Archived decisions

Contacts: Alison Quant, ext 5099 email: [email protected]

Trevor Wallis, tel 02392 446 466 email: [email protected]

1. Summary

1.1 The County Council's Private Finance Initiative (PFI) project will substantially improve Hampshire's streetlighting stock, thereby increasing safety and reducing crime.

1.2 The Government's invitation to submit an Outline Business Case (OBC) requires Hampshire County Council, West Sussex County Council and Southampton City Council to consider the benefits of joint working. This decision is to provide appropriate governance arrangement to achieve this.

2. Background

2.1 In February 2006 the County Council submitted an Expression of Interest to the Department for Transport (DfT) seeking PFI funding to renew and upgrade the streetlighting stock.

2.2 On 10 April 2006 the then Policy and Resources Scrutiny and Select Committee received a report confirming that there are three main advantages to a PFI procurement in terms of access to Government grant; renewal of street lighting to approved and consistent standards; and transfer of some risks to the PFI service provider.

2.3 In July 2006 the County Council was informed that the Minister would like the Authority to prepare an OBC to support the proposals. The Minister also requested the Authority to examine the opportunities for joint working with Southampton City Council and West Sussex County Council which had also submitted bids. The Minister was aware that joint working has been demonstrated to achieve efficiency savings on two other signed street lighting contracts and in other service areas.

2.4 The original date for submission of the OBC was fixed at 31 January 2007 although the DfT has subsequently indicated that it may be prepared to grant an extension of time to those authorities exploring joint working arrangements. It is not proposed to seek an extension of time at this stage until further work has been completed.

3. Joint Working Group

3.1 Since the Minister's announcement a lot of detailed work has been commissioned by the three Councils to explore the implications of joint working. This exercise is continuing but appears to demonstrate that there should be savings in procurement costs. It is less clear at this stage which eventual contract structure is likely to be the most efficient but there is sufficient encouragement to believe it is worth putting robust governance arrangements in place to progress this work.

3.2 The governance proposals suggested are intended to foster joint working but retain decision making within each individual Council. It is therefore proposed to set up an informal Joint Working Group comprising two elected Members, and officers, from each authority. The role of this Group would be to maintain dialogue at Member level and a political overview of the project.

4. Hampshire County Council Representatives

4.1 It is proposed that the Executive Members for Policy and Resources and Environment be nominated to represent the County Council on this Group.

4.2 It is further proposed that the Executive Member for Policy and Resources and/or the Executive Member for Environment, in consultation with each other, be authorised to take any decisions required to progress the submission of the OBC. Other Members will be kept informed about emerging issues of energy efficiency, sustainability, output specification, etc through the normal channels.

4.3 At officer level the joint working arrangements would be structured in accordance with best practice project management principles, with a Project Sponsor, Project Director, Project Board and Project Team.

5. Impact Assessments

5.1 No impacts are anticipated from this decision about governance arrangements to progress the County Council's streetlighting PFI projects.

Recommendations

1. That the Executive Members for Policy and Resources and Environment be nominated to represent the County Council on the informal Joint Working Group with Southampton City Council and West Sussex County Council.

2. That the Executive Member for Policy and Resources and/or the Executive Member for Environment, in consultation with each other, be authorised to take such decisions as may be required to develop the Outline Business Case and matters leading up to a decision on the Private Finance Initiative Contract.

1120Rpt/AQ/TW