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Urgent Items – Urgent Agenda Item: 9 [a] URGENT ITEMS TENDER FOR THE MANAGEMENT OF STAINES MARKET Resolution Required Report of the Deputy Chief Executive EXECUTIVE SUMMARY How does the content of this report improve the quality of life of Borough Residents It will allow greater choice for residents as consumers and improved income to the Council Purpose of Report To ask members to agree the preferred contractor for the management of the Market Key Issues Selection of the preferred contractor Additional income to be received under the new contract Financial Implications The Council would receive 61% of all income from Staines Market on a Wednesday and Saturday. Any additional market days in Staines High Street will provide additional income for the Authority, as well as additional markets in other parts of the Borough. Corporate Priority Economic development, Sustainable Financial Future, Value for Money Officer Recommendations The Executive is asked to: 1. Agree to proceed with Irvine Trading as the contractor for the Management of Spelthorne Borough Council’s Markets and the Head of Corporate Governance be authorised to complete the necessary contractual documents. 2. Agree to adopt the Market Regulations as set out in this report. 3. To authorise the Deputy Chief Executive to negotiate and agree a management fee with the Staines Partnership to help oversee the market on behalf of the Council, in consultation with the portfolio holder for regeneration. Contact: Nigel Lynn, Deputy Chief Executive, Tel: (01784) 446300. Portfolio Holder: Councillor Colin Davis MAIN REPORT 1. 1.1 BACKGROUND The closing date for the market tender was 11 June 2008. The bids received did not provide good value for money for the Council. In accepting any of the bids, the Council would have received less money than it currently does for the operation of Staines Market. .The options in December 2008 were to accept a poor value bid, take the Market operation in-house, or to retender. None of these approaches were considered appropriate and the report for the December 2008 Executive meeting was withdrawn. Following advice from Council’s legal section, all previous tenderers were informed that the bids were financially disappointing and the Council invited the tenderers to submit their best and final offers. Further time was allowed for the submission of revised bids, from 9 - 16 December 2008. . The outcome of the best and final offers is shown as (Appendix A). KEY ISSUES The current situation is that Irvine Trading represents the most advantageous bid for the Council. Irvine Trading were subsequently interviewed on 24 December 2008 and confirmed their bid and their approach. Officers would, therefore, recommend them as the preferred contractor. OPTIONS ANALYSIS To award the contract to Irvine Trading. Alternatively, to retender the market and renegotiate with the current contractor a year’s extension to the current un-contracted arrangements. This is likely to result in a lower income than that budgeted and may result in lower standard. PROPOSALS It is proposed that he Council enters into a contract with Irvine Trading for the management of the Council’s markets for a period of 5 years with effect from February 2009, on the basis that this is the most economically advantageous to the Council. References have been confirmed, and do not suggest any reason to not appoint this contractor. It is further proposed that negotiations/discussion takes place with the Staines Partnership with a view to them assisting with the day to day management of the market in Staines, for an agreed fee. BENEFITS AND SUSTAINABILITY Retaining the market in Staines High Street will continue to attract people into the area and this may well increase if extra market days are held and/or with specialist markets in other towns in the future. FINANCIAL IMPLICATIONS The income to the Council will be 61% of the total market income based on 4555 stalls, this will give an income to the Council of between £120,000 and £150,000 as compared to about £90,000 now. 1.2 1.3 2. 2.1 2.2 3. 3.1 3.2 4. 4.1 4.2 5. 5.1 6. 6.1 6.2 If an appropriate management fee were agreed with the Staines Partnership, on an annual basis, the surplus income would still be in excess of the current arrangement and would meet budget targets for 2009/10 LEGAL IMPLICATIONS / OTHER CONSIDERATIONS In recommending the amended bids at a best and final offer stage account has been taken of the timescale for a new tender, the potential loss of income to the Council and the need to demonstrate value for money. There is also a risk in continuing the present arrangements without a proper contractual framework. RISKS AND HOW THEY WILL BE MITIGATED There are always risks associated with employing a new contractor but these have been mitigated as far as is possible within the tender process and the contract will be closely monitored in the first few weeks of operation to try and ensure success. If there were to be problems there is always the option to bring the service in house by terminating the contract. The market regulations (Appendix B) will help to ensure the quality and safety of the market is retained. TIMETABLE FOR IMPLEMENTATION Officers have already informed Irvin Trading that they have been successful, subject to Executive approval, and they have commenced discussions to ensure a smooth changeover on 01 February 2009, should the Executive support the recommendation. 7. 7.1 8. 8.1 8.2 8.3 9. 9.1 Report Author: Steve Connor, Head of Street-Scene, Tel: (01784) 446412 Background Papers: There are none.
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