Archived decisions

HAMPSHIRE COUNTY COUNCIL

Executive Decision Record

1. The decision:

a) That the Cabinet note that the Final Business Case has been submitted to the Department for Transport for approval.

b) That the contract be awarded to Tay Valley Lighting (Hampshire) Limited*, the special purpose company of Tay Valley Lighting consortium, for the design, installation, operation and maintenance of street lighting within the Hampshire County Council area for a period of 25 years, in accordance with the terms of an agreement (the Project Agreement) to be entered into between Hampshire County Council and Tay Valley Lighting (Hampshire) Limited and, in connection therewith, subject to:

(i) Department for Transport approval of the Final Business Case; and

(ii) the County Treasurer, or the Head of Finance, Environment Department, being satisfied the final price based on the prevailing swap rates on the day of financial close falls within the affordability limit of the Council of £10.014 million as detailed in paragraph 4.2. of the report.

(*Tay Valley Lighting (Hampshire) Limited is a limited company and wholly owned subsidiary of Scottish and Southern Energy Plc. The Tay Valley Lighting consortium members are Scottish and Southern Energy Plc, Southern Electric Contracting Limited, Nationwide Commercial and Lloyds TSB.)

c) That the Head of Legal Services, or any other person authorised by him as certified in Appendix 1, be authorised to give final approval to the completion of the project, including but not by way of limitation, the terms of the following:

(i) the Project Agreement;

(ii) the Sub Contractor Direct Agreement;

(iii) the Senior Lender's Direct Agreement;

(iv) an Agreement to appoint an Independent Certifier to assess the quality of the Contractor's work;

(v) appropriate Collateral Warranties from other second tier sub-contractors; and

(vi) the Custody Agreement

together with any other documentation ancillary or additional to the above necessary for the completion of the project.

d) That the County Treasurer (or in his absence the Deputy County Treasurer) as the statutory officer under section 151 of the Local Government Act 1972 be authorised to sign any necessary certificates under the Local Government (Contracts) Act 1997 in relation to this transaction.

e) That the execution of all necessary agreements be approved by affixing the Council's common seal and/or signature (in accordance with the Council Constitution) and that the Head of Legal Services (or any other officer authorised by the Head of Legal Services) take any necessary further action to complete the Project including any final amendments to the Project Documents and give effect to Members' resolutions and delegated decisions referred to in the report.

f) That following financial close and before the commencement of the contract, a final report be made to Cabinet on the project, including the financial implications over the life of the contract.

g) That a presentation on street lighting column design be made to Cabinet on 21 December 2009.

2. Reasons for the decision:

2.1. The Council is procuring the replacement of a substantial part of its street lighting stock through a joint Private Finance Initiative with West Sussex County Council and Southampton City Council.

2.2. Tay Valley Lighting has been appointed Preferred Bidder and final contract terms have been agreed which are within the criteria previously agreed by Cabinet.

2.3. The decision confirms the legal approvals required to conclude the contract and the financial commitments to the Council.

3. Other options considered and rejected:

3.1. Not to enter into the contract. This would not secure the PFI credits to enable the replacement of a substantial part of the street lighting stock and its future maintenance.

4. Conflicts of interest:

4.1. Conflicts of interest declared by the decision-maker: none.

4.2. Conflicts of interest declared by other Executive Members consulted: none.

5. Dispensation granted by the Standards Committee: none.

6. Reason(s) for the matter being dealt with if urgent: not applicable.

7. Statement from the Decision Maker: