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FDC require a new streetlight
service provider to ensure the continued safe operation and
maintenance of the Council’s streetlight assets.
 
Following a national tendered
exercise and completion of a detailed evaluation and analysis of
all tender returns, taking into consideration both price and
quality for both routine maintenance and replacement works, it is
recommended to award and appoint Woodstock Streetlighting Services
Ltd as the Council’s new streetlight service
provider.
 
The appointment shall be for an
initial period of 3 years with the option to extended for a further
two years subject to satisfactory contractor performance and
agreement by both parties.
 
It is requested that the
Portfolio Holder delegates authority to the Engineering Manager to
extend the contractual agreement for a further two years pending
satisfactory contractor performance and providing the contract
value is not estimated to exceed the CMDN threshold. Should the
contract value look to exceed the value of the CMDN within the
further two-year extension period, further governance will be
sought.
 
Decision Taken
To approve the contract award
and appointment of Woodstock Streetlighting Services Ltd as the
Council’s new streetlight service provider.
 
The appointment shall be for an
initial period of 3 years with the option to extended for a further
two years subject to satisfactory contractor performance and
agreement by both parties.
 
It is requested that the
Portfolio Holder delegates authority to the Engineering Manager to
extend the contractual agreement for a further two years pending
satisfactory contractor performance and providing the contract
value is not estimated to exceed the CMDN threshold. Should the
contract value look to exceed the value of the CMDN within the
further two-year extension period, further governance will be
sought.
 

Reasons for the decision

The appointment of a new
streetlight service provider is necessary to ensure the continued
safe operation and maintenance of the Council’s streetlight
assets and to mitigate risk of injury or harm to the public. The
contract will also be able to facilitate streetlight replacement
and upgrade works, informed either by cyclic testing or life cycle
planning, or to reduce energy and maintenance costs.
 
The District Council has
a number of streetlight assets that
require replacement or upgrade over the next 5 years. In addition,
many of the Parish Councils also have lighting assets which are end
of life and will require replacement or upgrade works
undertaking.  
 
District Councils and many
Parish or Town Councils have the power to provide lighting as Local
Lighting Authorities. The empowerment is by means of the Public
Health Act 1984 or the Parish Councils Act 1957.
 
The provision of lighting on
adopted highway falls under section 97 of the Highways Act 1980,
however there is no duty on a local lighting or highway authority
to provide lighting.
 
Where existing adopted
streetlight assets are in place it is a legal duty of the Local
Authority to suitably maintain them and ensure they are
electrically and structurally compliant.  Reference can be made to Well Managed Highways
Infrastructure Code of Practice 2016, GN22 Asset Management Toolkit
– Minor Structures, and IET Electrical Regulations BS
7671:2018+A2:2022.
 
The Council’s
constitution references under table 4 paragraph 74 -
To manage the
Council’s property and engineering assets. To undertake the
Council’s asset management functions.
 

Alternative options considered

The Council’s lighting
assets have in the past been managed through a shared service
agreement with Cambridgeshire County Council. When the shared
service agreement ended with the County Council in around 2006,
Fenland took back control of its highway related assets which
included lighting.
 
Between 2006 and 2011 Fenland
managed its streetlight assets at arm’s length through a
service level type agreement with Cambs County Council and their
term maintenance/PFI streetlight contractor. This arrangement was
based on a set fee per streetlight per year for all routine
maintenance works and services, with extra over costs requiring FDC
approval for replacement and upgrade works. A similar type of
arrangement continued directly with the County Councils PFI
contractor for a further 4 years up until 2015.
 
With an aging lighting
portfolio many assets had reached end of life, and the County
Council’s contractor was deemed to be providing poor service,
prioritising CCC work over that of FDC needs. The set fee for each
streetlight was also found to be expensive, and some services being
paid for under the agreement by FDC were not being routinely
undertaken.
 
The Council’s Engineering
Team took back responsibility for the management and maintenance of
FDC’s lighting assets in 2016. With many assets reaching end
of life and requiring replacement or upgrade, the Engineering Team
tendered a streetlight services contract which came into effect in
July 2018. The contract was for a 3-year period with the option to
extend for a further 2 years which was agreed up until July 2023.
Due to FDC internal resources and ongoing capital funded
streetlight replacement works the contract was extended further
under an exemption agreement and is scheduled to end on
3rd November 2024.
 
Prior to writing and tendering
a new streetlighting services contract, the Engineering Team
undertook a soft market testing exercise in 2023 to gauge service
provider interest and to explore other service provision options
such as full external management and service provision based on a
set fee per lighting asset per year. Both proved to be expensive
models with maintenance and management costs being 2-3 times higher
than that enjoyed over the last 5 years.
 
There isn’t a ‘do
nothing’ option. Whilst it is not mandatory for a Council to
provide streetlighting, it is mandatory to ensure that existing
streetlights are maintained in a safe condition. This includes
routine electrical and structural integrity testing.
 
With external service provision
having been explored, the status quo approach to tender a new
streetlight contract was found to represent best value for money
and has proven to be cost effective in recent years. The new
tendered contract will ensure FDC receives good value for money at
current market rates and will provide a mechanism for FDC to
complete any capital funded streetlight replacements and LED
upgrade works.
 
During the
course of the existing streetlight
contract, global events have resulted in huge increases in energy,
labour and material costs. It is therefore inevitable that costs
for the new streetlight service contract have increased and an
uplift in the region of 15% is to be expected. 
 
With experienced streetlight
professionals within the Engineering Team, the Council can ensure
they meet any mandatory and regulatory requirements for the
maintenance and management of their lighting assets. In addition,
streetlight services will continue to be offered to the seven
Parish Councils and Clarion Housing Association under SLA
agreements. The existing SLA agreements will need to be suitably
amended to reflect the new streetlight contract offer and should be
proposed on a year on year rolling agreement.