to questions from committee members, the following key points were raised:
· £150 million of capital investment had been covered by a grant from the Department of Transport as part of the PFI process.
· Consultation with residents had taken place regarding positioning of some lampposts but people’s suggestions and views were divergent and it had not always been possible to meet everyone’s expectations.
· Once new lighting was installed, all posts were checked by independent certifiers. Any complaints about the quality would be investigated and should be reported to the Council.
· Lampposts were of a unified design throughout Lewisham to keep costs low with the exception of heritage areas which had been identified prior to the start of the contract.
· Future savings could be delivered if required by reducing light levels or turning the lights on later in the evening and switching them off earlier in the morning.
· The PFI contract was let on standard PFI contract terms that were dependent upon the Council transferring risk to the private sector.The PFI contract sets out a programme for replacing the Council stock and the maintenance of all stock throughout the contract period which includes general maintenance of the apparatus including cleaning, painting etc. The payment for such services were by an annual unitary charge fixed at the commencement date but with elements of market testing e.g. for electricity costs. The cost benefit /savings were determined at the commencement date when the contract was negotiated
· The Council’s approach to shared services was on an opportunistic basis and always looked to provide best value for its residents.
RESOLVED: That the reports be noted.
Supporting documents: